No, conventional streamline refinances do not exist. Unlike FHA, VA, and USDA loans, conventional mortgages don’t offer a true streamline refinance option that skips most of the underwriting, income verification, and appraisal process.
However, that doesn’t mean you’re out of luck if you have a conventional loan and want a faster, simpler way to refinance. While there’s no direct equivalent, several programs and lender policies can help you reduce your monthly payment or interest rate with minimal hassle. From appraisal waivers and mortgage recasts to programs like Fannie Mae’s HIRO and Freddie Mac’s FMERR, you may still have options to refinance efficiently.
Let’s explore how you can streamline your refinance—without an actual “streamline” loan.
The least you need to know:
- Conventional streamlines don’t exist
- Solutions do exist that can help you achieve some of the same benefits that streamlines offer, such as:
- Refinancing without an appraisal
- Refinancing with no upfront costs
- Refinancing with more lenient credit requirements
What is a Streamline Refinance?
A streamline refinance is a simplified mortgage refinance available for FHA, VA, and USDA loans. These programs allow eligible homeowners to refinance with minimal paperwork, no income verification, and often no appraisal—making the process faster, easier, and more affordable.
People turn to streamline refinances for different reasons:
- They’re fast and hassle-free – Less paperwork and fewer lender requirements can mean a quicker refinance.
- They help borrowers who might not otherwise qualify – If your credit score has dropped, your debt-to-income (DTI) ratio has increased, or your income situation has changed, you may still be able to refinance.
- They work when home values decline – Traditional refinances require sufficient home equity to secure the loan, but a streamline refinance may allow you to refinance even if your home’s value has decreased.
- They lower costs – Streamline refinances often eliminate appraisal fees and reduce underwriting expenses, making them a budget-friendly refinance option.
While conventional loans don’t offer a true streamline refinance, some alternative options can help you achieve similar benefits.
Read more about:
VA Streamline Refinance / Interest Rate Reduction Refinance Loan (IRRRL)
Conventional Streamline Refinance Alternatives
Quickly Lower Your Payment Without Refinancing
When homeowners decide to refinance their mortgage – especially with a streamline refinance – it’s often because they want to reduce their monthly payment. Here are a few ways to reduce your mortgage payment without actually going through the process of refinancing your mortgage.
Mortgage Recast
If you have extra cash, you could make a large lump-sum payment toward the principal balance on your mortgage. Your lender will assign a lower monthly payment based on your adjusted mortgage balance. This is called a mortgage recast.
Mortgage recasts don’t impact your interest rate or loan terms; they’re simply a way to lower your monthly payment by getting ahead on your principal balance.
PMI Cancellation
You’re most likely paying for monthly mortgage insurance if you purchased your home with less than a 20% downpayment. However, if you’ve reached 20% equity through payments and/or home appreciation, you may have enough equity to eliminate this monthly expense, which will lower your mortgage payment.
Once you reach a 78% loan-to-value ratio (LTV) based on your original purchase price, your lender is required to remove PMI automatically. However, if your home’s value has increased and your LTV is now 80% or lower, you may be able to request PMI cancellation earlier—provided you get an appraisal confirming the new value.
Skip the Appraisal with a Home Appraisal Waiver (if eligible)
One of the major benefits of a streamline refinance is that it usually allows you to avoid having an appraisal done on your home. This can save you money and some time.
Some lenders may allow you to skip the appraisal if your mortgage is backed by Fannie Mae or Freddie Mac and qualifies for an appraisal waiver through their automated underwriting systems. Ask your lender if you’re eligible.
Related: What to Know About Refinance Appraisals
Work With a Technology-Driven Lender for Speed
One of the biggest reasons homeowners choose a Streamline Refinance is speed—less paperwork, fewer requirements, and a faster path to a lower mortgage payment. With a conventional refinance, choosing the right lender can still make your refinance much quicker and easier.
Some lenders still operate with outdated, manual processes that drag out refinancing for weeks. Others have embraced technology-first solutions that significantly cut down processing time. Here’s how:
- Instant financial verification – Instead of manually uploading bank statements and pay stubs, lenders using Plaid and other third-party integrations can securely pull financial data in seconds, although only with your consent.
- Automated underwriting – Some lenders use AI-driven underwriting to speed up approvals, reducing back-and-forth documentation requests.
- E-signatures for loan documents – Many lenders now use DocuSign and similar platforms, allowing you to sign documents electronically instead of scheduling in-person meetings.
If speed and convenience are priorities, choosing a lender that leverages technology can help you streamline your refinance—even without an official streamlined loan.
Refinance to an FHA Loan for More Lenient Credit Requirements
To qualify for a conventional loan, you must have a credit score of at least 620. If your credit score has fallen and you no longer meet the requirements, the ideal situation would be a streamline refinance of your conventional mortgage if that existed.
Since it doesn’t, you must look for alternative ways to refinance your mortgage.
One option would be to refinance with an FHA loan. While you won’t be able to take advantage of the streamline option since you’re moving from a conventional loan, you can take advantage of the FHA’s lower credit score requirements:
- 580+ with 3.5% equity
- 500+ with 10% equity
Moving to an FHA loan will still offer mortgage rates similar to those you’d receive from a conventional mortgage product, but there is one downside: all FHA loans come with upfront and ongoing mortgage insurance.
Related: Credit score requirements to refinance
How we source rates and rate trends
Rates based on market averages as of Dec 02, 2025.Product Rate APR 30-year Fixed Fha Refinance 5.56% 6.77% 30-year Fixed Refinance 6.35% 6.37%
High LTV Refinance Options: What’s Available?
If you have a conventional loan and owe almost as much—or more—than your home is worth, you might assume refinancing isn’t an option. Many lenders require at least 3% equity for a conventional refinance, but if your home’s value has dropped or you started with a low down payment, you may have a high loan-to-value (LTV) ratio that makes refinancing more difficult.
Historically, high-LTV refinance programs like Fannie Mae’s HIRO (High LTV Refinance Option) and Freddie Mac’s FMERR (Enhanced Relief Refinance) have helped homeowners in this situation. While these programs are not currently active, some lenders may offer their own high-LTV refinance solutions.
If your LTV is above 97%, it’s worth asking lenders about alternative refinance options that don’t require significant home equity.
Why You Might Need a High-LTV Refinance
A high LTV means you have little equity in your home. Here’s how that can happen:
- You bought with a low down payment – If you purchased a $300,000 home with 5% down, your loan started at $285,000 (95% LTV). Without significant appreciation, your LTV may still be too high for some refinance programs.
- Your home’s value declined – If your home was originally worth $300,000 but has dropped to $280,000, your LTV increases—even if you’ve been making payments. So, if your loan balance is still higher than $280,000, you’re considered underwater on your mortgage.
- You’ve made only minimum payments – Early mortgage payments go mostly toward interest. If you started with a high LTV, it can take years to build enough equity for a standard refinance.
If you’re in this situation, check with lenders about high-LTV refinance options or other ways to reduce your payment, such as appraisal waivers or no-cost refinances.
Opt for a No-Cost Refinance (But Know the Trade-Offs)
If refinance closing costs are what piqued your interest in streamline refinances, a no-cost refinance may be a good option for you.
A no-cost refinance eliminates upfront closing costs by either increasing your loan balance or charging a slightly higher interest rate than you’d otherwise get by refinancing. While this saves money upfront, the higher rate may cost more in interest over time, so it’s important to run the numbers before choosing this option.
Refinancing with Income or Employment Issues: What Are Your Options?
One of the biggest benefits of a streamline refinance is that it often doesn’t require income verification, making it ideal for borrowers whose financial situation has changed. But, since conventional loans don’t offer a true streamline option, refinancing with reduced income or unstable employment can be challenging.
If your income has dropped or you’ve recently changed jobs, become self-employed, or faced job instability, here’s what you need to know:
Lenders typically require:
- Stable employment history (usually two years in the same job or industry)
- Sufficient income to meet debt-to-income (DTI) requirements
- Verifiable income (pay stubs, tax returns, bank statements)
If you’ve had a recent job change, some lenders will accept new employment if it’s in the same field, but others may require a few months of pay history before approving a refinance.
If you’re self-employed, most lenders require two years of tax returns to verify self-employment income. If you recently switched to self-employment, refinancing could be difficult unless you have a strong financial profile.
Related: Mortgage refinancing for the self-employed
A loan modification may be a viable option if you’re experiencing financial hardship and are struggling to make your mortgage payments. This can help you lower your monthly payment without refinancing. Talk to your lender.
The Bottom Line
While it’s not possible to do a streamline refinance on a conventional mortgage, lenders are making it easy to go through the process. Everything from providing loans without a traditional appraisal to giving you the ability to connect your financial accounts for instant verification can help cut down on the time it takes to underwrite your loan.
