An FHA Streamline Refinance is a mortgage refinancing program specifically designed for homeowners with existing FHA mortgages. The primary goal of the FHA Streamline Refinance is to make it easier and less costly for borrowers to refinance their existing FHA loans. It aims to lower interest rates, reduce monthly payments, or switch from an adjustable-rate to a fixed-rate mortgage, thereby improving the affordability of the loan.

The term "streamline" refers to the simplified approval process, which requires limited borrower credit documentation and underwriting. Streamline refinances are available under credit qualifying and non-credit qualifying options. The basic requirements of a streamline refinance are:

• The mortgage to be refinanced must already be FHA insured.
• The mortgage to be refinanced must be current (not delinquent).
• The refinance results in a net tangible benefit to the borrower.
• Cash in excess of $500 may not be taken out on mortgages refinanced using the streamline refinance process.

FHA Streamline Refinances are a fast way to lower your monthly mortgage payment by locking in a lower interest rate. However, the FHA has strict guidelines regarding how you achieve the lower payment. For example, you can’t add more than 12 years to your loan term. If you do extend your loan term to lower your payment, you must also reduce your interest.

FHA Streamline loans have reduced paperwork, simple requirements for eligibility, and a list of features which makes it very attractive for borrowers. The lender doesn’t have to verify your income or credit, and there’s no home appraisal. That means a Streamline Refinance closes faster than other loans and has slightly cheaper closing costs.