FHA
STREAMLINE REFINANCE
08/27/2025
> Lower Rate
> Lower Payment
> Quick and Simple
Rate Reduction Streamline
5.375% (6.1% APR)
FHA 30-Year Fixed Rate
*Scenario: $482,500 680 FICO 96.5%LTV SFR Primary CA
FHA Streamline
- No Income Needed
- No Employment Needed
- No Appraisal Needed
- Lower Credit Scores Allowed
FHA Purchase / Cash-Out
- Income and Employment Requirement
- Appraisal Requirement
- More Stringent
Lower Rate and Payment
No Income
No Appraisal
Faster Closing Times
Lower Rate and Payment
FHA allows you to lower your rate: If current FHA interest rates are lower than yours, you can often secure a more favorable rate, leading to lower monthly payments.
No Income
No Income or Employment Verification (often): In many cases, especially for “non-credit qualifying” streamlines, lenders are not required to verify your income or employment. This is a huge benefit if your financial situation has changed since you originally got your FHA loan.
No Appraisal
No Appraisal Required (usually): This is one of the biggest advantages. The FHA often allows you to use your original purchase price as your home’s value, even if your home’s current market value has decreased (i.e., you’re “underwater”). This saves you the cost and time of an appraisal and can make refinancing possible for those with less equity.
Faster Closing Times
Due to the reduced documentation and appraisal requirements, FHA Streamline refinances can often close much quicker, sometimes in as little as two weeks.
Refinancing made simple!
FREQUENTLY ASKED QUESTIONS
Am I eligible for an FHA Streamline Refinance?
- Must currently have an FHA-insured mortgage.
- Must provide a financial benefit: lower rate, shorter term, or going from adjustable to a fixed term.
- Have made most current six on-time payments.
- 210 days have passed from last closed loan.
- Only one 30day late in the past 12 months.
Can I get cash-out?
The program does not allow any cash-out. However, FHA may allow you to include prepaid interest and current negative escrow account in the new loan amount.
Can I skip 1- 2 mortgage payments?
FHA may allow you to include up to two months worth of interests which enables you to not have a mortgage payment up to two months.
Are there any out-of-pocket costs?
It depends. FHA only allows certain amounts to be included into the new loan amount. You’ll have to talk to your FHA loan consultant of your options. Lender Credits maybe applied to cover closing costs.