The FHA loan program was originally designed to increase homeownership in America by enabling homebuyers to purchase a home with a FHA insured loan with as little as 3% down payment and less stringent loan qualifications than a traditional conventional loan.
In the 1980's FHA began permitting the FHA streamline refinance to allow those homeowners to take advantage of lower interest rates in turn, lowering their monthly payments. This continued the original goal of FHA which is homeownership in America.
The FHA streamline refinance is best defined as follows:
- The refinance of an existing FHA loan with limited documentation and minimal underwriting qualifications.
FHA's stance is if the homeowner is current on their existing mortgage (one that FHA is already insuring) and they
are able to refinance to a lower interest rate and lower payments, without increasing the loan amount by more than the original amount, then why not make it as easy as possible for the borrower to qualify and limit the documents needed.
This is exactly what FHA offers with it's FHA streamline refinance. A means to refinance your mortgage without all of the paperwork, underwriting qualifications, appraisal, or time normally necessary when refinancing a home loan.
Since this process of refinancing is so quick and easy, staying with it's "streamline" namesake, it can present your with some significant advantages over traditional mortgage refinances.
To learn about the advantages of the FHA streamline refinance and how it can benefit you, simply click >>> Your Advantage of FHA Streamline Refinancing