• A Federal Housing Administration streamline refinance is intended to lower your monthly principal and interest payments. It is designed to provide less paperwork than a typical refinancing requires. To be eligible for a streamline refinance, your mortgage must be FHA insured and it must not be delinquent. Unlike other refinancing methods, you will not be able to walk away with cash in your pocket -- even if there is available equity.
  
  

Lender Selection

• To take advantage of an FHA streamline refinance, you must choose a lender listed as a U.S. Department of Housing and Urban Development-approved lender. Use the HUD lender online database to begin your lender search or to verify your lender selection.
  
  

Loan Application

• Your lender will work with you to complete a modified version of the Uniform Residential Loan Application. For a standard FHA streamline refinance, the modified version omits employment information, monthly income and expense information, assets and liabilities, and financial declaration information. The borrower is required to provide property information, personal information for all borrowers and property-related declarations.
  
  

Credit Qualifying

• An FHA streamline refinance typically does not require credit qualifying documentation. However, you must provide credit qualifying documentation when your refinance results in a higher mortgage payment, or if you are changing the borrowers who were listed on the original loan. Credit qualifying documentation includes income and credit report verification, debt-to-income ratios and an assessment of the borrower's ability to make payments.
  
  

Appraisal

• The FHA streamline refinance does not require an appraisal, unless the loan amount increases.
  
  

Closing Cost Options

• You can pay closing costs in cash or finance them. If closing costs are added to your total loan amount, an appraisal is required to confirm that the property has enough equity to support the increased mortgage. If you want no out-of-pocket costs at closing, some lenders will charge a higher interest rate and pay your closing costs.
  
  

Closing

• The FHA streamline refinance is complete with you sign the closing documents and pay your closing costs, if applicable.