Even if you don’t have the credit necessary for regular refinancing, it doesn’t mean you have no options if you want to lower the interest rate on your home loan.
Thanks to the Federal Housing Administration (FHA), refinancing may be available to many homeowners who would not otherwise meet their lenders’ requirements.
With an FHA streamline refinance, you may be able to get a lower interest rate or a shorter term on your mortgage loan, regardless of your credit score. This type of refinance is available for people who have FHA-backed mortgages that are not delinquent (i.e. mortgages where the monthly payments are current).
Streamline refinancing comes with many benefits, including the following:
- FHA refinancing is fast. Compared with regular refinancing, FHA streamline refinancing is faster and involves fewer documents. That’s because the streamline refinancing does not involve doing an appraisal on your property.
- The terms will benefit you. When you refinance with FHA backing, you will always end up with refinancing results that are better than what you have now. In fact, the FHA will only let you do a streamline refinance if the calculated loan terms will benefit you.
- A credit check may not be required. Depending on your circumstances, your lender may not have to check your credit before allowing you to refinance with an FHA-backed loan. This means that you may be able to get approved for streamline refinancing even if you have been denied for regular refinancing.
By Admin –
