Homeowners with an existing FHA-insured mortgage can rapidly refinance into lower prevailing interest rates without pay stubs, W-2 re-verifications, or new appraisals.
1. HUD Net Tangible Benefit Guidelines
- Fixed-to-Fixed Rule: Refinancing between fixed-rate mortgages requires a minimum combined interest rate + MIP reduction of at least 50 basis points (0.50%).
- Payment Seasoning: Borrowers must have made at least 6 consecutive on-time monthly payments and reached 210 days since the original loan closing.
- No Cash-Out: FHA Streamlines do not allow cash extraction; maximum cash back at closing cannot exceed $500.