The Traditional and Original FHA Streamline consist of the following:
First off FHA Streamlines have been around for years.
To start your current mortgage must be a FHA insured mortgage.
The intent is to lower the monthly principal and interest payments (P&I).
The Streamline must decrease P&I by the lesser of $50 or 10%.
A streamline is considered a Rate and Term refinance, thus paying off debt or taking cash out is not an option ($500 max cash back).
The intent is to secure a lower rate without increasing the borrowers current balance.
Credit guidelines are what make the FHA Streamline unique.
The credit profile is based on mortgage only.
Although many lenders require a minimum 600 mid score.
The benefit of the mortgage only is the fact that liabilities are not calculated into a debt to income (DTI) ratio.
Underwriting is only concerned with the performance of the FHA loan.
A delinquent mortgage is generally not eligible for streamline refinancing until the loan is brought current.
One of the Standout benefits of a Streamline is that Subordinate financing (2nd mortgage) may remain in place, regardless of the total loans against the property, with or without appraisals.
What this means is that for homeowners in declining markets and who are upside down on their mortgage, they can still qualify for today's historic Mortgage Rates.
- NO Appraisal
- NO FICO Score
- NO Income Verification
- NO Asset Verification
First off FHA Streamlines have been around for years.
To start your current mortgage must be a FHA insured mortgage.
The intent is to lower the monthly principal and interest payments (P&I).
The Streamline must decrease P&I by the lesser of $50 or 10%.
A streamline is considered a Rate and Term refinance, thus paying off debt or taking cash out is not an option ($500 max cash back).
The intent is to secure a lower rate without increasing the borrowers current balance.
Credit guidelines are what make the FHA Streamline unique.
The credit profile is based on mortgage only.
Although many lenders require a minimum 600 mid score.
The benefit of the mortgage only is the fact that liabilities are not calculated into a debt to income (DTI) ratio.
Underwriting is only concerned with the performance of the FHA loan.
A delinquent mortgage is generally not eligible for streamline refinancing until the loan is brought current.
One of the Standout benefits of a Streamline is that Subordinate financing (2nd mortgage) may remain in place, regardless of the total loans against the property, with or without appraisals.
What this means is that for homeowners in declining markets and who are upside down on their mortgage, they can still qualify for today's historic Mortgage Rates.
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