Most people think of the FHA 203k streamline program to be used only when you purchase a house that is in need of repairs.
But did you know that you can refinance a house with the FHA 203k Streamline loan?
FHA 203k Streamline Refinance
The Streamlined (k) program is also available for mortgage refinance transactions including those where the property is owned free-and-clear. Only credit-qualifying “no cash-out” refinance transactions with an appraisal are eligible for the Streamlined (k) program. Form HUD-92700 provides instructions for calculating the maximum mortgage permitted for Streamlined (k) loans for purchase and refinance transactions.
If the borrower has owned the property for less than a year, the acquisition cost must be used to determine the maximum mortgage amount. The requirement to use the lowest sales price within the last year does not apply to the Streamlined (k).
Have more questions about refinancing using a FHA 203k streamline loan? Be sure to contact one of our experts who can help answer any questions that you may have.