How to Refinance Using FHA Streamline With Non-Occupancy Co-Borrowers

Am FHA streamline refinance requires less paperwork than a traditional refinance.

Am FHA streamline refinance requires less paperwork than a traditional refinance.

In an FHA (Federal Housing Administration) streamline refinance, the borrower refinances their original FHA mortgage into another FHA mortgage. Typically, this is done to lower the payments or interest rate of the loan. In a streamline refinance, less paperwork is required than in a traditional refinance. However, a co-borrower who does not live in the house can be added if the borrower needs the credit history or income of that co-borrower in order to qualify for the refinance.

Items you will need

  • Pay stubs
  • Tax returns
  • Credit reports
  • Bank statements

Fill out a mortgage application, called a Uniform Residential Loan Application, with a mortgage lender. Include not only the borrower's information but the information of the non-occupant co-borrower as well. This information includes full name, date of birth, Social Security number, income information and debt information. A complete application helps the mortgage process go faster.

Provide the lender with needed documentation on both the borrower and the non-occupant co-borrower. The biggest difference between an FHA refinance and an FHA streamline refinance is the documentation. If the information has remained the same, fewer years of tax returns, pay stubs, and credit history are required. Additionally, if the refinance does not involve a cash out transaction, an appraisal may not be required. In this case, the lender may simply pull the local tax value on the transaction to ensure that a large dip in value has not occurred.

Sign the closing documentation at the end of the transaction. Once the lender has reviewed the documentation provided in Step 2, as long as the information meets the minimum requirements set by the lender and FHA, the loan will be approved for closing. At that time, you will sign a set of documentation completing the transaction and both you and the non-occupant co-borrower will become liable for the new mortgage debt.


  • Provide your lender with complete paperwork on all borrowers at the time of application. This will greatly speed up the loan approval process and allow you to close on the refinance as quickly as possible. Respond quickly to requests for additional documentation in order to keep the process running smoothly.


  • Remember that anyone who applies for the mortgage is liable for the debt, regardless of who occupies the home. If you default on the mortgage, both the occupant and the non-occupant borrowers will suffer the consequences on their credit report. Think about the potential ramifications prior to offering to co-sign on another person's mortgage loan.

About the Author

Lynn Lauren has been a professional writer since 1999, focusing on the areas of weddings, professional profiles and the banking industry. She has been published in several local magazines including "Elegant Island Weddings." Lauren has a Master of Business Administration and a Bachelor of Business Administration, both with marketing concentrations from Georgia Southern University and Mercer University, respectively.

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