| Have you already borrowed an FHA insured loan? | | | | - Form HUD 92564-VC is required for streamline |
| Are you now facing problems in making regular | | | | refinances with appraisal. |
| monthly mortgage payment due to its high amount? | | | | - Homebuyer Summary is not required for streamline |
| Do you think you can pay regularly if the amount is | | | | refinances with an appraisal. |
| reduced a little? If your answer to these questions is | | | | - FHA does not require repairs to be completed |
| 'Yes', then FHA streamline refinance is the best option | | | | (except for lead-based paint repairs). |
| for you. It will not only help you pay your regular | | | | - Mortgage amount should exceed the statutory limits |
| monthly mortgage but also in keeping your home and | | | | only by the amount of any new up-front MIP. |
| in return, saving your credit. Key features of the FHA | | | | - Cash-to-Close: Borrowers do not need evidence of |
| streamline refinance program are as follows: | | | | cash for loan closing. |
| - The loan that is to be refinanced must already be | | | | - Condominium Approvals Withdrawn: FHA insures |
| FHA insured. | | | | only streamline refinance without appraisal if the |
| - The mortgage to be refinanced must be current and | | | | approval for any condominium project has been |
| existing NOT delinquent. | | | | withdrawn. |
| - HUD's Credit Alert Interactive Voice Response | | | | - Underwriting: Not required except in case of credit |
| System (CAIVRS) check not required. | | | | qualifying streamline refinance. |
| - Checking HUD's Limited Denial of Participation (LDP) | | | | - Information regarding income, obligations, debts and |
| and General Services Administration (GSA) exclusion | | | | assets is not required unless the borrowers are credit |
| lists are required by all borrowers. | | | | qualified. |
| - FHA does not ask for a Credit report (except for | | | | - Shortening the Term of Mortgage: A shorter-term |
| credit qualifying refinance) and termite inspection. | | | | FHA streamline refinance can be given if the monthly |
| - Borrowers do not need to sign the loan application | | | | mortgage payment does not exceed the previous by |
| until loan closing. | | | | an amount of $50. |
| - The refinance should result in reduction in borrower's | | | | - Delinquent Mortgages: Streamline refinance can't be |
| monthly mortgage payment that includes principal and | | | | offered to delinquent mortgages. However, if the |
| payment towards interest. | | | | mortgage is made current, refinance can be offered. |
| - No cash back to the borrower, except not more than | | | | - "No-Cost" Refinances: In no cost refinance, lenders |
| $250 for minor adjustments at closing. | | | | charge higher rate of interest to meet the closing cost. |
| - Streamline refinances can be made with or without | | | | There is no out of pocket expense with the enhanced |
| an appraisal. | | | | monthly payment. |