Major Changes to FHA Streamline Refinance

Effective for case numbers ordered after November 18, 2009, FHA is implementing signifcant changes in FHA streamline refinance guidelines. The loan amount for streamline refinances without a new appraisal will be limited to the current principal balance of the existing loan less the refund of the current UFMIP plus the new UFMIP. Closing costs and pre paids to create the impound account cannot be included. Previously the new loan amount could not exceed the original principal balance of the existing loan and could include closing costs and pre paids if sufficient funds were available.