On this page
- Why there is no conventional streamline refinance
- What a conventional streamline refinance looks like in practice
- RefiNow and Refi Possible: the closest thing to a conventional streamline refinance
- Refinance programs that are gone or paused
- True streamline refinance programs for FHA, VA and USDA loans
- Conventional refinance vs. FHA streamline
- Is a conventional refinance worth it at 2026 rates?
- Conventional refinance requirements
- How to make a conventional refinance feel streamlined
- Conventional streamline refinance FAQ
- Your next step
There is no official conventional streamline refinance. Fannie Mae and Freddie Mac, which set the rules for most conventional loans, have no program by that name. Still, a standard conventional rate-and-term refinance can come close: an appraisal waiver can skip the appraisal, and the automated underwriting systems can ask for less paperwork.
This guide shows how a conventional refinance can work like a streamline under 2026 rules, which low-income programs go further, when an FHA or VA streamline wins, and whether refinancing pays off at current rates.
Why there is no conventional streamline refinance
The term comes from government loans. FHA, VA and USDA each run a true streamline refinance for borrowers who already have that type of loan. As a result, these programs reduce documentation and often skip the appraisal. So homeowners with a conventional loan reasonably expect the same shortcut.
Conventional loans work differently. Each refinance goes back through automated underwriting: Desktop Underwriter (DU) for Fannie Mae or Loan Product Advisor (LPA) for Freddie Mac. In turn, that system decides how much documentation the file needs and whether it needs an appraisal. As a result, a conventional refinance can be fast and light, but no lender can promise that before it runs your file.
What a conventional streamline refinance looks like in practice
In practice, the closest match is a limited cash-out refinance, which most lenders call a rate-and-term refinance. You replace your current loan with a new one to get a lower rate, a different term or both. For the full process, see our guide to a conventional refinance.
Limited cash-out refinance rules
The Fannie Mae Selling Guide, topic B2-1.3-02, sets the main rules:
- What the loan pays off: your existing first mortgage. A second mortgage can be included only if you used it to buy the home.
- Cash back: no more than the greater of 1% of the new loan amount or $2,000.
- Loan-to-value (LTV): LTV is your loan balance divided by the home’s value. On a one-unit principal residence, the LTV can go above 95% and up to 97% only when Fannie Mae already owns or securitized your current loan. That higher limit also requires a fixed rate, a term of up to 30 years and approval through DU.
If Fannie Mae does not own your loan, the limit is 95% on a one-unit principal residence. In addition, Fannie Mae requires mortgage insurance on any conventional loan above 80% LTV.
Appraisal waivers: value acceptance and ACE
Fannie Mae calls its appraisal waiver value acceptance. Freddie Mac uses ACE, short for automated collateral evaluation. Both let a lender close some rate-and-term refinances with no new appraisal.
- Fannie Mae value acceptance: available on limited cash-out refinances of a principal residence or second home up to 90% LTV. The home must be a one-unit property valued under $1,000,000, and DU must return an Approve/Eligible recommendation.
- Freddie Mac ACE: available on “no cash-out” refinances of a primary residence or second home up to 90% LTV, under Freddie Mac Guide Section 5602.3.
However, you can’t request either waiver. The underwriting system makes the offer, partly based on data such as a prior appraisal of your home. Even with an offer, the lender must still order an appraisal in some cases, for example when the law requires one.
Credit score and paperwork
Fannie Mae removed its 620 minimum credit score in DU on November 16, 2025. Even so, lenders still set their own minimums, called overlays, so the score you need depends on the lender. DU or LPA then decides how much income and asset paperwork your file needs.
RefiNow and Refi Possible: the closest thing to a conventional streamline refinance
For lower-income borrowers, Fannie Mae and Freddie Mac each offer a refinance with lighter rules. Both are offered in 2026, but each works only if that company owns your current loan. Your servicer or the companies’ online loan lookup tools can tell you which one does.
| Rule | Fannie Mae RefiNow | Freddie Mac Refi Possible |
|---|---|---|
| Who owns the current loan | Fannie Mae | Freddie Mac (owned or securitized) |
| Income limit | At or below 100% of area median income (AMI) | At or below 100% of AMI |
| Maximum DTI | 65% | 65% |
| Maximum LTV | 97% | 97% (95% for manufactured homes) |
| Required benefit | Rate cut of at least 0.50 percentage point and a lower monthly payment | Rate cut of at least 0.50 percentage point and a lower monthly payment |
| Appraisal | Waiver possible; $500 credit to the borrower if an appraisal is needed | ACE or appraisal; an appraisal cost credit goes to the borrower if an appraisal is needed |
Freddie Mac’s Refi Possible fact sheet (September 2026) adds more limits. The current loan must be at least 12 months old, and cash back is capped at $250. Also, the loan can’t have a 30-day late payment in the last six months, more than one in the last 12 months, or any 60-day late payment in the last 12 months.
To check the income limit, enter your address in Fannie Mae’s area median income lookup tool. If your household income is at or below the limit and Fannie Mae or Freddie Mac owns the loan, RefiNow or Refi Possible may be an option. See our guide to RefiNow and Refi Possible for details.
Refinance programs that are gone or paused
For example, older articles sometimes present these programs as a conventional streamline refinance. None of them takes new applications today.
- HARP: The Home Affordable Refinance Program ended on December 31, 2018.
- HIRO: Fannie Mae paused its High LTV Refinance Option.
- FMERR: Freddie Mac’s Seller/Servicer Guide says Enhanced Relief Refinance loans with applications received on or after July 1, 2021, are not eligible for sale to Freddie Mac until further notice.
True streamline refinance programs for FHA, VA and USDA loans
In contrast, these programs work only if your current loan is already that type.
FHA streamline refinance. HUD’s streamline refinance needs limited credit documentation and underwriting. The current FHA loan must be up to date on payments, and the new loan must give a net tangible benefit, which HUD defines by loan type and the new rate or term. Cash back is capped at $500. You must have made at least six payments on it, and at least 210 days must have passed since it closed.
VA IRRRL. The VA Interest Rate Reduction Refinance Loan refinances an existing VA-backed loan. Federal law (38 U.S.C. 3709) requires six consecutive monthly payments and 210 days from the first payment due date. A fixed-to-fixed IRRRL must cut the rate by at least 0.50 percentage point, and the costs must be scheduled to be recouped within 36 months. The 2026 VA funding fee on an IRRRL is 0.5%.
USDA Streamlined-Assist. USDA’s Streamlined-Assist refinance serves existing USDA guaranteed loans, and it requires no debt-to-income calculation.
Conventional refinance vs. FHA streamline
Many searches for a conventional streamline refinance come from FHA borrowers. However, you can’t use an FHA streamline to move into a conventional loan. The FHA streamline only refinances an FHA loan into another FHA loan. Switching from FHA to conventional is a full refinance, with a credit check, income documents and usually an appraisal or a waiver.
Above all, the main reason to switch is FHA mortgage insurance. Under HUD Mortgagee Letter 2023-05, the annual mortgage insurance premium (MIP) lasts 11 years if the original LTV was 90% or less, and for the full term otherwise. A conventional loan at 80% LTV or less has no private mortgage insurance (PMI). Above that, the CFPB says you can ask to cancel PMI once your balance is scheduled to reach 80% of the original value, and it ends automatically at 78%. See how to remove PMI on a conventional loan.
On the other hand, the FHA streamline is often the better choice with low equity, a weaker credit score or income that is hard to document.
| Feature | FHA streamline | Conventional refinance |
|---|---|---|
| Who qualifies | Current FHA borrowers only | Any borrower who meets conventional rules |
| Credit check | Credit-qualifying and non-credit-qualifying options | Yes |
| Income documents | Limited | Yes; DU or LPA sets how many |
| Appraisal | Often not required | Required unless value acceptance or ACE is offered |
| Mortgage insurance | FHA upfront and annual MIP | PMI above 80% LTV; none at 80% or below |
| Cash back | Up to $500 | Greater of 1% or $2,000 (Fannie Mae limited cash-out) |
Is a conventional refinance worth it at 2026 rates?
Freddie Mac’s Primary Mortgage Market Survey put the 30-year fixed average at 7.32% on October 22, 2026, up from 6.19% a year earlier. So the math works mainly for loans taken out at rates above today’s.
Say you took out a $320,000 30-year fixed conventional loan three years ago at 8.0% (an example rate). Your principal and interest payment is $2,348.05 a month. Your balance today is about $311,300, with 27 years and $449,471 of interest left. Here is how two refinance options compare at 7.32%.
| Keep current loan | New 30-year at 7.32% | New 27-year at 7.32% | |
|---|---|---|---|
| Monthly principal and interest | $2,348.05 | $2,138.39 | $2,206.50 |
| Monthly saving | n/a | $209.66 | $141.55 |
| Interest left to pay | $449,471 | $458,524 | $403,609 |
| Interest vs. keeping the loan | n/a | About $9,050 more | About $45,860 less |
| Break-even on $9,339 of closing costs | n/a | About 45 months | About 66 months |
Assumptions: the new loan equals the current balance of $311,296.48. Closing costs are an example 3% of that balance, about $9,339, paid at closing. Figures are principal and interest only, and they exclude property taxes, homeowners insurance and mortgage insurance.
The 30-year option saves the most each month. However, it restarts the clock, so you pay more total interest. The 27-year option keeps your payoff date and saves interest, but the monthly saving is smaller.
First, divide closing costs by the monthly saving to get your break-even point in months. If you expect to sell or refinance again before then, the refinance likely costs more than it saves. Read more on whether refinancing is worth it and how much it costs to refinance, and check today’s mortgage rates.
Conventional refinance requirements
Here is what lenders typically review on a conventional refinance:
- Credit score: Fannie Mae has had no DU minimum since November 16, 2025. Each lender sets its own minimum.
- Debt-to-income ratio (DTI): your monthly debts divided by gross monthly income. DU or LPA sets the limit, and a lender can set a lower cap. See our guide to debt-to-income ratio.
- Equity: up to 97% LTV on a one-unit principal residence when Fannie Mae owns the current loan, or 95% otherwise. Also, mortgage insurance applies above 80%.
- Seasoning: Fannie Mae’s limited cash-out rules set no general waiting period, but some lenders add one. See how soon you can refinance.
- Documents: recent pay stubs, W-2s or tax returns, bank statements and proof of homeowners insurance.
- Appraisal or waiver: an appraisal unless DU or LPA offers a waiver. See how much an appraisal costs.
- Loan limits: the 2026 conforming limit for a one-unit home is $832,750 in most areas, and the high-cost ceiling is $1,249,125, per FHFA. FHFA publishes the 2027 limits in late November 2026. See conventional loan limits.
How to make a conventional refinance feel streamlined
No lender sells a conventional streamline refinance, but a few steps can cut weeks and paperwork from a standard one:
- Start with your current servicer. After all, it already has your payment history and some of your file. If Fannie Mae owns your loan, also ask about the 97% LTV limit and RefiNow.
- Ask about an appraisal waiver. Ask each lender whether DU or LPA offers value acceptance or ACE on your file before you pay for an appraisal.
- Have documents ready. Gather pay stubs, W-2s or tax returns, two recent bank statements and your insurance declarations page before you apply.
- Compare at least three Loan Estimates. Because rates and fees vary by lender, line up the same loan type and term.
- Weigh a no-closing-cost option. In this case, the lender covers closing costs in exchange for a higher rate. In the example above, that trades part of the monthly saving for no $9,339 to earn back. See the no-closing-cost refinance guide.
Conventional streamline refinance FAQ
Is there a conventional streamline refinance?
No. Fannie Mae and Freddie Mac have no program by that name. The closest match is a rate-and-term refinance where DU or LPA offers an appraisal waiver and asks for limited paperwork.
Can you streamline refinance a conventional loan?
There is no formal streamline program for conventional loans. You can still do a limited cash-out refinance and skip the appraisal if the underwriting system offers value acceptance or ACE. Lower-income borrowers may also qualify for RefiNow or Refi Possible.
Does Fannie Mae have a streamline refinance program?
No program carries that name. RefiNow is the closest option, for borrowers at or below 100% of AMI whose loans Fannie Mae owns. Fannie Mae’s High LTV Refinance Option is paused.
Can I do an FHA streamline into a conventional loan?
No. In fact, the FHA streamline refinances an FHA loan into another FHA loan only. Moving to a conventional loan takes a full refinance with a credit check, income documents and usually an appraisal.
Can I get a conventional refinance with no appraisal?
Yes, if DU offers value acceptance or LPA offers ACE. Generally, both are available on rate-and-term refinances up to 90% LTV on a primary residence. Fannie Mae value acceptance also requires a one-unit home valued under $1,000,000.
Your next step
No program carries the conventional streamline refinance name. Instead, the closest route is a rate-and-term refinance with an appraisal waiver. It pays off mainly when your current rate is above today’s average and you’ll keep the loan past the break-even point.
First, look up whether Fannie Mae or Freddie Mac owns your loan. Next, ask two or three lenders for Loan Estimates and whether your file gets an appraisal waiver.
