How can Streamline Refinance Simplify Refinancing Your Mortgage

There are a variety of loan products available for home refinance. One of the most popular methods today is the “streamline refinance” which lessens the load of paperwork required by consolidating the loan process with lenders into a more efficient and faster loan approval process for you. These loans also have more flexible guidelines like:

  • No appraisal
  • No income check
  • Reduced documentation

This can really help if you’re not sure of your home’s value or if your income has changed since getting your original mortgage.
Here is a brief summary of the streamline refinance types and the best features of each:

streamline refinance

FHA (Federal Housing Administration)

Are you currently in an FHA mortgage with expensive mortgage insurance and a high rate?

If fall into this scenario an FHA streamline refinance  might be the right refinancing program you have been hoping for to lower your monthly mortgage payment and lower your monthly mortgage insurance. (Please note – the total finance charges may be higher over the life of your loan). FHA Streamline loans are easy to qualify for due to the flexible guidelines and overall simple process. There have also been recent changes to the mortgage insurance required which has lowered the cost of these loans even more than before.

So, if you have been on the fence about looking into this and currently hold an FHA Mortgage you are just one simple step away from locking in a much more affordable mortgage payment.

FHA Features

  • Special Reduced FHA Mortgage Insurance Rates
  • Primary, Secondary, and Investment allowed
  • No Appraisal Required
  • Flexible FHA Guidelines
  • Accelerated Processing
  • Less Paperwork
  • Less verification’s required
  • Competitive Interest Rates


VA (Veteran Affairs)

VA to VA loan refinance is a special loan offered only to eligible Active Military, Veterans and Spouses who meet the requirements for VA entitlement. If you are currently in a VA loan and would like a lower interest rate by refinancing, the VA has made it easy for you. The VA Streamline Refinance Program is available to all homeowners who are currently covered under the VA Loan program. The program’s name is the Interest Rate Reduction Loan (IRRRL) backed by the Department of Veteran’s Affairs hence the abbreviation VA.

VA Features

  • No Appraisal required
  • Primary, Secondary, and Investment allowed
  • Less verification’s required
  • Less paperwork
  • Flexible VA Guidelines
  • Accelerated Processing
  • No Private Mortgage Insurance (PMI) Required
  • Competitive Interest Rates


HARP (Home Affordable Refinance Program)

HARP Loans are Streamline by Definition. Back in 2008 when the mortgage bubble burst, home values across the nation were adversely impacted leaving millions of Americans with mortgages balances higher than what their homes were worth.

People need a second chance to be able to refinance and lower their high-interest rates. So, the best place to start is with the government’s Home Affordable Refinance Program (HARP). This Government backed loan offering let’s homeowners refinance at today’s great rates despite having no to little equity in their homes. With HARP in your corner, a lower mortgage payment is a real possibility which can lead to putting more money back into your pocket each and ever month. (Please note – the total finance charges may be higher over the life of your loan).

HARP Features

  • 620 FICO Credit Score and above
  • Appraisal may not be required
  • No cash to close option
  • Primary, secondary eligible
  • Sign closing paperwork at home
  • Competitive Interest Rates


USDA (United States Department of Agriculture)

The USDA Streamline Refinance is similar to the other streamline programs we have talked about but has fewer eligibility requirements than you might find elsewhere.

The hurdles to getting approved for this mortgage refinancing program are very low, underwriting is promptly done, and closing can happen quicker than traditional loans.


USDA Features

  • 620 Credit Score Required
  • No Appraisals (In Most Cases)
  • Fast Underwriting
  • Quick Closings

Disclosure: Even though a lower interest rate can have a profound effect on monthly payments and potentially save you thousands of dollars per year, the results of such refinancing may result in higher total finance charges over the life of the loan.