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The FHA is changing its FHA Streamline Refinance rules.

Effective November 17, 2009, getting approved for the popular FHA-to-FHA refinance program will be decidedly more difficult.

And make note -- this is not speculation.

The FHA titled its official September 18, 2009 statement "Revised Streamline Refinance Transactions".  The document reads like a warning shot.

This is just the first in a series of changes coming from the FHA.

Summarizing the announcement, there are 3 areas in which the FHA is toughening up.

1. FHA homeowners must now be employed at the time of application
2. FHA homeowners must now verify cash needed at closing
3. FHA homeowners must now commission a full appraisal in order to add "roll in" closing costs to the refinance

Versus the current FHA Streamline Refinance guidelines, this is kind of a big deal.

See, until now, the FHA's prevailing refi approach was to help its homeowners to lower payments however possible.  The group already insured the mortgage so it didn't care whether you were out of work or if your home had lost value.  By helping homeowners to lower their monthly mortgage payment, the FHA was also lowering its overall credit risk.

Effective November 17, 2009, this will change.

Starting next year, the FHA will start to deny streamline refinance requests on the basis of employment, income, assets, and appraised value.  You can be sure a lot of today's credit-approved homeowners will be wishing they acted sooner.

I'll say this: If you've got a FHA mortgage -- just for the heck of it -- research your streamline refi options against today's guidelines. You never know what'll turn up.

Call your lender's customer service number, or with the details of your mortgage.  I answer my own emails and will get you the information you need.

The last thing you'll want to do is wait too long to act.

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Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.