FHA has a required net tangible benefit that has to be present to be eligible for a streamline.
An FHA Streamline Refinance is used to provide an additional Borrower Benefit for a current FHA borrower, generally lowering the existing payment. FHA Streamlines can be done without an appraisal, with or without credit qualifying, and often without cost.
A Credit Qualifying Streamline is a Streamline refinance where the borrower must meet income requirements, and undergo a full credit analysis. It is required in the following scenarios
*No Streamline Refinance can be used for the express purpose of reducing the mortgage term.
Borrowers can be removed when doing a Streamline under any of the following scenarios:
What if FHA condo approval was withdrawn or has expired for the property?
FHA will only allow Streamlines without appraisal for loans on properties with condo approval that have expired or been withdrawn.
A cash-out refinance pays for your current mortgage, as well as gives you extra cash to spend once the loan costs are paid. You can get a cash-out refinance with your FHA loan.
FHA cash-out refinance loans can provide lower interest rates as well as cheaper closing costs. There are also less stringent and requirements and documentation needed than in other private refinance options. You can refinance for up to 85% of the the home’s value.
A Simple Refinance is a no cash‐out refinance of an existing FHA‐insured mortgage in which all proceeds are used to pay off the existing FHA‐insured mortgage on the subject property plus eligible costs associated with the transaction, such as late charges, escrow shortages, and borrower paid repairs as required by the appraisal.
FHA also offers 203k rehabilitation loans.