There are two primary types of FHA refinance programs, FHA Streamline, outlined below, and FHA 203(b).
If you already have an existing FHA mortgage, an FHA Streamline refinance loan is a good option.
Unlike a conventional refinance, an FHA Streamline refinance doesn’t have many of the income and appraisal requirements, providing you a quick, easy way to make your mortgage more affordable. It also offers higher loan-to-value ratios, so you may still qualify even if you have little to no equity in your home.
With an FHA Streamline refinance, you can:
- Lower monthly payments.
- Reduce interest rates.
- Build equity faster.
- Pay off loans sooner.
When someone says they want an FHA loan, this is what they’re talking about. The FHA 203(b) can also be used to refinance an existing conventional or FHA mortgage. For more on FHA 203(b) click here.