The FHA Streamline Refinance is by far the fastest, easiest way to refinance an FHA loan. Unlike most refinances, this streamline program does not require verifying your assets, income or employment, nor do you need to have your home appraised. Even better, the FHA Streamline program encourages underwater homeowners in Connecticut to refinance because there is no required loan-to-value ratio, allowing almost anyone to take advantage of lower rates by refinancing their FHA mortgage.
The FHA Streamline Refinance in Connecticut will use the information provided from your original FHA application to complete the refinance which means no verification of your credit, assets, income or employment. The original information will be repackaged into your new application for a new loan with a better rate.
FHA Streamline loans are easy to qualify for, but you must meet these requirements:
If you are hoping to refinance a mortgage in Connecticut to access your equity, you will need to use a traditional refinance loan. The FHA Streamline program does not allow you to increase your mortgage or take cash out.
Closing costs must be paid when you refinance a home in Connecticut through the Streamline program. Closing costs depend on the amount of the loan, but they will be in the thousands. You will also need to pay some fees to the lender and/or mortgage broker. It is possible to roll the closing costs into your new mortgage, but this requires getting an appraisal on your house. The balance of your new loan cannot exceed the original mortgage balance by more than 1.5%. You must pay closing costs out of pocket if you choose not to get an appraisal. It is possible to get a no cost FHA Streamline Refinance if the lender pays these costs for you in exchange for a higher interest rate on your loan.