subject: What is an FHA Streamline Refinance Mortgage? [print this page] Current home owners who have FHA insured loans and whose payments are current and whose loans are in good standing can take advantage of FHA streamline refinancing with little down side. What closing costs that may exist, can often be given back in the form of a credit at closing. The lender or broker simply inflates their rate a bit and earns more money which they then use to credit back to cover any loan related expenses.
About FHA Loans
The Federal Housing Administration (FHA) provides mortgage insurance on home loans offered by FHA approved lenders. This mortgage insurance protects the lenders against potential losses resulting from borrowers defaulting on their mortgages. FHA loans have become increasingly more popular in the past few years as Fannie Mae and Freddie Mac have tightened their program guidelines making FHA loans one of the go-to sources for low money down mortgage financing. FHA loans are also known for having less strict financing guidelines in that credit standards and debt to income ratios may be slightly more lenient than what is available through other conforming mortgage loans products.
