Streamline Applicant Requirements
The CBC National Bank Streamline Rate Reduction Program has few requirements. However, an eligible rate must be available in order to participate.
To apply for a FHA streamline borrowers must:
- Have a FHA loan that is currently insured.
- No delinquent payments within the past 12-months.*
- Receive a lower payment, reduce his/her loan term (years to pay) or be converting from an adjustable rate mortgage (ARM) to a fixed rate mortgage.
- No cash may be taken out during the streamline process.
*Some other conditions may apply on a case by case basis.
The FHA and VA streamline programs were created to reduce borrowers’ mortgage liability. For this reason, all transactions must provide a tangible borrower benefit and FHA and VA streamline participants cannot request cash out from FHA or VA streamline transactions. Borrower bills cannot be consolidated via a streamline refinance transaction.
Borrowers interested in cash out or debt consolidations must apply for a traditional refinance. A traditional refinance will require an appraisal, income documentation, asset documentation and a thorough credit review.