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FHA Refinances Simple vs Streamline
Question:
What is the benefit of doing an FHA Streamline with an appraisal versus doing an FHA Streamline without an appraisal? Also, are there seasoning requirements and length of occupancy I should be concerned with?
Answer:
FHA no longer offers a “Streamline with an Appraisal” loan option. Instead, they offer the “Simple Refinance,” which is an FHA-to-FHA refinance that requires an appraisal. The advantage is that you can roll closing costs into the loan.
FHA only requires seasoning on Streamline and Cash-out Refinances. There is no 6-month/210-day seasoning requirement for rate and term refinances.
For a cash-out refinance, 12 months of occupancy as a primary residence is required prior to a cash-out refinance. The only exception is an inheritance.