Jun

What is the difference between FHA streamline and non-streamline refinance?

If I have a conforming loan right now. Is it possible for me to apply with an FHA loan? what is the difference between streamline and non-streamline refinace? Thanks

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4 Comments

Big Mr.Muffet
June 28th, 2009 at 1:50 pm

At least Natalee answered your question, lol. Sarcasm.

Streamline (in the traditional sense) means that you can refinance when the rate drops, usually without all the fees associated with re-fi… which can really save you. It lets you sort of rides the waves, hence “streamline”.

*Lisa L* I never said there are no closing costs, that’s a given. I just meant there are many less fees (no appraisal like you mentioned, no credit check) than a re-fi on a non-streamlined mortgage. I am obviously not a pro at this, and you seem to be, so of course my answer will be a little less detailed than yours, I am just answering according to my understanding. Forgive me if it’s not like yours.

Lisa L
July 1st, 2009 at 8:10 pm

An FHA streamline refi is FHA to FHA. No appraisal, you will not need to give income, a credit report does not need to be done, you will just need to be able to show no lates on your mortgage. Your loan officer can get your payment history from your current mortgage holder. You also must not be going up more than $50 in payment to not have to income qualify. You can incorporate allowable closing costs & prepaids into your mortgage.

You can do a non streamline FHA. This would be because you want cash out or are taking a borrower off the loan. You would have to income qualify, ratios would have to be in line, credit report would be pulled, & you would have to have an appraisal.

Non streamline could be conventional to FHA. Same rules as immediately above would apply.

Mr Muffet- loved your sarcasm comment. What’s up with that “answer” to the question? BTW streamline does have closing costs associated with it (no appraisal, but still costs) & a new escrow account has to be set up. The escrow account balance is not subtracted from the payoff. It is returned to the borrower in 30-45 days.

Another edit- Mr Muffet - I wasn’t saying you were wrong, just wanted to make sure asker knew there would be costs associated with it even if it is all rolled into the loan amount.