How to Streamline an FHA Loan
An FHA loan is a mortgage loan that is insured by the Federal Housing Administration. If you have an older FHA loan and want to take advantage of today's low interest rates, you should consider an FHA Streamline.
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Things You'll Need
- The note from your existing FHA loan
- Documentation of your payment history
- Proof you've owned the property for at least six months
- An FHA-approved lender
Instructions
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Determine if You Have an FHA Loan
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Look at your original loan documents. If it is an FHA loan, the papers will have an FHA case number on them. Moreover, some documents exclusive to FHA loans should have been included with your original package. You may also call your lender and ask if your loan is an FHA loan or not.
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2
Check your payment history. The loan must be in good standing. If you have any doubts, ask your FHA-approved lender to go over your payment history and determine if you are in good standing or if you should season your loan by making more on-time payments.
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3
Make sure you have owned the property for at least six months. Check the deed that came with your closing documents. It will serve as proof.
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Be sure your lender is FHA-approved. You can make this determination from the HUD website or by asking the lender. Streamline loans are quite advantageous because of their low cost and minimal paperwork, so you wouldn't want to waste time with a lender who can't provide the product.
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Consider an FHA Streamline (203k) Loan. This is another product for people who want to modify or improve their homes. The 203k has a $5,000 minimum, a $35,000 maximum and is added to your present mortgage. In most cases, a contractor must do the work and provide and adhere to project cost estimates. Third-party inspections may be required and building permits obtained. Check with your lender for other requirements.
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Tips & Warnings
You cannot obtain cash back from a Streamline loan.
