What’s a FHA Streamline loan and why are they so common? A Utah FHA Streamline loan provider has broken down what exactly this type of loan is and why so many homeowners are choosing it.
First, an FHA loan is a loan given by a private lender, but is backed by the Federal Housing Administration. This means they fully insure the loan but don’t actually provide the loan itself.
Second, it’s called a streamline loan because processing times for these types of loans are very quick. This is because of the fact that these loans are insured by the FHA and banks feel comfortable giving thses loans lower interest rates and this cuts processing times down. It’s also great news for the homeowner who is refinancing and looking to lower their monthly payments.
If you’re thinking about refinancing check with your loan provider to see if an FHA Streamline loan is an option for you.
(image: courtesy of sanjosestreamlinemortgage.org)