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Can You Streamline Refinance an FHA and VA Loan With a DPA Second
I know that you can only do a Streamline Refinance on either an FHA loan or VA loan with no appraisal or income documents. Credit scores are uses to price out the FHA or VA STREAMLINE REFINANCE. Are you eligible for an FHA Streamline Refinance or VA STREAMLINE REFINANCE if you have a non-forgiveable Down Payment Assistance (DPA) second. So, my question is if I can do an FHA Streamline Refinance or VA STREAMLINE REFINANCE and subordinate the DPA second mortgage because I am stuck with the second mortgage DPA for a ten year term before it becomes forgivable. Thank you.
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Suppose you have a non-forgivable down payment assistance (DPA) second mortgage. In that case, you may still qualify for an FHA or VA streamline refinance. However, the DPA second mortgage would need to be subordinated. The second lien holder must agree to remain in a subordinate position behind the new FHA or VA loan. This is necessary because streamlined refinancing deals only with your first mortgage; all current subordinate liens must stay put to continue with refinancing smoothly.