Arizona  FHA Streamline Refinance.info 

Who is eligible for an FHA Streamline Refinance Loan?

 

As a rule of thumb, almost all active FHA mortgages are eligible for a Streamline Refinance.
 

You may be eligible for an FHA Streamline Refinance if these statements describe you:

• A credit score of at least 580.

• At least 6 payment made on the current loan; no more than 1 payment 30 days late in the past year, and none in the past 6 months.

• Your current mortgage must be FHA-insured.

• You cannot have refinanced within the past 210 days.

• You must receive a lower payment by at least 5% lower than your present payment, or reduce your loan term (years to pay) or be converting from an adjustable rate mortgage (ARM) to a fixed rate mortgage

 

What is the Payment Benefit Requirement?

 

The purpose of an interest rate reduction mortgage is to reduce your liability. You must receive a tangible borrower benefit and connot recieve cash out oe consilodate debt with a stramlined mortgage. You can still do a standard FHA Refinance and receive cash out or debt consolidation. A standard refinance will require an appraisal, income documentation, asset documentation and a credit review.

 

The table below shows the exact benefit requirements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What if I don’t meet the Payment Benefit Requirement?

 

If you don’t meet the 5% benefit requirement, you can still refinance from an FHA loan to another FHA loan or a conventional loan. You may still be eligible for an Up Front Mortgage Insurance Premium refund (see here), you will have to get the house appraised again. And the new Loan-to-Value ratio will be calculated based on the new appraised value, and that ratio cannot exceed 97.75%..