FHA Streamline Refinance
An FHA streamline refinance is used to lower your interest rate. The advantage to the streamline refinance is you do not need to re-qualify for the mortgage if you have been paying your mortgage on time. You can also do a regular FHA refinance to pay off other debts, but you need to income and credit qualify for the loan.
All FHA loans have a funding fee and monthly mortgage insurance, regardless of the amount of equity in the property. The mortgage insurance is for the life to the loan. There is no prepayment or early payment penalties. FHA loans are less credit score sensitive making them an attractive option for borrowers with credit score below 680.