When a homeowner refinances an existing FHA or VA loan to another FHA/VA loan it is called “streamlining“. If you already have an government-backed loan, refinancing to a better rate through this streamline refinance process is quite easy. The main requirements for streamline refinances are a solid history of payments on the existing loan and in some cases a credit score of 620+ is required. A major advantage of a streamline loan is that there is no appraisal required so an FHA or a VA loan can be refinanced even when the home is currently worth less than the outstanding loan amount. The other advantages of FHA streamline loans are that borrowers do not need to provide documentation of their assets or income. Finally, the FHA caps the total amount of the streamline loan so in most cases the FHA approved lender must pay for many of the fees normally associated with a refinance.
If you have an FHA or a VA loan now and think you might benefit from refinancing to better terms contact us today.
