FHA Refinance vs. FHA Streamline Refinance

If you are seeking to refinance your mortgage loan, you may have come across information on FHA refinance, and seen FHA Streamline refinance. Although both programs are through the FHA, and both programs can lower your mortgage interest rate, and subsequently your monthly payments, there is a big difference between the two.

FHA Refinance

If you currently own a home, you may be eligible for an FHA Refinance, regardless if your home loan is currently backed by the FHA. That means if you have a traditional conforming Fannie Mae or Freddie Mac loan, or other loan program such as a VA loan, you may still be eligible to refinance under FHA, as long as the property and mortgage requirements for the FHA are met. An FHA refinance may allow you to get cash out of the equity in your home, helping you pay for repairs or other financial needs such as paying off bills or investing into education. This is considered an FHA Cash Out Refinance and can be done when your property value is higher than you currently owe on your current mortgage loan (meaning you have equity in your home). You can also do an FHA refinance to change from an adjustable-rate loan to a more secure fixed-rate loan.

FHA Streamline Refinance

An FHA streamline refinance is for mortgage borrowers who currently already have an FHA insured home loan, and want to lower their monthly payments by decreasing their mortgage interest rate. The advantages of an FHA streamline refinance is that employment verification and appraisal may not be needed, since you cannot get cash out of the equity in the home and are simply reducing the interest rate. This type of refinance makes the whole process faster and easier for the lender. In order to be eligible for an FHA Streamline refinance you must be current on your mortgage and have a good payment history.

Venta Mortgage offers FHA & FHA Streamline Refinance

Whether you are interested in a cash out FHA refinance or want to convert your current mortgage program to an FHA insured program, Venta Mortgage can help you with the process. Also offering FHA Streamline refinance, you may be able to lower your mortgage payments if you already have an FHA home loan. Our knowledgeable team will help you with your home refinance every step of the way. As your local Midland mortgage company, we pride ourselves in serving our Midland and surrounding communities with all their home financing needs. Feel free to contact us for a quote today!