- 1). Call several mortgage lenders -- making sure that they are licensed to originate FHA-insured loans -- and ask them their rates and fees for a streamlined FHA refinance. You can work with any lender licensed to do business both with the FHA and in your state. You are not required to refinance your home loan with your current lender.
- 2). Determine that no concerns will prevent you from closing an FHA streamlined refinancing. For example, you can only close such a refinancing if the loan you want to refinance is already an FHA-backed mortgage loan. You must also be current on your monthly mortgage payments, and the refinance must result in a lowering of your monthly interest and principal payments. Finally, you can't take out any cash in an FHA streamlined refinance.
- 3). Make copies of the financial paperwork that shows that you have a high enough gross monthly income to pay for your new mortgage payments. These papers can include your most recent federal income tax returns, bank account statements and last two work paycheck stubs. Send these copies to your lender. Most lenders want your monthly debt obligations -- including your new mortgage payments -- to total no more than 36 percent of your gross monthly income.
- 4). Give your lender permission to run your credit score. This three-digit number -- which ranges from the high-300s to the mid-800s on the FICO credit-scoring system -- tells lenders how well you've paid your bills in the past. To qualify for an FHA-insured loan, you'll need a credit score of at least 500. Lenders reserve their lowest interest rates for those borrowers whose credit scores are 740 or higher.
- 5). Sign any closing documents required by your lender if it approves your request for an FHA streamline refinance. You'll also have to pay your closing costs at this time. You can do this in one lump sum or by rolling them into your monthly loan payments.
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