FHA Streamline Refinance — For Existing FHA Loans

The FHA Streamline Refinance is a program for borrowers who already have an FHA loan and want to refinance into a new FHA loan with reduced documentation. It typically does not require a new appraisal, does not require income verification, and does not require employment verification. The goal is to lower your rate or change your term with less paperwork than a standard refinance.

You must already have an FHA-backed mortgage on the property. FHA Streamline cannot be used to refinance a conventional or VA loan into an FHA loan. You must be current on your payments — generally with no 30-day late payments in the past 6 months and no more than one 30-day late in the past 12 months, depending on the lender. You must also demonstrate a net tangible benefit from the refinance.

Typically, no. The FHA Streamline program does not require a new appraisal in most cases. This is a significant advantage if your home value has dropped or if you simply want to avoid the appraisal fee. Some lenders may require an appraisal in specific situations. We will confirm for your scenario upfront.

Yes. Every FHA loan carries Mortgage Insurance Premium (MIP), including loans originated through FHA Streamline. You cannot eliminate MIP by doing an FHA Streamline — it simply carries forward. If you want to get rid of MIP entirely and you have enough equity, you may need to refinance from FHA into a conventional loan (which is not an FHA Streamline — it is a standard refinance with a full appraisal and full documentation).

When you originated your FHA loan, you paid an Upfront Mortgage Insurance Premium (UFMIP) of 1.75% of the loan amount. If you refinance into a new FHA loan via FHA Streamline within 3 years (36 months) of your original closing, you are typically eligible for a partial refund of that UFMIP on a sliding scale — larger if the loan is very new, smaller as it ages. The refund is applied against the UFMIP on the new loan. After 3 years, the refund is zero.

You can typically remove a borrower from the loan through an FHA Streamline — for example, in the case of a divorce — provided the remaining borrower can document they have been making the payments. You cannot add a new borrower to the loan through FHA Streamline; that would require a full refinance with credit qualification.

No. The FHA Streamline is strictly a rate and term refinance. You cannot take cash out beyond a small amount (typically capped at $500) that may be returned at closing for minor escrow or calculation adjustments. If you want to pull equity out of an FHA loan, you would use an FHA cash-out refinance instead, which requires a full appraisal and full documentation.

FHA requires every Streamline to produce a "net tangible benefit" for the borrower. HUD defines specific benefit thresholds — for example, a reduction of at least 0.5% in the combined rate (interest rate plus annual MIP) for a fixed-to-fixed refinance. Moving from an ARM to a fixed rate or shortening your loan term can also qualify as net tangible benefit. Our loan officers will confirm whether your scenario meets the rule before you apply.