Sometimes, refinancing your mortgage just makes sense; especially if you can move to a lower interest rate and a more affordable monthly payment. Streamline refinance options for government-backed FHA, VA, and USDA home loans can significantly reduce the time it takes to refinance. Here’s why: no appraisal is required in most cases, minimal or reduced documentation is needed, qualification is straightforward, and they usually entail a quick closing. If you already have a government-backed mortgage, Luxury Mortgage can help you easily refinance whether you are looking for a lower rate or monthly payment. You have options.
Qualifications for a Government Streamline Refi
The rules will differ between FHA, VA, or USDA loans, but typically, the minimum requirements generally are:
- The loan has to be the same agency as the existing one (i.e. VA to VA).
- Homeowner must have a proven history of on-time payments.
- Homeowner must prove a measurable benefit for refinancing.
FHA Streamline Refinance
To qualify for an FHA streamline, you must benefit financially. If you have an FHA 30-year mortgage, you can refinance to another 30-year term, or if you have a 15-year term, you can refinance into a 30-year term for lower monthly payments. You can also choose between a fixed-rate mortgage or an adjustable-rate mortgage (ARM).
VA Streamline Refinance
This refi program helps veterans or current military service members reduce the interest rate on their current VA loan. You can refinance from one VA mortgage into another. Similar to the FHA streamline, you must benefit financially.
USDA Streamline Refinance
USDA mortgage holders have two options to refinance to a new USDA mortgage: a USDA streamline refinance or USDA streamlined assist refinance. The USDA streamline refinance requires a credit score and debt-to-income ratio; the streamline assist does not. Additionally, the USDA streamline assist refinance requires that you must financially benefit from the refi; the streamline refinance does not.
Ready to Learn More?
Luxury Mortgage’s licensed mortgage consultants can help you determine if a government streamline refinance – or another option – is right for you. Simply call (888) 379-0303 or use the buttons below.
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