What is an FHA Streamline Refinance?
HUD has permitted homeowners to lower the interest rate on FHA & VA insured mortgages since the early 1980′s. The "streamline" refers only to the amount of documentation and underwriting that needs to be performed by the lender, and does not mean that there are no costs involved in the transaction. Some streamlines have costs involved.
We specialize in a special streamline program called a "Streamline Rate Reduction". This program allows borrowers to get lower interest rates, WITHOUT incurring any fees to get the lower rate. This is how it works…
- We are paid a fee by our HUD sponsored investors to initiate the Rate Reduction process with FHA borrowers. Why? They want to earn the interest on your loan.
- Whatever money is left over after we pay the transaction fees is what we earn for the transaction. It is a win-win transaction. The borrowers get a lower payment (at no cost) and the comfort of knowing that they never have to worry about their interest rate again and we gain a new client.
