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Types of FHA Refinances

FHA Streamline Refinance

FHA Streamline Refinance (Non-Credit Qualifying): An FHA Streamline Refinance is for persons who wish to lower their interest rate & monthly payment or change from a riskier mortgage (i.e. an Adjustable Rate Mortgage) to a lower risk Fixed Rate Mortgage. Typically FHA rate-term refinances do not require normal credit & underwriting qualification!

  • This means:

    • No Appraisal

    • No Income Documentation

    • No Asset Documentation (Unless you plan on bringing cash-to-close)

    • FHA Streamline Refinances are usually structured so that you don’t bring any cash-to-close, or so that you only bring your typical monthly mortgage payment to closing!

    • Foundation Mortgage often structures these FHA Streamline transactions so that you have no other closing costs!

    • The process typically takes under a month.

    • And the result is you lower your monthly payment.

    • If FHA Mortgage Rates are low, and you don’t plan on selling or paying off your home in the near future, this is a fantastic program aimed at reducing your monthly payment and housing debt!

**Every scenario is unique though, and what is best or available for you may be different than these common scenarios.

    Speak with one of our professional, licensed Mortgage Bankers for a complete evaluation of your scenario now.

What Do I Need To Do To Qualify For A FHA Streamline Refinance?

  • Credit Score

    • There is a minimum credit score & mortgage payment history requirement.  Typically at least 550 or higher.

  • You need to have made at least 6 payments on your current FHA loan to qualify for an FHA Streamline Refinance.

  • Net Tangible Benefit

    • FHA has strict requirements to protect their borrowers and ensure that there is an actual benefit to you in terms of lower monthly payment or movement from an adjustable to fixed rate mortgage loan.

    • Foundation Mortgage will review your scenario with you and ensure that your refinance does meet FHA’s Net Tangible Benefit requirement before initiating the process!

When do we do a full Credit Qualifying FHA Refinance?

  • FHA Cash-Out Refinance

  • The maximum LTV on a FHA Cash-Out Refi = 85%

  • The process for an FHA Cash-out Refinance is similar to a traditional loan approval process.

    • A new appraisal will be required

    • Full verification of credit, income, and asset documentation.

  • The new FHA loan will have Mortgage insurance.

  • There is no maximum amount that you can cash-out, but the maximum possible loan amount will be based on the lesser of 85% of the appraised value or the maximum loan amount for the county (assuming your income and other factors support the loan).