The refinance appraisal requirement can be nerve-wracking, especially if you live in an older home. But did you know that there are a few ways you can refinance your home with no appraisal?
In this article, well take a closer look at what an appraisal is and why mortgage lenders require them. Well also introduce you to a few limited scenarios where you might want to refinance your home without an appraisal.
FHA Streamline Refinance
Among other benefits like not having as much documentation involved, FHA Streamlines often have no appraisal associated with them because theres no minimum equity amount. Thats not to say there arent circumstances where an appraisal is required, but there are other benefits like getting your annual mortgage insurance premium (MIP) down to 0.5% of your loan amount.
- Is your existing mortgage an FHA loan?
- Have at least 210 days passed between the date of your previous mortgage closing and your new application?
- Have 6 months passed between the time your first mortgage payment is due and the close of your refinance?
- Have you made at least six payments on your current loan?
- Do you have no more than one late mortgage payment in the last year, and none in the previous 6 months?
In addition to these requirements, you cant do a cash-out refinance.