Locating A Bank For An FHA Streamline Refinance


Federal Housing Administration (FHA) mortgage rates are at historic lows, providing an opportunity for many borrowers to obtain mortgages with significant advantages. If you have a loan from the FHA that was endorsed prior to June 1, 2009, an FHA streamlined refinance could significantly reduce your mortgage rates and insurance fees. The first step to see if you qualify for a lower rate or reduced fees is to contact your FHA mortgage lender. Many only offer FHA streamlined refinances to existing customers with loans in good standing. But if your current lender doesn’t offer this type of mortgage, don’t despair—other lenders may be willing to work with you. Without any obligation to reveal your personal information, such as a Social Security number or bank statement, you can use online resources to find lenders who offer this option to borrowers outside of their existing customer base.

SEE ALSO: FHA Attempting To Aid Distressed Homeowners

How To Qualify

If your existing lender offers this program, you may experience a quick approval process, as long as you can meet a few basic guidelines:
  • You must already have an FHA loan. Conventional loans, or any other non-FHA mortgage won’t qualify.
  • Your existing mortgage must be in good standing. This means you’re not facing foreclosure, or delinquent on any payments.
  • Your refinance must result in lower monthly payments.
  • The home in question must be your principal residence.
If you apply for an FHA streamlined refinance through another lender, the regulations may be a little stricter. In addition to the above list, you’ll also need:
  • Your FHA case number, as proof of your existing FHA mortgage. You can find this on your mortgage documents.
  • decent credit score. Anything under 620 could make it difficult for you to qualify. Check with the lender to find out how flexible they are on the numbers.
  • You must meet the lender’s other requirements. Some lenders add additional rules when they’re dealing with new customers.
FHA streamlined refinances do not have a cash-out option. If you want to tap into additional home equity for cash purposes, this is not the right type of loan for you. Whether you approach your existing lender or a new one, taking advantage of today’s historic FHA mortgage rates is simply good financial sense. If you can qualify for this type of refinance, there’s no better time than the present to modify your loan.

SEE ALSO: Recast Your Mortgage For A Lower Payment

Date of original publication:
Updated on: November 10, 2015

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