There are four basic requirements to qualify for a FHA Streamline loan. They are:
– Your existing loan must already be insured by the Federal Housing Administration (FHA).
– Payments on your existing FHA loan must be current with no delinquencies in the last year.
– Refinancing your current FHA loan should result in the lowering of your monthly principal and interest payments. Under certain circumstances, you may be eligible for an FHA Streamline refinance if you are converting from an adjustable rate mortgage (ARM) to a fixed-rate mortgage.
– “Cash-outs,” the practice of taking cash out when you refinance, are not allowed on a FHA Streamline refinance loan.