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  • Northern Virginia -Fairfax, Loudoun, Alexandria, Arlington & Prince William Blog, real estate Market condition written by Ritu Desai at Samson Properties.


Refinace option with out appraisal - FHA Streamline refinance






Did you know you can refinance your home irrespective of the current market value of your home?  The answer is FHA Streamline refinance. This offer allows borrower to take advantage of lower rates and lower the monthly mortgage payment.
There are two options available for FHA Streamline Refinances, and the guidelines vary on your choice:
  • Refinance without an appraisal
    • Maximum mortgage amount will be the lower of the original principal balance on the mortgage plus the new upfront mortgage insurance premium charged on the refinance or the sum of the existing FHA mortgage, closing costs, reasonable discount points and the prepaid expenses
    • This option is best for those that have paid down their FHA mortgage balance enough to be able to cover the closing costs in the loan, or have the cash to pay for the closing costs themselves
  • Refinance with appraisal
    • Maximum mortgage amount will be the lower of 96.5% of the appraised value plus the upfront mortgage insurance premium or the sum of the existing FHA mortgage, closing costs, reasonable discount points and the prepaid expenses
    • This option allows you to include the closing costs of the refinance into the mortgage if the value of the home has increased enough to cover those costs
What If My Credit Isn’t Good?
Life happens, and sometimes you are not able to make all of your payments on time.  You might be struggling to pay all of your monthly obligations and refinancing your mortgage would provide an opportunity to lower your monthly payment and get back on track, right?  FHA Streamline Refinances are no credit qualifying refinance transactions.  Right from the FHA guideline book it states,
We do not require an appraisal, termite inspection or credit report on streamline refinances
What I can tell you is that lenders typically verify that you have made on time payments on your mortgage for the previous 12 months.  Most lenders verify this by running a credit report from one of the credit bureaus to show no late payments on your mortgage and completely disregard the remainder of the report.
Income and Assets
Lenders don’t even care what your income or assets look like either.  According to FHA,
Borrowers are not required to provide evidence of cash to close
the sections [of the loan application] regarding income, assets and debts and obligations need not be completed
The purpose, as I showed above, is to reduce your monthly mortgage payment.  If we can do that, then we don’t really care about the rest.
Sounds Too Good To Be True??
This is one of those loan options that sounds just too good to be true…but it isn’t.  If you think you might want to take advantage of this loan option or discuss whether or not you qualify for this loan, contact a lender today. 
SO here the basic requirements of a streamline refinance are:

The mortgage to be refinanced must already be FHA insured.
The mortgage to be refinanced should be current (not delinquent).
The refinance is to result in a lowering of the borrower's monthly principal and interest payments.
No cash may be taken out on mortgages refinanced using the streamline refinance process.

Items needed for processing an FHA Streamline Refinance:
Copy of existing mortgage note
Copy of recent mortgage statement
Copy of Homeowners insurance policy


Thinking of buying or investing in Northern Virginia please feel free to contact me 703-625-4949 or email me at


Ritu Desai

Posted: Thursday, March 26, 2009 4:34 PM by Ritu Desai


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