FHA streamline refinance faq
FHA Streamline Refinances are designed to lower the monthly principal and interest payments on current FHA-insured mortgages and must involve no cash back to the borrower, except for minor adjustments at closing not to exceed $500. 

Most FHA Streamline Refinances are “non-credit qualifying” and done without an appraisal. 

Verification of Mortgage:  A credit report is not required on non-credit qualifying FHA streamline refinances.  Either a mortgage rating report or a verification of mortgage must be obtained. 

When a streamline refinance requires credit qualifying: 
- When a change in the mortgage term will result in an increase in the monthly principal and interest payment by more than 20 percent. (This is only permitted for Owner-Occupied principal residences.)        
- When deletion of a borrower or borrowers will trigger a due-on-sale clause. (Conditional Commitment issued prior to December 15, 1989).        
- Following an assumption of a mortgage that does not contain restrictions (due-on-sale clause) limiting assumptions only to creditworthy borrowers and the assumption occurred less than six months previously (loan Applications signed on or after December 15, 1989).        
- Following an assumption of a mortgage where the transferability restriction (due-on-sale clause) was not triggered (Loan Applications signed on or after December 15, 1989), such as in a divorce where a property transfer results from the divorce decree or by devise or descent and the assumption occurred less than six months previously.        
- ARM to Fixed Rate: When there are mortgage lates within the most recent 12 months and the interest/payment remains level or is increasing, credit underwriting is required.
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Tolerance for mortgage lates
Tolerance for mortgage lates varies by product and individual loan characteristics. Generally, a Fixed Rate to Fixed Rate transaction in which the payment goes down substantially ($100 or more) can have limited lates in the prior 12 months with an acceptable Letter of Explanation and documentation deemed acceptable by the Underwriter. 
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Refinance of an ARM to Fixed Rate loan requires that all mortgage payments must have been made within the month due for the past 12 months or the period the mortgage has been in force, if shorter. 
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Mortgage insurance premiums
Non-credit qualifying FHA Streamline 100 bps UFMIP and 50 bps MIP.        
Credit Qualifying FHA Streamline UFMIP and MIP will be based on the new decision credit score and LTV of the original loan.
-new FHA loan limits
Contact us with any questions… We look forward to streamlining your fha refinance.  Check out our low fha rates.
Bill Mulligan of Choice Finance