An FHA Streamline Refinance is a type of FHA-to-FHA refinance. It doesn’t require an appraisal (the FHA already has one on file), the documentation requirements are limited, and you might not need a credit check, either.

There are two types of FHA streamline refinance options:

1. Credit qualifying: This means a credit check is required. An FHA streamline refinance is only “credit-qualifying” when it increases your mortgage payment at least 20%, you’ve had the loan less than six months, or you’re removing or adding a borrower to the loan.
2. Non-credit qualifying: Most FHA streamline refinances reduce your rate or payment. For loans that fall into this category, no credit check is required.

Most streamline refinances do come with closing costs, though some lenders may offer no-cost options. In these scenarios the lender will pay the closing costs and the borrower will pay a higher interest rate to make up for it. As with any loan program, you (and your loan) will have to meet certain requirements to qualify for an FHA streamline refinance. FHA streamline refinances can be a smart way to lower your interest rate and reduce your monthly payment easily and without hassle.

Before applying for any loan, it is best to consult with a local San Diego home loans and refinance expert, like Olivia Guinn, that can help you determine the best financial option for you. To get started, contact Olivia today by calling 619.227.9173. You can also complete an application online to quickly find out which lending programs you may qualify for.