| Step 1: Contact your local FHA mortgage lender or | | | | streamlined refinancing if you currently are in a FHA |
| bank and explain that you want to refinance the | | | | Loan. |
| existing FHA mortgage loan. You do not have to work | | | | Step 2: Send the lender by fax, mail or e-mail, |
| with the lender or the bank, which is currently servicing | | | | depending on preference, all documentation that is |
| the loan. You can shop around for lenders to offer the | | | | requested by the mortgage lender. |
| lowest fees or the fastest turnaround time. | | | | Step 3: Give the lender permission to check your credit |
| Conditions Required to Obtain a FHA Loan: | | | | and to appraise your home. Both are important for the |
| - Steady employment history, at least two years of | | | | refinance process. Lenders rely on consumers credit |
| employment history | | | | score - anything above 720 is considered good, while |
| - Consistent income over the past two years | | | | scores below 620 is considered bad - to determine if |
| - Any Chapter 7 bankruptcy on record must be at | | | | they will lend you money and what interest rate. They |
| least two years old with good credit for the two | | | | will send an appraiser to ensure your home value has |
| consecutive following years. | | | | enough equity. Most lenders and banks require that |
| - Any foreclosure must be at least three years old | | | | you have at least 90 percent equity in your home. |
| - FHA mortgage payment of no more than | | | | FHA Home Mortgage Loans are Backed by the |
| approximately 30% of applicant's total monthly gross | | | | Federal Housing Administration and is an increasingly |
| income | | | | popular choice for home buyers. This is partly because |
| Ask the lender about streamlined FHA refinance. This | | | | the FHA loans require only a 3.5 percent advance in |
| type of refinance is only for homeowners who already | | | | the home purchase price, as most mortgage lenders |
| have an FHA loan. FHA Streamline mortgage | | | | require 20 percent down payment. Locate an FHA |
| refinance require much less documentation than not a | | | | approved Mortgage Lender. |
| traditional refinance. You will only be eligible for | | | | |