|FHA Streamline may refer to a specialized kind of loan or refinance program that a person can avail under certain financial scenarios. Speaking about the streamline refinance requirements major changes have been made for case numbers assigned on or after November 17, 2009. These revisions involved issues pertaining to seasoning requirements, payment history, net tangible benefit, LTV, max loan amount without appraisal, debt calculation with appraisal worksheet, and many others. A detailed description can be found in Mortgagee Letters 09-32 and 10-19, and Handbook 4155.1.
FHA Streamline Loan
The maximum loan amount under an FHA streamline refi depends on the situation whether the underwriting is performed with appraisal or without it. Under streamline without appraisal, the maximum mortgage may not be more than the outstanding principal balance, minus the applicable UFMIP refund, plus the new UFMIP. There is no appraisal requirement for non-owner occupied properties.
A streamline with appraisal, on the other hand, makes you eligible for a loan amount that is based on the lower of the outstanding principal balance, minus the applicable UFMIP refund, plus closing costs and prepaid items to establish the escrow account and the new UFMIP. Under the same situation, the maximum amount can also be 97.75 percent of the appraised value of the property plus the new UFMIP.
FHA Streamline Rates
FHA Streamline Rates are subject to a lender’s discretion. The lender may offer a rate reduction program or allow you to lock-in a low interest rate depending upon a financing situation. To check current rates online you should visit the websites of approved lenders like Bank of America, Wells Fargo and Chase.
These online resources also help you learn about their loan programs and issues like allowable fees, benefit entitlement, advantages, credit score requirements, checklist, required documentation, fixed to ARM switchover, investment property, income verification, eligibility & qualifications, term reduction, bankruptcy, approval process, calculator and more.
FHA Streamline 203k
FHA Streamline 203k is a new program that allows homebuyers to finance up to an additional $35,000 for repairs or improvements. It is also referred to as Limited Repair Program and is available for refinancing an existing mortgage as well. The cash available under the program can very well be used for property repairs or improvements identified by a home inspector or appraiser. Moreover, streamline 203k is available at any FHA approved lender, which is not the case with a standard 203(k) program.