Selecting a home refinance option can feel like a very daunting task to some homeowners but for those with a FHA mortgage, the streamline loan choice offers refinancers a quick, simple and virtually painless refinance solution. The first step to creating lower mortgage payments, receiving better interest rates and having a quick refinance is to understand what an FHA streamline loan is, how it works and how to qualify to take advantage of its benefits.
The FHA Streamline Refinance Loan
Government supported FHA home loans are easy to refinance with a streamline option. Much like the title of this loan implies, this refinancing choice has a streamlined process that offers quick turnaround times, low interest rates and lowered monthly payments. Quick refinancing times are accomplished through the streamlined method that requires no home appraisal and therefore less paperwork for lenders to sift through when attempting to get all home documents together for speedy refinancing. This can save in cost, time and stress for FHA mortgage holders/homeowners and lenders.
Benefitting Homeowners with the FHA Streamline Loan
Homeowners across the nation have taken advantage of the FHA streamline loan refinance. Almost all of them reported having secured better home mortgage interest rates and lower monthly payments as well as getting the entire refinancing process finished in a quick, pain free and timely manner. There is less paperwork to fill out, better interest rates, and often times more money in homeowner’s pockets each month as a result of this type of refinancing loan, making it very beneficial to the American homeowner.
How to Qualify for This FHA Loan
A streamline home loan through the FHA is different than a conventional refinance in many ways. The first being that it has a quick turnaround process that allows homeowner to refinance quickly and as efficiently as possible. It also differs from traditional loans because the requirements are less extensive and more forgiving towards homeowners wishing to qualify and receive the benefits from this refinancing choice.
Some requirements for a streamline home refinancing loan are:
• Mortgage payments for the year before a refinance must have been on time and all payments must be current within the past year.
• The amount of the refinance cannot be more than the current amount stated on the mortgage.
• The property to be refinanced is required to have been owned for a minimum of six months prior to a refinancing.
• The home to be refinanced must have the refinancer as the main resident for this loan to apply.
• A FHA Streamline loan can only be used in the case of securing lesser monthly payments or better interest rates. Visit our page on cash-out refinances for options which provide homeowners with more choices.
• Homeowners are required to use an FHA approved lender during a streamline refinancing.
• All closing costs should be paid by the homeowner upfront.
The Right Time to Refinance
Refinancing a home can generally take a long time, which deters most homeowners from entering the refinance process. However, through a FHA streamline loan, those looking to refinance can know they will be able to complete the refinancing process in almost half the time of a conventional refinance. This can provide better opportunities for homeowners and if the time is right, some of the lowest interest rates available. The right time to refinance with this type of loan is anytime following the first six months of living in an FHA mortgaged home and when a homeowner feels they are ready to have a better interest rate and more money each month due to a lower mortgage payment. If the time is right, feel free to contact us to get in contact with an experienced loan officer today.