Can You Do An FHA Streamline With 3 30 Day Late Payments?

July 25, 2009

The FHA Streamline refinance program is designed for FHA borrowers who are in “good standing” to be able to refinance their FHA mortgage with as little documentation as possible. One of the most popular questions about whether or not someone is eligible has to do with “how many late payments can someone have before they are not eligible for the FHA streamline refinance program?

And the answer is…

It depends.

It depends on the lender.

It is possible that a loan officer at Lender A will tell you that you can’t have any 30 day late payments on your mortgage in the last year.

It is also possible that another loan officer at Lender B will tell you that you can have only one 30 day late payment on your mortgage in the last year.

And it is even possible that yet another loan officer at Lender C will tell you that you can have up to two 30 day late payments on your mortgage in the last year.

If you have more than two 30 day late payments in the last year, I am not aware of a lender who will allow you to participate in the FHA Streamline refinance program – but that doesn’t mean it is possible.

Because after all — how many 30 day late payments that you can have with the FHA streamline refinance program is really up to the individual lender.

Isn’t it interesting to see how many different ways the words “good standing” can be inturpreted?


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