A flash memory system having the capability of streaming data directly from flash memory to the interface of a host computer in order to substantially reduce latency of to-host transfers, while also maintaining the capabilities for caching and overlapped flash I/O provided by RAM DMA transfers. When data is read from the flash memory, the data is transferred into the RAM buffer and at the option of the memory controller, directly (via an intermediate FIFO) to the host interface. This results in a desirable reduction in the latency of data transfer because as soon as the first byte of data is read from the flash memory by the DMA engine, the data will be transferred directly to the host interface. Because the data is also being transferred to the buffer RAM, preferred embodiments of the present invention still provide the advantages of using an intermediate transfer buffer.