Home/Refinance/FHA Streamline

FHA Streamline. The easy refi that isn't always a good one.

No appraisal. No income docs. No new credit pull (in most cases). Six weeks to close. It's the simplest refi in mortgage banking — and that simplicity is its trap. Three things to know before you sign: the net tangible benefit requirement is real, the upfront-MIP refund shrinks every month, and if your current FHA loan is pre-June 2013, you may be giving up a lifetime advantage. Here's the math, the eligibility check, and when this loan actually pays.

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What brings you here today?

Eligibility Check · Five Yes/No Questions

Are you eligible?

The FHA streamline has five hard requirements — current FHA loan, on-time payments, seasoning, net tangible benefit, primary residence. All five must be yes. Answer them and we'll show you which boxes pass and which fail in real time. This is what your loan officer will check first.

Five Questions

Answer honestly. The rules don't bend.

1. Is your current loan an FHA loan?

Streamline is FHA-to-FHA only. Conventional, VA, USDA, and jumbo loans don't qualify.

2. Have you had the loan at least 210 days?

FHA requires 210 days from your first payment date and at least six monthly payments made.

3. All payments on time in the last 6 months?

No 30-day-late payments in the last 6 months. No more than one 30-day-late in months 7-12.

4. Will the new loan provide net tangible benefit?

Either: rate reduction of 0.50%+ on combined rate, OR moving from ARM to fixed-rate, OR shortening term while reducing payment.

5. Is the property your primary residence?

FHA Streamline is for owner-occupied primary residences only.

Real-Time Result

START WHEN READY

Answer the questions on the left.

As you answer, we'll show your eligibility status here in real time. All five must pass for FHA Streamline to be available.

·
Current loan is FHA — required, no exceptions.
·
210-day seasoning — protects against churning.
·
Payment history clean — last 6 months perfect.
·
Net tangible benefit — borrower-protection rule. Real savings required, not optional.
·
Primary residence — owner-occupied required.

Eligibility framework reflects current FHA Single-Family Handbook (4000.1) Streamline guidance. Lender overlays may add stricter requirements — your LO will run your specific case.

MIP Refund Calculator · The Number Nobody Explains

How much of your upfront MIP comes back?

When you streamline within 36 months of your original FHA closing, FHA refunds part of the upfront MIP you paid on your old loan — and applies it as a credit toward the new loan's upfront MIP. The refund decreases by month. If you wait longer than 36 months, the refund is zero. This is the math that determines whether streamlining now or later is cheaper.

Your Loan

Tell us about your current FHA loan

Original loan amount$320,000

$100K$800K

Months since original closing18 months

7 mo (min)60 mo

Current loan balance$311,000

$50K$800K

Your Refund & New Upfront MIP

The numbers, side by side.

Original Upfront MIP

$5,600

PAID AT ORIGINAL CLOSING · 1.75%

Your Refund Credit

$2,576

CREDIT AT NEW CLOSING (46%)

New Upfront MIP

$5,443

CHARGED ON NEW LOAN · 1.75%

Net Upfront MIP

$2,867

FINANCED INTO NEW LOAN

Refund Decay · 36 Months

Your refund drops 2 percentage points per month from the HUD schedule (which starts at 80% in month 1). At month 18, you get back 46% of the original upfront MIP. After month 36, refund is zero. If you can streamline soon, every month you wait costs you money.

Refund calculation uses HUD's standard sliding scale (HUD Handbook 4155.2 §7.2): starts at 80% in month 1 and declines 2 percentage points per month, reaching 10% at month 36. After month 36, refund is zero. The 210-day seasoning rule prevents streamlining until at least month 7 — so the maximum practical refund is 68%. The refund credit applies to the new loan's upfront MIP only and cannot be paid in cash.

⚠ The 2013 Trap

If your loan closed before June 3, 2013, read this twice.

Before June 2013, FHA mortgage insurance had a cancellation feature. If you put 10% or more down, your annual MIP dropped off after 5 years and the loan reached 78% LTV. If you put less than 10% down, you still had a path to MIP cancellation through the original schedule.

HUD changed the rules in June 2013. Loans originated after that date have MIP for the life of the loan if down payment was less than 10%. Even with 10%+ down, MIP runs 11 years before dropping.

Here's the problem: if you streamline a pre-2013 FHA loan, your new loan is governed by post-2013 rules. You give up the old MIP-cancellation feature. Forever. The new loan will charge MIP for 30 years.

Some borrowers should still streamline anyway — if the rate reduction is large enough, the lifetime savings outweigh the lost MIP cancellation. Many shouldn't. If you're 6 years into a pre-2013 FHA loan with a rate that's only 0.5% above current, you may be better off either paying down to 78% LTV and dropping MIP — or refinancing into a conventional loan once you have 20% equity, which has no MI at all.

A streamline officer who doesn't run this comparison for you is doing you a disservice. Always ask: "what was my original MIP cancellation date, and what does my total MI cost look like over 10 years if I streamline vs. if I don't?"

The Decision Rule

Pre-2013 FHA borrowers: streamline only if rate reduction is 1.0%+, OR if you're moving from ARM to fixed and stability matters more than a few thousand dollars of lifetime MIP. Otherwise, look at conventional refinancing or just paying down to 78% LTV instead.

Two Flavors · Credit-Qualifying vs Non-Credit-Qualifying

Which streamline are you doing?

FHA Streamline comes in two versions. Most borrowers do non-credit-qualifying — faster, simpler, no income or credit re-verification. Credit-qualifying is required in specific situations — usually when adding or removing a borrower from the loan, or when the new payment will increase by more than 20%. Both are streamlines; the difference is what gets re-verified.

→ Default option

Non-Credit Qualifying

The fast, paperwork-light streamline. What 80% of streamlines are. No income verification, no employment check, no new credit report (your existing FHA mortgage history is the only credit review).

Income docsNot required. No W-2s, paystubs, or tax returns.

Credit pullNo new credit report; your existing mortgage payment history is the underwriting review.

AppraisalNot required. Original appraised value is used.

DTI checkNot formally calculated.

ClosingTypical timeline 3-5 weeks.

Payment limitIf new P&I + MIP exceeds old by more than 20%, you can't use this version.

→ Required in specific cases

Credit Qualifying

The streamline with full underwriting. Required when the loan or borrower configuration changes. Adds back the credit and income verification — but still skips the appraisal, which is the streamline's main efficiency win.

Income docsRequired. Recent paystubs, W-2s or tax returns, employment verification.

Credit pullNew credit report required. Standard FHA credit minimums apply.

AppraisalStill not required. Original appraised value is still used. This is the surviving streamline benefit.

DTI checkCalculated to FHA standards (43% target, up to 56.9% with comp factors).

ClosingTypical timeline 4-6 weeks.

Required whenAdding or removing a borrower; new payment increases by 20%+; certain investment-property streamlines.

Three Scenarios · When Streamline Works, When It Doesn't

Three borrowers. Three different answers.

Each came in expecting to streamline. One should. One shouldn't. One should do something completely different. The common theme: surface-level "savings" don't always survive contact with the math.

IScenario · N° 01Recent FHA · Rates Dropped

Andre & Tasha B.

The question: 14 months in, with rates 1.375% lower and decent refund credit available, does the streamline math work?

The file

Closed: 14 months ago
Original loan: $345,000
Current rate: 7.625%
Current balance: $337,400
Available rate: 6.250%
Current monthly (P&I + MIP): $2,597 ($2,442 + $155)
Streamlined monthly (P&I + MIP): $2,239 ($2,084 + $155)

IIScenario · N° 02Pre-2013 Borrower · Modest Rate Drop

Lillian R.

The question: a streamline officer pitched her 5.0%, framing it as "$120/month savings." Should she do it?

The file

Closed: 2011 (15 years ago)
Original loan: $215,000
Current rate: 5.875%
Current balance: $152,000
Original MIP: Cancellable (pre-2013)
If she streamlines: 5.000% · saves ~$120/mo · new MIP for life · lifetime MI ~+$24,000
Better path (Conv refi): 5.125% · LTV ~62% no PMI · saves ~$108/mo · 15-yr MI savings ~$24,000

IIIScenario · N° 03Just Closed · Wants to Re-Lock Lower Rate

Rashid & Yara K.

The question: rates dropped 1.25% just five months in. Can they streamline now?

The file

Closed: 5 months ago
Original loan: $418,000
Current rate: 7.250%
Available rate: 6.000%
Today (month 5): ~150 days from · FHA min 210 days · Eligible NO · Refund full (later)
Month 7+: 210+ days · Eligible YES · saves/mo ~$330 · 5-yr net ~$15,400

Compare Options · Streamline vs. Other Refi Paths

Streamline isn't the only refi door.

FHA Streamline is the right choice for many FHA-loan borrowers — but not all. Here's how it compares to the other refi paths for a current FHA loan.

Path	Best when	Watch out for
FHA Streamline This page	Recent FHA loan (post-2013), rate drop ≥0.5%, payment history clean. Pure rate-and-term refi with no cash needed.	Pre-2013 loans give up MIP-cancellation. If equity >20%, conventional probably wins. Easy to qualify, but "easy" ≠ "best."
FHA-to-Conventional Refi Different doors	Equity ≥20%, FICO ≥620, want to drop FHA MIP entirely. The exit ramp from FHA.	Requires full appraisal, full income docs, full credit pull. 4-6 weeks, ~$4-6K closing. More work — but no MI = saves the most over time.
FHA Cash-Out Refi Different goal	Need cash from equity, want to consolidate debt or fund renovation. Up to 80% LTV cash-out.	New 1.75% upfront MIP on full new loan amount. Higher rate than streamline. If you need cash, cash-out works — if you don't, streamline is cheaper.
Recast Lump-sum prepay	You have a big chunk of cash and want to lower your monthly payment without refinancing.	FHA loans cannot be recast. This option only exists on conventional. If you're in an FHA loan, recast isn't on the menu.
Pay-down + MIP cancellation For pre-2013 only	Pre-2013 FHA loan, want to keep MIP-cancellation feature. Pay down principal to 78% LTV, request cancellation.	Only works on pre-2013 originations. Requires the principal reduction. Often the best move for old FHA loans with equity.
Do nothing Stay put	Rate drop is small (<0.5%), recently closed, or planning to sell within 2 years. Closing costs won't pay back.	Set a rate-watch alert. Revisit when rates drop further. "Do nothing" is a real and often correct answer.

Common Questions · Answered Directly

Six honest answers about FHA Streamline.

The questions borrowers ask after the marketing pitch ends — and the answers most lender pages skip.

01Why does FHA Streamline have closing costs at all if there’s no appraisal?

Streamlines have lower closing costs than full refis, not zero. The lender still does title work (a new loan needs a new title insurance policy), records a new mortgage with the county, pays a credit-report fee, and earns its underwriting/origination compensation. Typical streamline closing costs run $2,500-$5,000 depending on loan size and state.

What you skip: the $600-$1,200 appraisal, the income/employment verification fees, and most of the underwriting time. Plus, on the new upfront MIP, you get partial credit for the upfront MIP you paid on your old loan, sliding from full credit at month 7 down to zero at month 36.

Watch out for: "no closing cost" streamlines that bake the costs into a slightly higher rate. The closing costs aren't gone — they're rolled into your monthly payment for 30 years. Always ask for the no-cost-rolled-in option side-by-side.

02Can I do an FHA Streamline if my home value dropped?

Yes — that's actually one of the streamline's superpowers. Because there's no appraisal, your current home value doesn't matter to the underwriting. The original appraised value from your purchase or last refinance is what gets used.

This is why the streamline exists. It was created specifically to help FHA borrowers in declining-value markets refinance to lower rates without being trapped by negative or low equity. If your home is worth less than your loan balance — you're "underwater" — most refinances are unavailable to you. FHA Streamline is the exception.

Caveats: this only applies to non-credit-qualifying streamlines, and only when no cash is being added or removed.

03Will my MIP rate change when I streamline?

The annual MIP rate is set on the new loan, not carried over. Current FHA rules: 0.55% annually if your new loan is greater than 95% LTV (calculated against the original appraised value), 0.50% if 95% or below.

Most streamline borrowers stay in the same band — original LTV was >95% then, and it's >95% now if you haven't paid much principal down. Some shift down a band if they've paid principal aggressively or were originally between 90-95% down.

Upfront MIP: 1.75% on the new loan amount, partially offset by the refund credit from your old upfront MIP. The refund is biggest in the early months and disappears at month 36.

04What if my payment will go up after streamline?

Two answers depending on how much it goes up.

If the new payment is up to 20% higher than the old payment — usually because you're shortening the term (30-yr to 15-yr) — the streamline still works as non-credit-qualifying.

If the new payment is more than 20% higher — for example, you had an ARM that's about to reset, but the new fixed payment is dramatically larger — you're required to do the credit-qualifying version. That means full income verification, full credit report, and DTI calculation to FHA standards.

This payment-shock rule is a borrower-protection guardrail. FHA wants to verify you can actually afford the new payment before approving the loan.

05Can I take cash out with an FHA Streamline?

No — and this is a strict line. FHA Streamline allows up to $500 cash back at closing, which is a rounding allowance for things like overpaid prepaids or rounding adjustments. Anything more than $500 disqualifies it from being a streamline.

If you need cash, you have three other paths: FHA Cash-Out Refi (full underwriting, up to 80% LTV cash-out), HELOC (revolving credit line on top of your existing FHA loan), or Home Equity Loan (lump sum, fixed rate, second-lien). Each has different math.

See our Cash-Out Refinance page for the cash-out path.

06Is the streamline worth it for a 0.25% rate drop?

Almost never — and FHA's net-tangible-benefit rule will likely block it anyway. The 0.50% combined-rate-reduction threshold is FHA's official guardrail to keep borrowers from refinancing into deals that don't actually save them money.

The math: 0.25% rate drop on a $300K loan = ~$50/month savings. Closing costs ~$3,500. Break-even ~70 months — about 6 years. Most people won't keep that loan that long — they'll move, refi again, or pay it off. The closing costs become a sunk loss.

The break-even rule of thumb: if you'd have to keep the loan more than 4 years to recoup closing costs, the streamline isn't worth it. Wait for a bigger rate drop, or use a "no-closing-cost" structure.

Ready When You Are

Streamline candidate? Let's check the numbers.

Sixty-second short application — no SSN, no hard credit pull. We'll pull up your existing FHA loan, run the eligibility check, calculate your refund, and tell you whether the streamline math actually works for your specific situation. Including when it doesn't.

Or call 800.672.9470

NMLS #1796·Lending in 50 states·Equal Housing Lender

Disclosures. All numbers on this page are estimates based on the inputs provided and current FHA Single-Family Handbook (4000.1) Streamline guidance. Actual approval and pricing depend on automated underwriting (FHA TOTAL Scorecard or manual underwrite), credit history (where applicable), payment history on existing FHA loan, and lender overlays which may add stricter requirements. FHA upfront MIP refund follows HUD's standard sliding scale (Handbook 4155.2 §7.2): starts at 80% in month 1, declines 2 percentage points per month, reaches 10% at month 36, then zero. Refund credit is applied to new loan's upfront MIP only; cannot be paid in cash. The 210-day seasoning rule and 6-payment requirement are hard FHA rules and cannot be waived by lender. By refinancing your existing loan, the total finance charges incurred may be higher over the life of the loan. Pre-June-2013 FHA loans had different MIP cancellation rules; streamlining a pre-2013 loan moves it under post-2013 rules permanently. Land Home Financial Services, Inc. NMLS #1796. Equal Housing Lender. Licensed in 50 states. Land Home Financial Services is not affiliated with or endorsed by HUD or the Federal Housing Administration (FHA).

FHA Streamline. The easy refi that isn't always a good one.

Are you eligible?

Answer honestly. The rules don't bend.

Answer the questions on the left.

How much of your upfront MIP comes back?

Tell us about your current FHA loan

The numbers, side by side.

If your loan closed before June 3, 2013, read this twice.

Which streamline are you doing?

Non-Credit Qualifying

Credit Qualifying

Three borrowers. Three different answers.

Andre & Tasha B.

Lillian R.

Rashid & Yara K.

Streamline isn't the only refi door.

Six honest answers about FHA Streamline.

Streamline isn't right? Here are the other paths.

Rate & Term Refi

Cash-Out Refi

FHA vs. Conventional

Streamline candidate? Let's check the numbers.