| The Traditional and Original FHA Streamline consist of | | | | rate without increasing the borrowers current balance. |
| the following: | | | | Credit guidelines are what make the FHA Streamline |
| - NO Appraisal | | | | unique. The credit profile is based on mortgage only. |
| - NO FICO Score | | | | Although many lenders require a minimum 600 mid |
| - NO Income Verification | | | | score. The benefit of the mortgage only is the fact |
| - NO Asset Verification | | | | that liabilities are not calculated into a debt to income |
| After reading that there is little to nothing in order to | | | | (DTI) ratio. Underwriting is only concerned with the |
| qualify; you are probably asking what's the catch, or | | | | performance of the FHA loan. A delinquent mortgage |
| this can't be real. | | | | is generally not eligible for streamline refinancing until |
| First off FHA Streamlines have been around for years. | | | | the loan is brought current. |
| To start your current mortgage must be a FHA | | | | One of the Standout benefits of a Streamline is that |
| insured mortgage. The intent is to lower the monthly | | | | Subordinate financing (2nd mortgage) may remain in |
| principal and interest payments (P&I). The | | | | place, regardless of the total loans against the |
| Streamline must decrease P&I by the lesser of | | | | property, with or without appraisals. What this means is |
| $50 or 10%. | | | | that for homeowners in declining markets and who are |
| A streamline is considered a Rate and Term refinance, | | | | upside down on their mortgage, they can still qualify for |
| thus paying off debt or taking cash out is not an option | | | | today's historic Mortgage Rates. |
| ($500 max cash back). The intent is to secure a lower | | | | |