| The
FHA loan program was originally designed to increase
homeownership in America by enabling homebuyers to
purchase a home with a FHA insured loan with as
little as 3% down payment and less stringent loan
qualifications than a traditional conventional loan.
In the 1980's FHA
began permitting the FHA streamline refinance to
allow those homeowners to take advantage of lower
interest rates in turn, lowering their monthly
payments. This continued the original goal of FHA
which is homeownership in America.
The FHA streamline
refinance is best defined as follows:
- The
refinance of an existing FHA loan with
limited documentation and minimal underwriting
qualifications.
FHA's stance is if
the homeowner is current on their existing mortgage
(one that FHA is already insuring) and they are able
to refinance to a lower interest rate and lower
payments, without increasing the loan amount by more
than the original amount, then why not make it as
easy as possible for the borrower to qualify and
limit the documents needed.
This is exactly
what FHA offers with it's FHA streamline refinance.
A means to refinance your mortgage without all of
the paperwork, underwriting qualifications,
appraisal, or time normally necessary when
refinancing a home loan.
Since this process
of refinancing is so quick and easy, staying with
it's "streamline" namesake, it can present your with
some significant advantages over traditional
mortgage refinances.
To learn about
the advantages of the FHA streamline refinance and
how it can benefit you, look below! |
