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The FHA streamline refinance program helps current FHA homeowners lower their interest rate and monthly payment — it’s a quick and cost-effective way to refinance with lenient documentation requirements and credit standards.
Also, if your FHA loan is under three years old, then you may be eligible for an upfront mortgage insurance premium refund. This refund allows a portion of the original loan’s paid premium to be applied to the upfront mortgage insurance premium of the new FHA streamline refinance loan. This means less money is required at closing.
Check your FHA streamline refinance eligibility today (Oct 25th, 2026)
In this article:
- Is an FHA streamline refinance worth it?
- Do I qualify for an FHA streamline refinance?
- FHA refinance rates today
- Our recommended refinance lenders
- How does an FHA streamline refinance work?
- What documents do I need?
- Closing costs for FHA streamline refinances
- Net Tangible Benefit requirement
- FHA mortgage refund
- FHA streamline refinance FAQ
Is an FHA streamline refinance worth it?
In general, FHA streamline refinances are worth it if there’s a financial benefit to you like a lower interest rate and monthly payment. This is true of all refinances — if it’s not going to benefit you, then it’s likely not worth it.
Streamline refinances offer some specific advantages when compared to other refinance loan types, including:
- No income documentation is required like pay stubs and W2s
- Lower available interest rates
- Faster closing times than traditional refinances
- No appraisal is required
- Underwater homes are eligible
- Potentially eligible for a partial refund of upfront mortgage insurance from your original loan
Check FHA streamline rates. Start here (Oct 25th, 2026)
Do I qualify for an FHA streamline refinance?
FHA streamline refinance loans are available to homeowners who currently have an FHA loan with good payment history. Homes that have lost value and are now underwater are eligible too.
The most important qualification though, is that borrowers must receive a benefit from refinancing. This is called a net tangible benefit — FHA refinances can be approved if the combined interest rate drop is at least 0.5% (see Net Tangible Benefit section below).
FHA refinance rates today
The refinance interest rate you’ll qualify for depends on factors like your credit score, interest rate type, and loan type. You’ll have to speak to lenders to determine the specific FHA refinance rate you’re eligible for. Compare quotes from three to four lenders to make sure you’re getting the best rate and terms — the CFPB reports that comparison shopping can save borrowers approximately $300 per year and thousands over the life of the loan.
Check current rates here.
How does an FHA streamline refinance work?
In general, FHA streamline refinances are easier to qualify for than home purchase loans. If you meet five key requirements, then your FHA streamline refinance will likely be approved. Those key requirements include:
1. On-time payment history
You must show a history of on-time mortgage payments for your existing FHA loan to qualify for an FHA streamline refinance. If you have had a late payment, you are not automatically disqualified. FHA allows one 30-day late payment in the six months before your case number is assigned.
FHA streamline refinance loan payment requirements:
- You must have made every mortgage payment on the property within the month it was due for the six months before your FHA case number is assigned.
- No more than one payment in that period can be 30 days late. You also must make the payment for the month before your new loan closes within the month it is due.
2. Net Tangible Benefit
All FHA streamline refinances must result in a Net Tangible Benefit (NTB) for the borrower — the refinance must improve the borrower’s financial position as defined by the FHA. Generally, NTB is defined as reducing the borrower’s “combined rate” by at least 0.5%. (A combined rate is the interest rate of the loan plus the insurance premium rate.)
For example, a homeowner has a current interest rate of 7.5% and an annual insurance premium of 0.55% for a combined rate of 8.05%. If the homeowner refinances into a 7% interest rate with an annual insurance premium of 0.55%, then the new combined rate of 7.55% is a 0.5% reduction.
The 0.5% “combined rate” reduction rule applies if you’re refinancing a fixed-rate mortgage into another fixed-rate mortgage. If you’re refinancing into (or out of) a one-year ARM or Hybrid ARM (3-, 5-, 7-, or 10-year ARM), then there are different NTB requirements. In the table below, “months in fixed period” means the months left until the ARM’s next payment change date.
Net Tangible Benefit (NTB) Combined Rate Requirements
| Current Loan Type | Refinance Loan Type | NTB Requirements |
| Fixed rate | Fixed rate | Decrease at least 0.5% |
| Fixed rate | One-year ARM | Decrease at least 2% |
| Fixed rate | Hybrid ARM | Decrease at least 2% |
| Any ARM w/ less than 15 months in fixed period | Fixed rate | Increase no more than 2% |
| Any ARM w/ less than 15 months in fixed period | One-year ARM | Decrease at least 1% |
| Any ARM w/ less than 15 months in fixed period | Hybrid ARM | Decrease at least 1% |
| Any ARM w/ greater than 15 months in fixed period | Fixed rate | Increase no more than 2% |
| Any ARM w/ greater than 15 months in fixed period | One-year ARM | Decrease at least 2% |
| Any ARM w/ greater than 15 months in fixed period | Hybrid ARM | Decrease at least 1% |
3. FHA streamline waiting period
There’s a waiting period between when you first closed your loan and when you can refinance. So, if you’ve just closed on your loan, then you’re not eligible for an FHA streamline refinance.
The FHA streamline refinance waiting period requirements include:
- You have made at least six on-time payments on your current FHA mortgage
- It’s been at least six months since your first payment due date
- 210 days have passed since the day your current mortgage closed
For example, if your current FHA loan closed on November 28, 2018, then your first mortgage payment was due on January 1, 2019. You can refinance as soon as July 1, 2019 — 210+ days after closing and six months after your first payment.
Get your FHA streamline rate. Start here (Oct 25th, 2026)
4. Minimum credit score
FHA does not require a credit report or a minimum credit score for a non-credit-qualifying streamline refinance. Many lenders still check credit and set their own minimum score, so cutoffs vary. A credit-qualifying streamline, such as one that removes a borrower, does require a credit report. If you’re denied, shop around.
5. Closing costs for FHA streamline refinances
Closing costs on streamline refinances are generally the same as with other mortgages, except that there is no appraisal fee. You may also need to pay a portion of property taxes and insurance at closing.
For example, if your jurisdiction’s property taxes are due in the next few months, lenders require you pay that tax installment. Keep in mind, though, that you’ll receive a check from your current lender for taxes and insurance you’ve paid on your current loan, but haven’t been disbursed.
If you’re short on cash, then ask your lender if they offer lender credits — for a slightly higher interest rate, you can use the profits from the loan to pay for closing costs.
My Mortgage Insider Tip
Are there closing costs with an FHA streamline refinance?
Generally, you can expect to pay between $1,000 and $5,000 in FHA streamline closing costs, though this amount may be higher or lower depending on your loan amount and other factors. If the cash you need to close is more than one monthly payment on the new loan, your lender must verify those funds with your most recent bank statement or a direct account check. Many lenders ask for two months of statements.
Your loan officer will provide an estimate of total funds due. This estimated out-of-pocket amount may increase during the mortgage refinance process, though. Be prepared to provide updated or additional bank statements to prove you have funds to cover the increased amount.
Note: Provide all bank statement pages, even blank ones, to your lender. Make sure your name, address, and account number appear on your statement too. Online bank printouts often don’t include your personal information, so you’ll need the mailed version or the PDF version of your full statement.
What documents do I need for an FHA streamline refinance?
Even though FHA streamline refinances have minimal documentation required for the loan application, that doesn’t mean there’s no documentation. Below is a list of things you’ll likely need for your refinance application, including your:
- Current mortgage statement
- Current FHA loan’s mortgage note, which shows your current interest rate and loan type
- Closing Disclosure (or final HUD-1 for loans from before October 2015) or Deed of Trust with the FHA case number of your current loan
- Proof that you live in the home, such as employment records or a recent utility bill (lenders use it to confirm occupancy, not to verify your income)
- Recent bank statements (many lenders ask for two months), if the cash you need to close is more than one monthly payment on the new loan
- Homeowners insurance agent’s contact information to obtain current proof of insurance
Also, make your next month’s mortgage payment as soon as possible. This allows your lender to obtain proof that your FHA mortgage is current. Your lender may require more or less than the items listed above.
Other things to note about FHA streamline refinances
While streamline refinances are generally easier to apply for and get approved for than other refinance options, there are some things to consider in regards to the FHA loan program.
Adjusting loan types and terms
The FHA has specific rules on what types of loan adjustments are allowed. Not every loan type can be converted to another loan type or term with a streamline refinance. Some of the most common questions on these adjustments are:
- Can I refinance my 30-year loan to a 15-year loan? Yes, but only under a strict test. When the term drops by three years or more, the new combined rate must be lower than your old one, and the new payment (principal, interest and mortgage insurance) can be no more than $50 higher than your old payment. A 15-year payment is usually much higher than a 30-year payment, so many borrowers will not meet that test.
- Can I refinance my 15-year loan to a 30-year loan? Yes, if the new term is no longer than your remaining term plus 12 years (30 years at most). Your combined rate must decrease by at least 0.5%.
- Can I refinance my ARM to another ARM? Yes. You may use an FHA streamline refinance to refinance an adjustable-rate mortgage (ARM) to another ARM (for primary residences only).
- Can I refinance my ARM to a fixed-rate mortgage? Yes. Though, there are additional requirements depending on the type of ARM and the original closing date. (See the Net Tangible Benefit section.)
- Can I refinance my fixed-rate mortgage to an ARM? Yes. The combined rate requirement must be a 2% decrease.
Appraisals
FHA streamline refinances do not require an appraisal. Your home’s value does not affect whether you qualify or how much you can borrow, so no equity is required. The application process is quicker and cheaper too.
Because FHA does not count an appraisal, you can’t use one to add closing costs to the new loan amount. Closing costs have to be paid out of pocket (or with a lender credit).
Some lenders may still order an appraisal under their own rules. An appraisal does not change FHA eligibility or the maximum loan amount.
The maximum loan amount may include the items below. The base loan can never be more than the original balance of the loan you are refinancing.
- The current principal balance
- Up to one month’s worth of interest payments
- The new upfront mortgage insurance fee (subtract the mortgage insurance refund if applicable — applies if FHA loan originated less than three years ago)
Mortgage insurance premiums
There are two types of mortgage insurance premiums (MIP) for FHA loans — upfront and annual. Upfront mortgage insurance premiums (UFMIP) is a one-time fee charged when you close the loan. UFMIP is 1.75% of the base loan amount on nearly all FHA loans. The exception is a streamline refinance of a loan that FHA endorsed on or before May 31, 2009, which pays 0.01% upfront and 0.55% a year. Annual insurance premiums are charged for 11 years when the loan-to-value ratio is 90% or less, and for the life of the loan when it is higher. On a streamline, FHA uses the original value of the home to figure the ratio. The rate depends on the base loan amount, the loan-to-value ratio, and the loan term. (See FHA insurance premium rates.)
Mortgage insurance refunds
When you refinance a current FHA loan, you may be entitled to a refund of the upfront mortgage insurance you paid when you opened your existing FHA mortgage. Usually, refunds are only available if the FHA loan is refinanced into another FHA loan within the first three years.
The refund amount is determined by how long ago the current loan was opened, and when the new FHA refinance loan closes. The refund amount decreases each month. The refund is 80% of your original upfront mortgage insurance in the first month. It drops by 2 percentage points each month. At 12 months it is 58%, and at 30 months it is 22%. After 36 months, no refund is available.
Read more: FHA Mortgage Insurance Refund Guidelines [Chart]
FHA streamline refinance loans and condominiums
FHA streamline refinances do not require condominium project approval. You can refinance a condo even if the complex is not on the FHA-approved list.
Some lenders add their own condo rules, so ask before you apply.
Read more: How to Find an FHA-approved Condo Quickly and Easily
FHA streamline refinance loan FAQ
Is cash back allowed on an FHA streamline refinance?
Cash back is not allowed on a streamline refinance. For that, you’ll need to apply for an FHA Cash-out Refinance.
The FHA does permit a small amount of cash, usually less than $500, to go to the borrower. Some lenders limit the amount to $250 or less. The cash back can only be the result of incidental changes in closing calculations, which happens often with all mortgages.
Can I refinance my second home or investment property with an FHA streamline refinance?
In most cases, the FHA allows streamline refinances on second homes and investment properties as long as the property currently has an FHA loan. Some lenders only accept streamline refinances on primary residences. It’s best to ask your lender about their specific rules.
Also, second homes and investment properties can only be refinanced into a fixed-rate mortgage. If the new loan is an ARM, you can’t use a streamline refinance.
Can I add or remove borrowers with an FHA streamline?
For the streamline with no credit check, everyone on the original loan must stay on the new loan. The exceptions are divorce, legal separation or death, when the remaining borrower has made the payments for at least six months. You can also remove a borrower with a credit-qualifying streamline, as long as at least one original borrower stays on the loan, but that version needs a credit report and a full review. If you want to “assign” the loan to another borrower entirely, you can’t use an FHA streamline refinance. Also, borrowers can usually be added to the title without income or asset review. Though, check with your lender specifically to see if they allow it.
Can I use an FHA streamline to refinance my completed 203k rehab loan?
The FHA allows this type of refinance without an appraisal, though, your lender may require one. The completed work must be evidenced by:
- A certificate of completion
- A final release of the rehabilitation escrow account
- The original lender’s completion of the 203k closeout process
Can I use an FHA streamline if my home needs repairs?
The FHA does not require repairs on a home that is in sub-par condition as long as there is no appraisal required for the transaction. If your lender requires an appraisal under its own rules, you may have to complete those repairs before loan approval.
Check FHA refinance rates today
The FHA streamline refinance is a great option for current FHA homeowners to lower their interest rate and monthly payment. And, with lenient credit standards and documentation requirements it can be the fastest and most cost-effective way to refinance an FHA loan.
Check your FHA streamline refinance eligibility (Oct 25th, 2026)
