FHA Streamline Refinance mortgage programs can be a great asset to todays homeowners that want to lower payments or get out of an adjustable rate mortgage. FHA loans have always been a great option with very low interest rates. Streamline refinances can only be used on a current FHA mortgage. They can be done with or without an appraisal, and with or without credit qualification. The streamline refinance does not allow for any cash back to the borrower. This loan can be used to refinance an FHA loan, VA loan, or Conventional loan. This loan has many advantages: Max loan to value is 75% for conventional loans but FHA loans allow 85% plus a portion of the closing costs.

Streamline Refinance "Without" An Appraisal: The new loan amount cannot be more than the original loan amount, OR more than the current principle balance plus closing cost. ... Which ever is less. This only applies to owner occupied as non-owner occupied borrowers can only refinance the existing balance do not have the option of rolling in the closing costs. The only credit verification required is a verification of mortgage payments. This can be done with 12 copies of canceled checks, front and back. IF canceled checks are available, no in-file report is required unless the underwriter prefers that method to verify mortgage payments.

 IF the property was purchased less than a year ago and is not currently an FHA loan, the loan amount will be the appraised value plus closing cost, OR the original sales price plus closing cost. Which ever is less! If the home was purchased more than a year ago and does not have FHA financing, the loan amount should be calculated as the "streamline refinance with an appraisal" above.

Streamline Refinance - "Credit Qualifying": The loan amount is calculated based on the previous formulas and qualifying requires full employment verification, credit report, and debt to income ratio compliance. Typically these loans are used when the new mortgage payment will be higher, deletion of a borrower on new mortgage, or in assumptions involving due-on-sale clauses.

Streamline Refinance "With" An Appraisal: An FHA streamline refinance with an appraisal allows the borrower to finance in the closing costs, discount points, and prepaids provided it all fits within the loan to value limits. The new loan amount may be the current principle plus closing costs, discount points and prepaids, OR, the appraised value x 97.75% (97.65%, or 97.15%, high or low cost state). Which ever is less!