Still Doing FHA Streamline Refinances with No Minimum FICO

Edit 4/30/09: FHA Streamline Refinances with credit scores below 620 are no longer available.

Over the last couple of weeks, some of our investors have begun requiring a minimum FICO score on FHA Streamline Refinances. FHA has allowed streamlined refinances without using credit since the early 1980’s. Just so we’re clear, the new changes do not seem to be mandated by FHA. Rather, it seems that the investors have taken it upon themselves to impose new minimum credit scores.

Many Brokers Have Lost the Ability to Do Streamline FHA Refinances
Some of the biggest investors in the nation have stopped underwriting FHA streamline refinances for borrowers with credit scores below 620. Some banks and mortgage brokers with limited access to various investors have found themselves unable to close borrowers on this program.

Say “NO” to Higher Fees
As of this writing, I have access to numerous banks that still allow credit-score-free refinancing on the streamline program. If your lender has told you they can’t complete the program because of your FICO scores, or they want to charge you higher fees, give me a call today. My rates on FHA Streamline Refinances are the same whether your credit score is 780 or 480.

Author: Matt Blasses

Matt is a mortgage specialist for Mortgage Now in Farmington, Michigan. He created blasses.com as a home for his mortgage advice blog. He can be reached at 248-474-8470, Ext. 320, or contact him via his web form. Matt originates home mortgages in California, Colorado, Florida, Georgia, Illinois, Indiana, Maryland, Michigan, Minnesota, New Jersey, Ohio, Pennsylvania, South Carolina, Tennessee, Texas and Washington