The Federal Housing Administration (FHA) - which is part of HUD - insures the loan, so your lender can offer you a better loan.
The FHA offers a streamline refinance on insured mortgages. The term "streamline" refers to the amount of documentation required.
The Benefits of a FHA Streamline Refinance
- Appraisal usually not required
- Very little paperwork
- No credit check, income verification, employee verification, or underwriting fees
- Easily increase or decrease the length of the term of your existing loan
- Take advantage of current low interest rates at 3.75%
- Little or no out-of-pocket costs