Streamline refinances
The short version
If you have an FHA, VA or USDA loan, you can refinance into the same kind of loan with less paperwork.
- FHA Streamline: no appraisal required, and an option without income verification. The new loan has to give you a real benefit, such as a lower combined rate and mortgage insurance. Cash back is capped at $500.
- VA IRRRL: a 0.5% funding fee, usually no appraisal, and the costs must be recouped within 36 months.
- USDA Streamlined-Assist: no appraisal and no new debt-ratio check. The payment must drop by at least $50 a month.
Each has a waiting period. FHA and VA need 210 days and 6 payments on your current loan. For USDA, your current loan must be at least 180 days old, with on-time payments over that time.
Go deeper
FHA Streamline details
- Waiting period: at least 210 days since your current loan closed, and at least 6 payments made.
- Two versions: credit-qualifying, with income and credit checked, or non-credit-qualifying, where income is not verified. Your recent payment history still matters.
- Benefit test: the new loan must lower your rate and mortgage insurance together, or shorten your term, by enough to count.
- Upfront premium credit: if your current FHA loan is less than three years old, part of the upfront premium you paid is credited toward the new one.
VA IRRRL details
- Waiting period: 210 days after your current loan's first payment was due, and 6 monthly payments in a row.
- Rate drop: fixed to fixed, the new rate must be at least half a percentage point lower. Fixed to adjustable, at least two points lower.
- Recoupment: fees and costs must be paid back through lower payments within 36 months.
- Occupancy: you only need to have lived in the home before. It can be a rental now.
- Funding fee: 0.5%, and zero if you are exempt, such as when you receive VA disability compensation.
USDA Streamlined-Assist details
- Your current USDA loan closed at least 180 days ago, with no late payments in the last 180 days
- The new principal, interest and annual fee together must be at least $50 a month less
- No appraisal in most cases, and no debt-ratio calculation
- A 30-year fixed rate; no cash out
- Household income must still be within USDA's limit, and you must live in the home
- Closing costs and the upfront fee can be added to the loan
See it with your numbers
Your Mortgage Plan compares the streamline with your current loan and shows the refinance break-even.
Already have a Mortgage Plan? Open your link, or text Daniel.
Back in your Mortgage Plan, see this with your own numbers.
