Chapter
1 Appraisal & Property
Requirements Page
1-04 Definitions
of both Refinances and Streamline Refinances can be found in HUD Handbook
4155.1 REV-4 CHG 1, Chapter 1, Section 4. A.
Appraising Refinances - A standard refinance requires a complete appraisal
with all appropriate repair/conditions noted, while a streamline refinance may
be insured with or without an appraisal. B. Streamline Refinance
- Streamline refinances are designed to lower the monthly principal and interest
payments on a CURRENT FHA-insured mortgage and must involve no cash back to the
borrower except for minor adjustments at closing not to exceed $500.00.
Streamline refinances can be insured with or without an appraisal. When an appraisal
is completed FHA does not require the repairs (except for lead based paint repairs)
to be completed, however the lender may require completion of repairs as a condition
of the appraisal. If
the lender is required by law or banking regulations (e.g., FIRREA) or its investors
to obtain an appraisal on a mortgage that will be processed as if no appraisal
was made, the appraisal fee may be paid by the borrower, out-of-pocket (i.e.,
not financed). Reference:
Handbook 4155.1,
Rev. 4 Chapter 1, and Mortgagee Letter
1996-10. |