In short, probably. You’ll want to speak with your loan officer if a refinance makes sense for you right now but if it does there is probably no easier loan to qualify for than the FHA streamline refinance. What’s an FHA streamline? The streamline is a low-document refinance program and while it differs from a standard FHA refinance loan, very rarely should the standard refinance be used and instead choose the streamline. Why?
As long as your interest rate is lowered or you’re switching from an adjustable rate you’ll quickly discover how easy the streamline actually is. First, there is no employment verification required. That means there will be no need to dig up your two previous W2 forms. You don’t need to provide your pay check stubs showing how much money you make each month. In fact, you’re employer wont’ be contacted at all.
there is no refinance needed in order to establish property value. A standard refinance will require a brand new appraisal to make sure your new value isn’t lower than what you owe on your mortgage. Instead, as long as the newly refinanced FHA loan doesn’t exceed the original loan amount, that's the only valuation needed.
no credit scores are required in order to qualify. And you won’t need any bank statements either. The only credit qualification for the FHA streamline is having no more than one payment made within the previous 12 months listed as more than 30 days past the due date and no such payments within the past six months.
The thinking is if you’ve made your payments on time with the higher rate you should certainly be able to do so with a lower rate. Or, you’re getting rid of an adjustable rate loan that could go higher in the future and are providing a stable monthly payment with a new fixed rate loan. If you’ve been thinking about refinancing your FHA loan but don’t relish the prospect of digging up the mounds of paperwork that most mortgages require, you’re probably going to be pleasantly surprised.
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