Streamline Refinance

FHA and VA Streamline Refinance

Homeowners with FHA and VA mortgages can refinance their loans without credit checks, appraisals, qualifying ratios, or income verification. Streamline mortgage refinancing can save you a lot of money because there is very little to no cost for the transaction. The new mortgage must lower your monthly payment and the catch is that you cannot take cash back at closing. You must also not have any late mortgage payments for the previous 12 months.

One example where FHA and VA mortgages saved many homeowners from a mortgage nightmare was the refinancing boom of the 1990s. Many homeowners used Adjustable Rate Mortgages to purchase homes in the 80s, and when the recession hit the value of their homes dropped as much as 30%. The drop in property value prevented many homeowners from refinancing because they were upside down, owing more than their homes were worth. Homeowners with FHA and VA mortgages did not have this problem because they qualified for streamline mortgage refinancing.

Streamline mortgage refinancing will allow you to convert your Adjustable Rate Mortgage to a fixed interest rate, even if the resulting payment will be higher than what you are currently paying. If you are concerned that rising mortgage interest rates will make your mortgage payment unmanageable, streamline mortgage refinancing will give you cost-effective peace of mind. Homeowners with tight budgets and a low tolerance for financial risk should consider streamline mortgage refinancing to avoid payment shock.

Lower monthly principal and interest payments
No verification of income
Very little funds to close
Option to refinance without an appraisal*
Subordinate financing may remain in place
Eligible properties: Owner occupied 1-4 unit properties, condos, PUDs – excludes manufactured homes
Eligible transactions: ARM to ARM, ARM to fixed, fixed to ARM, fixed to fixed
Loan amount may not exceed original principal balance. Programs available only to qualified borrowers.