Colorado FHA Streamline Refinance
The FHA streamline refinance program is a low cost, low documentation way to get your FHA mortgage rate and payment down. This program is for home owners who currently have an FHA loan at an interest rate that is higher than current market interest rates. The loan will also allow a home owner to skip one or even two payments, offering some relief to pay off other bills.
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The reason that this program is called labeled as a streamline is that it is a fast and easy, low documentation program designed to help FHA home owners roll into a lower payment without all of the paperwork involved with a regular home loan. There is no appraisal required and no income documentation with this FHA program.
However, there are still qualifying standards to consider**. Here are a few things to keep in mind:
- Your mortgage rate must go down at least .5%
- You must have made at least 6 mortgage payments on the current mortgage
- No more than one 30 day late payment is allowed over the last 12 months
- 210 days must pass between the first payment date of your current loan, and the first payment date of the new loan
- If you have moved out of your FHA-financed home and it is now an investment property, you can still utilize this program
** Guideline information current as of May, 2019
How Much Can I Borrow? - Maximum FHA Streamline Loan Amount
The maximum loan amount is limited to the county loan limit in your area.You can look up the FHA County Loan Limits here . On a streamline loan, the maximum loan amount is also limited by a calculation that in part has to do with your original loan amount and the amount of your FHA mortgage insurance refund, which is explained below. Closing costs can’t be rolled into the loan, so in many cases, borrowers have to bring funds to closing which usually don’t exceed one mortgage payment.
What About Mortgage Insurance? - FHA Monthly & Up-Front Mortgage Insurance
Your new FHA loan will have monthly mortgage insurance just like your current loan, and you will have to pay a new 1.75% up-front mortgage insurance premium. However, if you are doing the streamline refinance within the first 3 years after your current loan, you will get a refund of part of the up-front mortgage insurance premium you already paid. Here is a table that shows the refund you will receive as a percentage of the original premium you paid.
Can We Remove Someone From The Loan? - Credit Qualifying vs Non-Credit Qualifying FHA Streamline Refinance
If any borrowers are being removed from the current loan, you must qualify for the new loan with income and employment documentation. However, an appraisal is still not needed on a credit qualifying streamline refinance.
Can I Take Cash Out? - FHA Cash Out Refinance
If you wish to pull cash out to pay off bills, remodel your home, or for other reasons, you can’t utilize the streamline program. This type of loan requires a full appraisal and credit qualifying, and you can borrow up to 85% of the appraised value of your home. We explain this program in more detail on our FHA Cash Out Refinance page.
Find out today’s rates and what you qualify for with our fast and easy Refinance Advisor or give RJ Baxter a call or text today at 303-670-0137 or email rbaxter@choicemortgage.com.
