| FHA Streamline Refinance | | | | refinance, many clauses and conditions have been |
| The global recession marked by rising interest rates, | | | | included. One such condition is the mandatory holding |
| strict borrowing norms, job loss, reduction in salary and | | | | of property for a certain period before becoming |
| working hours etc have resulted in severe problems | | | | eligible to refinance your home. This condition has been |
| as far as home ownership is concerned. Most of the | | | | discussed below. |
| people who borrowed loans before the recession i.e. | | | | Holding Period before Eligibility: |
| at easy interest rates are now facing problems in | | | | If a borrower, who is not credit qualified and who |
| regular and full payment of their monthly mortgage. | | | | assumed a mortgage or took title as per FHA insured |
| Therefore, FHA streamline refinance is an effort to | | | | mortgage terms and the previous mortgagor already |
| reduce default on loans and foreclosures. The concept | | | | released from liability, should hold the property for at |
| of a streamline is to restructure and readjust your | | | | least six months in order to be eligible to for FHA |
| loans in such a way that it results in a lower monthly | | | | streamline refinance without credit qualifying. This rule |
| amount. Therefore, it has been mandatory that | | | | of minimum period of holding of property is applicable |
| offering a borrower a streamline refi must result in the | | | | to mortgages which do not have restrictions that |
| reduction in the amount that is paid monthly. Also, to | | | | restrict assumptions only to credit worthy assumptors. |
| achieve the desired objective of FHA streamline | | | | |