FHA Streamline Refinance: No Appraisal Required?

The most popular FHA refinance program is the FHA streamline program. When you participate in the streamline program, you don’t have to fully qualify for a new loan and can get a lower interest rate and payment each month.

FHA Streamline: No Appraisal Required

The main criteria for participating in the FHA streamline mortgage refinance program are that you must live in the property and that you can’t have more than two, thirty day late payments on your mortgage in the last 12 months.

Assuming that you live in your house and that you have less than 2 thirty day late payments in the last 12 months you are eligible to participate in the FHA streamline program and will probably need an appraisal unless you can qualify for the FHA streamline refinance without appraisal.

FHA Streamline Program: No Appraisal Required

The only way that you will need an appraisal when you go through the FHA streamline refiance program is if your new total loan amount is higher than your original loan amount by 1.5% of your loan amount. If your original balance was 0,000 then FHA will require an appraisal when you go through the streamline program if your new total loan amount is greater than 3,000.

Are Closing Costs Required For The FHA Streamline Program

There are costs involved with the FHA streamline program , but they can either be rolled into your loan or paid by your lender who will then give you a higher interest rate. This is also known as the FHA streamline refinance with no out of pocket closing costs or the FHA streamline program with no closing costs.

Most often, when a person participates in the FHA streamline program, they will still be in a FHA 30 year fixed rate loan with an interest rate that is significantly lower than what they had before.A reduced interest rate can easily translate into hundreds of dollars in savings each month and thousands or tens of thousands of dollars in savings over the life of the loan. Obviously, the FHA streamline program is popular only when interest rates have fallen to the point where it makes sense for people to streamline.