FHA Streamline Loan Requirements

Posted by allanmadams on October 9th, 2009 at 02:08am

FHA Streamline loan help homeowners pay lower mortgage payments and lower interest rates. But before you can make the most out of this, you have to qualify for the FHA streamline loan.

First and foremost, you need to have an FHA mortgage that exists. If you don´t have this and you want to try refinancing, you have other options and this is to turn to conventional refinancing. Another one is you can apply for the FHA refinancing loan.

If you, however, have the conventional loan that is required for your FHA streamline loan, you need to apply for the credit check. The lender has to see if you have good credit standing.

They would also verify your employment records and would compare your debt-to-income ratio. These are considerations whether you qualify for an FHA streamline loan or not.

An FHA refinancing loan can also get you the same results. If you refinance from the conventional to the FHA insured refinancing, you would notice that you are making lower payments, therefore you are getting better results.

If you already have an FHA home loan, the requirements for FHA streamline loan are the following.

1. You have to be in the existing loan with all your mortgage payments since last year.

2. You must be the owner of the original property for six months, at least, before you can even apply for refinancing qualifications.

3. To refinance, you need to have an FHA that has been approved by your lender. If you don´t want to turn to the lender you have now, then you can opt for a bank that has been approved by the FHA.

4. FHA streamline loan does not need an appraisal. However, if it is no-appraisal loan, it cannot exceed the loan that you currently have.

5. The closing costs of your current mortgage must be paid up front or arranged in such a way that you will benefit from the FHA streamline loan that you are applying for.

You can choose closing costs into your loan that comes with an appraisal. The FHA streamline loan in these cases will have enough equity you need to cover up the extra amount.

However, you must remember that there are restrictions on the FHA streamline loan. You cannot use the 203k loan if you want to do major repairs in your property.
This does not cover work that requires blue print or any kind of architectural plans.

If your improvement works for your FHA streamline loans exceed $15,000, you must have all the paperwork checked by the FHA before you proceed.

Discover where to get cheap FHA streamline loan online. Learn where to get cheap FHA loan interest rates online.

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