Homeowners that already have an FHA loan are eligible to refinance their FHA loan with a special mortgage product called a FHA streamline Refinance.  One of the best features of the FHA Streamline Refinance program is that it does not require an appraisal.  Instead, the FHA will use the original value of your home as the home’s current value.  This is an amazing feature that allows even underwater FHA borrowers to take advantage of lower interest rates.  The theory is that since the loan is already FHA insured, lowering the monthly payment through a refinance would only serve to benefit the homeowner thus making the loan more secure.  The logic is sound resulting in one of the best refinance programs out there.

In order to be eligible, FHA borrowers must:

  1. Be current on the existing loan with no late payments within the last 12 months.
  2. Have owned your property for at least 6 months.
  3. Use an FHA approved lender.
  4. Although FHA Streamline Loans do not require an appraisal, the new loan amount without an appraisal cannot exceed your current loan. Your best bet is to locate a NO CLOSING cost lender.  Frontier Loan Group, Inc. offers NO CLOSING COSTS FHA Streamline Refinance programs.
  5. Closing costs may be included into the loan amount if you chose to have an appraisal, however, you must have enough equity to cover the closing costs.

If you have a FHA loan and have not looked into the possibility of lowering your interest rate you need to do it right now.