FHA Streamline Remortgage Or Refinance Program - Rules and Benefits

You already know FHA mortgage loans have benefits. You also know that FHA Streamline Program is cheaper and simpler than other remortgage or refinance programs. So how do you take advantage? And what are the benefits to you, really?

The benefits first. There are 2.

1. FHA streamlines your remortgage or refinance so that they cut down on paperwork and underwriting. This means you don't have to bring tax returns, pay stubs, bank statements or W-2 forms. Basically, FHA assumes that since you qualified once and have been able to make your payments on time, you're still a good risk.

2. If you are not going to take cash out, FHA does not require an appraisal. So you save both money and time. This is true whether you are in a neighborhood where values are declining or not.

You still need an appraisal if you are taking any cash out. Now the rules. There are 5 and they don't go against common sense.

1. You can only streamline remortgage or refinance FHA loans.

2. Investment properties always require an appraisal. (Yes, you can take an FHA mortgage only on your primary residence. However, you CAN remortgage or refinance an FHA mortgage on a property that's no longer your primary residence.)

3. You must be current with your mortgage payments and you must have had no late payments in the previous 12 months.

4. The refinance or remortgage must reduce the principal and the interest.

5. You cannot take cash out.

If you've determined that you need to remortgage or refinance and already have an FHA-insured home loan, you're in a good position, especially if your circumstances have changed for the worse and now you have bad credit. Remortgage using streamline without taking cash out and you don't even have to think about your credit. Remortgage, remortgage, remortgage!