FHA Streamline Mortgage Refinance in Albuquerque, NM
Refinancing a loan to secure a lower interest rate allows you to save money on your monthly mortgage payments. If you currently have an FHA home loan, you may be eligible to refinance your home through the Federal Housing Administration’s streamline program.
What is an FHA Streamline Mortgage?
An FHA streamline mortgage refinance is a United States government-backed program that allows someone with an existing FHA loan to refinance for better terms, lower interest rates and/or altered monthly payments. Streamline refers to the amount of documentation and underwriting that are required to secure this loan. In a streamline refinance, in some cases, there is no income verification.
Options for an FHA Streamline Loan
Each lender may provide different options for an FHA streamline loan, including:
- No-cost refinances
- These are more accurately described as no out-of-pocket-cost refinances because the lender pays the closing costs. However, a higher interest rate might be charged to recoup the closing costs.
- No-appraisal refinances
- These refinances do not require an appraisal. However, the interest rate is normally higher to help the consumer by giving a credit for closing costs.
FHA streamline refinances do not always require an appraisal and/or income or credit verification, making the process much quicker and the loan easier to obtain. However, FHA streamline refinances may not be used to get cash back. An experienced loan officer can help you understand your options from each potential lender so you can make the right choice for your family.
How to Qualify for an FHA Streamline Mortgage Refinance
In order to qualify for an FHA streamline refinance, you need to meet certain requirements. These requirements include:
- Having a current FHA loan
- Living in the home you are refinancing
- Waiting at least six months after the initial loan or previous refinance was approved
- Being current on your loan payments for the previous 12 months
- Having a credit score of 640 or higher, in most cases
Depending on your circumstances, you might be able to close on your FHA streamline refinance within 30 days.
See if You Pre-Qualify Today
Stop in to Infiniti Mortgage, LLC today to see if you pre-qualify for an FHA streamline refinance, or contact us to schedule an appointment!