Better Home & Finance Holding Co., the parent of digital lender Better.com, rolled out its Federal Housing Administration (FHA) streamline refinance program on Monday.
The product is available for qualified borrowers with an existing FHA loan who are looking to lower their monthly mortgage payment, reduce their interest rate, shorten their loan term or get out of an adjustable-rate mortgage (ARM), the company explained.
The streamline refi program enables FHA borrowers to refinance their mortgage by reducing underwriting requirements for income verifications and appraisals.
Better will evaluate the borrower’s credit report to assess the subject property payment history and to ensure the credit score meets the investor threshold. Better does not check income on FHA streamline refi loans.
“With this launch, we are reducing the traditional barriers that exist for FHA borrowers and delivering flexible financing solutions at a timely moment for consumers across the country,” Vishal Garg, CEO and founder of Better.com, said in a statement.
As with most refi options, the FHA streamline refi requires borrowers to pay closing costs —which can’t be wrapped into the new loan — as well as mortgage insurance premiums unless the FHA loan is converted into a conventional loan.
In its second-quarter 2024 financial earnings, Better.com posted a net loss of $42.2 million, an improvement from the previous quarter’s loss of $51.5 million.
The digital lender originated $962 million in volume in the second quarter, an increase of 45% from the previous quarter. Company executives projected funded loan volume to top $1 billion in third-quarter 2024.