An FHA Streamline is a no-documentation refinance of an FHA loan. This means you don’t have to go through a credit-qualifying process, unless you have a borrower being removed and require regular underwriting, and you can more quickly close with less paperwork and still get the refinance benefits you expect. You do not need an appraisal or full credit pull. Your closing date needs to be at least 210 days ago and have six consecutive months of ontime payments and be at least six months since your first payment. These are FHA seasoning requirements so if your loan is newer, wait a little longer before applying to Streamline it.

Your FHA Streamline must have a net tangible benefit before proceeding with a refinance. The refinance should reduce your montly payment by at least 5%, reduce your term and/or rate, and provide financial benefit to the borrower in some way that is not more beneficial to the lender than the borrower.

That’s it! It’s just a modern way to refinance your home on an FHA loan to get a better rate and save money on your monthly mortgage payment. You don’t need to go through the employment and income verification process the same again as you did at purchase. Underwriting of the Streamline refinance will go through all of the back end things on their own and much of what you need is verifiable without submitting new documentation all over again. It’s a much easier and faster closing process, which is often all virtual now, with less stress and more of a, you guessed it, streamlined procedure start to finish.

Reminder: This is for FHA loans, not Conventional. They’re done differently just as they are for purchases. This also doesn’t apply to USDA loans and VA have their own process to refinance.