FHA Refinance Loan Assistance Program; WITHOUT An Appraisal

There are several types of FHA Refinance Assistance Programs available. I’ll cover each one of them of the next several posts.

The first FHA Refinance Assistance Programs that I want to cover is the FHA Streamline Refinance WITHOUT an appraisal.

FHA has allowed streamline refinances dating all the way back to the early 1980’s. What “streamline” basically means in a nut shell is the amount of documentation and underwriting needed by your lender, it doesn’t mean that you will not pay any closing costs when you refinance your FHA Loan. Below I’ve provided some of the basic things needed for your FHA refinance loan:

• The FHA loan that is going to be refinanced must already be an FHA loan.
• The FHA loan that is going to be refinanced must not currently be behind in payments (31 days or more).
• The FHA loan that is going to be refinanced is going to lower the borrower’s monthly payments.
• You can not take out any cash.

Some home loan lenders offer FHA refinances in several ways. They might offer you what is called a “no cost” refinances (this is actually, no out-of-pocket expenses to the borrower).

How this works is they offer you a higher interest rate on your new home loan than if you financed your closing costs or paid the closing costs out of your own pocket.

This is called a Premium Pricing; You see your lender actually receives a premium in most cases for packaging and sending your loan to the end investor. From this premium, your lender pays your closing costs that are incurred on the transaction.

FHA Streamline refinances cannot exceed the original loan amount.