An FHA Streamline Refinance is a mortgage option for people who currently have an FHA loan. It offers an opportunity for borrowers to decrease their current FHA mortgage rate without having to go through as many steps as the traditional refinance application. Because of recent decreases in mortgage rates and reduced FHA Monthly Mortgage Insurance Premiums (MIPs), it is possible for some people to see their monthly mortgage payments be reduced by as much as 20%.**
Two different FHA Streamline Refinance options are available: credit qualifying and non-credit qualifying. Both require little documentation (such as income and asset verification) and can be done with or without an appraisal. To qualify for this program at Homestead Funding, borrowers must have a credit score of at least 640.