Home Financing 101: The FHA Streamline Loan

An FHA Streamline Loan is an easier, quicker way to refinance an existing FHA loan. Here, you will find basic FHA Streamline Loan information and information regarding how to submit an FHA Streamline Loan application.

FHA Streamline Loan Information - What Is It?
The FHA Streamline Loan is used for refinancing a home. The Federal Housing Administration created the streamline loan so that people could refinance their loans. The term "streamline" simply refers to the kind of refinancing plan you are using. With an FHA Streamline Loan, information requirements are simplified which results in reduced paperwork, underwriting, and documentation. The trade off with an FHA streamline refinance is higher restrictions, but if your aim is simply to reduce your terms and/or payments, you should give serious consideration to an FHA Streamline Loan. Information on qualifications and restrictions are included below. You can talk to an FHA lender for more specific FHA Streamline Loan application information that will speak specifically to your situation.

FHA Streamline Loan Information - Will My Costs Go Down?
With a successful FHA Streamline Loan application, your monthly costs and/or overall mortgage costs over the life of the loan will reduce, but a Streamline FHA loan is not cost free - closing costs either need to be:
- Paid out-of-pocket - Included in the loan amount, or - Exchanged for a higher interest rate (yet one that is still lower than the current rate)
Depending on the details of your situation and your FHA Streamline Loan application, you may be able to obtain a streamline refinance without paying any out-of-pocket fees.

FHA Streamline Loan Information - Who Qualifies?
The requirements for an FHA Streamline Loan application are:
- The mortgage to be currently insured by the FHA - The mortgage to be current—not in default, no late payments - The refinanced loan to result in lower monthly payments (principal and interest) for the borrower - Subject loan to be more than 6 months old

In addition, the FHA Streamline Loan application is subject to other restrictions. For example, cash-out is not an option and there are limits on the term lengths relative to the current situation. Basically, the new loan cannot greatly increase the life of the loan for loans that have been paid down a lot, and a 15 year mortgage cannot be refinanced into a 30 year term. Clarifying what you are able to accomplish will require more specific consideration of your specific FHA Streamline Loan information with the aid of a qualified FHA lender.

FHA Streamline Loan Information - How Do I Apply?
In order to process an FHA Streamline Loan Application, you will need the help of a qualified FHA lender. If you feel you meet the requirements as previously listed, you should contact an FHA lender for more terms and assistance. You will have a short FHA Streamline Loan Application to fill out, and the lender will give you more FHA Streamline Loan information regarding the process, your options, and what to do to move forward.

The focus of the FHA Streamline Loan Application is to make your home's mortgage more affordable and more manageable for you. If you have held your current loan for a reasonable amount of time, improved your credit standing, or increased equity in your home, it may be a good time to contact your FHA lender for more information and to complete an FHA Streamline Loan application.


This article is provided by Access National Mortgage, based in Denver Colorado. Access National Mortgage provides progressive and superior financial solutions like a New Mexico FHA Loan Application, a Wyoming FHA Mortgage Calculator, debt consolidation loans, information about California FHA refinance benefits and whole host of other mortgage products all across the United States.

About the Author

This article is provided by Access National Mortgage, based in Denver Colorado. Access National Mortgage provides progressive and superior financial solutions like a New Mexico FHA Loan Application, a Wyoming FHA Mortgage Calculator, debt consolidation loans, information about California FHA refinance benefits and whole host of other mortgage products all across the United States.