• An FHA streamline mortgage does not require an appraisal.home puzzle image by Hao Wang from Fotolia.com
  
  The Federal Housing Administration (FHA) secures and backs mortgage loans that are financed by pre-approved lenders. A streamline occurs when a homeowner with a current loan refinances to another administration-approved loan. Homeowners may refinance with an FHA streamline for debt consolidation or lower interest rates and monthly payments.
  
  

Purpose

• With other refinancing, one of the options is to refinance for a cash-out. With FHA streamline requirements, the homeowner cannot take out cash. The purpose for the refinance must be for either debt consolidation or better mortgage terms. Better mortgage terms could be a lower interest rate or lower monthly mortgage payments.
  
  

Delinquency Status

• In order to be approved for an FHA streamline mortgage, the homeowner must be current on the mortgage payments. Under no circumstances will a delinquent mortgage be approved for an FHA streamline.
  
  

Length of Mortgage

• To be approved for an FHA streamline, the homeowner must have owned the property for at least six months. After six months of ownership, a mortgage may meet the requirements for an FHA streamline.
  
  

FHA Approved Lender

• FHA has pre-approved mortgage companies that meet a specific set of criteria. A requirement to an FHA streamline is to close the loan through an FHA-approved lender.
  
  

Closing Cost Requirements

• There are also requirements to closing costs when doing an FHA streamline. Closing costs must either be paid through the amount of the loan or at close. When closing costs are paid at close, a cashier's check or money order must be submitted upon loan closure.