FHA Streamline Refinance 2019 – Effective on or after April 18, 2011, FHA no longer requires employment and income verification on streamline refinance loans.
- No minimum credit score to qualify
- No employment verification
- No credit report required
- No appraisal required
First of all you will be eligible for a streamline refinance without credit qualifying if you have owned the property for at least six months. Individuals may be deleted from the title on a streamline refinance if the remaining owner-occupant can demonstrate that he/she has made the mortgage payments during this time.
In addition to qualify for a streamline refinance there must be a net tangible benefit to the homeowner. Net tangible benefit is defined as a 5% reduction to the principal and interest (P&I) of the mortgage payment plus the annual mortgage insurance premium (MIP) or refinancing from an Adjustable Rate Mortgage (ARM) to a fixed rate mortgage.
- a borrower must have made at least six payments on the FHA-insured
- mortgage being refinanced at least six full months must have passed since the first payment due date of the refinanced mortgage
- at least 210 days must have passed from the closing date of the mortgage being refinanced
Effective with case numbers assigned on or after April 18, 2011, FHA no longer requires lenders to certify employment and income on streamline refinance transactions. In conclusion FHA refinances are designed to lower the monthly principal and interest payments on a current FHA-insured mortgage. The new loan must involve no cash back to the borrower, except for minor adjustments at closing, not to exceed $500.