August 18, 2015
FHA Streamline Refinance Loans: Basics For Credit Qualifying Streamline Refinancing
In our last blog post we discussed some basics on FHA Streamline Refinance Loans. The FHA Streamline Refinance loan program permits lenders to process the loan paperwork for these refinances (FHA-to-FHA only) with no credit check in most cases. But lenders are free to require a credit check, and there are some cases where the credit check is required if add-ons to the loan cause the borrower’s monthly payments to increase by 20% or more, but there are other circumstances that may also require credit-qualifying. HUD 4155.1 states: “A credit qualifying streamline refinance must be considered: –when a change in the mortgage term will result in an increase in the mortgage payment of more than 20% –when deletion of a borrower or borrowers will trigger the due-on-sale clause –following the | more...