FHA Streamline refinancing, unlike traditional refinancing, requires less documentation and paperwork as well as lower closing costs. All closing costs may be financed into the new loan amount. No appraisal is required unless your new loan amount exceeds your original loan amount. This saves you up to $400 in out of pocket expenses.
There is no income, asset or credit verification, although verification of employmentis required. If not employed, disability or social security or other award letters must be submitted. Most lenders require that you have had no mortgage payments over 30 days late within the last 12 months.
FHA requires that there must be a benefit to the borrower by saving a minimum of $50 per month or by reducing the term of the loan. Borrower may receive up to $500 cash out at closing.
