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Rates subject to change without notice

Most Florida Counties FHA Loan Limit for 2024 is $498,257 | Monroe County FHA Loan Limits are higher at $929,200
The Federal Housing Administration sets FHA loan limits on an annual basis.
Check to See your Florida FHA Loan Limit here

FHA Streamline Refinance

An FHA Streamline Refinance is a refinance option specifically for borrowers who currently have an FHA loan. This type of refinance can simplify the loan refinancing process, making it faster and easier to secure a new loan with lower monthly payments. It also has some relaxed requirements compared to a traditional refinance, such as no income or employment verification. However, it is important to note that an FHA Streamline Refinance does not allow borrowers to take out any cash from the equity in their home and the new loan must have a lower interest rate or lower monthly payments than the original loan. Additionally, to be eligible for an FHA Streamline Refinance, the borrower must have a record of on-time mortgage payments and the loan must have been endorsed by FHA.

These are the two main types of FHA Streamline Refinance loans, and the type that you qualify for depends on your specific circumstances.

The credit-qualifying streamline refinance is typically more thorough and requires more documentation, but it may be necessary if you need to remove a borrower from the mortgage or if you have a less-than-perfect credit history.

The non-credit qualifying streamline refinance is quicker and easier, but it may not be suitable for everyone, especially if you need to verify your income or if you have a significant change in your financial situation. It’s important to work with an experienced loan officer to determine which type of FHA Streamline Refinance loan is best for your needs and to ensure that you meet all of the eligibility requirements.

Appraisal

Unlike a traditional refinance, where a home appraisal is usually required to determine the current value of the home, an FHA Streamline Refinance does not typically require an appraisal. The loan amount is determined by the borrower’s existing FHA loan balance and the new interest rate, rather than the current value of the home. This helps to simplify the refinance process and reduces the time and costs associated with getting an appraisal. However, it is important to note that there are some situations where an appraisal may be required, such as if the lender needs to verify the property’s value for insurance purposes or if the borrower is refinancing a non-FHA loan into an FHA loan.

FHA Streamline Refinance Requirements

Eligible Loan: You must have an existing FHA loan that is current and in good standing.
On-Time Payments: You must have a record of making on-time mortgage payments for the last 12 months.
Loan Endorsement: Your current FHA loan must have been endorsed by the FHA.
Net Tangible Benefit: The new loan must result in a net tangible benefit, meaning it must either reduce your monthly payments or result in a lower interest rate.
No Cash Out: An FHA Streamline Refinance cannot be used to take out cash from the equity in your home.
No Credit Check: Generally, a credit check is not required for an FHA Streamline Refinance, but the we may still check your credit as part of the loan application process.
No Income Verification: An FHA Streamline Refinance does not typically require income verification, but the lender may still ask for income documentation as part of the loan application process.

Pros and Cons of the FHA Streamline Refinance program:

Pros:

Simplified Process: The FHA Streamline Refinance process is simpler and quicker than a traditional refinance, which can save you time and money.
Lower Monthly Payments: By securing a lower interest rate, an FHA Streamline Refinance can help you reduce your monthly mortgage payments.
No Appraisal Required: An FHA Streamline Refinance typically does not require a home appraisal, which can save you time and money.
No Income Verification: An FHA Streamline Refinance does not typically require income verification, making the loan application process faster and easier.

Cons:

Limited Eligibility: Not all borrowers with an FHA loan will be eligible for an FHA Streamline Refinance, so it’s important to check your eligibility before applying.
No Cash Out: An FHA Streamline Refinance cannot be used to take out cash from the equity in your home, so it may not be suitable if you need to access your home’s equity.
Higher Upfront Costs: Although the monthly payments may be lower, the upfront costs of an FHA Streamline Refinance, such as closing costs and loan origination fees, can be higher than a traditional refinance.
Limited Loan Amount: The loan amount for an FHA Streamline Refinance is limited to the existing FHA loan balance, so it may not be suitable if you need to refinance a larger loan amount.

It’s important to consider both the pros and cons of the FHA Streamline Refinance program to determine if it is the best option for your financial needs and goals. When your ready to get started on your FHA Streamline Refinance, we are FHA Mortgage Experts to guide you through the entire process, the first step is getting you pre-approved. You can apply online or you prefer to speak with one of our FHA Mortgage Experts, we would be happy to speak with you. Call or text us at 407-955-4575.

FHA Streamline Refinance Experts

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FHA Streamline Refinance