Question

How does Streamline Refinancing operate?

Answer 1

Streamline refinancing, as the name suggest is a quicker way to refinance home loans. It uses existing loan's paper works to process the refinance in a faster manner. It has been introduced by Federal Housing Administration (FHA) as a step to speed up the whole home refinancing process. Streamline financing reduces time taken to refinance from months to weeks. It is available on both FHA & VA home loans. It operates in the following way:

1> Qualify for the Streamline refinancing by fulfilling laid down criteria

2> Produce documentation (much reduced) to the refinancing agency

3> Settle all the closing costs and pocket costs - These may include but are not limited to processing fee, mortgage insurance fee etc.

4> Wait for the agency to process your paper work.

5> Your refinance gets approved.

Hope this answers your question.