|Streamline Refinancing Loans|
Streamline Refinancing for FHA Mortgages
FHA has permitted streamline refinances on insured mortgages since the
early 1980's. The streamline refers only to the amount of documentation
and underwriting that needs to be performed by the mortgage company, and
does not mean that there are no costs involved in the transaction.
Companies may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed what is currently owed, i.e., closing costs may not be added to the new mortgage with those costs either paid in cash or through the premium rate as described above. Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal and, thus, closing costs may not be included in the new mortgage amount.
Other FHA Topics• Bankruptcy and Foreclosure
• FHA Bridal Registry Account
• FHA Mortgage Insurance
• HUD Reverse Mortgage Program
• Refunds on FHA Loans
• Single Family Rehab Mortgage Program
• Streamline Refinancing for FHA Mortgages
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