As you may know, this past June, the FHA introduced a new and improved refinance program called The Streamline Refinance. The FHA Streamline Refinance is a mortgage program, reserved specifically for homeowners with an existing FHA or VA mortgage. Homeowners who have mortgages via Freddie or Fannie Mae don’t qualify for this program.
The FHA Streamline Refinance is one of the best-valued mortgage products available, and it couldn’t arrive at a better time as mortgage rates are low. Perhaps the biggest benefit of the FHA Streamline Refinance program is that no appraisal is needed. No matter what your home is worth today, your home’s current value will be determined by your original purchase price.
Are You Eligible?
Another positive aspect of the FHA Streamline Refinance is that it’s easy to qualify for. According to FHA Streamline Refinance guidelines, employment, income, and credit score verification are not required. In other words, you can be (1) unemployed (2) without income (3) have a bad credit rating, and (4) have zero home equity – yet you can still be approved. That being said, the FHA Streamline Refinance does enforce a few minimum standards for applicants.