The Federal Housing Administration's goal of making home owning a possibility does not end with FHA loans. Another great service provided by the FHA is Streamline Refinancing. Streamline Refinances are great ways to reduce interest rates and lower monthly payments on existing FHA mortgages. They are termed "streamlined" because the relative lack of hassle or paperwork to be done to acquire such refinancing.
Other benefits of choosing a Streamline Refinance is that appraisals, credit checks, income verification, or employment verification are usually not required. It is very easy to increase or decrease the length of the term of the existing FHA loan. Also, out-of-pocket costs are minimal, and possibly zero.
The requirements for a FHA Streamline Refinance must be fulfilled before obtaining a refinance. Most importantly, the existing loan must be FHA-insured, current, and in good standing. Six months must have passed since the original loan was taken out before a Streamline Refinance can occur. The Streamline Refinance must lower the borrower's interest rate, thus lowering monthly payments. There is no cash back option for this type of refinance.