Finance

A Mississippi borrower has a 'streamline refinance' option on their FHA loan. An FHA streamline refinance allows:

ACash-out for any purpose
BRefinancing to a lower rate with reduced documentation requirements without requiring a new appraisal, available to existing FHA borrowers who are current on their loan✓ Correct
CConversion from FHA to conventional loan
DRefinancing regardless of current loan status

Explanation

FHA streamline refinances allow existing FHA borrowers to refinance to a lower rate/payment with reduced documentation (no income verification in some cases) and no new appraisal. The primary benefit must be a lower payment or conversion from adjustable to fixed rate. The borrower must be current on the existing FHA loan.

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