Las Vegas FHA Streamline Refinances have become a popular loan due to the lower 2009 FHA mortgage rates.
Most people refer to the FHA Streamline Mortgage as an FHA Rate Reduction, No Cost Refi, FHA No Doc Loan, No Credit Qualifying Loan, or No Appraisal Refinance.
Either way, the main purpose of an FHA Streamline is to reduce monthly mortgage payments without having to deal with all of the regular appraisal, income, asset, and employment documentation that a traditional refinance requires.
Basically, the FHA Streamline Refinance is a fairly easy program that most people who have an existing FHA loan can qualify for. with limited qualifying and document requirements.
FHA Streamline Qualifying Bullets:
—
- Purpose – to lower current mortgage payment
- FHA to FHA loans only
- No Appraisal if new loan amount does not exceed old, excluding up-front MIP
- No Income Verification required
- No Asset Verification
- No Credit Qualifying
- Mortgage Lates – OK – at discretion of individual lenders
- Current month’s payment is not due at closing
- $500 max cash back to borrower
- No Repairs Required
- Investment properties OK
- 2nd Mortgage subordination allowed – no max combined LTV
FHA Streamline Questions:
_________________
Q. Can I consolidate bills with an FHA streamline?
A. No – You may not consolidate bills or receive cash-out from an FHA streamline refinance. Cash out FHA refinances require full qualifying and are restricted by Loan-to-Value requirements. Max cash back to borrower at closing is $500.
Q. Is an appraisal required?
A. No- An appraisal is not required on an FHA streamline unless the new loan amount exceeds the old loan amount by 1.5%.
Q. Will my credit be checked?
A. As lending guidelines continue to get tighter, it is possible that more banks may request minimum fico scores. However, per FHA guidelines, a credit report is not required. Mortgage history is all that the FHA cares about at this point.
Q. Can I add or remove an individual from my loan on a streamline refinance?
A. You may add whomever you wish as long as that person meets the minimum credit requirements. If you remove an individual you must be able to prove that the person remaining on the loan has had and continues to have the ability to make the mortgage payment. In most cases a 6 month history will be required to show that person has been making the payment.
Q. What if I lost my job?
A. The FHA does require that employment is listed on the mortgage application unless the borrower is of retirement age.
Q. What if I don’t live in the property anymore?
A. Investment properties that were originally purchased as an owner occupied residence are eligible for the FHA Streamline refinance.
Q. How much does an FHA Streamline cost?
A. No-cost refi options depend on the mortgage rate that you choose. Either way, in most circumstances, borrowers do not have to come out of pocket with any fees.
______________
Top 5 Las Vegas Mortgage Links / Articles / Questions
- Las Vegas First-Time Home Buyer Frequently Asked Questions
- Las Vegas Mortgage – How Much Can I Borrow?
- What Are The Current Mortgage Interest Rates?
- Applying For A Las Vegas Mortgage – What Documentation Do I Need?
- How Does The Mortgage Approval and Funding Process Work?
______________
Raintree Mortgage (Las Vegas)
9488 West Flamingo Rd. Suite 102
Las Vegas, NV 89147 | NV LIC 2511
702-432-5626 | Email
———————————————————————————–
>> Fast Application —————- >> Rate Tracker
———————————————————————————–
{ 2 comments… read them below or add one }
This is great information. I encourage anyone in serious mortgage trouble to hold tight. Things are looking up and I expect to see at least the Utah market begin to really rebound by the end of the year.
I hope you’re correct about things rebounding by the end of the year, Joel. If the banks would make it easier for current homeowners to refi, it might slow down foreclosures as well.
Thanks for the comment, I wish you the best of luck in your market.
mm