Local Voices
So what is an FHA streamline mortgage?
There are many confusing terms in the world of mortgages and the word "streamline" as it applies to FHA mortgages is one of them.
First of all, this is a refinance of an existing FHA mortgage. The term "streamline" just means that there is less documentation and underwriting required than on an initial FHA mortgage. There are certain requirements for an FHA Streamline mortgage:
The existing mortgage that will be refinanced must already be FHA insured.
Find out what's happening in Branfordwith free, real-time updates from Patch.
The existing mortgage cannot be delinquent
The refinance must lower the borrowers monthly principle and interest payments.
Find out what's happening in Branfordwith free, real-time updates from Patch.
No cash may be taken out on a streamline mortgage.
Underwriting guidelines will vary somewhat from lender to lender and from borrower to borrower but will be approximately as follows:
Minimum credit score in the 640 to 660 range.
No late mortgage payments in last 12 months.
Maximum debt to income ratios in the 45 to 55% range.
No new appraisal is required.
Maximum loan to value of 105% based on original appraisal.
For more information contact: Dale Athanas, Loan Officer, NMLS#1065087, Northeast Financial Mortgage, 860-876-0466, dale@daleathanas.com.