| Individuals looking to refinance a FHA loan should first | | | | standing with timely payments for the past 12-months, |
| understand the FHA loan guidelines for refinancing | | | | the home must be your primary residence; you must |
| mortgages. FHA refinance can be used to convert a | | | | have owned the property for a minimum of six months |
| 30-year mortgage to a 15-year mortgage and for | | | | before qualifying to refinance, and the refinancing must |
| other purposes. | | | | result in lowering your interest payments. |
| There are many benefits to refinancing a mortgage | | | | For individuals with conventional loans who wish to |
| including: Home improvements, funding college tuition, or | | | | refinance under the FHA Streamline program you |
| consolidating bills depending on the program you qualify | | | | must apply just as you were applying for a traditional |
| for. The Federal Housing Administration does allow | | | | mortgage - debt-to-income requirements, credit check, |
| refinancing on FHA loans if certain requirements are | | | | employment verification, and other requirements as |
| met. In some cases closing costs can be included into | | | | requested. Moving from a conventional lender to FHA |
| the new mortgage if the property has built up enough | | | | may result in lower interest and lower monthly |
| equity. | | | | payments. |
| Streamline Refinancing Program | | | | FHA Streamline loans do not require an appraisal, but |
| This refinancing program will enable you to reduce the | | | | you cannot include your closing costs into your loan if |
| interest rate, many times without an appraisal. | | | | you do not have the property appraised. In this case, all |
| Streamline refinancing requires less paperwork than a | | | | costs must be paid up front. |
| traditional refinance so you can start saving more | | | | The downside to the Streamline program is there is no |
| sooner. | | | | option to receive cash. This is a feasible option for |
| To qualify for the Streamline option your mortgage | | | | individuals who are not overwhelmed with debt, but |
| must be an FHA loan; your loan must be in good | | | | could benefit from lower monthly payments. |