Final answer:
An FHA Streamline refi requires having an existing FHA loan and staying current with mortgage payments. Unlike conventional loans, it typically does not need income and debt verification or a new appraisal due to the pre-existing vetting from the initial FHA loan.
Step-by-step explanation:
The student asked which is required for an FHA Streamline refinance (refi). Unlike traditional refinancing options, an FHA Streamline refi typically does not require income and debt verification or a new appraisal.
Its distinct feature focuses on lowering paperwork and easing the requirements, making it quicker and less stringent for borrowers who already have an FHA loan.
The main requirement is having an existing FHA loan and being up-to-date with mortgage payments.
Normally, in the financial capital market, thorough checks on a borrower's financial background, such as credit verification, sources of income, and potentially requiring collateral or a cosigner, are standard procedures for loan approval.
However, in the case of an FHA Streamline refi, the process is streamlined because the borrower has already been vetted through their existing FHA loan.