FHA Loans
FHA loans have been helping people since 1934. The Federal Housing Administration (FHA) – which is part of HUD – insures these loans, so your lender can offer you a better deal. FHA allows a homeowner to refinance their home with as much as a 90% loan to value with a credit score as low as 580. FHA offers both fixed and adjustable rate loans.
What is an FHA Streamline Refinance Loan?
An FHA Streamline Refinance is a simplified refinancing option for homeowners with existing FHA loans. It's designed to help you reduce your monthly mortgage payment or switch from an adjustable-rate to a fixed-rate mortgage with less paperwork and faster processing than traditional refinancing.
Key Benefits
- No appraisal required in most cases
- Minimal documentation – no income verification or credit check in many situations
- Lower closing costs compared to traditional refinancing
- Faster approval process – often completed in weeks
- Reduced monthly payments through lower interest rates
Who Qualifies?
To be eligible for an FHA Streamline Refinance, you must currently have an FHA-insured mortgage, be current on your payments with no late payments in the past 12 months, and the refinance must provide a tangible benefit (such as lowering your payment or switching to a more stable loan type).
Why Choose an FHA Streamline?
If you're looking to take advantage of lower interest rates without the extensive documentation and lengthy process of a traditional refinance, an FHA Streamline loan could be your fastest path to savings. It's specifically designed to make refinancing as simple as possible for responsible FHA borrowers.
FHA Benefits
Easier to Qualify
Government backing makes approval more likely
Low Down Payment
Only 3.5% down required, gifts accepted
Poor Credit OK
Lower credit scores can still qualify
Better Rates
Government backing provides competitive rates
FHA Loan Common Questions
FHA stands for the Federal Housing Administration. It was created in 1934 to help Americans get into homes.
A FHA insured mortgage is easy to qualify for, can be obtained with less than perfect credit, costs less and requires a smaller down-payment. Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. The decision to refinance can be difficult, since there are several reasons to refinance. However, if you are looking to save money, try this calculation: Calculate the total cost of the refinance Calculate the monthly savingsDivide the total cost of the refinance (#1) by the monthly savings (#2). This is the "break even" time. If you own the house longer than this, you will save money by refinancing. Since refinancing is a complex topic, consult a mortgage professional.
The recommended debt-to-income ratio for a FHA loan is 30%.
Yes, however be sure to check the pre-payment section of your contract before signing.
No, not all FHA loans are automatically assumable; while FHA loans are typically assumable, the buyer must still qualify with the lender, and the specific mortgage documents and lender approval determine if an assumption is possible. FHA loans are generally free from due-on-sale clauses, a key factor allowing for assumption.
Yes, in fact FHA mortgages often require you to carry mortgage insurance for longer than most conventional loans.
Yes, however you might be required to fix certain problems in the home before you can get the full loan. Speak with us today for details on this.
Looking for an FHA Loan?
FHA insured mortgages are some of the best kinds of mortgages available because they can help more people into the home buying market. Let our FHA loan specialists help you understand any new changes to the program and create a customized solution that works best for you and your family.