Want to refinance on the FHA Streamline Refi program? Better get your application in-process pronto.

There are 4 days left to apply for an FHA Streamline Refi under the "old rules".  Starting November 17, the FHA changes its underwriting guidelines for the popular FHA-to-FHA refinance program.

Getting approved for a Streamline Refi will be more difficult and more expensive.

Summarizing the official FHA announcement, there are 3 areas in which the Streamline Refinance program is tightening.

1. FHA homeowners must now be employed at the time of application
2. FHA homeowners must now verify household income
3. FHA homeowners must now have their homes appraised in order to "roll in" closing costs to the refinance

Compared to the current Streamline Refi guidelines, it's a landscape shifter.

See, until now, the FHA's refinance philosophy has been to help its homeowners however possible.  It didn't matter whether a person was out of work, or whether he had his hours reduced, or even whether his home had lost 50% of its value.  The FHA was all about lowering payments for its people.

So long as the homeowner had been paying the mortgage on-time, the FHA would just do the refinance -- few questions asked.

Effective next month, this changes.  Underwriters for the new FHA Streamline Refinance program will be instructed to deny applications on the basis of employment, income, and assets.

No job?  No money?  No FHA loan. Under current guidelines, this isn't the case.

Furthermore, because (1) homeowners won't be able to roll in their closing costs without appraisal and (2) loan-to-values will be limited, people in highly-depreciated areas like Florida and Arizona may find streamline refis suddenly cost-prohibitive.

It's a terrible situation for the FHA homeowners that don't hear about these changes until it's too late.

Therefore, here's what to do. If you've got a FHA mortgage and you've been paying on-time, get yourself a streamline refinance quote against today's set of guidelines. Don't worry about the costs or by how much you'll lower your rate just yet -- the important part is just to get a non-obligation quote.

For the unemployed and furloughed, it's especially important.

Then, when you have the rate offer in hand, compare the new numbers against your current payment.  I find that people are usually surprised by how much they save when their mortgage rate falls by even just a little.

To get a rate quote, call your lender's customer service number, or, if you prefer to work with "humans", with the details of your mortgage and what you're hoping to do. I answer my own emails and will get back with you right away.  I really like working with my readers, besides.

And, lastly, remember this.  As of November 17, existing, bona fide streamline applications will be grandfathered in to the old underwriting rules. It doesn't matter when you close, per se.  It only matters when you apply.  So get that application going.

The last thing you'll want to do here is wait too long to streamline.  With just 1 week to go, the clock is ticking.

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