FHA Program Guide February 2015

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "FHA Program Guide February 2015"

Transcription

1 FHA Program Guide

2 WHY FHA? Down Payment 3.5% Up to 85% cash out refinance All funds may come from a gift Seller can pay up to 6% toward all closing costs Non-Occupant Co-Borrowers are allowed with true blended ratios No Cash Reserves (1 and 2 unit properties) Credit Leniency BK 2 years, Foreclosures 3 years, Short Sales 3 years Streamline Refinances Fully Assumable 2

3 FHA Products Purchase or Refinance of 1-4 unit primary residence - FHA 203b Fixed Products 15 and 30 Year for standard loan amounts and 30 year only on high balance loan amounts Arm Products 5/1 ARMs on standard loan amounts 5/1 ARMs on high balance loan amounts 1/1/5 caps, 2.00% Margin, Index is one year US Treasury Not available for streamline refinances 3

4 FHA Case Numbers requested online Each FHA loan is assigned an individual 10 digit loan number, called a Case Number. PCM will obtain this through the FHAC As a sponsored broker you will not have access to the FHAC (FHA Connection) Upon submitting your online request for case number PCM will you the new case number and Refinance Authorization (if applicable) All FHA loans must have a case number assignment to be insured Case numbers are ordered in FHA Connection by PCM Case numbers are assigned to the subject property Case number must be reflected on all HUD documents Case number printout is required with loan submission Streamline Refinances need previously assigned case number Must be ordered PRIOR to ordering an FHA Appraisal 4

5 CAIVRs through FHA Connection PCM will do this piece of processing CAIVRs Credit Alert Interactive Voice Response System checks for delinquent federal debt, should be on Case Number Printout PCM will access CAIVRS through the FHAC This is informational only to you as a sponsored broker Must be ordered on all borrowers Any delinquency must be cleared, or not eligible for FHA loan Should a delinquency or issued be uncovered by PCM you will be promptly notified 5

6 LDP & GSA Databases All parties to the transaction must be cleared in both databases (Government lists of bad players) LDP Limited Denial of Participation Database can be accessed at GSA (Excluded Parties List Service, General Services Admin) Database can be accessed at https://www.epls.gov/ Use PCM LDP/GSA Workflow and Participants List 6

7 Maximum LTV s BASE Loan Amount For Case Number Assignments on or after 1/1/2009 Purchase No Cash Out/Streamline Refi Cash Out Refinance 96.50% 97.75% 85% FHA Mortgage Limits Region 1 Unit 2 Units 3 Units 4 Units Low Cost Areas $271,050 $347,000 $419,400 $521,250 High Cost Areas $625,500 $800,775 $967,950 $1,202,925 Alaska & Hawaii $938,250 $1,201,150 $1,451,925 $1,804,375 A complete schedule of FHA mortgage limits for all areas is available at: https://entp.hud.gov/idapp/html/hicostlook.cfm 7

8 Maximum Loan Amount High Balance Loan Amounts - PCM High Balance pricing applies when base loan amount is over $417,000 Continental US or $625,500 in Hawaii Maximum Mortgage Calculation - Purchase 96.5% of the lesser of sales price or appraised value (base loan amount) Does not include Up Front MIP (UFMIP) Borrower must have minimum of 3.5% down payment (Can be gift) Closing costs may not be used in minimum 3.5% calculation Seller Concessions maximum 6% Maximum Mortgage Calculation Refinance No Cash Out and Streamline Refinances with appraisal 97.75% of appraised value (base loan amount) Cash out Refinances - 85% of appraised value FHA loan limits are set by HUD, and vary from county to county. Current loan amount limits can be found online at https://entp.hud.gov/idapp/html/hicostlook.cfm 8

9 High Balance Guides In addition to standard guidelines: Appraisal Requirements Loan amounts > $1,000,000 require 1 FHA appraisal w/ data verification or enhanced desk review w/data certification The lesser of the appraised value, review value or PP will be used Credit High Balance Cash Out transactions: Foreclosure or BK not allowed in most recent 7 years Credit Score Cash Out FHA High Balance require minimum 660 score All other loan amounts require 640 Borrowers with NO credit scores are ineligible 9 DTI 50% max DTI if score is < 680 or subordinate financing exists 55% max DTI if score is >=680 and no subordinate financing exists

10 FHA Mortgage Insurance Premium (MIP) Up Front MIP (UFMIP) the FHA mortgage insurance premium is paid at closing in the form of cash, or financed in the loan amount. UFMIP must be 100% financed or 100% paid in cash, no partial financing Annual MIP is collected in monthly payments and calculated in ratios Upfront Premiums are refunded ONLY to borrowers refinancing to another FHA insured mortgage within a 3 year time period. The refund will be calculated in FHA connection when case number is ordered. Premiums vary, see next two pages for factors. 10 Cancellation of MIP: Refer to Mortgage Insurance Amounts grid for MIP cancellation info For case # assignments prior to June 3: The annual MIP may be cancelled by HUD once unpaid principal balance reaches 78% of the lower of the initial sales price or the appraised value based on the initial amortization schedule. FHA s calculation of the 78% threshold is based on the Loan amount, excluding the UPFIP Initial sales price or ori9ginal appraised value, whichever is less MIP cancellation of a Streamline refinance without an appraisal is determined based on the original appraised value provided by HUD NOTE: regardless of the computed loan-to-value ratio, all but 15 year term mortgages will have annual premiums for the greater of 5 years or until the amortized LTV reaches 78% (Mortgagee Letter 00-46)

11 FHA Mortgage Insurance Premium (MIP) 11

12 FHA Mortgage Insurance Premium (MIP) 12

13 FHA Mortgage Insurance Premium (MIP) Upfront MIP in Box #3 on 2010 GFE Upfront MIP $6,750 $6,750 13

14 FHA Purchases The Borrower may not receive any cash back through a purchase, other than an amount representing: A reimbursement for the Borrower s overpayment of fees Costs paid by the Borrower in advance; earnest money deposit, appraisal or credit report fees; or A legitimate real estate tax credit in locales where real estate taxes are paid in arrears If the Borrower receives an allowable amount of cash back, the minimum Borrower contribution must be met and verified See Loan Amount Calculation Worksheet 14

15 FHA Purchase Loan Calculation Base Loan Amount A $ X 96.5% = Lesser of Sales Price or Appraised Value Max LTV Minimum Down Payment B $ - $ = $ Base Loan Amount Sales Price Max Base Loan Amount Min Down Payment Up Front MIP C $ X 1.75* = $ Base Loan Amount (*older case # vary, see charts) Up Front MIP Total Loan Amount D $ + $ = $ Base Loan Amount Up Front MIP Total Loan Amount 15

16 No Cash Out Refinance/Regular Refinance Current mortgage must be a NON-FHA fixed rate or ARM Single Family, Owner Occupied Primary Residence Maximum mortgage is the LOWER of 97.75% of appraisal or Existing Debt Calculation Existing Debt includes payoff of existing 1 st, PM 2 nd, jr. lien over 12 months, closing costs, prepaid expenses, borrower paid repairs, and discount points. If any portion of funds of equity line in excess of $1000 in last 12 months, for purposes other than repairs and rehab. of property the line of credit may not be included. Property owned less than 12 months, must use lesser of original purchase price + expenditures for repairs, or current appraised value Modified/Restructured loans are okay to be paid off, as long as the loan is not delinquent and no late payments in past 12 months, unless AUS decision is Approve/Eligible. Current lender must supply letter that they will not file deficiency Proceeds to buy out ex-spouse are okay Borrower may not receive more than $500 at closing Non-Occupant Co-Borrower may be added 2 nd Liens may subordinate, up to 97.75% (case numbers as of 9/7/2010) Terms of subordinate lien must not have a balloon or prepayment penalty Payments are calculated in qualifying 16

17 No Cash Out Refinance Worksheet LTV Factor Method A $ X 97.75% = Appraised Value Max Mortgage #1 Existing Debt Method B $ + $ = $ Payoff 1 st, PM 2 nd or seasoned Jr. Lien Closing Costs -nonrecurring, prepaids and discount points Up Front MIP C $ X 1.75* = $ Max Mortgage #2 Lower of Max #1 and Max #2 (*older case # vary, see charts) Up Front MIP Total Loan Amount D $ + $ = $ Lower of Max #1 and Max #2 Up Front MIP And EEM upgrades if any Total Loan Amount 17

18 Cash Out Refinance FHA will insure a cash out refinance, up to 85% of appraised value with the following requirements: Properties owned 12 months or more, use current appraised value Properties owned less than 12 months use lesser of purchase price or appraised value All Borrowers must hold title to property for at least six months Modified/Restructured loans are not eligible for a cash out refinance Borrowers whose loans are delinquent or in arrears are not eligible Non-Occupant Borrowers may not be added to qualify. Existing or new subordinate financing to a maximum CLTV of 85% Modified subordinate financing is acceptable to a maximum CLTV of 85% 1-4 units, 3-4 unit properties must pass self-sufficiency test Properties owned free and clear may be financed as cash-out transactions 18 Listing agreements on subject property must have been cancelled 6 mos. prior to loan application or subject to max 70% LTV/CLTV

19 Cash Out Refinance Worksheet Max LTV Calculation A $ X 85% = Appraised Value Up Front MIP C $ X 1.75* = $ Base Loan Amount Base Loan Amount (*older case # vary, see charts) Up Front MIP Total Loan Amount D $ + $ = $ Base Loan Amount Up Front MIP Total Loan Amount 19

20 FHA Prepayment Penalty-Some Confusion About Prepayment (excerpt from Important Notice to Homebuyers Disclosure): This notice is to advise you of the requirements that must be followed to accomplish a prepayment of your mortgage, and to prevent accrual of any interest after the date of prepayment. You may prepay any or all of the outstanding indebtedness due under your mortgage at any time, without penalty. However, to avoid the accrual of interest on any prepayment, the prepayment must be received on the installment due date (the first day of the month) if the mortgagee stated this policy in its response to a request for a payoff figure. Otherwise, you may be required to pay interest on the amount prepaid through the end of the month. The mortgagee can refuse to accept prepayment on any date other than the installment due date. For all FHA mortgages closed on or after January 21, 2015, mortgagees may only charge interest through the date the mortgage is paid in full. Best Practice when refinancing an existing FHA loan that was originated prior to January 21 st, 2015: Assume interest will be charged through the end of the month payoff is received until or unless your payoff demand states otherwise. 20

21 FHA Streamline Refinance Loan must be an FHA insured loan, not delinquent, 6 months old (212 days) or case number will not be assigned Fixed Rate Only, no new ARM loans Net Tangible Benefit - The refinance must result in an immediate payment reduction (Reducing the term of the mortgage is NOT a net tangible benefit, by itself) Lowering the borrower s monthly P&I payment, plus the annual MIP, by at least 5% OR Refinancing from an ARM to a Fixed The table below defines permissible minimum thresholds: From To Fixed Fixed Rate Reduction of at least 5% of P&I and MIP One-Year ARM New interest rate no greater than 2% above the current interest rate of the ARM Hybrid ARM, during fixed period Reduction of at least 5% of P&I and MIP Hybrid ARM, during adjustable period New interest rate no greater than 2% above the current interest rate of the Hybrid ARM 21

22 FHA Streamline Refinance LTV/CLTV Regardless of property state or value Type of Transaction Max LTV 1 Max CLTV 2 Credit Qualifying w/appraisal 97.75% 125% Credit Qualifying w/out Appraisal See Note 3 125% Non-Credit Qualifying w/appraisal 97.75% 125% Non-Credit Qualifying w/out Appraisal See Note 3 125% 1 - The loan must meet maximum insurable mortgage guides 2 - The max CLTV may vary depending on the type of subordinate financing 3 - No maximum LTV on a streamline refinance without an appraisal. The loan must meet maximum insurable mortgage guidelines. 22

23 FHA Streamline Refinance Maximum Insurable Mortgage Amount - Streamline Refinance WITH Appraisal Credit Qualifying Max insurable mortgage is the lower of The outstanding principal balance minus the applicable refund of UFMIP, plus closing costs, prepaid items to establish the escrow account and the new UFMIP. OR 97.75% of appraised value of the property, plus the new UFMIP Non-Credit Qualifying Max insurable mortgage cannot exceed: The outstanding principal balance minus the applicable refund of the UFMIP, PLUS the new UFMIP An appraisal may not be used to increase the insurable mortgage balance beyond the sum of the outstanding principal balance and the new UFMIP. The new loan balance may NOT include closing costs, prepaid items or other financing The outstanding principal balance may include interest charged by the servicing lender when the payoff is not received on the first day of the month, but may NOT include delinquent interest, late charges or escrow shortages. Discount points may not be included the new mortgage. 23

24 FHA Streamline Refinance LTV/CLTV Regardless of property state or value Type of Transaction Max LTV 1 Max CLTV 2 Credit Qualifying w/appraisal % 3 100% Credit Qualifying w/out Appraisal 5 115% 3 100% Non-Credit Qualifying w/appraisal 4 115% 3 100% Non-Credit Qualifying w/out Appraisal 5 115% 3 100% 1 - The loan must meet maximum insurable mortgage guides 2 - The max CLTV may vary depending on the type of subordinate financing 3 - Refer to the AVM notes coming up. 4 - Streamlines with appraisals, CLTV is based on the new appraised value 5 - Streamlines without appraisals (AVM only) CLTV is based on the ORIGINAL appraised value of the property 24

25 FHA Streamline Refinance Maximum Insurable Mortgage - Streamline Refinance WITHOUT Appraisal At the time of case number, the original value must be obtained from FHA Connection The maximum insurable mortgage cannot exceed: The outstanding principal bal. minus the applicable refund of the UFMIP, plus the new UFMIP The outstanding principal balance may include interest charged by the servicing lender when the payoff is not received on the first day of the month, but may not include delinquent interest, late charges or escrow shortages Condo project approval is not required Recently listed properties Listing must be cancelled at least 1 day prior to the date of the loan application A letter of intent to occupy from the borrower is required 25

26 FHA Streamline Refinance Maximum Insurable Mortgage Amount - Streamline Refinance WITH Appraisal Credit Qualifying Max insurable mortgage is the lower of The outstanding principal balance minus the applicable refund of UFMIP, plus closing costs, prepaid items to establish the escrow account and the new UFMIP. OR 97.75% of appraised value of the property, plus the new UFMIP Non-Credit Qualifying Max insurable mortgage cannot exceed: The outstanding principal balance minus the applicable refund of the UFMIP, PLUS the new UFMIP An appraisal may not be used to increase the insurable mortgage balance beyond the sum of the outstanding principal balance and the new UFMIP. The new loan balance may NOT include closing costs, prepaid items or other financing The outstanding principal balance may include interest charged by the servicing lender when the payoff is not received on the first day of the month, but may NOT include delinquent interest, late charges or escrow shortages. Discount points may not be included the new mortgage. 26

27 FHA Streamline Refinance Maximum Insurable Mortgage - Streamline Refinance WITHOUT Appraisal At the time of case number, the original value must be obtained from FHA Connection The maximum insurable mortgage cannot exceed: The outstanding principal bal. minus the applicable refund of the UFMIP, plus the new UFMIP The outstanding principal balance may include interest charged by the servicing lender when the payoff is not received on the first day of the month, but may not include delinquent interest, late charges or escrow shortages Condo project approval is not required Recently listed properties Listing must be cancelled at least 1 day prior to the date of the loan application A letter of intent to occupy from the borrower is required 27

28 FHA Streamline Refinance (continued) Order new case number on our website, will need old case number, select streamline refinance. Need LDP and GSA run for all parties to transaction, include in submission CAIVRS NOT required on streamlines Minimum Credit Score is 640 Credit Report Score Only, Mortgage Rating Only Report. Mortgage lates in past 12 months on subject or ANY other property is unacceptable. Please submit credentials for THIS type of report in order for PCM to import it properly. The incorrect credentials may result in a FULL report application to be complete in its entirety, No INCOME is to be listed Income/Employment documentation: Salaried all employment info on 1003, including phone number Self Employed Business license, CPA letter or other 3 rd party verification of business. (411.com or similar does not meet requirement) DO NOT submit tax returns Other income types, see PCM guidelines (retirement, SSI, etc.) PCM will perform Lender Certification for Employment/Income Do not run AUS Manual underwrite only 28

29 FHA Streamline Refinance (continued) Assets - 2 months bank statements, if assets needed to close Copy of Hazard Insurance is required at submission Unused MIP refinance authorization is calculated in FHA Connection No cash may be taken out $500 max at closing Subordinate financing may remain in place subject to re-subordination, MAX CLTV is 100% New individuals may be added to title without credit review Removing individuals from title - original loan must credit qualify, with employment, income and assets Partial Claims, modified loans, are NOT allowed in Streamline Program Tax Impounds: Use amount shown on Prelim or proof from county of new tax amount. Refer to FHA MIP / Case Number Chart for appropriate MIP 29

30 Streamline Document Checklist PCM Submission Form Case Number Assignment Printout LT Loan Transmittal FHA Refinance Worksheet Net Tangible Benefit Worksheet 1003 Initial and typed, all sections to be completed HUD A, pages 1 and 2 completed and signed by borrower LDP/GSA Worksheet and Printouts for all parties verified Credit Report, score only (min 640), plus mortgage rating no mortgage lates Copy of Social Security Card and/or SS Authorization Form signed by borrower Hazard Insurance, coverage at least at or above loan amount Copy of Original Note, reflecting old case number Copy of current Pay off Demand, good through end of month Secondary financing documentation, if applicable (Max CLTV 125%) Employment/Income documentation, if applicable Asset documentation if needed to close, 2 months bank statements, and source of all non-payroll deposits Preliminary Title Report Appraisal, if applicable Good Faith Estimate Borrower s Signed Credit Auth Important Notice to Homebuyer FHA Disclosure/Notice to Homeowner/Assumption Notice Informed Consumer Choice Disclosure ARM Disclosure if applicable 30

31 FHA Streamline Refinance Maximum Mortgage Calculation WITHOUT Appraisal $ Unpaid principal balance* of existing FHA loan - The LESSER of: $ Unearned UFMIP (from FHA Refinance Authorization or appropriate MIP Refund Schedule) OR $ New Estimated UFMIP = Maximum Base Loan Amount before UFMIP + New UFMIP = Total New Loan Amount including UFMIP *May include interest charged when payoff is not received on the first day of the month. Cannot include delinquent interest, late charges or escrow shortages or MIP. 31

32 FHA Streamline Refinance Maximum Mortgage Calculation WITH Appraisal Calculation A: $ Outstanding Principal Balance* - ( ) The LESSER of: $ Unearned UFMIP (from FHA Refinance Auth. or appropriate MIP Refund Schedule) OR $ New Estimated UFMIP + Closing costs** + Prepaids (includes per diem interest to end of month on new loan, hazard insurance and real estate tax deposits needed to establish escrow account) - Lender Credit for Closing Costs and Prepaid Items = Total A Calculation B: $ Total B = Appraised Value x 97.75% Calculation C: $ Total C = Max County Limit New Mortgage Amount: $ Maximum Base Mortgage (Lowest of Totals A, B and C) + New UFMIP (If financed) $ Total New Mortgage Amount *Outstanding Principal Balance May include Interest, but not delinquent interest, late charges or escrow shortages **Discount points may not be included in the loan amount, must be paid from borrowers funds. 32

33 Eligible Borrowers U.S. Citizen Permanent Resident Aliens Non-Permanent Resident Aliens All Borrowers must have a valid Social Security Number Title must be held in individual names only 33

34 Occupancy Owner Occupied Principal Residence FHA limits borrowers to one FHA loan at a time. The following are potential exceptions: Borrower relocating a reasonable distance away from prior home Family size increased/decreased Vacating jointly-owned property (Divorce) Non-occupant Co-Borrower 34

35 Transactions Affecting Maximum Mortgage Identity of Interest Family or business relationships - Limited to 85% LTV with the following exceptions: Family member purchases another family member s primary residence Note: If property is seller s investment property, max mortgage is lesser of either 85% of appraised value or the appropriate LTV ratio percentage applied to sales price, plus or minus required adjustments. The 85% limit may be waived if family member has been tenant in subject property for at least 6 months An employee of builder purchasing builder s new home as primary A tenant purchases rented property, evidencing at least 6 months as tenant immediately predating the sales contract A corporation transfers an employee, purchases that employee s home, then sells home to another employee 35

36 Transactions Affecting Maximum Mortgage Non-Occupant Co-Borrowers Permitted for purchases, no cash out refinances - all LTVs, and cash out refinances (must be on title, cannot add) up to 85% 2-4 units max LTV is 75% Must be immediate family member (others, case by case) or max LTV is 75% Housing and obligations are included in the DTI ratios. Credit, income and assets must be verified Must sign Note and Security Instrument and all other closing documents 36

37 Transactions Affecting Maximum Mortgage 3 and 4 unit properties The maximum mortgage is limited so that the ratio of the monthly mortgage payment divided by the monthly net rental income does not exceed 100% Monthly payment is principal, interest, taxes, insurance, mortgage insurance and any HOA dues. Net rental income is appraiser s estimate of fair market rent from ALL units, incl. borrower s own unit, less the appraiser s estimate for vacancies, or 15%*, whichever is greater (Santa Ana HOC) The above calculations are only to determine max loan amount, borrower must still qualify as usual, and projected rent may only be used as gross income and not to offset mortgage payment Borrower must have 3 months PITI reserves, cannot be a gift 37

38 Transactions Affecting Maximum Mortgage Properties under Construction or Existing less than one Year Limited to 90% LTV, with the following exceptions: Construction completed more than one year preceding borrower s signature on HUD92900-A The dwelling s site plans and materials were approved by VA, an eligible DE Underwriter, or an FHA certified builder prior to construction Local jurisdiction issued BOTH a building permit AND a Certificate of Occupancy or equivalent The dwelling is covered by a builder s ten-year warranty plan acceptable to HUD 38

39 Condo Project Approvals: At this time, Condo projects must be approved projects, and will either appear under the HRAP/DELRAP (HUD Review Approval Process) DELRAP (DE Lender Review Approval Process) DE (Direct Endorsement) lender reviews the Condo Documents Not available through PCM at present time Pre-HRAP/DELRAP Project Approvals These are any project approvals approved prior to the inception of the HRAP/DELRAP process (December 7 th 2009) HO-6 or Walls In insurance is required on all Condos $2 Million Liability per occurrence insurance required 39

40 Appraisals/Property Requirements Must be completed by an FHA approved appraiser CASE NUMBER Must be ordered PRIOR to appraisal being ordered Termite Reports/Clearances not mandatory, but may be required if on contract or with underwriter s discretion Well/Septic not mandatory Appraisals are valid up to 120 days. If appraisal expires, the case # must be canceled and a new case # assigned NOTE: Need at least 2 comps dated within 90 days of appraisal, and two current pending sales or active listings MC addendum required. 40

41 Appraisals/Property Requirements (continued) Appraisals may not be reused after the mortgage for which the appraisal was ordered has closed. An operating income stmt must be provided for all 2-4 unit properties The appraisal must state that the property is average or above condition Appraiser must follow HUD standards Mechanical Certifications must be made by appraiser, including ; electrical, plumbing and heating certifications Head and Shoulder inspections must be made on all attics FHA Case number must be on all pages of appraisal 41

42 Conversion of Primary Residence to Rental Effective with Case numbers ordered on or after September 19, 2008, ML , rental income on current primary residence being vacated, may not be considered, with the following exclusions (this applies solely to a principal residence being vacated in favor of another principal residence): Relocations Homebuyer is relocating with new employer or transferring with current employer Properly executed lease agreement of at least one year Evidence of security deposit and/or Evidence of first month s rent paid to homeowner Sufficient Equity in Vacated property 25% equity, determined by a current appraisal, less than 6 months old Rental income may NOT be derived from a family member 42

43 Qualifying Ratios Automated Approval (DO/LP) ratios per findings (see DTI restrictions under high balance loan amount section) Manual underwrite Maximum ratios are 31%/43% Higher ratios may be acceptable only if the borrower has at least 3 very strong compensating factors and at underwriter s discretion Housing ratio is computed as PITI plus MI, HOA fees, ground rent, special assessments and payments on secondary financing to income. 43

44 Employment and Income Verification of Borrower s employment history for previous 2 years required. Gaps of over 30 days must be explained. If borrower has a gap of employment for more than 6 months in past 2 yrs the loan must be manually downgraded (regardless of AUS findings) Salaried borrowers, VOE covering 2 year period and most recent paystub; or 2 years W2 s, plus paystub, plus verbal VOE Back to Work Force, with 6 months on current job, and prior 2 year work history (ex, someone who took time off to raise children) Part time, second job, seasonal, overtime and bonus income may be used for qualification if the income has been received for at least 2 years, and it s continuance is likely. Income is averaged for 2 years. 44 Commission income must have 2 year history, document with 2 years tax returns (subtract 2106 expense)

45 Employment and Income (continued) Self-employment income: Borrower with a 25 percent or greater ownership interest in a business is considered self-employed Signed and dated individual tax returns (1040 s), plus all applicable schedules, for the most recent two years. Signed copies of federal business income tax returns for the last two years, with all applicable schedules, if the business is a corporation, an "S" corporation, or a partnership. A business showing a significant decline in income over the period analyzed is not acceptable and will not qualify for FHA financing 45

46 Employment and Income (continued) Other Types of Income Alimony and Child Support AUS loans may follow automated underwriting and documentation requirements Retirement, disability, social security income must have evidence that 3 years continuance is likely. Document with awards letters or other documentation. Disability income, public assistance income, military allowances and social security income are not subject to federal income taxes, and may be grossed up by 25% Any Non Taxable Income may be grossed up by 25% 46

47 Employment and Income (continued) Rental Income received for properties owned is acceptable if the borrower can document rental income is stable. The following documentation may be considered: Current lease or rental agreement if property obtained since last tax period ONLY. 85% of rental income is used to qualify borrower Tax returns for previous 2 years Boarder income is acceptable only if the parties are related by blood, marriage or law, and income is on filed previous year s tax returns 47

48 Assets Borrower s own funds Checking and Savings Most recent 2 months bank statements OR Computer generated VOD, with 2 month average balance AND One month bank statement with prior and current balance ANY recent large increase (non payroll deposits) and new accounts must be explained and documented Loans secured by 401K Sale of personal asset, etc Gifts are acceptable from: Relatives, including gifts of equity, close friend with defined interest in borrower, borrower's employer or labor union, charitable organization, real estate agents who are relatives Government agency or public entity program that provides homeownership assistance to low and moderate-income families or first-time homebuyers. Grant funds from HUD approved entity 48

49 Gift Funds Gift Funds The following is required The dollar amount The donor s name, address, telephone number The Borrower must be named The donor s relationship to the Borrower The donor s signature A statement that no repayment is required Must contain language asserting that the funds given were not made to the donor from any person with an interest in the sale of the property. See PCM Gift Letter sample. 49

50 Document source of Gift Funds Evidence of the source and transfer of funds is also required If the funds are in the Borrower s account, a copy of the cancelled check or withdrawal slip showing that withdrawal is from the donor s account. A copy of the deposit slip or bank statement showing the deposit of the funds into the Borrower s account is also required. If the funds are to be provided at closing, documentation must be provided to verify that the funds were withdrawn from the donor s account. (i.e. cashiers check, or bank wire must have name and account number of donor, and bank statement or other documentation to show the donors account number, etc). 50

51 Seller/Interested Party Contribution A transaction with an interested party contribution has the following (additional) appraisal requirements. The appraisal must indicate the amount of the contribution The appraiser must comment on the impact the contribution has to the final value of the property The appraiser must demonstrate the effect this has on final value The comparable sales must be adjusted by the value of the contributions as recognized by the market, in the appraiser s opinion, not just dollar for dollar amount of the contribution Any comparables sold with financing and/or sales concessions must reflect the difference between what the comparables actually sold for with and without concessions Positive adjustments for sales or financing concessions are not acceptable 51

February 2015 Guidance for the mortgage professional

February 2015 Guidance for the mortgage professional FHA Streamline Refi Guidance for the mortgage professional FHA 50 bp Annual MIP reduction! January 2015 2 FHA 50 bp Annual (MIP) Reduction! January 2015 3 FHA Prepayment Penalty-Some Confusion About Prepayment

More information

FHA STREAMLINE REFINANCE PRODUCT PROFILE

FHA STREAMLINE REFINANCE PRODUCT PROFILE Terms 30 Year Terms 15 Year Terms Maximum LTV/CLTV LTV/CLTV Score LTV/CLTV Score Non-Credit Qualifying N/A N/A Credit Qualifying 97.75% 97.75% Applies to Case Numbers assigned on or after January 26, 2015

More information

NOTE: This matrix includes overlays, which may be more restrictive than FHA requirements. A thorough reading of this matrix is recommended.

NOTE: This matrix includes overlays, which may be more restrictive than FHA requirements. A thorough reading of this matrix is recommended. This matrix is intended as an aid to help determine whether a property/loan qualifies for certain financing. It is not intended as a replacement for FHA guidelines. Users are expected to know and comply

More information

FHA STREAMLINE REFINANCE GUIDELINES

FHA STREAMLINE REFINANCE GUIDELINES Table of Contents FHA STREAMLINE REFINANCE GUIDELINES Maximum Mortgage Amount Calculations... 1 Underwriting and Eligibility Criteria... 2 Documentation Requirements... 4 Appraisal Requirements... 5 Maximum

More information

FHA STREAMLINE REFINANCE GUIDELINES

FHA STREAMLINE REFINANCE GUIDELINES Table of Contents FHA STREAMLINE REFINANCE GUIDELINES Maximum Mortgage Amount Calculations... 1 Streamline With Appraisal... 1 Streamline Without Appraisal... 2 Underwriting and Eligibility Criteria...

More information

A Simplified Overview of FHA Loan Origination

A Simplified Overview of FHA Loan Origination Introduction to FHA Origination A Simplified Overview of FHA Loan Origination Topics of Discussion Introduction to FHA Fundamentals of Loan Origination FHA Loan Limits Borrower Eligibility Property Eligibility

More information

FHA STREAMLINE GUIDELINES

FHA STREAMLINE GUIDELINES Table of Contents LTV MATRIX... 4 PROGRAM OVERVIEW... 4 APPRAISALS & AVM... 4 AVM or 2055 Exterior... 4 Streamline with an Appraisal (1004 full FHA Appraisal)... 5 ASSETS... 5 Sourcing of Deposits... 5

More information

FHA Streamline (Full Credit and Non-Credit Qualifying)

FHA Streamline (Full Credit and Non-Credit Qualifying) . This matrix is intended as an aid to help determine whether a property/loan qualifies for certain financing. It is not intended as a replacement for FHA guidelines. Users are expected to know and comply

More information

MAGNOLIA BANK FHA STANDARD REFINANCE OPTIONS MATRIX

MAGNOLIA BANK FHA STANDARD REFINANCE OPTIONS MATRIX RATE REDUCTION REFINANCES EQUITY (CASH OUT) REFINANCES 5. CACULATING THE MORTGAGE AMOUNT WITH A NEW APPRAISAL If the junior lien is a home equity line of credit, the maximum CLTV is based on the full credit

More information

FHA HIGH BALANCE FIXED PROGRAM HIGHLIGHTS

FHA HIGH BALANCE FIXED PROGRAM HIGHLIGHTS Product Summary These guidelines represent underwriting requirements for FHA fixed rate and ARM mortgages with increased loan size limits with a minimum floor of greater than $417,000. These guidelines

More information

Guide to FHA Streamline Refinances. By J.J. Sawicki, CMP AVP Third Party Lending/Merrimack Mortgage

Guide to FHA Streamline Refinances. By J.J. Sawicki, CMP AVP Third Party Lending/Merrimack Mortgage Guide to FHA Streamline Refinances By J.J. Sawicki, CMP AVP Third Party Lending/Merrimack Mortgage What is a streamline refinance? The FHA streamline refinance has become an increasingly attractive option

More information

FHA LOAN PROGRAM Conforming and High Balance Loan Amounts

FHA LOAN PROGRAM Conforming and High Balance Loan Amounts FHA PRODUCT MATRIX Purchase Rate and Term Cash Out Units LTV/CLTV Fico* Units LTV/CLTV Fico Units LTV/CLTV Fico 1 4 96.5/105 620 1 4 97.75/97.75 620 1 4 85/85 620 FYIs: Complete HUD guidelines can be referenced

More information

FHA Guideline Changes Effective for Case Numbers Assigned On or After Sept 14, 2015

FHA Guideline Changes Effective for Case Numbers Assigned On or After Sept 14, 2015 Topic Current FHA Guideline New FHA Guideline Assets Gift Funds as Reserves Manual Underwriting: Not allowed as reserves Manual underwriting: Not allowed as reserves TOTAL Scorecard: Not allowed as reserves

More information

E MORTGAGE MANAGEMENT, LLC 504 FHA STREAMLINES

E MORTGAGE MANAGEMENT, LLC 504 FHA STREAMLINES E MORTGAGE MANAGEMENT, LLC 504 FHA STREAMLINES PRODUCT GUIDELINES 2/10/2015 504 FHA Streamlines Mortgage Eligibility Product Code Short Description Long Description Description FF15SL FHA 15 YR SL FF15SL

More information

FHA Office of Single Family Housing. Training: Origination Through Post-Closing/ Endorsement

FHA Office of Single Family Housing. Training: Origination Through Post-Closing/ Endorsement Training: Origination Through Post-Closing/ Endorsement 1 Module 8A Programs and Products: Refinance Single Family Housing Policy Handbook 4000.1 Title II Insured Housing Program Forward Mortgages Origination

More information

FHA Streamline Refinance Guidelines

FHA Streamline Refinance Guidelines The following guidelines apply to all DIRECTORS MORTGAGE s FHA Streamline Refinance loan program. All loans must adhere to the criteria of these guidelines or the individual loan programs. While DIRECTORS

More information

ditech BUSINESS LENDING FHA STANDARD REFINANCE PRODUCT FOR CASE NUMBERS ASSIGNED ON OR AFTER 9/14/15

ditech BUSINESS LENDING FHA STANDARD REFINANCE PRODUCT FOR CASE NUMBERS ASSIGNED ON OR AFTER 9/14/15 1. PRODUCT FHA Fixed Rate and ARM Mortgages for Rate and Term Refinance, Cash-Out Refinance and Simple Refinance Transactions DESCRIPTION Fixed Rate 5 to 30 year term in annual increments Fully amortizing

More information

Chapter 3. Maximum Mortgage Amounts on Refinance Transactions Table of Contents

Chapter 3. Maximum Mortgage Amounts on Refinance Transactions Table of Contents Chapter 3, Table of Contents Chapter 3. Maximum Mortgage Amounts on Refinance Transactions Table of Contents Section A. Refinance Transaction Overview Overview... 3-A-1 1. General Information on Refinance

More information

NON CREDIT QUALIFYING WITHOUT APPRAISAL, STANDARD & HIGH BALANCE, FIXED & ARM

NON CREDIT QUALIFYING WITHOUT APPRAISAL, STANDARD & HIGH BALANCE, FIXED & ARM NON CREDIT QUALIFYING WITHOUT APPRAISAL, STANDARD & HIGH BALANCE, FIXED & ARM Occupancy Maximum LTV/CLTV # of Units MAX Base Loan* High MIN Base* Min FICO Max Ratios Mortgage History** Primary 125% Non

More information

FHA 30, 15 Year Fixed Refinance Products 203b, 234c F30; F15; F30HPML Loan Amount and LTV Limitations

FHA 30, 15 Year Fixed Refinance Products 203b, 234c F30; F15; F30HPML Loan Amount and LTV Limitations Units Length of Ownership 1 1-4 Units FHA 30, 15 Year Fixed Refinance Products 203b, 234c F30; F15; F30HPML Loan Amount and LTV Limitations < 1 year prior to application and the loan is not an existing

More information

Section B. Maximum Mortgage Amounts on No Cash Out/Cash Out Refinance Transactions Overview

Section B. Maximum Mortgage Amounts on No Cash Out/Cash Out Refinance Transactions Overview Section B. Maximum Mortgage Amounts on No Cash Out/Cash Out Refinance Transactions Overview In This Section This section contains the topics listed in the table below. Topic Topic Name See Page 1 No Cash

More information

SONYMA FHA Plus Correspondent Term Sheet

SONYMA FHA Plus Correspondent Term Sheet Product Type 30 Year Fixed Rate Mortgages Sales Focus This program provides the flexibility offered by FHA s 203(b) or 234(c) mortgages along with SONYMA s Down Payment Assistance Loan (DPAL). HUD Mortgagee

More information

ditech BUSINESS LENDING FHA STREAMLINE REFINANCE PRODUCT FOR CASE NUMBERS ASSIGNED ON OR AFTER 9/14/15

ditech BUSINESS LENDING FHA STREAMLINE REFINANCE PRODUCT FOR CASE NUMBERS ASSIGNED ON OR AFTER 9/14/15 NON- 1. PRODUCT DESCRIPTION 2. ELIGIBLE PROGRAMS 3. CURRENT FIRST MORTGAGE ELIGIBILITY FHA Fixed Rate and ARM Mortgages for Streamline Refinance Transactions Fixed Rate 5 to 30 year term in annual increments

More information

Product Product Code Loan Term 30-Year FRM FHA FHA30 30-years 15-Year FRM FHA FHA15 15-Years. Property Type Lowest Maximum (Floor)

Product Product Code Loan Term 30-Year FRM FHA FHA30 30-years 15-Year FRM FHA FHA15 15-Years. Property Type Lowest Maximum (Floor) FHA Guidelines Product Description FHA Fixed Rate 15 and 30 Year Terms Fully Amortizing Product Codes Maximum s Product Product Code Loan Term 30-Year FRM FHA FHA30 30-years 15-Year FRM FHA FHA15 15-Years

More information

Magnolia Bank VA Refinance Options

Magnolia Bank VA Refinance Options Interest Rate Reduction Refinance Loans (IRRRLS) Eligibility Cash Out Refinance 1. ELIGIBLE PRODUCTS VA Fixed Rate Product VA Hybrid ARMs VA High Balance Products VA Fixed Rate Product VA Hybrid ARMs VA

More information

FHA Streamline Refi. LTV w/o Sec Fin. CLTV w/ Sec Fin. Varies by County (a) None (b) 125 (b,d) 31/43 (c)

FHA Streamline Refi. LTV w/o Sec Fin. CLTV w/ Sec Fin. Varies by County (a) None (b) 125 (b,d) 31/43 (c) SERIES 3 Primary Residence Units Minimum Credit Score Max Loan Amount Continental US 1-4 680 (f) Varies by County (a) 1-4 680 (f) Varies by County (a) Max Loan Amount Hawaii LTV w/o Sec Fin STREAMLINE

More information

FHA STREAMLINE REFINANCE

FHA STREAMLINE REFINANCE Table of Contents 1. Eligible Mortgage Product-Existing Loan... 2 2. Eligible Mortgage Product-New Loan... 2 3. Maximum Loan Amount... 2 4. Maximum LTV/CLTV... 2 5. MIP Requirements... 2-4 6. Assets...

More information

FHA Streamline Refi. Max Loan Amount Hawaii. LTV w/o Sec Fin STREAMLINE REFINANCE WITHOUT AN APPRAISAL

FHA Streamline Refi. Max Loan Amount Hawaii. LTV w/o Sec Fin STREAMLINE REFINANCE WITHOUT AN APPRAISAL Primary Residence Units Minimum Credit Score SERIES 3 Continental US Hawaii LTV w/o STREAMLINE REFINANCE WITHOUT AN APPRAISAL CLTV w/ Max Debtto-Income Ratio 1-4 700 (f) Varies by County (a) Varies by

More information

VA IRRL 2. CURRENT FIRST MORTGAGE ELIGIBILITY

VA IRRL 2. CURRENT FIRST MORTGAGE ELIGIBILITY 1. PRODUCT DESCRIPTION VA Fixed Rate and ARM Mortgages for Refinance Transactions Fixed Rate Mortgage 10 to 30 years in 5 year increments Fully amortizing Qualified Mortgage (QM) Safe Harbor loans are

More information

FHA Underwriting Guideline Changes Effective for Case Numbers Assigned On or After September 14, 2015

FHA Underwriting Guideline Changes Effective for Case Numbers Assigned On or After September 14, 2015 Assets Gift Funds Documenting Not clear about requiring donor s bank statement in all Requires donor s bank statement showing withdrawal of Transfer instances. funds. Earnest Money Document source of funds

More information

Section C. Maximum Mortgage Amounts on Streamline Refinances Overview

Section C. Maximum Mortgage Amounts on Streamline Refinances Overview Section C. Maximum Mortgage Amounts on Overview In This Section This section contains the topics listed in the table below. Topic Topic Name See Page 1 General Information on 3-C-2 2 Without an Appraisal

More information

Contents. VA Credit Overlays

Contents. VA Credit Overlays Contents... 1 Introduction... 3 Links... 3 Transaction Types... 3 Purchase Transactions... 3 Refinance Transaction Regular Refinance... 3 Refinance Transaction Interest Rate Reduction Refinance Loan/IRRRL...

More information

FHA. 6.1- A Overview. 6.1-B General. 6.1-B1 Eligible Loan Programs. 6.1-B2 Ineligible Loan Programs/Transactions. 6.1-B3 Allowable Fees

FHA. 6.1- A Overview. 6.1-B General. 6.1-B1 Eligible Loan Programs. 6.1-B2 Ineligible Loan Programs/Transactions. 6.1-B3 Allowable Fees FHA 6.1- A Overview Note: The underwriting information contained in this chapter is intended for use in conjunction with HUD Handbook 4155.1 and subsequent applicable mortgagee letters. 6.1-B General 6.1-B1

More information

BankSouth Mortgage FHA Fixed Rate/Adjustable Rate FHA Streamline Refinances. Underwriting Guidelines GFF3000/GFF2000/GFF1500 GAF3115/GAF5115

BankSouth Mortgage FHA Fixed Rate/Adjustable Rate FHA Streamline Refinances. Underwriting Guidelines GFF3000/GFF2000/GFF1500 GAF3115/GAF5115 BankSouth Mortgage FHA Fixed Rate/Adjustable Rate FHA Streamline Refinances Underwriting Guidelines GFF3000/GFF2000/GFF1500 GAF3115/GAF5115 BankSouth Mortgage guidelines have been created to provide guidance

More information

Non-occupant co-borrowers are allowed. Borrowers to qualify at combined income and assets for standard FHA guidelines.

Non-occupant co-borrowers are allowed. Borrowers to qualify at combined income and assets for standard FHA guidelines. PRODUCT CHEAT SHEET-CA FHA $729,750 max loan amount in Orange County. If doing a loan in another county you can check max loan amount on the following link: https://entp.hud.gov/idapp/html/hicostlook.cfm

More information

ditech BUSINESS LENDING FREDDIE MAC ELIGIBLE ARM PRODUCT CORRESPONDENT ONLY

ditech BUSINESS LENDING FREDDIE MAC ELIGIBLE ARM PRODUCT CORRESPONDENT ONLY 1. PRODUCT DESCRIPTION Conventional Conforming five year/one year adjustable rate mortgage Servicing retained 30-year term Fully amortizing Non-convertible ARM Plan ID 2725 Manufactured homes not eligible

More information

Page 1 of 9 Table of Contents

Page 1 of 9 Table of Contents Page 1 of 9 Table of Contents LTV MATRIX... 2 PROGRAM SUMMARY... 3 LOAN AMOUNTS... 3 Conforming... 3 High Balance... 3 LOAN PROGRAM CODES... 3 LOAN TERMS... 3 ADJUSTMENT RATE DETAILS... 4 ELIGIBLE PROPERTY

More information

What s s New With FHA?

What s s New With FHA? What s s New With FHA? Presented By: Bill Ladewig 866.204.9733 http://www.mortgage- FHA Calculator Calculates everything needed to quote or qualify FHA loans Click to Open: http://www.themtgmentor.com/fha_mortgage_calculator.html

More information

VA FIXED RATE PROGRAM HIGHLIGHTS

VA FIXED RATE PROGRAM HIGHLIGHTS Program Summary Loan Term & Program Category Entitlement These guidelines represent underwriting requirements for VA fixed rate mortgages. Also review the VA Lender s Handbook for any guidelines not specifically

More information

FNMA Jumbo Conforming Fixed (HIGH BALANCE LOANS) T300J09. 09-30 Year Fixed & T301J09-15 Year Fixed

FNMA Jumbo Conforming Fixed (HIGH BALANCE LOANS) T300J09. 09-30 Year Fixed & T301J09-15 Year Fixed These guidelines cover the new Temporary Increase in conforming loan limits for high-cost areas authorized by the American Recovery and Reinvestment Act (ARRA). Specifically, the ARRA permits loans originated

More information

Document source of funds if amount exceeds 1% of sales price OR appears excessive based on borrower's savings history.

Document source of funds if amount exceeds 1% of sales price OR appears excessive based on borrower's savings history. ASSETS Earnest Money Document source of funds if amount exceeds 2% of sales price OR appears excessive based on borrower's savings history. Document source of funds if amount exceeds 1% of sales price

More information

VA Refinance Cash Out

VA Refinance Cash Out VA Refinance Cash Out This matrix is intended as an aid to help determine whether a property/loan qualifies for certain financing. It is not intended as a replacement for VA guidelines. Users are expected

More information

Conventional DU Refi Plus

Conventional DU Refi Plus Endeavor America Loan Services Conventional DU Refi Plus Guidelines Conventional Guidelines... 3 Matrix... 3 Overview... 3 Program Expiration... 3 Loan Purpose... 4 Maximum LTV, CLTV, and HCLTV Ratios

More information

96.50% Refinance Cash-Out 620 75% 75% Purchase 620 96.50% 96.50% 45% Refinance, No Cash- 620 97.75% 97.75% 45%

96.50% Refinance Cash-Out 620 75% 75% Purchase 620 96.50% 96.50% 45% Refinance, No Cash- 620 97.75% 97.75% 45% GNMA Portfolio Program Summary Product Types Eligible Programs 30-year Fixed FHA loans 203(b) 1-4 family, 234(c) Condominiums, Standard Balance Loan Purpose Minimum FICO Maximum LTV Maximum CLTV Purchase

More information

Quick Reference Program Summary. The following is an outline of the underwriting and closing requirements of New Hampshire Housing.

Quick Reference Program Summary. The following is an outline of the underwriting and closing requirements of New Hampshire Housing. Quick Reference Program Summary The following is an outline of the underwriting and closing requirements of New Hampshire Housing. Specific Program Rules are attached to this reference. A reservation cannot

More information

Portfolio High Balance Fixed

Portfolio High Balance Fixed Minimum Credit Score: 620 Minimum Loan 1 unit: $417,001 2 unit: $533,851 AUS: DU Approve Eligible Maximum LTV: 90% Amount*: 3 unit: $645,301 4 unit: $801,951 Primary Residence 3 Purpose Units LTV CLTV

More information

WHOLESALE FHA 580 619 PRODUCT PROFILE

WHOLESALE FHA 580 619 PRODUCT PROFILE Maximum LTV/CLTV & Minimum Credit Score Requirements LTV CLTV MIN CREDIT 2 INVESTOR CODES PURCHASE 96.50% 96.50% 580 I-12, I-15 1 NO CASH-OUT REFINANCE 97.75% 97.75% 580 I-12, I-15 1 CASH-OUT REFINANCE

More information

Numbers. on Case. Case numbers can MIP): Premium. April 18, 20111 REFINANCES. LTV Ratio >95 95 1.15% 1.10% 1.0. LTV Ratio >90 90 .50%.

Numbers. on Case. Case numbers can MIP): Premium. April 18, 20111 REFINANCES. LTV Ratio >95 95 1.15% 1.10% 1.0. LTV Ratio >90 90 .50%. ANNOUNCEMEN NT... #11-07, March 11, 2011 To: All Michigan Mutual, Inc. Brokers Topics Included in this Announcement: HUD Mortgage Letter 2011-10: Annual Mortgage Insurance Premium Changes and Guidance

More information

E MORTGAGE MANAGEMENT, LLC 704 VA

E MORTGAGE MANAGEMENT, LLC 704 VA E MORTGAGE MANAGEMENT, LLC 704 VA IRRRLs PRODUCT GUIDELINES 1/26/2015 Mortgage Eligibility Product Code Short Long Description Description Description VF15IRL VA 15 YR IRRRL VF15IRL - VA 15 YR IRRRL VF30IRL

More information

VA Refinance IRRRL. VA Refinance IRRRL

VA Refinance IRRRL. VA Refinance IRRRL This matrix is intended as an aid to help determine whether a property/loan qualifies for certain financing. It is not intended as a replacement for VA guidelines. Users are expected to know and comply

More information

FHA Standard Refinance Cash Out

FHA Standard Refinance Cash Out This matrix is intended as an aid to help determine whether a property/loan qualifies for certain financing. It is not intended as a replacement for FHA guidelines. Users are expected to know and comply

More information

Conventional Jumbo seven year/one year adjustable rate mortgage 30 year term Fully amortizing

Conventional Jumbo seven year/one year adjustable rate mortgage 30 year term Fully amortizing 1. PRODUCT DESCRIPTION Conventional Jumbo fixed rate mortgage 15 and 30 year terms Fully amortizing Conventional Jumbo five year/one year adjustable rate mortgage 30 year term Fully amortizing Conventional

More information

April 2010. FHA FAQs/HOT TOPICS. www.hud.gov 1-800-CALL FHA. Servicing the American Homebuyer Since 1934

April 2010. FHA FAQs/HOT TOPICS. www.hud.gov 1-800-CALL FHA. Servicing the American Homebuyer Since 1934 April 2010 FHA FAQs/HOT TOPICS 1 Presenters CONNIE SCHOENWALD LAURA ARUNDEL LINDA THOMPSON PAVLINA KUSNIERZ 2 AGENDA Occupancy Income/employment Credit Miscellaneous Property FHA Connection Refinances

More information

NOTE: This matrix includes overlays, which may be more restrictive than VA requirements. A thorough reading of this matrix is recommended.

NOTE: This matrix includes overlays, which may be more restrictive than VA requirements. A thorough reading of this matrix is recommended. VA Refinance IRRRL This matrix is intended as an aid to help determine whether a property/loan qualifies for certain financing. It is not intended as a replacement for VA guidelines. Users are expected

More information

300 - FHA Lending Guide 12/31/2015 (Case Files prior to 9/14/15)

300 - FHA Lending Guide 12/31/2015 (Case Files prior to 9/14/15) 300 - FHA Lending Guide 12/31/2015 (Case Files prior to 9/14/15) Equal Housing Lender 2015 Ocwen Loan Servicing, LLC - 1661 Worthington Road, Suite 100 - West Palm Beach, FL 33409. (800-766- 4622)NMLS

More information

E MORTGAGE MANAGEMENT LLC 303 DU REFI PLUS

E MORTGAGE MANAGEMENT LLC 303 DU REFI PLUS E MORTGAGE MANAGEMENT LLC 303 DU REFI PLUS PRODUCT GUIDELINES 12/8/2014 MORTGAGE ELIGIBILITY Product Description and Product Codes Code Short Description Long Description CF30RP 30 YR REFI PLUS CF30RP

More information

RATE/TERM REFINANCE AND CASH-OUT - FIXED RATE

RATE/TERM REFINANCE AND CASH-OUT - FIXED RATE RATE/TERM REFINANCE AND CASH-OUT - FIXED RATE Occupancy Max Loan Amount Maximum LTV Maximum CLTV Min FICO Max Ratios Minimum Cash Investments Mortgage/Rental History Reserves Primary 1 Unit $417,000 80%

More information

ditech BUSINESS LENDING VA PURCHASE PRODUCTS DELEGATED CLIENTS ONLY

ditech BUSINESS LENDING VA PURCHASE PRODUCTS DELEGATED CLIENTS ONLY 1. PRODUCT DESCRIPTION VA Fixed Rate Mortgage 10 to 30 years in 5 year increments Fully amortizing Servicing retained All transactions are considered Qualified Mortgage (QM) Safe Harbor loans ditech BUSINESS

More information

EFFECTIVE SEP 14, 2015. FHA Rule Changes. www.greenpathfunding.com

EFFECTIVE SEP 14, 2015. FHA Rule Changes. www.greenpathfunding.com EFFECTIVE SEP 14, 2015 FHA Rule Changes www.greenpathfunding.com FHA Changes: Assets 2015 1 Any single deposit that exceeds 25% of the total monthly qualifying income on the loan. Additionally, any questionable

More information

GMAC BANK JUMBO FIXED RATE PRODUCT

GMAC BANK JUMBO FIXED RATE PRODUCT GMAC BANK PRODUCT 1. PRODUCT DESCRIPTION Conventional Jumbo Fixed Rate 10 to 30 years in five-year increments Fully amortizing 2. PRODUCT CODES 002 15 Yr Jumbo Fixed 004 30 Yr Jumbo Fixed 3. INDEX N/A

More information

Section 1: Loan Characteristics

Section 1: Loan Characteristics Home Flex Quick Reference: Program Summary The following is an outline of the underwriting and closing requirements of New Hampshire Housing Home Flex program, which is available to lenders who have signed

More information

CREDIT QUALIFYING NO CASH OUT WITH AN APPRAISAL REFINANCE MORTGAGE CREDIT ANALYSIS WORKSHEET #1

CREDIT QUALIFYING NO CASH OUT WITH AN APPRAISAL REFINANCE MORTGAGE CREDIT ANALYSIS WORKSHEET #1 APPENDIX 5 CREDIT QUALIFYING NO CASH OUT WITH AN APPRAISAL REFINANCE MORTGAGE CREDIT ANALYSIS WORKSHEET #1 Use the Mortgage Credit Analysis Worksheet, HUD-53036 Fully Credit Qualifying with Appraisal The

More information

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another. MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default

More information

FHA Fixed. FICO <580 Requirements: 1-4 580 (c) Varies by County (a) 97.75% 97.75% Per AUS (d) Sub 580 (560-579 FICO) FF30580SG FF15580SG

FHA Fixed. FICO <580 Requirements: 1-4 580 (c) Varies by County (a) 97.75% 97.75% Per AUS (d) Sub 580 (560-579 FICO) FF30580SG FF15580SG NOTES Primary Residence Units Minimum Credit Score SERIES G Max Loan Amount Continental US PURCHASE LTV CLTV Max Debt-to- Income Ratio 1-2 560 (e) Varies by County (a) 90% (e) 90% (e) 31/43% (e) 1-4 580

More information

Guidelines Correspondent. Loan Program: 30-Year Fixed Fannie Mae (630) 20-Year Fixed Fannie Mae (620) 15-Year Fixed Fannie Mae (615) LTV Limits:

Guidelines Correspondent. Loan Program: 30-Year Fixed Fannie Mae (630) 20-Year Fixed Fannie Mae (620) 15-Year Fixed Fannie Mae (615) LTV Limits: Loan Program: 30-Year Fixed Fannie Mae (630) 20-Year Fixed Fannie Mae (620) 15-Year Fixed Fannie Mae (615) LTV Limits: Occupancy Investment & Non-Owner Type 1 Unit Max LTV w/o Sec Fin. PURCHASE MORTGAGES

More information

CALHOME MORTGAGE ASSISTANCE PROGRAM GUIDELINES

CALHOME MORTGAGE ASSISTANCE PROGRAM GUIDELINES PLANNING AND DEVELOPMENT DEPARTMENT HOUSING AND COMMUNITY DEVELOPMENT DIVISION CALHOME MORTGAGE ASSISTANCE PROGRAM GUIDELINES PROGRAM OVERVIEW The CalHome Mortgage Assistance Program is a program funded

More information

FHA Streamline Refi. Max Loan Amount Hawaii. LTV w/o Sec Fin STREAMLINE REFINANCE WITHOUT AN APPRAISAL

FHA Streamline Refi. Max Loan Amount Hawaii. LTV w/o Sec Fin STREAMLINE REFINANCE WITHOUT AN APPRAISAL Primary Residence Units Minimum Credit Score SERIES 3 Max Loan Amount Continental US Max Loan Amount Hawaii LTV w/o Sec Fin STREAMLINE REFINANCE WITHOUT AN APPRAISAL CLTV w/ Sec Fin Max Debtto-Income Ratio

More information

Revolving Debt & Other Agency Guideline Revisions Note: SunTrust specific overlays are underlined.

Revolving Debt & Other Agency Guideline Revisions Note: SunTrust specific overlays are underlined. Assets Section 2.04 DU Refi Plus Loan Program DU Refi Plus STM to STM Transactions Asset Documentation Requirements Assets must be documented in accordance with DU Refi Plus eligible DU Findings report.

More information

Comparison of SONYMA Mortgages vs. FHA

Comparison of SONYMA Mortgages vs. FHA Levels of loan approval FHA self insures Lenders Direct Endorsement Underwriters approve loans 3* Levels of loan approval Lender PMI/Pool Insurer *Pre Closing SONYMA compliance review will be eliminated

More information

Department of Housing & Urban Development Federal Housing Administration

Department of Housing & Urban Development Federal Housing Administration FHA Lending Department of Housing & Urban Development Federal Housing Administration Established in the 1930 s One of the most successful federal programs FHA is really an insurance agency within HUD Loans

More information

Affordable Homeownership

Affordable Homeownership Housing and Human Services Division Affordable Homeownership Program Guidelines The City s Affordable Homeownership Program (also referred to as the Inclusionary Housing Program) provides homeownership

More information

SECTION 184 INDIAN HOUSING LOAN GUARANTEE PROGRAM Processing Guidelines 2014

SECTION 184 INDIAN HOUSING LOAN GUARANTEE PROGRAM Processing Guidelines 2014 SECTION 184 INDIAN HOUSING LOAN GUARANTEE PROGRAM Processing Guidelines 2014 Chapter 11: Refinances 11.1 Overview 11.2 Tribal Trust Land Documentation 11.3 No Cash-Out Refinance 11.4 Cash-Out Refinance

More information

VA Product Guidelines

VA Product Guidelines July 16, 2015 VA Product Guidelines Purchase Occupancy Units LTV CLTV Minimum Credit Score Primary 1-4 100 100 620 Rate/Term Refinance Occupancy Units LTV CLTV Minimum Credit Score Primary 1-4 90 90 620

More information

FHA FIXED RATE PRODUCT

FHA FIXED RATE PRODUCT High Balance High Balance High Balance High Balance High Balance High Balance Max Amount (See High Bal Note) Max Amt (See Hi Bal Note) Max Amt (See Hi Bal Note) 96.50% 100.00% 97.75% 100.00% 1 97.75% 100.00%

More information

FHA Changes 4000.1 Effective With Case Numbers assigned on or after 9/14/15. Skyline / New Leaf

FHA Changes 4000.1 Effective With Case Numbers assigned on or after 9/14/15. Skyline / New Leaf FHA Changes 4000.1 Effective With Case Numbers assigned on or after 9/14/15 Skyline / New Leaf Manual downgrade regardless of a Total Scorecard Approval When the date of the Borrower s bankruptcy discharge

More information

PURCHASE AND RATE TERM REFINANCE 1. Occupancy Units FICO LTV/CLTV Loan Amount

PURCHASE AND RATE TERM REFINANCE 1. Occupancy Units FICO LTV/CLTV Loan Amount EXPRESS JUMBO FIXED RATE AND ARM PROGRAM MATRIX: PURCHASE AND RATE TERM REFINANCE 1 Occupancy Units FICO LTV/CLTV Loan Amount 80/80 $1,500,000 Primary Residence 1 720 75/75 $1,750,000 70/70 $2,000,000

More information

PORTFOLIO ARM CLOSED END 2 ND TD. Table of Contents

PORTFOLIO ARM CLOSED END 2 ND TD. Table of Contents Table of Contents 1. Program Codes...2 2. Product Overview...2 3. Product Summary...2 4. Documentation...2 5. Underwriting...2 6. Qualifying Rate...2 7. Borrower Eligibility...2 8. Appraisal...3 9. Appraised

More information

Chapter 11: Refinances

Chapter 11: Refinances Chapter 11: Refinances 11.1 Overview 11.2 Trust Land Documentation 11.3 Type of Refinances 11.1 Overview The Section 184 loan can be used to refinance a single family one- to- four unit dwellings located

More information

VA Product Guidelines

VA Product Guidelines August 10, 2015 VA Product Guidelines Purchase Occupancy Units LTV CLTV Primary 1-4 100 100 620 Rate/Term Refinance Occupancy Units LTV CLTV Primary 1-4 100 100 620 IRRRL Occupancy Units LTV CLTV Primary

More information

Section B. Transactions Affecting Maximum Mortgage Calculations Overview

Section B. Transactions Affecting Maximum Mortgage Calculations Overview Section B. Transactions Affecting Maximum Mortgage Calculations Overview In This Section This section contains the topics listed in the table below. Topic Topic Name See Page 1 Transactions Affecting Maximum

More information

VA Quick Reference Guides

VA Quick Reference Guides Finance Type Occupancy Product Codes Purchase, Cash-Out and Rate & Term Refinance, Interest Rate Reduction Refinance Loan (IRRRL) Owner Occupied only, Second Homes not allowed, Investment properties not

More information

Section A. Borrower Eligibility Requirements

Section A. Borrower Eligibility Requirements Overview Section A. Borrower Eligibility Requirements In This Section This section contains the topics listed in the table below. Local Topic Topic Name See Page 1 Borrower, Coborrower, and Cosigner Eligibility

More information

FREDDIE MAC RELIEF REFI OPEN ACCESS INVESTOR 12, RETAIL ONLY

FREDDIE MAC RELIEF REFI OPEN ACCESS INVESTOR 12, RETAIL ONLY FREDDIE MAC RELIEF REFI OPEN ACCESS INVESTOR 12, RETAIL ONLY To determine if the mortgage is currently owned or securitized by Freddie Mac, the following website may be used: https://ww3.freddiemac.com/corporate/

More information

DU User s Guide for FHA Loans

DU User s Guide for FHA Loans DU User s Guide for FHA Loans 2003, 2005 Fannie Mae. All rights reserved. Desktop Originator, DO, Desktop Underwriter, and DU are registered trademarks of Fannie Mae. FICO is a registered trademark of

More information

Next Home Government Program Term Sheet Effective December 1, 2015

Next Home Government Program Term Sheet Effective December 1, 2015 Next Home Government Program Term Sheet Effective December 1, 2015 This Program Term Sheet ( Program Term Sheet as referenced in the Master Origination and Sale Agreement, HFA Guidelines as expressed in

More information

FHA FIXED & ADJUSTABLE RATE Series 500, 700, & 800

FHA FIXED & ADJUSTABLE RATE Series 500, 700, & 800 FIXED & ADJUSTABLE RATE Series 500, 700, & 800 Product Description Conforming Fixed Rate & ARM 15 = 15 year fixed 30 = 30 year fixed Program Numbers 5/1 = 5/1 ARM STREAM15 = 15 year fixed Refi STREAM30

More information

1030HARP DU REFI PLUS (6/8/12)

1030HARP DU REFI PLUS (6/8/12) 1030HARP DU REFI PLUS (6/8/12) DESCRIPTION REQUIRED BORROWER BENEFIT DU Refi Plus is a limited cash-out refinance program that allows for expanded eligibility criteria, as well as reduced documentation

More information

DU Refi Plus. Eligibility Matrix Loan Amount & LTV Limitations

DU Refi Plus. Eligibility Matrix Loan Amount & LTV Limitations This matrix is intended as an aid to assist in determining if a property/loan qualifies for the DU Refi Plus program. It is not intended as a replacement for the full DU Refi Plus guidelines. Users are

More information

CITY OF SOLEDAD FIRST-TIME HOMEBUYER ASSISTANCE PROGRAM FIRST MORTGAGE LENDER INSTRUCTIONS 248 MAIN STREET, SOLEDAD CA 93960

CITY OF SOLEDAD FIRST-TIME HOMEBUYER ASSISTANCE PROGRAM FIRST MORTGAGE LENDER INSTRUCTIONS 248 MAIN STREET, SOLEDAD CA 93960 FIRST MORTGAGE LENDER INSTRUCTIONS Maximum Home Sales Price Home sale prices cannot exceed 95% of the area median home value for Soledad (see Table 1: Maximum Purchase Price per Unit). Maximum Loan-to-Value

More information

FHA Matrix (Wholesale) September 14, 2015

FHA Matrix (Wholesale) September 14, 2015 FHA Matrix (Wholesale) FHA CONFORMING FHA CONFORMING STREAMLINE Fixed Rate: 30yr=1000, 15yr=1001 30yr Fixed=1200, 15yr Fixed= 1201 Fixed Period ARM's: 5/1=1005 5/1 ARM= 1203 Eligible States: Purchase No

More information

11 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000. FHA Refinance Transactions

11 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000. FHA Refinance Transactions 11 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000 ASSISTANT SECRETARY FOR HOUSING- FEDERAL HOUSING COMMISSIONER Date: February 14, 2011 To: All Approved Mortgagees All FHA Roster

More information

VA Product Profile 05.01.2014

VA Product Profile 05.01.2014 Maximum LTV / CLTV and FICO Requirements Purchase VA IRRRL / Rate & Term Cash-out Refinance Maximum LTV 1 / CLTV 1 Min FICO 2 Maximum LTV 1 / CLTV 1 Min FICO 2 Maximum LTV 1 / CLTV 1 Min FICO 2 100% 640

More information

FHA-Home Affordable Modification Program

FHA-Home Affordable Modification Program These guidelines supplement requirements outlined in e Letter 2009-23 Guidance e Mortgagors FHA-Home Affordable Modification Program The Servicer of the modified FHA-HAMP mortgage must be FHA-Approved.

More information

FHA Financing - All You Need to Know 2 Hour Continuing Education Course

FHA Financing - All You Need to Know 2 Hour Continuing Education Course FHA Financing - All You Need to Know 2 Hour Continuing Education Course Presentation by: Ashley Brint Patrick Axford Date: August 22, 2012 2012 Regions Bank. Member FDIC. Regions is a registered service

More information

Investor s Guide to HUD and FHA Mortgage Financing. By William Bronchick

Investor s Guide to HUD and FHA Mortgage Financing. By William Bronchick Investor s Guide to HUD and FHA Mortgage Financing By William Bronchick The U.S. Department of Housing and Urban Development (HUD) was founded in 1965, with a mission is to increase homeownership, support

More information

WESLEND FHA FIXED & ARM

WESLEND FHA FIXED & ARM SECTION 1 PROGRAM CODES: ELIGIBLE LOAN TYPES/SECTION OF THE ACT INELIGIBLE LOAN FEATURES SECTION 2 QUALIFICATION MATRIX CODING PROGRAM CODES: 30 Year Fixed 8000-00 15 Year Fixed 8300-00 5/1 ARM 8700-02

More information

FHA Underwriting Changes

FHA Underwriting Changes FHA Underwriting Changes Effective for case numbers issued on and after September 14, 2015 Same Day Turn Times, Everyday Housekeeping All attendees are in listen only mode This seminar is being recorded

More information

Definitions. In some cases a survey rather than an ILC is required.

Definitions. In some cases a survey rather than an ILC is required. Definitions 1. What is the closing? The closing is a formal meeting at which both the buyer and seller meet to sign all the final documentation required for the buyer's mortgage loan. Once the closing

More information

Fifth Third Home Buying Guide. A Guide to Residential Home Buying.

Fifth Third Home Buying Guide. A Guide to Residential Home Buying. Fifth Third Home Buying Guide A Guide to Residential Home Buying. Important Contacts and Numbers. Use this page to record important information as you move through the homebuying process. Realtor/Builder

More information

Choice Jumbo Mortgage

Choice Jumbo Mortgage Finance Type Purchase/Rate and Term Refinance Property Type Primary Residence Second Home Investment Max Loan Max LTV Min FICO Max LTV Min FICO Max LTV Min FICO $1,000,000 80% 70% 80% N/A N/A SFR/PUD/

More information