Many people in Texas have an FHA mortgage loan that was taken out when rates were higher than they are now and are now wondering about their refinancing options. One of the most popular refinancing options for people who currently have an FHA loan is the FHA streamline refinance program.
The FHA streamline refinance will allow you to refinance your home without requiring that you prove income, assets or credit information.
Yes, that means that you can still participate in the FHA streamline refinance program if you have bad credit — as long as you have made your last 12 months mortgage payments on time.
Many people have been turned down by lenders for an FHA streamline refinance recently and have been told “FHA raised the credit score requirements and you now must have a 620 minimum credit score”. This is not true. What is true is that many lenders have started requiring a 620 credit score, but not all lenders require that you have a credit score — and FHA does not currently have a credit score requirement for the FHA streamline refinance.
So — if you live in Texas, have an FHA mortgage loan and are in a higher than market interest rate, you are going to be eligible for the FHA streamline program as long as you have made your last 12 months mortgage payments on time – no matter what your credit score is!
