FHA Streamline Refinance Rules for Utah Homeowners: Seasoning, Net Tangible Benefit, MIP Refunds & Who Qualifies

An FHA streamline refinance replaces an existing FHA-insured mortgage with a new FHA loan using limited credit documentation and underwriting. "Streamline" refers to the paperwork, not the price: HUD says it "does not mean that there are no costs involved." On the date your lender gets the new FHA case number, you need at least six payments made, six full months since your first payment due date, and 210 days since your current loan closed. Your recent payments must be on time, and the new loan has to pass FHA's net tangible benefit test. For a fixed-to-fixed refinance, that generally means your new combined rate (interest rate plus annual MIP rate) is at least 0.5 percentage points lower. There's no appraisal, you can't take more than $500 cash back, and FHA doesn't allow closing costs to be added to the new loan amount (HUD; HUD Handbook 4000.1, II.A.8.d).

FHA Streamline at a Glance

• Must be FHA-to-FHA. It pays off an existing FHA-insured first mortgage (HUD; Handbook 4000.1)
• Seasoning, counted on the day of case number assignment: at least 6 payments, 6 full months since the first payment due date, and 210 days since the old loan's closing date (Handbook 4000.1)
• Payments current: on-time history for the 6 months before case number assignment, and the payment for the month before closing made within the month it's due (Handbook 4000.1)
• Net tangible benefit: fixed to fixed, new combined rate (interest + annual MIP) at least 0.5 points lower; other combinations have their own tests (Handbook 4000.1)
• No appraisal required — an appraisal doesn't change your eligibility or the maximum loan amount (Handbook 4000.1)
• Cash back of $500 or less, and closing costs can't be added to the loan (HUD; Handbook 4000.1)
• MIP still applies: new upfront MIP (reduced by a refund credit if you're within 3 years) plus annual MIP; loans endorsed on or before May 31, 2009 get reduced MIP (Handbook Appendix 1.0; HUD ML 2023-05)

What Is an FHA Streamline Refinance (and What Isn't It)?

HUD's definition

HUD describes a streamline as a refinance of an existing FHA-insured mortgage "requiring limited borrower credit documentation and underwriting." The word "streamline" refers only to how much documentation and underwriting the lender has to do. It "does not mean that there are no costs involved in the transaction" (HUD).

There are two versions

• Credit-qualifying: the lender reviews your credit and ability to repay. No appraisal.
• Non-credit-qualifying: no credit or capacity review required by FHA. No appraisal.

Both are described in HUD Handbook 4000.1, II.A.8.d.

You go through a lender, not HUD

FHA insures the loan, but you apply with a lender. Lenders can add their own requirements on top of FHA's, often called "overlays," so two lenders can give you different answers on the same file. Ask your loan officer how Hometown handles FHA streamlines.

Why your lender may still ask for documents

HUD requires lenders to manually underwrite every streamline. Automated FHA scorecard findings don't count on these loans (Handbook 4000.1). So even a "low-doc" streamline gets a person looking at your file.

Who Qualifies for an FHA Streamline?

Your current loan must be FHA-insured and current

The mortgage you're refinancing must already be FHA-insured and must be current, not delinquent (HUD). Conventional, VA, and USDA loans can't use the FHA streamline. If that's you, look at an FHA rate-and-term or cash-out refinance, a conventional refinance, or, for VA loans, the VA IRRRL.

Occupancy rules are broader than most people think

HUD allows streamlines on a principal residence, a HUD-approved secondary residence, or a non-owner-occupied property. Secondary residences and non-owner-occupied homes can only streamline into a fixed-rate loan. If the lender can't document that you live in the home, it has to treat the loan as non-owner-occupied (Handbook 4000.1). HUD allows it; lender rules vary.

A few other eligibility notes

• HOPE for Homeowners loans can't be refinanced with a streamline (Handbook 4000.1)
• Condo owners: a streamline doesn't need FHA condo project approval (Handbook 4000.1, II.A.8.p)
• FHA loan limits: streamlines are exempt from FHA's nationwide loan limits — instead, the loan amount is capped by a payoff-based formula (see "How Much Can the New Loan Be?" below)

How Soon Can I Refinance an FHA Loan With a Streamline?

The four seasoning tests

On the date the FHA case number is assigned, all of these must be true (Handbook 4000.1, II.A.8.d.vi(C)):

• You've made at least six payments on the FHA loan you're refinancing. If the loan was modified, that's six payments under the modification.
• At least six full months have passed since the loan's first payment due date.
• At least 210 days have passed since the loan's closing date.
• If you assumed the loan, you've made six payments since the assumption.

How to find your dates

Your closing date is on your Closing Disclosure. Your first payment due date is on your note or your first mortgage statement. Count from those two dates, and remember the clock is measured on the day your lender gets the new case number, not the day you close.

What Counts as "On Time" for an FHA Streamline?

Non-credit-qualifying streamline

HUD's wording: you must have made all mortgage payments on the property "within the month due for the six months prior to case number assignment" and have "no more than one 30-Day late payment for the previous six months." You also must have made the payment for the month before closing within the month it was due (Handbook 4000.1).

Lenders don't all read that pairing the same way, so ask your loan officer how they apply it to your history.

Credit-qualifying streamline

• If a mortgage has less than six months of payment history, every payment must have been made within the month due.
• If it has more than six months, the same six-month rule above applies, and it covers all mortgages on all properties, not just this one.
• The month-before-closing payment rule applies here too (Handbook 4000.1).

What if I was in forbearance?

• Non-credit-qualifying: you must have finished the forbearance plan and made at least three consecutive on-time payments since (Handbook 4000.1)
• Credit-qualifying: you can still be eligible while in forbearance, or with fewer than three payments since, if you made all payments within the month due for the six months before forbearance, with no more than one 30-day late (Handbook 4000.1)
• If a modification or forbearance shows up in the last 12 months, your lender needs a copy of the plan and proof of the payments you made under it

If your mortgage isn't on your credit report

If the loan doesn't show on your credit report or isn't in your name, the lender must document 12 months of on-time payments another way, such as a verification of mortgage or bank statements (Handbook 4000.1).

Does My Rate Have to Drop? FHA's Net Tangible Benefit Test

The combined rate

HUD defines a net tangible benefit as "a reduced Combined Rate, a change from an ARM to a fixed rate Mortgage, and/or a reduced term that results in a financial benefit." The combined rate is your interest rate plus your annual MIP rate (Handbook 4000.1). That's why a lower annual MIP can help you pass, not just a lower interest rate. The comparison is: (new note rate + new annual MIP rate) versus (old note rate + old annual MIP rate).

No term change, or a term cut of less than 3 years

• Fixed rate → fixed rate: new combined rate at least 0.5 points lower
• Fixed rate → one-year ARM: new combined rate at least 2 points lower
• Fixed rate → hybrid ARM: new combined rate at least 2 points lower
• ARM with less than 15 months to next change → fixed rate: new combined rate no more than 2 points higher
• ARM with less than 15 months to next change → one-year ARM: new combined rate at least 1 point lower
• ARM with less than 15 months to next change → hybrid ARM: new combined rate at least 1 point lower
• ARM with 15 or more months to next change → fixed rate: new combined rate no more than 2 points higher
• ARM with 15 or more months to next change → one-year ARM: new combined rate at least 2 points lower
• ARM with 15 or more months to next change → hybrid ARM: new combined rate at least 1 point lower

Source: HUD Handbook 4000.1, II.A.8.d.vi(C). All figures compare new and prior combined rates.

Shortening your term by 3 years or more (for example, 30 to 15)

• Fixed to fixed: the new combined rate just has to be below the old one
• ARM to fixed: no more than 2 points higher
• ARM products aren't allowed on this path
• Plus: your new principal, interest, and MIP payment can't be more than $50 higher than your old one (Handbook 4000.1)

Passing HUD's test doesn't mean it's worth it

FHA's test checks the rate, not your closing costs. Compare what you'd pay to close with how much you'd save each month and how long you expect to keep the home. Our refinance comparison calculator can give you a rough estimate. It's an estimate only, not a quote.

Credit-Qualifying vs. Non-Credit-Qualifying: What's the Difference?

Non-credit-qualifying

• FHA doesn't require a credit report. If the lender pulls one anyway, the score goes into FHA's system (Handbook 4000.1)
• Everyone on the old loan stays on the new one, with a divorce, separation, or death exception (below)
• New borrowers can be added to title and the loan without a creditworthiness review (Handbook 4000.1)
• Lenders can use a shortened loan application
• FHA's income, asset, debt-ratio, and minimum credit score sections don't apply (Handbook 4000.1)

Credit-qualifying

• The lender must pull credit and meet FHA's manual underwriting rules, except appraisal and loan-to-value (Handbook 4000.1)
• At least one borrower from the old loan must stay on
• FHA's minimum decision credit score of 500 applies — many lenders set a higher minimum

When you'd want (or need) credit-qualifying

You'd typically land here if you're removing a borrower outside the divorce, separation, or death exception, or if you're in one of the forbearance situations above. Some lenders require it anyway. FHA doesn't require a credit check on every streamline, but lenders may, so ask.

Do I Need an Appraisal? What If I Owe More Than My Home Is Worth?

HUD's rule is simple: "Appraisals are not required on Streamline Refinances. The receipt or possession of an appraisal by the Mortgagee does not affect the eligibility or maximum mortgage amount" (Handbook 4000.1). FHA doesn't use a new value on a streamline, so owing more than the home is worth doesn't, by itself, block one. Ask your lender about its own rules.

If a lender does order an appraisal on your loan, Utah law requires it to give you a copy (Utah Code 61-2c-301(2)(n)).

For MIP purposes, FHA uses your home's original value to calculate loan-to-value on a streamline (Handbook 4000.1; Appendix 1.0).

How Much Can the New Loan Be, and Can I Roll In Closing Costs?

Principal residence or HUD-approved secondary residence

Your new base loan amount is the lesser of: your current principal balance as of the month before closing, plus interest due, late charges, escrow shortages, and MIP due on the old loan, or your old loan's original principal balance, including any financed upfront MIP, minus any upfront MIP refund. The new upfront MIP is then added on top (Handbook 4000.1).

Rental or non-owner-occupied home

The lesser of your current principal balance or the original principal balance, minus any upfront MIP refund. There's no add-on for interest, late charges, or escrow shortages (Handbook 4000.1).

Closing costs can't go into the loan

HUD is direct about it: "FHA does not allow lenders to include closing costs in the new mortgage amount of a streamline refinance" (HUD). You have three ways to cover them:

• Pay them in cash at closing.
• Take a lender credit. You accept a higher interest rate and the lender uses part of that to pay your costs. HUD notes that "no cost" really means no out-of-pocket cost, paid for through the higher rate (HUD; CFPB).
• New second-lien financing, used only to pay down the FHA balance or to cover origination fees, closing costs, prepaids, or discount points (Handbook 4000.1). Not every lender offers this.

Cash back is capped at $500

You can't get more than $500 back at closing. A refund of your old escrow balance from your previous servicer doesn't count toward that $500. If estimates leave you with more than $500, the lender can apply the extra to your principal (Handbook 4000.1).

Bringing money to closing

If the cash you bring to closing is more than your new monthly payment, the lender has to verify where it came from (Handbook 4000.1).

Existing second liens

Any existing second lien, such as an FHA partial claim or a down payment assistance second, must be resubordinated to the new loan (Handbook 4000.1). If your purchase used a Utah down payment assistance second, tell your loan officer up front.

Term cap

The new loan's term can't be longer than the lesser of your old loan's remaining term plus 12 years, or 30 years (Handbook 4000.1).

What About MIP? Upfront, Annual, the 3-Year Refund, and the Pre-2009 Exception

Upfront MIP

Most FHA loans, including streamlines, carry upfront MIP of 1.75% of the base loan amount (Handbook Appendix 1.0).

The upfront MIP refund credit (within 3 years)

If you refinance one FHA loan into another within 3 years, part of the upfront MIP you paid on the old loan is credited toward the new one. The credit depends on how many months you've had the old loan (Handbook 4000.1, II.A.8.d.iv): it starts at 80% in month 1 of year 1, and steps down by 2 points a month — reaching 58% by month 12 of year 1, 34% by month 12 of year 2, and 10% by month 12 of year 3. After 3 years there's no refund. Upfront MIP is only refundable this way, when refinancing into a new FHA loan (Handbook 4000.1).

Annual MIP

For FHA loans endorsed on or after March 20, 2023 (Handbook Appendix 1.0; HUD ML 2023-05):

• Term longer than 15 years, base loan amount $726,200 or less: 0.50% annual MIP at 90% LTV or less (11 years), 0.50% over 90% to 95% LTV (full loan term), or 0.55% over 95% LTV (full loan term)
• Term longer than 15 years, base loan amount over $726,200: 0.70% annual MIP at 90% LTV or less (11 years), 0.70% over 90% to 95% LTV (full loan term), or 0.75% over 95% LTV (full loan term)
• Term of 15 years or less, base loan amount $726,200 or less: 0.15% annual MIP at 90% LTV or less (11 years), or 0.40% over 90% LTV (full loan term)
• Term of 15 years or less, base loan amount over $726,200: 0.15% annual MIP at 78% LTV or less (11 years), 0.40% over 78% to 90% LTV (11 years), or 0.65% over 90% LTV (full loan term)

On a streamline, LTV is figured using your home's original value. If your loan is near or above $726,200, confirm the MIP with your lender.

If your old loan was endorsed on or before May 31, 2009

A streamline (or simple refinance) of an FHA loan endorsed on or before May 31, 2009 gets 0.01% upfront MIP and 0.55% annual MIP. The annual MIP lasts 11 years if LTV is 90% or less, or the full term if it's higher (Handbook Appendix 1.0; HUD ML 2023-05). The endorsement date isn't the same as your closing date, so ask your lender to check it.

Annual MIP dropped in 2023

HUD lowered annual MIP for loans endorsed on or after March 20, 2023 (ML 2023-05). If your FHA loan is older than that, the lower MIP on a new loan can help you pass the combined-rate test.

Can I Remove a Borrower After a Divorce, Separation, or Death?

On a non-credit-qualifying streamline

Normally everyone on the old loan stays on the new one. The exception: a borrower can be removed from title and the new loan after divorce, legal separation, or death when both of these are true (Handbook 4000.1):

• the divorce decree or legal separation agreement awarded the home and the payment responsibility to the remaining borrower, if applicable, and
• the remaining borrower can show they've made the mortgage payments for at least six months before case number assignment

Otherwise, credit-qualifying

If you don't fit that exception, a credit-qualifying streamline can work as long as at least one original borrower stays on and qualifies under manual underwriting (Handbook 4000.1).

Adding someone, and assumed loans

• You can add a borrower, such as a new spouse, on a non-credit-qualifying streamline without a creditworthiness review (Handbook 4000.1)
• An assumed loan can use a non-credit-qualifying streamline if the previous borrower was released from liability

Title, divorce decrees, and estates are legal questions. Talk with your attorney about those pieces.

Can I Streamline a Rental or a Home I Moved Out Of?

HUD allows it for non-owner-occupied homes, with two limits: the new loan must be fixed rate, and the loan cap is smaller, with no add-ons for unpaid interest, late charges, or escrow shortages (Handbook 4000.1).

To treat the home as your principal residence, the lender needs proof you live there, such as employment documents, utility bills, or third-party address verification. Without it, the loan is processed as non-owner-occupied. HUD allows these streamlines, but lender rules vary, so ask before you apply.

How Is a Streamline Different From Other FHA Refinances?

FHA streamline

• FHA-to-FHA only
• No appraisal
• Credit-qualifying or non-credit-qualifying
• $500 cash back max
• Closing costs can't go in the loan
• Net tangible benefit required
• Any occupancy, with fixed rate required for rentals and secondary homes

FHA rate-and-term (no cash out)

• Can refinance any mortgage, FHA or not
• Pays off existing liens plus the costs of the transaction
• Principal residence or HUD-approved secondary residence only
• Max LTV 97.75% for a principal residence you've lived in for 12 months (or since purchase, if you bought within 12 months); 85% otherwise and for secondary residences
• $500 cash back max
• Property and credit underwriting apply (Handbook 4000.1)

FHA simple refinance

A no-cash-out FHA-to-FHA refinance that pays off the FHA loan and the transaction costs. Max LTV 97.75% principal residence / 85% secondary. $500 cash back max. Gets the same reduced MIP for loans endorsed on or before May 31, 2009 (Handbook 4000.1; Appendix 1.0). If you'd rather finance your closing costs than pay cash or use a lender credit, this is the FHA route to ask about, with full underwriting.

FHA cash-out

Principal residence only, owned and lived in for 12 months before case number assignment (with an inheritance exception). All payments within the month due for the previous 12 months, or since you got the loan if that's shorter. Max LTV and combined LTV of 80%. Full underwriting and an appraisal (Handbook 4000.1).

For an overview of FHA refinance options, see FHA refinancing.

FHA Streamline vs. VA IRRRL vs. Conventional Refinance

Three refinance paths get confused often. Here's how they actually differ.

FHA streamline

• Current loan must be: FHA-insured and current (HUD)
• Occupancy: principal, HUD-approved secondary, or non-owner-occupied; last two fixed rate only (Handbook 4000.1)
• Waiting period: 6 payments + 6 full months since first payment due + 210 days since closing, at case number assignment (Handbook 4000.1)
• Benefit test: combined rate at least 0.5 points lower fixed to fixed; other ARM and term rules (Handbook 4000.1)
• Appraisal: not required; doesn't change the max loan (Handbook 4000.1)
• Credit / income: credit-qualifying or non-credit-qualifying (HUD; Handbook 4000.1)
• Cash to you: $500 or less (HUD)
• Closing costs in the loan: no (HUD)
• Max LTV: no LTV test; payoff-based cap
• Insurance / fee: new upfront MIP 1.75% (less any refund credit) + annual MIP; 0.01% / 0.55% if the old loan was endorsed on or before May 31, 2009 (Appendix 1.0)

VA IRRRL

• Current loan must be: VA-backed (VA.gov)
• Occupancy: you certify you live there now or used to (VA.gov)
• Waiting period: later of 6 consecutive payments or 210 days after first payment due date (38 U.S.C. 3709)
• Benefit test: at least 0.5 points lower fixed to fixed, 2.0 points fixed to ARM, 36-month recoupment (38 U.S.C. 3709)
• Appraisal: not required by VA (benefits.va.gov)
• Credit / income: no VA credit underwriting package required; lenders may add requirements (benefits.va.gov)
• Cash to you: none (benefits.va.gov)
• Closing costs in the loan: yes (VA.gov)
• Max LTV: see our VA IRRRL page
• Insurance / fee: 0.5% funding fee unless exempt (VA.gov)

Conventional rate-and-term (Fannie Mae "limited cash-out")

• Current loan must be: any existing first mortgage on the property (Fannie Mae B2-1.3-02)
• Occupancy: principal residence, second home, or investment property, with different max LTVs (Fannie Mae Eligibility Matrix)
• Waiting period: no program-wide rule verified here; ask your lender
• Benefit test: no Fannie Mae benefit test in B2-1.3-02; you judge the break-even
• Appraisal: required unless Fannie Mae's system offers value acceptance (Fannie Mae B4-1.4-10)
• Credit / income: full underwriting
• Cash to you: up to the greater of 1% of the new loan or $2,000 (Fannie Mae B2-1.3-02)
• Closing costs in the loan: yes — closing costs, points, and prepaids can be financed (Fannie Mae B2-1.3-02)
• Max LTV: principal 1-unit fixed up to 97% (95.01–97% only if the current loan is Fannie Mae-owned); second home 90%; investment 75% (Fannie Mae Eligibility Matrix; B2-1.3-02)
• Insurance / fee: PMI if LTV is over 80%; you can request cancellation at 80% of original value, and it ends automatically at 78% (CFPB)

Sources: HUD streamline page; HUD Handbook 4000.1 Update 18; VA.gov IRRRL and funding fee pages; benefits.va.gov IRRRL; 38 U.S.C. 3709; Fannie Mae B2-1.3-02 and B4-1.4-10; Fannie Mae Eligibility Matrix; CFPB.

Which Is Better?

Neither is automatically better. A streamline is about a lower combined rate or more stable terms on an existing FHA loan with little paperwork, but you can't finance the costs. A conventional refinance can be a way out of FHA mortgage insurance, but it usually comes with an appraisal (or value acceptance) and full underwriting.

How Do I Spot a "Too Good to Be True" Streamline Offer?

"No cost" isn't free

HUD says "no cost" streamlines actually mean no out-of-pocket expense, paid for through a higher interest rate (HUD). The CFPB explains that lender credits lower your closing costs in exchange for a higher rate, and suggests asking for options side by side so you can compare.

What Utah law says

Utah bars false or misleading mortgage advertising and bars encouraging you to skip or fall behind on payments before a refinance. If a company contacts you using a "trigger lead" after you've applied elsewhere, it must say it isn't affiliated with the lender you applied with, make a firm offer of credit, and can't switch the rates or terms on you later (Utah Code 61-2c-301(2)(l), (p), (y)). You can look up any loan officer or company on NMLS Consumer Access.

Where to get help

• FHA Resource Center: 1-800-CALL-FHA (1-800-225-5342)
• CFPB: (855) 411-2372

How to Check an FHA Streamline With Hometown

1. 1.Gather your dates and rates. Find your closing date, first payment due date, note rate, and annual MIP rate on your mortgage statement and Closing Disclosure. That gives you your seasoning dates and today's combined rate.
2. 2.Keep every payment on time, including the month before closing. Don't skip one.
3. 3.Ask for a Loan Estimate. Compare old and new combined rate, payment, and total closing costs. Ask how costs will be paid (cash or lender credit) and whether an upfront MIP refund credit applies.
4. 4.Mention anything unusual: a second lien (partial claim or down payment assistance), a recent forbearance or modification, a borrower change, or that you've moved out.
5. 5.Start at our FHA Streamline page or contact us. Curious what happens after you apply? See our process.

Frequently Asked Questions

What is an FHA streamline refinance?

It's a refinance of an existing FHA-insured mortgage into a new FHA loan with limited credit documentation and underwriting. It comes in credit-qualifying and non-credit-qualifying versions, and neither needs an appraisal. "Streamline" refers to the paperwork, not the cost: there are still closing costs (HUD; HUD Handbook 4000.1).

How soon can I do an FHA streamline after buying my home?

On the day your lender gets the new FHA case number, you must have made at least six payments on the loan, at least six full months must have passed since your first payment due date, and at least 210 days must have passed since your loan closed. If you assumed the loan, you need six payments since the assumption (HUD Handbook 4000.1).

How much does my rate need to drop?

FHA looks at your "combined rate": your interest rate plus your annual MIP rate. For a fixed-rate to fixed-rate streamline without a big term change, the new combined rate must be at least 0.5 percentage points lower. Moving from fixed to an ARM requires at least 2 points lower. ARM-to-fixed can be up to 2 points higher. Shortening your term by three or more years has its own test, with a $50 payment-increase cap (HUD Handbook 4000.1).

Do I need an appraisal or a credit check?

FHA doesn't require an appraisal on any streamline, and an appraisal doesn't change your eligibility or loan amount. A non-credit-qualifying streamline doesn't require a credit report; a credit-qualifying one does, along with manual underwriting. Lenders can set their own requirements, so ask (HUD Handbook 4000.1).

Can I roll my closing costs into an FHA streamline?

No. FHA doesn't allow closing costs to be included in a streamline's new loan amount. You can pay them in cash, or take a slightly higher rate so the lender covers them with a credit. That "no cost" option still costs you through the higher rate (HUD; CFPB).

Can I get cash out with an FHA streamline?

No more than $500 at closing. A refund of your old escrow account doesn't count toward that limit. If you need equity, FHA's cash-out refinance requires owning and living in the home for 12 months, a maximum 80% loan-to-value, an appraisal, and full underwriting (HUD Handbook 4000.1).

Will I pay upfront MIP again? Do I get any of my old MIP back?

Usually yes, you'll pay new upfront MIP (1.75% of the base loan amount on most loans). If you're refinancing within three years of your current FHA loan, part of your old upfront MIP is credited toward the new one. The credit is 80% in the first month and falls by 2 points a month to 10% in month 36. If your old loan was endorsed on or before May 31, 2009, the new loan's upfront MIP is 0.01% and annual MIP is 0.55% (HUD Handbook 4000.1; ML 2023-05).

Can I take my ex-spouse off the loan with an FHA streamline?

Often. On a non-credit-qualifying streamline, a borrower can be removed after divorce, legal separation, or death if the decree awarded the home and payments to you (where applicable) and you've made the payments yourself for at least six months before the case number is assigned. Otherwise, a credit-qualifying streamline lets you refinance as long as at least one original borrower stays on (HUD Handbook 4000.1).

Can I streamline a home I now rent out?

HUD allows streamlines on non-owner-occupied homes, but only into a fixed-rate loan, and the new loan can't include unpaid interest, late charges, or escrow shortages. Lender rules vary, so ask before you apply (HUD Handbook 4000.1).

Is an FHA streamline better than refinancing into a conventional loan?

It depends. A streamline keeps you in FHA with little paperwork and no appraisal, but you keep paying FHA mortgage insurance. A conventional refinance usually needs an appraisal (unless value acceptance is offered) and full underwriting, but private mortgage insurance can end once you reach the cancellation points federal law sets (HUD; Fannie Mae; CFPB). Compare the total cost of both options.

"Ready to see if an FHA streamline makes sense for your Utah home? Before you commit, let Hometown Mortgage in Layton (serving Utah statewide) check your FHA streamline numbers: your seasoning dates, the combined-rate test, and any upfront MIP refund credit. We'll tell you plainly if a streamline isn't worth it for you."

Check your FHA streamline numbers · Talk to Hometown · Other options: FHA rate-and-term and cash-out · Conventional refinance to drop MIP · VA IRRRL for VA loans · Refinance comparison calculator (estimate only) · All refinance options

Official references: HUD: Streamline Refinance Your Mortgage · HUD Handbook 4000.1 · HUD ML 2023-05 (MIP)