When it comes time to refinance a mortgage, it’s a good idea to look into how to qualify for an FHA Streamline refinance.

Pittsfield, MA -- (SBWire) -- 04/17/2013 --As of June 11, 2012, the Streamline refinance rates for an FHA mortgage have gone down, as have mortgage fees. These lowered costs are effective for those who obtained an FHA-insured mortgage before June 2009. Having such a mortgage loan refinanced with the decreased payments can save a homeowner a bundle. For a time, rising rates on mortgage insurance posed a problem for folks looking for a refinance, as whatever money they’d have saved ended up going to that, rather than in their pockets. The trimmed down costs of mortgage fees have made it easier for people to get these refinances and afford their insurance. Real-estate-yogi.com can offer some insight about this type of loan, including:

- Lower Fees
- Eligibility Requirements
- No Appraisals
- Simplifying Streamline Refinance

Reduced Costs

How to Refinance FHA Home Loan at Low Interest Rates Instant Approval

Qualifying for Refinance

The current streamline refinance FHA loan requirements are clear cut. A homeowner must have a mortgage loan already insured by the FHA, he must be up-to-date on his payments, and the mortgage has to have been insured by the FHA before June of 2009. Remember that, just because the original mortgage loan was closed prior to the June 2009, it may not have become FHA insured by the cutoff date, and so the mortgagee may not be able to refinance it.

Appraisals are Unnecessary

If one’s mortgage payments are reduced by at least 5%, the lender he is dealing with does not have to order an appraisal of the home to agree to a refinance. Existing FHA Streamline refinance qualifications state that an appraisal is not necessary – except when it is. The situations for requiring a property assessment occur when a homeowner goes from a 30-year mortgage to a 15-year one and his payments are not decreasing or when one person’s name is being removed from the house title, such as after a divorce finalization.

Making FHA Refinance Easier

Now that how to qualify for an FHA Streamline refinance is clear, it has been suggested that they could become less difficult to obtain. Many lenders have “overlays,” which are lending parameters of their own, rather than those of the FHA alone. This can make it harder to be approved for refinance, so the government encourages participating finance's to forego the overlays to make the refinance easier to obtain.

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