The FHA-to-FHA streamline refinance, rule by rule
What a streamline is
Rule check
A streamline refinance is available only to borrowers who already have an FHA-insured mortgage and want a new FHA mortgage. HUD's handbook does not require an appraisal and allows reduced documentation. It cannot be used to take meaningful cash out; for that, a different refinance type applies.
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Who it is for
- Current FHA borrowers looking to lower the combined rate.
- Borrowers moving from an adjustable rate to a fixed rate.
- Borrowers shortening the term with a financial benefit.
Who it is not for
- Borrowers with a conventional, VA or USDA loan.
- Anyone seeking cash out beyond the small cap.
Streamline questions
Does an FHA streamline need an appraisal?
HUD's handbook says appraisals are not required on streamline refinances. Lenders may still have their own policies.
Can I streamline a conventional loan into FHA?
No. The streamline is for refinancing an existing FHA-insured mortgage.