I have been doing FHA streamline refinances for clients for years, and for about as long as I can remember, the Arizona FHA streamline refinance has been a no income, no asset, no credit score loan – meaning, you didn’t fully have to re-qualify for a new loan, you were able to streamline the documentation needed in order to qualify. The Arizona FHA streamline loan was designed for people who are currently in the FHA loan program and are in good standing to be able to take advantage of lower interest rates when they are available without having to completely re-qualify for a new loan.
As we have seen recently, many lenders have tightened their guidelines where credit scores are being required on an FHA streamline refinance – where the lender will actually pull a tri-merge credit report and you must have at least a 620 credit score to qualify for the FHA streamline program.
This means that many people have recently been turned down for a FHA streamline refinance because they have a low credit score. NO MORE!
We now have a lender who will do an FHA streamline with NO CREDIT SCORE REQUIREMENT and only 3 criteria that you need to meet:
- You can’t have more than 1 30 day late payment on your mortgage in the last 12 months.
- You must occupy the property as your primary residence.
- Participating in the FHA streamline program must make financial sense – meaning that the benefits of participating in the FHA streamline refinance program must outweigh the costs involved.
If you are currently in an FHA loan that is above 6% and have a bad credit score but meet these criteria, now is the time to act before rates go up or another lender decides to change their guideline.
While it is possible that the guidelines may change for this particular lender at any point in time — we are happy to have found them because virtually all of the other lenders that we are aware of are now requiring a tri-merged credit report with at least a 620 credit score.
