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Regular Contributor
TCINLA
Posts: 85
Registered: ‎07-14-2012
0

FHA streamline refi question

Does anyone know if you can streamline from a 30-year fixed to a 15-year fixed ?  The 15 year monthly payment will be more than the 30 year montly payment BUT the 15-year interest rate would be less than the 30-year interest rate.

 

No clear answer from searching the internet.

Dealing with the market in Los Angeles...
Contributor
gte343z
Posts: 23
Registered: ‎01-04-2010
0

Re: FHA streamline refi question

you have to meet their net tangible benefit reqt.

 

see 

http://portal.hud.gov/hudportal/documents/huddoc?id=11-11ml.pdf

Regular Contributor
jordanmust
Posts: 97
Registered: ‎08-18-2012
0

Re: FAA streamline reef question

Correct, a 5% reduction in payment is required, even though you are reducing the term.

 

As long as your property as a little bit of equity, you can do a normal FHA to FHA refi and drop to a 15 year term.  It will require income qualification as well.

 

Contributor
gte343z
Posts: 23
Registered: ‎01-04-2010
0

Re: FAA streamline reef question

[ Edited ]

added a few more links for people looking at fha streamline refi.  

 

http://portal.hud.gov/hudportal/documents/huddoc?id=refinance_faqs_05-22-12.pdf

 

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4155...

 

the q/a references ML #'s or the hud 4155.1 handbook, if you search "hud ML 12-5" for example, you can find the pdf with details for that specific topic.  

 

I had to research this recently when looking at a refi of a fha loan on former owner occupied, but now currently investment property.  It can be confusing, but all the details are there.