FHA Underwriting Quick Reference Guide

Transcription

1 CREDIT PROFILE AMOUNT/LTV/CLTV RATIOS Purchase 1 t 2-Units t 4-Units 620 Nn-Traditinal Credit Permitted fr brrwers withut credit scres - Lans receive a refer respnse thrugh Ttal Screcard Lack f credit scre must be due t little r n usable credit - Nn-traditinal credit may nt be used t vercme r imprve pr credit Brrwers must have 12 mnth histry f renting Brrwers wh live rent free are ineligible In additin t 12 mnth rental histry, brrwers must prvide tw additinal nntraditinal credit references with 12 mnth histries Brrwers may nt have had a prir bankruptcy r freclsure Brrwers must meet all f FHA s Manual underwriting requirements in Handbk Fr brrwers wh have credit scres, Flagstar requires a minimum f three credit references per credit-qualifying lan, regardless f TOTAL Screcard respnse. All three trade lines must have 12 mnth histries and may be a cmbinatin f traditinal and nn-traditinal references. Unless FHA requires it, a rental histry is nt required. 3-4 unit prperties are ineligible prperties fr brrwers withut three traditinal trade lines with 12 mnth histries. Freclsure Brrwer must be at least 3 years past freclsure at the time f case number Less than three years seasning may be acceptable if extenuating circumstances and reestablished gd credit are dcumented. Brrwer must be at least 2 years past discharge at the time f case number Less than tw years but greater than ne year s seasning may be acceptable if extenuating circumstances and the brrwer s ability t manage financial affairs in a respnsible manner are dcumented. Evidence brrwer is at least 12 mnths int payment plan at the time f case number Evidence f payment amunt and that all payments have been made n time Evidence f curt permissin t enter int mrtgage Shrt Sale Brrwer must be at least 3 years past the shrt sale date at the time f case number If the brrwer was current at the time f shrt sale a brrwer is eligible if frm the date f case, all mrtgage payments n the prir mrtgage and all installment debts were made within the mnth due fr the 12 mnths prir t the shrt sale r the shrt sale was the result f dcumented extenuating circumstances and the brrwer has re-established gd credit since the shrt sale Maximum Lan Amunt/LTV The maximum base lan amunt befre additin f the financed up-frnt mrtgage insurance premium is the lesser f the fllwing tw calculatins 96.5% f the adjusted value r FHA s natinwide mrtgage limit fr the cunty in which the prperty is lcated Maximum CLTV Gvernment Entities & HOPE Grantees N maximum CLTV NOTE: Brrwer may nt receive cash at clse May be used t meet brrwer s entire minimum required cash investment FHA-Apprved Nn-Prfit Organizatins N maximum CLTV NOTE: Brrwer may nt receive cash at clse May nt be used fr brrwer s 3.5% minimum required investment Other Organizatins and Private Individuals CLTV may nt exceed the applicable FHA LTV Limit (usually 96.5%, but may be reduced if there s an identity f interest r nn-ccupant cbrrwers) Cmbinatin f first and secnd may nt exceed natinwide mrtgage limit fr cunty in which the prperty is lcated May nt be used fr brrwer s 3.5% minimum required investment May nt be held by any party having an interest in the transactin (Seller, Lender, etc.) Family Members 100% f adjusted value May be used fr brrwer s 3.5% minimum required investment Ttal Screcard Apprve/Accept dwngrade r n credit scre: Verified and dcumented significant additinal incme is nt cnsidered effective incme (i.e., part-time incme r tw years). Ratis, excluding the additinal incme may nt exceed 37/47. Brrwer s credit scre is 580* r higher and the brrwer has established credit lines in his/her wn name fr at least six mnths with dcumented evidence all revlving debt is paid in ttal husing payment must be the nly pen installment accunt) 40/50 NOTE: Flagstar s credit scre verlays apply Refer t Credit Prfile clumn Nt Permitted rdered via Lantrac unless Crrespndent is DE Delegated r an apprved by Flagstar fr FHA Appraiser fllwing 3 t 4-Unit Prperties Emplyee lans fr sales r lan prductin staff f an riginating branch r cmpany (N/A fr DE A secnd appraisal is required when the prperty is being sld fr 100% r mre abve the seller s purchase price and the seller acquired the prperty within the mst recent days Refer t Handbk fr seller exemptins IX. Gvernment Guidelines 1 f 6 Dcument #9016

2 CREDIT PROFILE MAXIMUM AMOUNT/LTV/CLTV RATIOS/NET TANGIBLE BENEFIT Rate/Term 1 t 2-Units t 4-Units 620 Nn-Traditinal Credit Permitted fr brrwers withut credit scres - Lans receive a refer respnse thrugh Ttal Screcard Lack f credit scre must be due t little r n usable credit - Nn-traditinal credit may nt be used t vercme r imprve pr credit Brrwers must have 12 mnth histry f renting Brrwers wh live rent free are ineligible In additin t 12 mnth rental histry, brrwers must prvide tw additinal nn-traditinal credit references with 12 mnth histries Brrwers may nt have had a prir bankruptcy r freclsure Brrwers must meet all f FHA s Manual underwriting requirements in Handbk Fr brrwers wh have credit scres, Flagstar requires a minimum f three credit references per credit-qualifying lan, regardless f TOTAL Screcard respnse. All three trade lines must have 12 mnth histries and may be a cmbinatin f traditinal and nn-traditinal references. Unless FHA requires it, a rental histry is nt required. 3-4 unit prperties are ineligible prperties fr brrwers withut three traditinal trade lines with 12 mnth histries. Freclsure Brrwer must be at least 3 years past freclsure at the time f case number Less than three years seasning may be acceptable if extenuating circumstances and reestablished gd credit are dcumented. Brrwer must be at least 2 years past discharge at the time f case number Less than tw years but greater than ne year s seasning may be acceptable if extenuating circumstances and the brrwer s ability t manage financial affairs in a respnsible manner are dcumented. Evidence brrwer is at least 12 mnths int payment plan at the time f case number Evidence f payment amunt and that all payments have been made n time Evidence f curt permissin t enter int mrtgage Shrt Sale See Purchase table abve Shrt Refi The maximum mrtgage must be insufficient t extinguish the existing mrtgage debt The existing nte hlder must write ff the amunt f indebtedness that cannt be refinanced int the new FHA refinance Maximum Lan Amunt/LTV The maximum base lan amunt befre additin f the financed upfrnt mrtgage insurance premium is the lesser f the fllwing three calculatins 97.75%* f the adjusted value** r Unpaid principal balance f the first mrtgage as f the mnth prir t disbursement + Interest due n the existing mrtgage(s), including deferred interest + MIP due n the existing mrtgage + Prepayment penalties assessed + Late charges + Escrw shrtages + Brrwer-paid clsing csts + Junir liens ver 12 mnths ld (n seasning required fr purchase mney secnds Equity lines having ttal draws that exceed $1000 in the mst recent 12 mnths are nt eligible fr inclusin unless draws were fr dcumented repair/renvatin f subject prperty) + Ex-spuse r c-brrwer equity + Brrwer-paid repairs required by the appraiser + Brrwer-paid Pre-paids + Brrwer-paid discunt pints - MIP refund, when applicable r FHA s natinwide mrtgage limit fr the cunty in which the prperty is lcated Maximum CLTV 97.75% *If the subject prperty is the brrwer s previus investment prperty and the brrwer re-ccupied the prperty < 12 mnths prir t applicatin, the maximum LTV is 85% **Fr prperties acquired by the brrwer within 12 mnths f the case number date, the adjusted value is the lesser f the purchase price plus dcumented imprvements made after purchase r the prperty value. Fr prperties acquired by the brrwer 12 mnths r mre prir t case number date r prperties inherited by the brrwer any time prir t case number date (but nt used as an investment prperty) r gifted frm family any time prir t case number, the adjusted value is the appraised value. Ttal Screcard Apprve/Accept dwngrade r n credit scre: Verified and dcumented significant additinal incme is nt cnsidered effective incme (i.e., part-time incme r tw years). Ratis, excluding the additinal incme may nt exceed 37/47. Brrwer s credit scre is 580* r higher and the brrwer has established credit lines in his/her wn name fr at least six mnths with dcumented evidence all revlving debt is paid in ttal husing payment must be the nly pen installment accunt) 40/50 NOTE: Flagstar s credit scre verlays apply Refer t Credit Prfile clumn Net Tangible Benefit* The number f mnths t recapture the brrwer s clsing csts must be 48 mnths *T view exceptins and calculate mnths t recapture clsing csts, use Flagstar dcument #9348 FHA Net Tangible Benefit Wrksheet Existing lan must be a Flagstar-serviced lan. If rate and term refi pays ff any lender ther than Flagstar, manufactured hme is nt an eligible prperty type. The fllwing requirements apply Duble-Wide nly Single-Wide nt permitted Engineer s Certificate required unless lan pays ff an existing FHA lan Nt permitted in the fllwing states: Clrad Illinis Kentucky Luisiana Missuri New Yrk Pennsylvania Texas U.S. Virgin Islands rdered via Lantrac unless Crrespndent is DE Delegated r an apprved by Flagstar fr FHA Appraiser fllwing: 3 t 4-Unit Prperties Emplyee lans fr sales r lan prductin staff f an riginating branch r cmpany (N/A fr DE Manufactured hmes (N/A fr DE IX. Gvernment Guidelines 2 f 6 Dcument #9016

3 CREDIT PROFILE MAXIMUM AMOUNT/LTV/CLTV RATIOS/NET TANGIBLE BENEFIT CREDIT PROFILE MAXIMUM AMOUNT/LTV/CLTV RATIOS IX. Gvernment Guidelines 3 f 6 Dcument #9016

4 CREDIT PROFILE MAXIMUM AMOUNT/LTV/CLTV RATIOS/NET TANGIBLE BENEFIT Cash-Out SFR/Cnd/PUD Unit t 4-Units 660 Mrtgage Histry The prperty must have been wned and ccupied by the brrwer as their primary residence fr at least 12 mnths prir t the date f case number and All payments fr all mrtgages must have been made within the mnth due fr the 12 mnths prir t case number r since the brrwer btained the mrtgages, whichever is less and The payments fr all mrtgages secured by the subject prperty must have been paid within the mnth due fr the mnth prir t funding and Prperties with mrtgages must have a minimum f six mnths f mrtgage payments. Prperties wned free and clear and inherited prperties may be financed as cash-ut refis Nn-Traditinal Credit Permitted fr brrwers withut credit scres - Lans receive a refer respnse thrugh Ttal Screcard Lack f credit scre must be due t little r n usable credit - Nn-traditinal credit may nt be used t vercme r imprve pr credit Brrwers must have 12 mnth histry f renting Brrwers wh live rent free are ineligible In additin t 12 mnth rental histry, brrwers must prvide tw additinal nn-traditinal credit references with 12 mnth histries Brrwers may nt have had a prir bankruptcy r freclsure Fr brrwers wh have credit scres, Flagstar requires a minimum f three credit references per credit-qualifying lan, regardless f TOTAL Screcard respnse. All three trade lines must have 12 mnth histries and may be a cmbinatin f traditinal and nn-traditinal references. Unless FHA requires it, a rental histry is nt required. 3-4 unit prperties are ineligible prperties fr brrwers withut three traditinal trade lines with 12 mnth histries. Freclsure Brrwer must be at least 3 years past freclsure at the time f case number Less than three years seasning may be acceptable if extenuating circumstances and reestablished gd credit are dcumented. Brrwer must be at least 2 years past discharge at the time f case number Less than tw years but greater than ne year s seasning may be acceptable if extenuating circumstances and the brrwer s ability t manage financial affairs in a respnsible manner are dcumented. Evidence brrwer is at least 12 mnths int payment plan at the time f case number Evidence f payment amunt and that all payments have been made n time Evidence f curt permissin t enter int mrtgage Shrt Sale - See Purchase table abve Shrt Refi - Nt Permitted fr subject transactin Maximum Lan Amunt/LTV* The maximum base lan amunt befre additin f the financed up-frnt mrtgage insurance premium is the lesser f the fllwing tw calculatins 85% f the adjusted value r FHA s natinwide mrtgage limit fr the cunty in which the prperty is lcated Additinal Requirements Incme frm nn-ccupant c-brrwers may nt be used t qualify Maximum cash-in-hand: 1-2 Units - $300, Units - $200,000 Maximum CLTV 85% r the natinwide mrtgage limit fr the cunty in which the prperty is lcated, whichever is lwer *If the subject prperty is the brrwer s previus investment prperty and the brrwer re-ccupied the prperty < 12 mnths prir t applicatin, the lan must be underwritten and clsed as a rate and term refinance with a maximum LTV f 85% Ttal Screcard Apprve/Accept dwngrade r n credit scre: Verified and dcumented significant additinal incme is nt cnsidered effective incme (i.e., part-time incme r tw years). Ratis, excluding the additinal incme may nt exceed 37/47. Brrwer s credit scre is 580* r higher and the brrwer has established credit lines in his/her wn name fr at least six mnths with dcumented evidence all revlving debt is paid in ttal husing payment must be the nly pen installment accunt) 40/50 NOTE: Flagstar s credit scre verlays apply Refer t Credit Prfile clumn Nt Permitted rdered via Lantrac unless Crrespndent is DE Delegated r an apprved by Flagstar fr FHA Appraiser fllwing: 3 t 4-Unit Prperties Emplyee lans fr sales r lan prductin staff f an riginating branch r cmpany (N/A fr DE IX. Gvernment Guidelines 4 f 6 Dcument #9016

5 CREDIT PROFILE MAXIMUM AMOUNT/LTV/CLTV RATIOS/NET TANGIBLE BENEFIT/VOE Simple (FHA t FHA Rate and Term Refi Only) NOTE: Full credit qualificati n and appraisal required 1 t 2-Units t 4-Units 620 Nn-Traditinal Credit Permitted fr brrwers withut credit scres - Lans receive a refer respnse thrugh Ttal Screcard Lack f credit scre must be due t little r n usable credit - Nn-traditinal credit may nt be used t vercme r imprve pr credit Brrwers must have 12 mnth histry f renting Brrwers wh live rent free are ineligible In additin t 12 mnth rental histry, brrwers must prvide tw additinal nn-traditinal credit references with 12 mnth histries Brrwers may nt have had a prir bankruptcy r freclsure Brrwers must meet all f FHA s Manual underwriting requirements in Handbk Fr brrwers wh have credit scres, Flagstar requires a minimum f three credit references per credit-qualifying lan, regardless f TOTAL Screcard respnse. All three trade lines must have 12 mnth histries and may be a cmbinatin f traditinal and nn-traditinal references. Unless FHA requires it, a rental histry is nt required. 3-4 unit prperties are ineligible prperties fr brrwers withut three traditinal trade lines with 12 mnth histries. Freclsure Brrwer must be at least 3 years past freclsure at the time f case number Less than three years seasning may be acceptable if extenuating circumstances and reestablished gd credit are dcumented. Brrwer must be at least 2 years past discharge at the time f case number Less than tw years but greater than ne year s seasning may be acceptable if extenuating circumstances and the brrwer s ability t manage financial affairs in a respnsible manner are dcumented. Evidence brrwer is at least 12 mnths int payment plan at the time f case number Evidence f payment amunt and that all payments have been made n time Evidence f curt permissin t enter int mrtgage Shrt Sale See Purchase table abve Shrt Refi Nt permitted fr subject transactin Maximum Lan Amunt/LTV The maximum base lan amunt befre additin f the financed upfrnt mrtgage insurance premium is the lesser f the fllwing three calculatins 97.75% f the adjusted value* r Unpaid principal balance f the first mrtgage as f the mnth prir t disbursement + Interest due n the existing mrtgage + MIP due n the existing mrtgage + Late charges + Escrw shrtages + Brrwer-paid clsing csts + Brrwer-paid repairs required by the appraiser + Brrwer-paid Pre-paids + Brrwer-paid discunt pints - MIP refund, when applicable r FHA s natinwide mrtgage limit fr the cunty in which the prperty is lcated Maximum CLTV 97.75% *Fr prperties acquired by the brrwer within 12 mnths f the case number date, the adjusted value is the lesser f the purchase price plus dcumented imprvements made after purchase r the prperty value. Fr prperties acquired by the brrwer 12 mnths r mre prir t case number date r prperties inherited by the brrwer any time prir t case number date (but nt used as an investment prperty) r gifted frm family any time prir t case number, the adjusted value is the appraised value. Ttal Screcard Apprve/Accept dwngrade r n credit scre: Verified and dcumented significant additinal incme is nt cnsidered effective incme (i.e., part-time incme r tw years). Ratis, excluding the additinal incme may nt exceed 37/47. Brrwer s credit scre is 580* r higher and the brrwer has established credit lines in his/her wn name fr at least six mnths with dcumented evidence all revlving debt is paid in ttal husing payment must be the nly pen installment accunt) 40/50 NOTE: Flagstar s credit scre verlays apply Refer t Credit Prfile clumn Net Tangible Benefit* The number f mnths t recapture the brrwer s clsing csts must be 48 mnths *T view exceptins and calculate mnths t recapture clsing csts, use Flagstar dcument #9348 FHA Net Tangible Benefit Wrksheet Existing lan must be a Flagstar-serviced lan. If Simple refi pays ff any lender ther than Flagstar, manufactured hme is nt an eligible prperty type. The fllwing requirements apply Duble-Wide nly Single-Wide nt permitted Engineer s Certificate required unless lan pays ff an existing FHA lan Nt permitted in the fllwing states: Clrad Illinis Kentucky Luisiana Missuri New Yrk Pennsylvania Texas U.S. Virgin Islands rdered via Lantrac unless Crrespndent is DE Delegated r an apprved by Flagstar fr FHA Appraiser fllwing: 3 t 4-Unit Prperties Emplyee lans fr sales r lan prductin staff f an riginating branch r cmpany (N/A fr DE Manufactured hmes (N/A fr DE IX. Gvernment Guidelines 5 f 6 Dcument #9016

6 CREDIT PROFILE MAXIMUM AMOUNT/LTV/CLTV RATIOS/NET TANGIBLE BENEFIT/VOE CREDIT PROFILE MAXIMUM AMOUNT/CLTV RATIOS/NET TANGIBLE BENEFIT/VOE Streamline Withut Appraisal FHA t FHA Refi Only 1-2 Units 580* 3-4 Units *Credit Scre Nr prir Bankruptcies r freclsures *Credit Scre and Streamline pays ff any servicer ther than Flagstar credit qualificatin required Mrtgage Lates Brrwer must have made all mrtgage payments within the mnth due fr the six mnths prir t case number and Fr all mrtgages, the brrwer must have n mre than ne 30-day late payment fr the 7 th t 12 th mnths prir t case number and The brrwer must have made the payments fr all mrtgages secured by the subject prperty within the mnth due fr the mnth prir t disbursement Shrt Refi Nt permitted fr subject transactin NOTE: Lenders must nt assign a case number until all f the fllwing parameters are met fr the lan being refinanced: The brrwer has made at least six mnths payments n the FHA insured mrtgage being refinanced and At least six full mnths have passed since the first payment due date f the mrtgage that is being refinanced and At least 210 days have passed since the clsing date f the mrtgage that is being refinanced and If the brrwer assumed the mrtgage that is being refinanced, they have made six payments since the time f assumptin (additinal requirements apply) Maximum Lan Amunt The maximum base lan amunt befre additin f the financed upfrnt mrtgage insurance premium is the lesser f the fllwing tw calculatins Existing principal balance (including interest due n the existing mrtgage and MIP due n the existing mrtgage) minus MIP refund, when applicable r Original principal balance f the lan being refinanced minus the MIP due n the existing mrtgage Maximum CLTV N Maximum CLTV New subrdinate financing is permitted, prvided the prceeds are used fr ne f the fllwing purpses: Prceeds reduce the amunt f the existing FHA-insured mrtgage r Prceeds finance the riginatin fees, ther clsing csts, r discunt pints assciated with the refinance Flagstar requires a tri-merge credit reprt t verify credit scre Verificatin f emplyment r incme surce required - Fr requirements, refer t FHA Underwriting Guidelines Net Tangible Benefit* Fixed rate t Fixed rate The new cmbined rate** must be at least.5 percentage pints belw the prir cmbined rate Fixed rate t ne-year ARM, Fixed rate t Hybrid ARM, ARM with 15 mnths r mre until next payment change date t ne-year ARM The new cmbined rate must be at least 2 percentage pints belw the prir cmbined rate ARM with less than 15 mnths until the next payment change date t fixed rate, ARM with 15 mnths r mre until the next payment change date t fixed rate The new cmbined rate** must nt be mre than 2 percentage pints abve the prir cmbined rate ARM with less than 15 mnths until the next payment change date t ne-year ARM, ARM with less than 15 mnths until the next payment change date t hybrid ARM, ARM with 15 mnths r mre until the next payment change date t hybrid ARM The new cmbined rate** must be at least 1 percentage pint belw the prir cmbined rate The streamline refinance may reduce the remaining amrtizatin perid f the existing mrtgage, prvided the new interest rate des nt exceed the current rate and the cmbined PIMI f the new mrtgage des nt exceed the PIMI f the refinanced mrtgage by mre than $50 **Cmbined rate refers t the interest rate n the mrtgage plus the annual mrtgage insurance premium rate. In additin t the FHA requirements abve, Flagstar requires the fllwing The number f mnths t recapture the brrwer s clsing csts must be 48 mnths *T review exceptins t the recapture requirement and calculate payment reductin and mnths t recapture clsing csts, use Flagstar dcument #9348 FHA Net Tangible Benefit Wrksheet Existing lan must be a Flagstar-serviced lan. If streamline refi pays ff any lender ther than Flagstar, manufactured hme is nt an eligible prperty type. The fllwing requirements apply Duble-Wide nly Must be 5 acres Single-Wide nt permitted Nt permitted in the fllwing states: Clrad Illinis Kentucky Luisiana Missuri New Yrk Pennsylvania Texas U.S. Virgin Islands N/A unless the prperty is lcated in a presidentially declared disaster area Fr inspectin requirements, refer t the Prperty Inspectin sectin f FHA Underwriting Guidelines All guides subject t change Ratis Unless lan is credit qualifying Streamline, ratis are nt calculated. Fr credit qualifying Streamlines, see ratis requirements fr manually underwritten purchases abve IX. Gvernment Guidelines 6 f 6 Dcument #9016