Prohibited in some states. See GEOGRAPHIC RESTRICTIONS.
• Must meet minimum credit score requirements (see CREDIT SCORES).
• Applicable FICO-based price adjustments will apply.
• 12-month mortgage history reported from all 3 repositories.
• Streamline refinances must be current and the previous payment history can not contain a 30-day late or
greater payment in the most recent 12 months. The following documentation is required:
- Evidence the existing loan is current.
- If the loan is seasoned 12 months or more, evidence of no 30-day late payments in the most recent
12 months.
• Full credit reports are required.
• Owner-occupied primary residence only except streamline refinance without appraisal
• Cash back at closing limited to $500, ($0 in Texas), and must be due to changes in the payoff and/or
closing costs and prepaids. At time of origination and loan approval, the 1003, GFE and MCAW
must show no cash back. (ML 05-43)
• Streamline refinance without appraisal:
- Term of the new mortgage is the lesser of 30 years or the un-expired term of the existing mortgage
plus 12 years. (4155.1 REV-5 Par 1-12-A).
- Use the “Original Principal Balance” from the Refinance Authorization screen in the FHA
Connection. This will reflect the true loan amount after any principal reductions.
- The maximum base loan amount is the lower of these calculations:
- Original Loan Amount: The “Original Mortgage Amount” from the Refinance Authorization in the
FHA Connection (which includes any financed UFMIP), or
- Existing Debt: The outstanding principal balance of the existing FHA-insured first lien, plus closing
costs, prepaid expenses, discount points, minus any refund of UFMIP.
- For Truth in Lending Disclosure purposes, calculate the LTV by using the “Original Property Value”
from the Refinance Authorization in the FHA Connection.
• Any streamline refinance of a 30-year mortgage on a principal residence may be refinanced to a shorter
term mortgage; however, the new monthly principal and interest may not increase more than 20%. (ML
05-43)
• Fixed-to-Fixed streamline refinances must lower the monthly P&I and/or decrease the term of the
mortgage.
• A Hybrid ARM may be streamline refinanced to a fixed rate mortgage, with or without appraisal, provided
that the payment will not increase more than 20% and all mortgage payments have been made within
the month due for at least the last 12 months or the period the mortgage has been in force, if shorter.
(ML 05-43)
• A holding period of six months applies when: (1) the borrower obtained the loan via non-qualifying
assumption; or (2) when a borrower is deleted due to devise or descent of law (e.g., divorce, death, etc.)
and a quit-claim of interest has been executed. Full credit qualifying is required if held less than six
months and/or if due-on-sale clause is triggered. (4155.1 REV-5 Par 1-12-C)
- FHA Connection (which includes any financed UFMIP), or
- Existing Debt: The outstanding principal balance of the existing FHA-insured first lien, plus closing
costs, prepaid expenses, discount points, minus any refund of UFMIP.
- For Truth in Lending Disclosure purposes, calculate the LTV by using the “Original Property Value”
from the Refinance Authorization in the FHA Connection.
• Any streamline refinance of a 30-year mortgage on a principal residence may be refinanced to a shorter
term mortgage; however, the new monthly principal and interest may not increase more than 20%. (ML
05-43)
A holding period of six months applies when: (1) the borrower obtained the loan via non-qualifying
assumption; or (2) when a borrower is deleted due to devise or descent of law (e.g., divorce, death, etc.) and
a quit-claim of interest has been executed. Full credit qualifying is required if held less than six months and/or
if due-on-sale clause is triggered. (4155.1 REV-5 Par 1-12-C)