What is an FHA Streamline Refinance?

An FHA Streamline Refinance is a simplified refinance program available to homeowners with existing FHA loans. It is designed to lower your interest rate and monthly payment with minimal documentation and no new appraisal required. You must have made at least six payments on your current FHA loan and be current (no 30-day late payments in the past 12 months). The streamline refinance does not allow cash-out. There are two versions: credit qualifying (lender verifies income and credit) and non-credit qualifying (less documentation required). Despite the reduced requirements, closing costs and mortgage insurance premiums still apply.