From the RatesQ team · Sample question

FHA Streamline with no appraisal: is that actually legit?

This educational scenario and its sample explanations are not posts from real users.

My LO mentioned I might not need an appraisal for an FHA Streamline refinance. That seems too good to be true. How is that possible and are there any catches?

Quick Summary

  1. Some FHA Streamline transactions do not require a new appraisal.
  2. The applicable program rules and lender overlays determine the documentation.
  3. Other eligibility and benefit requirements still apply.

Sample explanations

From the RatesQ team

It's legit. The FHA designed Streamline specifically to reduce barriers for existing FHA borrowers to refinance into lower rates. The 'streamline' part means they skip the full income documentation and appraisal because you've already demonstrated your ability to pay (ongoing payment history). The no-appraisal path uses your original purchase price (or existing appraised value) as the basis. Lender overlays can still require an appraisal, but many lenders follow FHA guidelines and skip it.

From the RatesQ team

I did an FHA Streamline last year. No appraisal, no income docs, closed in about 21 days. The only 'catch' is you need a clean 12-month payment history and it has to result in a net tangible benefit to you. Very smooth process overall.