What are the advantages of the FHA Streamline program?
The FHA Streamline Refinance program offers a light underwriting process compared to traditional FHA Refinances. Many time consuming verifications are eliminated since you have already proven affordability to the FHA.
No home appraisal
These loans typically do not require a home appraisal, saving you time and money!
No income verification
You likely will not need to provide traditional income documents such as W2, tax returns, paystubs, etc.
Light credit check
The program requires a credit check; however, the credit check only relates to any mortgages in your name. This helps the lender verify that you're qualified to make on-time payments for your new FHA loan. A credit qualifying streamline refinance requires a full credit check.
Net tangible benefit
Lenders must prove that refinancing provides you tangible benefit. A tangible benefit could be lowering your interest rate, paying your loan off sooner, or switching from an adjustable rate mortgage to a fixed rate. This helps protect you from predatory lenders.
What are the FHA Streamline requirements?
The program is not available to everyone. You must meet certain requirements to be a candidate for an FHA Streamline Refinance. We've detailed most, but not all, FHA Streamline Refinance requirements below.
Your current mortgage must be an FHA loan.
The program can only be used when refinancing an existing FHA mortgage.
You must have a FICO score of at least 620.
CapCenter's minimum credit score is 620 for primary residences. You must have a FICO of at least 640 when seeking an FHA Streamline for a second home.
Your current loan must be seasoned.
There must be at least 6 on-time monthly payments for your current FHA loans. At least 210 days need to have passed since your closing date.
There must be a Net Tangible Benefit (NTB).
Lenders must prove a Net Tangible Benefit from refinancing. Benefit calculation involves a variety of factors which include loan term reduction, interest rate reduction, and switching from an adjustable rate mortgage (ARM) to a fixed-rate.
All borrowers must remain on the loan (exceptions apply).
Barring approved exceptions, all borrowers from the current FHA loan must also be on the new, refinanced loan. Approved exceptions include (1) divorce, (2) legal separation, and (3) death of a current borrower. Documentation is required to validate the exception. You may add a borrower to loan.
You may not take cash out.
Cash Out Refinances can not participate in the program.
FHA Streamline Calculators and Rates
CapCenter offers ZERO Closing Cost Streamlines in Virginia, Maryland, North Carolina, South Carolina, Georgia, Florida, and Washington DC. Use our tools below to understand how much money you can save with CapCenter.
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