Business & Finance mortgage

How to Do an FHA Short Refinance

By Business & Finance Last updated Wednesday, April/24/2024

1). Utilize the home as your primary residence. Only owner-occupied primary residences qualify for the FHA Short Refinance Program.
2). Pay your mortgage every month on time. FHA Short Refinances are only available to homeowners who are current on their mortgage.
3). Contact lenders to ascertain if they will offer an FHA Short Refinance. Existing FHA loans do not qualify for the program
4). Submit an application to the lender. The application process varies based on lender, but the standard income verification process does not apply. The Lender will process the loan through the FHA's Technology Open to Approved Lenders (TOTAL) scoring system. It is a web-based system that assesses the borrower's credit-worthiness based on the information in his application package. If the loan scores at least 500, the refinance is approved, providing the borrower meets the aforementioned requirements.

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