Benefits of FHA Streamline Refinance
- May not require appraisal; in that case, you would use the original purchase price as current value of the home
- No penalty for being underwater
- May not require verification of employment, income or credit
- Requires three month of perfect payment history on all accounts (including credit cards)
- Must have had at least six months of mortgage payments
- Must be a net tangible benefit for the refinance like lowering the rate or monthly payments, terms (ex: go from 30-year to 15-year mortgage) or type (ex: go from an adjustable rate mortgage to a fixed rate mortgage)
- Can’t do a cash-out refinance
- Can’t include closing costs on the loan (must be paid at closing)
