| Re: FHA Streamline
An FHA streamline refinance requires that you be current on your mortgage, and after closing costs, the new mortgage amount does not exceed the original mortgage amount. You must also be able to lower your interest rate at least one percent on a fixed rate mortgage, or in the case of an adjustable rate mortgage, you always have the option of converting to a fixed rate. You are also subject to a CAVIRS check, which will show any other government liabilities, such as IRS or student loan issues. If CAVIRS comes back with an issue, then those issues must be cleared before you can possibly do even a streamline refinance.
When you have a second mortgage, along with an FHA mortgage, the second mortgage holder must agree to the refinancing and remain in second position.
If you are trying to eliminate the second mortgage, and combine it into the new FHA mortgage, then that would be a credit qualifying cash out refinance, and subject to new appraisal.
It is true that most lenders want to protect their interest and pull a credit report, as well as have at least a drive by appraisal completed, but these are not actually requirements, nor reason to decline an FHA Streamline Refinance. |