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

Transcription

1 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 (f) Varies by County (a) Varies by County (a) None (b) 125 (b,d) 31/43 (c) STREAMLINE REFINANCE WITH AN APPRAISAL (f) Varies by County (a) Varies by County (a) (e) 125 (d) 31/43 (c) a b c NOTES Maximum Loan Amount varies by county. Loan amounts up to $729,750 for high cost areas on fixed rate products. See the FHA Mortgage Limits page at entp.hud.gov/idapp/html/hicostlook.cfm There is no max LTV; however, without an appraisal the new maximum mortgage amount cannot exceed the outstanding principal balance (minus UF refund) plus new UF. LTV is based on the original appraised value via FHA connection. Closing costs / Prepaids may not be financed into the loan. On credit qualifying loans, ratios of 31/43 may be exceeded only with significant compensating factors recognized by HUD to a max 50% DTI d CLTV must not exceed 125%. Without an appraisal, this amount is determined by the original value of the FHA loan that is being refinanced. With an appraisal, amount is determined by current appraised value e Max LTV on a Streamline Refinance with an appraisal is based on the lesser of 97.75% or the outstanding principal balance (minus UF refund) plus new UF. f => August 10, Minimum credit score is 640 for Investor serviced loans. Loans serviced by others are subject to a minimum 700 credit score. Page 1

2 Primary Residence Units Minimum Credit Score SERIES 9 Continental US Hawaii LTV w/o STREAMLINE REFINANCE WITHOUT AN APPRAISAL CLTV w/ Max Debtto-Income Ratio (e) Varies by County (a,d) Varies by County (a,d) 110 (b) 125 (c) NA STREAMLINE REFINANCE WITH AN APPRAISAL (e) Varies by County (a,d) Varies by County (a,d) 100 (b) 125 (c) NA a b c d e NOTES Maximum Loan Amount varies by county. Loan amounts up to $729,750 for high cost areas on fixed rate products. See the FHA Mortgage Limits page at entp.hud.gov/idapp/html/hicostlook.cfm Loan with Apprl - the max loan is the lower of the outstanding principal balance minus applicable refund of UF and the new UF or 97.75% of appraised value plus the new UF Loan w/out Apprl - the max loan cannot exceed the outstanding principal balance minus applicable refund of UF plus the new UF or previous loan amount Max cash back to brwr is $500 A signed affidavit stating the subject property has not been listed in the last 6 mos. Per FHA Guides, existing 2nds must resubordinate Cash back to brwr can not exceed $500 Exceptions are available on a case-by-case basis for FICOs Page 2

3 GENERAL GUIDELINES PRODUCT DESCRIPTION This FHA product is designed for borrowers who have an existing FHA loan and refinance in to a new FHA loan in an effort to reduce their monthly payment. There must be a net tangible benefit to all borrowers who participate under this program. Specifically, the new monthly mortgage payment must be at least 5% lower than the exiting mortgage payment (P & I + MMI) being refinanced. (Recapture period within 48 mos. - Series 3 only) All loans must meet the requirements set forth in the investor guidelines and/or any additional requirements as deemed necessary by the FHA Underwriter. PRODUCT CODES Series 3 Series 9 FF30SLS3 FF25SLS3 FF20SLS3 FF15SLS3 FF10SLS3 FF30HBSLS3 FF25HBSLS3 FF20HBSLS3 FF15HBSLS3 FF10HBSLS3 FA5/1SLCS3 FA3/1SLCS3 FF30SLS9 FF25SLS9 FF20SLS9 FF15SLS9 FF10SLS9 DELEGATED AUTHORITY 1-4 units 1-4 units PROCESSING TYPE Credit Qualifying Non Credit Qualifying (NCQ) Streamline loans are NCQ by default unless: 1. Loan originated with appraisal; or 2. Deleting a borrower from the loan: a. Triggers a due-on-sale clause; or b. Borrower assumed a mortgage that did not contain a due-on-sale clause but limited assumptions to creditworthy borrowers less than 6 months previously; or c. Borrower assumed a mortgage that did not contain a due-on-sale clause but the property was assumed less than 6 months prior to application as the result of a divorce, devise or descent NCQ Employment documentation- Wage Earner: Verbal VOE required Self-Employed: Most recent year s filed federal tax return and evidence of good standing Retirement or Disability: Awards Letter(s) Other- see investor guidelines UNDERWRITING All loans must be manually underwritten to meet the requirements set forth in the investor guidelines and/or any additional requirements as deemed necessary by the appropriate FHA Underwriters. Total Scorecard: Although not required, if TOTAL Scorecard is used, the loan must be manually underwritten (the underwriter must sign and state their DE number on the LT form) and meet FHA Streamline eligibility. Non Credit Qualifying (NCQ) Credit Qualifying if required per default reasons listed below Streamline loans are NCQ by default unless: 1.Deleting a borrower from the loan: a. Triggers a due-on-sale clause; or b. Borrower assumed a mortgage that did not contain a due-on-sale clause but limited assumptions to creditworthy borrowers less than 6 months previously; or c. Borrower assumed a mortgage that did not contain a due-on-sale clause but the property was assumed less than 6 months prior to application as the result of a divorce, devise or descent NCQ Employment documentation- Wage Earner: Verbal VOE required Self-Employed: Most recent year s filed federal tax return and evidence of good standing Retirement or Disability: Awards Letter(s) Other- see investor guidelines Manual underwrite is required on NCQ and credit qualifying. DU is NOT to be run Seasoning - Minimum of 12 mos. of payments Credit History - No major derogatory or recent late payments within most recent 24 months. LOE from brwr confirming property not listed in the last 6 mos. Non- purchasing spouse, credit report required in Community property states - Clear CAIVRS required SS# to be verified via copy of SS card or Credco validation Discount points can not be financed Page 3

4 QUALIFYING RATE Qualify at the fully amortizing payment based on the Note rate for the 30 Year fixed as well as 5/1 and 3/1 ARMS. RATIOS Follow investor guidelines. NCQ - NA Credit Qualify - 31/43 Fixed only, qualify at note rate TEMPORARY BUYDOWNS Not permitted Not permitted MAXIMUM LOAN AMOUNT Maximum Mortgage Amount Calculations: There are two options for a streamline refinance with or without an appraisal. See investor guidelines for loan calculation worksheets. Closing costs and Pre-paids may not be included in the loan amount calculation under any circumstance. Maximum Mortgage Amount Calculations: There are three calculation for a streamline refinance see streamline worksheet on the intranet. Closing costs and Pre-paids may not be included in the loan amount calculation under any circumstance. SECONDARY FINANCING Permitted. See above matrix for limitations. Permitted. See above matrix for limitations. PROPERTY TYPES Series 3 Series 9 OCCUPANCY ESCROW WAIVERS PREPAYMENT PENALTY BORROWER ELIGIBILITY CREDIT SFRs 2-4 Units PUDs HUD-approved Condos => August 10, if the existing loan being paid off is not serviced by Flagstar, all brwrs must have a 700 FICO minimum. SFRs PUDs Modular HUD-approved Condos Owner-Occupied Primary Residences Only. N/A. Impound/Escrow accounts are required on all loans. N/A Follow Investor Guide Full tri-merge credit report Non Purchasing Spouse - credit report and clear CAIVRS is required in community property states No major derogatory or recent late payments within most recent 24 months Chapter 7 minimum 2 years from discharge date Chapter 13 Court approval and satisfactory payment history (must be at least 12 months) Foreclosure/Deed-in-Lieu minimum 3 years from date of deed transfer on any property. Short Sale After 12 months if borrower was current at time of sale, otherwise 3yrs since date of sale on any property Judgements/Liens - Must be paid in full if reflected on title Collections - No pay off required unless they affect lien position ASSETS If assets are needed to close, a consecutive 2 mos. asset statement required * If the borrower is required to bring funds to close, provide one months bank statements as evidence of the borrower s funds to close. For both credit qualifying and non-credit qualifying Streamline refinances, evidence of three months reserves is required for all three and four unit properties. Therefore, loan submissions for all three and four unit properties must include two months bank statements or other acceptable verification of the required reserves. Page 4

5 NET TANGIBLE BENEFIT The new P&I + new must be at least 5% lower than the current P&I + current The recapture period for brwr paid closing costs not to exceed 48 months Term reductions allowed if NTB requirements are met The new P&I + new must be at least 5% lower than the current P&I + current Term reductions allowed if NTB requirements are met OTHER FINANCED REAL ESTATE OWNED APPRAISAL REQUIRE- MENTS Series 3 Series 9 Borrowers are limited to ownership of seven units when the subject property is within close proximity to a group of properties owned by the borrower. Each unit in a multi-unit property counts toward the seven-unit limitation. FHA defines close proximity as properties within a two-block radius from one another Max investor exposure is 5 loans with an aggregate loan amount of $1,000,000. Borrowers are limited to ownership of seven units when the subject property is within close proximity to a group of properties owned by the borrower. Each unit in a multi-unit property counts toward the seven-unit limitation. FHA defines close proximity as properties within a two-block radius from one another Series 3 Series 9 The FHA Streamline Refinance program offers the options for with an appraisal or without an appraisal. See investor guidelines for specific requirements for both options. Note: Series 3 loans with an appraisal must be credit qualifying. The FHA Streamline Refinance program offers options with an appraisal or without an appraisal LOE from brwr confirming property not listed in the last 6 mos Without Appraisal - Acceptable AVM to reflect highest probable value for the subject is within 10% variance of the total loan amount including UF With Appraisal - Acceptable FHA appraisal to support transaction per max loan calculation Page 5

6 MORTGAGE INSURANCE Series 3 Series 9 See investor guidelines for full requirements. FHA Upfront and Annual Mortgage Insurance Premiums Effective with case number assignments on April 9, June 10, 2012 Loan-to-Value / Loan Term Purchase and Refinance Streamline Refinance > 95% Greater than 15-yrs 1.75% / 1.25% 1.75% / 1.25% 95% Greater than 15-yrs 1.75% / 1.20% 1.75% / 1.20% > 90% Less than or equal 1.75% /.60% 1.75% /.60% to 15-yrs 90% Less than or equal to 15-yrs 1.75% /.35% 1.75% /.35% CASE NUMBERS ASSIGNED ON OR AFTER JUNE 11, 2012 EXCLUDING STREAMLINE LOANS ENDORSED PRIOR TO JUNE 1, 2009 Loan Term > 15 Years Base Loan Amount LTV Up-Front Annual (Monthly) <= $625,500 <= 95% 1.75% 1.20% * <= $625,500 > 95% 1.75% 1.25% * > $625,500 <= 95% 1.75% 1.45% * > $625,500 > 95% 1.75% 1.50% * Loan Term <= 15 Years <= $625,500 > 78% - 90% 1.75%.35% ** <= $625,500 > 90% 1.75%.60% ** > $625,500 > 78% - 90% 1.75%.60% ** > $625,500 > 90% 1.75%.85% ** *Cancellation of the annual (monthly) premium will occur when the LTV reaches 78% of the original Appraised value, provide the brwr has paid the premium at least 5 years. **Cancellation of the annual (monthly) premium will occur when the LTV reaches 78% of the original Appraised value, even if the brwr has been paying the premium less than 5 years. Page 6

7 MORTGAGE INSURANCE Series 3 Series 9 CASE NUMBERS ASSIGNED ON OR AFTER JUNE 11, 2012 STREAMLINE REFINANCES OF LOANS ENDORSED PRIOR TO JUNE 1, 2009 ONLY LTV Up-Front Loan Term > 15 Years Annual (Monthly) All LTV s.01%.55% ** Loan Term <= 15 Years * >78%.01%.55% *** *Annual mortgage insurance is not required for LTVs <= 78% **Cancellation of the annual (monthly) premium will occur when the LTV reaches 78% of the original appraised value, provided the brwr has paid the premium at least 5 years. ***Cancellation of the annual (monthly) premium will occur when the LTV reaches 78% of the original appraised value, even if the brwr has been paying the premium less than 5 years. Page 7