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I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

Refinancing is a popular way for homeowners to free up some cash for other purposes, or just to lower their monthly payments through a new interest rate. Refinancing is a common process and most lenders will be able to refinance a home for you. However, in 2008 when the recession spurred by the mortgage crisis hit, lenders came under a little more scrutiny than usual, which includes their refinancing practices. They ultimately had to tighten their lending practices.


Now, with interest rates at all-time lows and lenders open to refinancing more than ever, many are offering streamlined refinancing options for some qualified borrowers looking to lower their monthly payments or free up some cash using the equity in their home.


What is it?

Streamlined refinancing is the reduction of the amount of documentation and underwriting that lenders must go through to help a borrower refinance their home. There are no costs involved in the transaction, however, the refinancing must be done for an existing FHA-insured mortgage. Streamlined refinancing speeds up the process for homeowners to refinance their mortgage and take advantage of record-low interest rates.


Some of the requirements for streamline refinanced mortgages are different and often include that the refinance must be a net tangible benefit to the borrower. There are a few factors that go into this but generally, it means that the terms must be preferable to the borrower in regards to the interest rate, term of the new loan, and the type of loan being refinanced.


How Streamlined Refinancing Works

The streamlined aspect of streamlined refinancing is the most important, and the part of the process homeowners love so much. The reason it is so fast is that you won’t need to go through the FHA appraisal process since the FHA has already valued the property and has all of the information on file.


The result of all of this is that you can get a new refinanced FHA-backed mortgage using less time, less stress, and of course most importantly, less paperwork.


There are two main categories when it comes to FHA-backed mortgages that are often eligible for streamlined refinancing: credit qualifying and non-credit qualifying.

Credit Qualifying

This type of streamlined refinancing will ultimately require a credit check, debt-to-income (DTI) calculation, and assessment of your ability to pay from the lender.

Non-Credit Qualifying

This type of streamlined refinancing means you can avoid a credit check, debt-to-income calculation, and new assessment from the lender.

While getting a credit qualifying streamline refinancing will sometimes get you a lower interest rate and some better terms, there is a lot more paperwork and hassle.


Shop Around

Streamlined refinancing is a great way to refinance quickly if you have an FHA-insured mortgage already. With less paperwork, you are less likely to have delays and can refinance your home as quickly as possible. This is a great option for homeowners who have a good credit history and would just like to get a better interest rate or lower their payments.


A streamlined refinancing also doesn’t need to be done with your existing lender. It is always a good idea when looking for rates to shop around at different banks, credit unions, or other lenders. Some lenders have different requirements and bonuses for streamlined refinancing and you should talk to a professional before moving ahead with any final decision.


Comparing and shopping quotes will give you a better picture of your options, and find the best deal.