FHA Streamline Refinance

FHA Streamline Refinance


What is the FHA Streamline Program?

FHA Streamline refinances enable California homeowners to refinance their current FHA home loans with reduced paperwork and underwriting to take advantage of lower interest rates so that borrowers can save more money, lower their monthly housing payments and in some cases change from an adjustable rate mortgage to a fixed rate mortgage loan or even shorten the term of their loans.


This means less hassle, less paper, faster processing and potentially huge savings over the life of your loan.


There are many advantages for California property owners, including the availability of ‘no-cost’ refinances and even those who didn’t qualify before might qualify now.


What Are the New Changes That Make FHA Streamline Loans Even Better?

These home loans have been available for years. Unfortunately, recent increases to mortgage insurance (MI) premiums often wiped out the savings for those refinancing.


At least until now…

New changes to the FHA Streamline program apply to those whose FHA-insured home loans were endorsed on or before May 31st, 2009.

In an effort to assist more California homeowners with FHA mortgages to refinance at today’s incredibly interest rates FHA mortgage insurance rates were reduced, effective June 11th, 2012.

This new change alone means thousands of dollars in savings for most borrowers.

According to the FHA, based upon a $200,000 30 year mortgage with a loan-to-value higher than 95%, those who took out loans on or before May 31st, 2009, will now realize the following savings:


Q: Do I have to refinance with my current lender to take advantage of this program?

No. You may use any approved FHA lender to complete a FHA streamlined refinance on your California property.


Q: Am I still eligible for a FHA streamline refinance if I owe more on my mortgage than my home is worth?

Yes. No appraisals are required, so the current value of your home is not factored in for approval.


Q: Can I still qualify for a FHA Streamline refinance if I have been late on mortgage payments?

You need to be current on your mortgage payments at closing and have a good record of payments for the last 12 months.


Q: Can a FHA Streamline refinance stop foreclosure on my California Home?

No. You must be current on your home loan in order to refinance with this program.


Q: Are vacation homes or investment properties eligible for FHA streamline loans?

According to the FHA, primary residences, second homes and investment properties in California qualify for streamlined FHA refinancing. HOWEVER, most lenders will NOT fund second homes or investment properties. Please give us a call at 707-763-6290 to discuss other options for your second home or investment property.


Q: Can I remove an ex-spouse or add a new one when I refinance?

Yes you can do both.


Q: What if my condominium lost FHA approval since I took out my original loan?

Providing no appraisal is used your property is still eligible to be refinanced.


Q: How can I qualify for a ‘no-cost’ FHA streamline loan?

You either have the choice of paying any applicable closing costs out of pocket so that your loan balance is not increased or paying a slightly higher interest rate and having the lender pay for your closing costs.


Q: Can I qualify for a FHA streamline refinance if I lost my job or my income has gone down?

FHA does not require any employment or income verification or the calculation of debt-to-income (DTI) ratios. However, lenders often overlay their own additional criteria meaning 95% of these loans will require some form of income verification to show that you can afford the new payments. Give us a call at 707-763-6290 to discuss your specific situation and options available.


Q: What is the minimum credit score for a FHA streamline refinance in California?

Again, FHA itself has no credit score requirement and does not even require a credit report is pulled.

However, individual lenders have their own guidelines. Many require a minimum credit score of 640, though others will accept scores of 620 or even less. If you have issues with your credit, don’t give up.

Give us a call at 707-763-6290 so we can discuss your current credit situation.


Q: Will I have to make any repairs to my property in order to get a loan?

No. Unless an appraisal is used and your home has lead based paint, no repairs are required to be made.


Q: What is MI?

MI stands for mortgage insurance.

Mortgage insurance is required on FHA loans with an 80% or higher loan-to-value to protect the lender from losses.

MI rates on FHA loans were reduced on June 11th 2012 to help more California borrowers qualify for streamlined refinances and lower their housing payments providing their loans were endorsed on or before May 31st, 2009.


Q: What if I have already refinanced my FHA loan?

The FHA requires that borrowers make 6 mortgage payments on their current FHA-insured loan, and that 210 days pass from the most recent closing date, in order to be eligible for a Streamline Refinance.


Q: Can I refinance from a fixed rate home loan to an ARM?

Yes. California home owners can either refinance from an adjustable rate mortgage to a fixed rate or even from a fixed to an ARM.


Q: I have a question. How do I contact you?

Feel free to call us at 707-763-6290 or Click Here to submit a question through our website.


Thinking of Purchasing a Home?

You can start the process by visiting our Purchase Assistant or by testing out different financial scenarios on one of our online calculators.


Considering a Refinance?

There are many ways to go when you refinance your home. Start by narrowing down your options based on your individual needs on our Refinance Advisor page.


Ready to start the home mortgage process today?

Complete a  secure online loan application or call me for a friendly chat and free mortgage consultation today at 707-763-6290


Questions about your California mortgage loan?

Or your California mortgage rates? We always strive to bring you the lowest mortgage rates in California. We always strive to bring you the lowest mortgage rates in California. Feel free to call us at (707) 763-6290, Click here to submit a question through our website or email to js@emortgages.com