FHA loans are greatly misunderstood.  For a list of things you should know about an FHA refinance, please this post.  An FHA loan can be used to refinance any type of mortgage.  If you currently have an FHA loan, you can refinance with an FHA streamline refinance without the need of an appraisal.

The FHA streamline refinance allows a borrower to refinance their existing FHA regardless of the current value of the house.  In order to qualify for an FHA streamline your current loan must be on time, with no more than one 30 day late in the past 12 months on the current mortgage.

FHA to FHA streamline refinances will require you to come to closing with some money.   The only closing cost that can be financed is the up-front PMI insurance which is required to be paid to HUD.  Closing costs and  new escrow account must be paid at the closing.   Closing costs on an FHA streamline can be zero with by taking a slightly higher than average interest rate.  A new escrow account, properly timed, can be as little as 3 months of property taxes and home owners insurance.   Closing on an FHA streamline is best done 1 week before the end of the month, right before county property taxes are due.  In doing so, you will usually be coming to your refinance closing with less than your monthly mortgage payment.  Closing late December and late June are the best times in most Ohio counties.

Generally speaking,  any type of residential mortgage can be refinanced with an FHA loan, keeping in mind there are limits to FHA loan size.   The maximum loan to value on an FHA refinance is is 97.75%.    Thats about as close to a no equity refinance as it gets.    For borrowers who are underwater, due to having a 2nd mortgage (home equity loan or line) FHA can allows the 2nd mortgage to stay in place, provided the combined loan to value (CLTV)  remains below 125%.

If you have any questions or are interested in an FHA refinance please contact me.