How to Qualify for FHA Streamline Refinance Program

refinancing mortgage contractThere are various ways to work on your mortgage rates without losing your home. The FHA streamline refinance program in Utah, for instance, is a great option for homeowners who have an existing FHA loan and want to lower their monthly payment.

However, certain qualifications need to be met. Here are the criteria for you to qualify:

You Have to be Staying in the House

One of the qualifications for refinancing is that you have to be living in the property you are refinancing. You should also own the home for at least six months before you could apply for a refinancing program.

Your Payments Should be Updated

You will not qualify for refinancing if you have two late monthly payments on your FHA home loan within the past 12 months. So before your application, check if all your payments are current and made on time.

Get an FHA-approved Letter

You need to have an FHA-approved letter to refinance your existing loan. Meanwhile, homeowners who want to switch to a different lender must ensure that the FHA approves the bank that they will choose as well.

Save Up for the Closing Costs

Another factor that you should consider is the closing costs. Keep in mind that all the closing costs must be paid up front prior to your loan approval. You may also arrange for a “no-cost” FHA streamline home loan.

Although the FHA streamline refinance program is the fastest and the easiest way to refinance your mortgage, there are still a few qualifications that need to be met. To make the process easier, you may want to consider working with qualified mortgage planners to assist you with the entire application process.