If you have an existing FHA loan on your primary residence and a fairly good credit score, you may be able to take advantage of the FHA Streamlined Refinancing Program, which eliminates many of the complex steps involved in a typical FHA refinance. No appraisal is required as long as the borrower reduces their payment by 5 percent, which has caused many to liken this program to the HARP 2.0 program.
Key requirements of the FHA Streamlined Program include the following:
- Your original FHA loan must have been taken prior to 2009.
- You must have made payments on time for at least one year and must be current on your payments at the time of application.
- Your lender must be FHA approved.
- You must have owned the property for at least 6 months prior to refinancing.
- You will be limited to the amount of your original loan unless you pay for a new appraisal to show that the home value has increased.