| The salient features of FHA streamline refinance | | | | withdrawn. |
| without appraisal are as follows: | | | | Appraisal, Termite Inspection, and Credit Report Fees: |
| Loan Amount: The maximum loan amount in case of | | | | There is no need of termite inspection or credit report |
| FHA streamline refinance without an appraisal is the | | | | for FHA streamline refinance without appraisal. But, the |
| lower amount between the original loan amount and | | | | borrower has to pay the required cost from out of |
| the existing debt. | | | | pocket not financed, if banking regulations, law or |
| Original Loan Amount: Original loan amount is the | | | | secondary market investors instruct lenders to get |
| principal mortgage amount which should also include | | | | these services on a streamline refinance without a |
| any upfront insurance premium as well as upfront | | | | FHA appraisal. |
| mortgage premium on the refinance. | | | | Cash to close: There is no need to show the evidence |
| Existing Debt: Existing debt is the sum of the FHA | | | | of cash for loan closing. |
| insured first lien, closing cost, discount points and | | | | Underwriting: No mortgage credit underwriting is |
| expenses paid to establish escrow account minus any | | | | required for refinance without appraisal. |
| upfront mortgage insurance premium refunded. The | | | | Reduction of mortgage term: In case of streamline |
| existing first lien includes the interest charged by the | | | | refinance without appraisal, the mortgage term may be |
| servicing lender but does not include delinquent interest, | | | | reduced as long as the new monthly mortgage |
| late charges or escrow shortage. This calculation is | | | | payment does exceed the existing amount of monthly |
| applied only to owner occupied properties. | | | | mortgage payment by $50. |
| Refinance for secondary residence or investors can | | | | Delinquent Mortgages: The without appraisal option |
| only be made without an appraisal. This refinance | | | | cannot be offered to mortgages which are delinquent. |
| should be done in the entity name if the previously | | | | Geographic Areas: Lenders can seek refinance |
| insured mortgage is in the entities name. | | | | proposals from across the country without any |
| Term: The period of the streamline refinance without | | | | geographic restrictions. However, to seek proposals |
| appraisal is twelve years more than the unexpired | | | | with geographic restrictions, lenders must be approved |
| terms of the existing mortgage, which cannot exceed | | | | for DE by at least one HOC. |
| 30 years. | | | | FHA streamline refinance is the only refinance |
| Cash Back: cash back at the time of closing is limited | | | | mortgage option that can be used for organizations |
| to $500. | | | | without profit. However, these non-profit organizations |
| Withdrawn Condominium Approvals: Only streamline | | | | must on the list in the FHA connection as approved by |
| refinance without an appraisal can be insured by FHA | | | | FHA to be borrowers on FHA loans. |
| if the project approval of a condominium has been | | | | |