In the article below we discuss streamline finance, explaining what it is and how the application process works.

In times that interest rates drop, many people would start thinking about refinancing their mortgages. And for those people who have FHA loans, there is one good news to all of you. As of now, you can get a FHA streamline refinance loan. Though FHA streamline loan, this can be considered as much quicker and smoother than any other type of refinance options.

However, one has to be always reminded that this is only available for those people who have outstanding FHA loan. The streamline process is very fast because the lender usually relies on the credit, income, and employment verification information. They do this by simply concentrating on the FHA loan application of the person. New credit checks, verification of income, and appraisals are no longer required for FHA streamline finance.

To be qualified for an FHA loan, you should have a current or outstanding FHA loan. An FHA loan is a mortgage loan that is specifically guaranteed by the US Department of Housing and Urban Management or HUD. HUD is the one who will guarantee the lender that the he gets from the borrower is reduced. This means that the lender can lend bigger amount of money with lower interest rates. Since the FHA guidelines and down payments are less strict than the open market, more and more people can now have their own home.

Streamline Finance is a resubmission of the original loan application that you provided when you got your outstanding loan. Lenders usually allow this streamlined application because HUD (in cases of FHA) will guarantee the refinance loan just like what it exactly did to the first loan. The streamline application is, in most parts, just your old or former application which was simply repackaged for a new loan. Now, one might certainly ask if an application is still required when getting streamline finance.

Technically speaking, yes, an application is still required on a streamline finance loan. But since the application is basically a repackaged version of your application on your outstanding loan, the refinance application is just a mere formality. Here, you will no longer need to present the lender with your proof of income, new appraisal, or new credit checks. Some lenders may call your employer to confirm whether you still work for him or not, it will not be necessary for the streamline finance lender to do such investigations.

Now, what is the requirement for streamline finance? The only requirement that you need to do is to be current on your mortgage loan. Make it a point to make your payments on time. If you have not been a delinquent borrower ever since, make sure that you do this up to the duration of your loan.