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 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 Varies by County (a) Varies by County (a) None (b) 125 (b,d) 31/43 (c) STREAMLINE REFINANCE WITH AN APPRAISAL 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 UFMIP refund) plus new UFMIP. 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 UFMIP refund) plus new UFMIP. Page 1

2 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) This FHA Streamline Refinance program offers the following qualifying options: Credit Qualifying - The borrower must qualify with debt-to-income ratio (income verified, credit pulled, etc). Non Credity Qualifying (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. ORIGINATION CHANNEL Retail Retail and Wholesale Retail and Wholesale PRODUCT CODES Series 1 (On Hold) Series 2 (On Hold) Series 3 FF30SLS1 FF15SLS1 FF30HBSLS1 FF15SLS2 FF30HBSLS2 FF30SLS3 FF25SLS3 FF20SLS3 FF15SLS3 FF10SLS3 FF30HBSLS3 FF25HBSLS3 FF20HBSLS3 FF15HBSLS3 FF10HBSLS3 FA5/1SLCS3 FA3/1SLCS3 DELEGATED AUTHORITY 1-2 units 1-4 units 1-4 units PROCESSING TYPE Credit Qualifying Credit Qualifying 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 Page 2

3 UNDERWRITING QUALIFYING RATE RATIOS TEMPORARY BUYDOWNS MAXIMUM LOAN AMOUNT 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. 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. Manually approved ratios >31/43 must include documented compensating factors. Streamline Refinance WITH an Appraisal: Maximum Mortgage Amount = the lesser of: 97.75% of appraised value + new UFMIP, OR; Unpaid Principal Balance (the lesser of unused UFMIP refund or new UFMIP) + Closing Costs + Prepaids for escrow account + new UFMIP Streamline Refinance WITHOUT an Appraisal: Maximum Mortgage Amount = Unpaid Principal Balance (the lesser of unused UFMIP refund or new UFMIP) + new Upfront MIP FHA ratio requirement is 31/43 for all loans. On manually underwritten loans, ratios of 31/43 may be exceeded up to 50% with significant compensating factors. Not permitted Maximum Mortgage Amount Calculations: There are two options for a streamline refinance with or without an appraisal. With an appraisal - Maximum allowable loan amount is the lesser of 97.75% of appraised value or the existing loan balance (less MIP refund) plus closing costs. Without appraisal - If an appraisal is not provided the new maximum loan amount is based on the existing loan amount (less any MIP refund). Closing costs may not be financed in the new loan amount although the yield spread premium may be used to subsidise the borrower s closing costs. Follow investor guidelines. 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. SECONDARY FINANCING Permitted. See above matrix for limitations. PROPERTY TYPES Series 1 (On Hold) Series 2 (On Hold) Series 3 OCCUPANCY ESCROW WAIVERS PREPAYMENT PENALTY BORROWER ELIGIBILITY SFRs 2-4 Units PUDs HUD-approved Condos SFRs 2-4 Units PUDs HUD-approved Condos Modular Homes SFRs 2-4 Units PUDs HUD-approved Condos Owner-Occupied Primary Residences Only. N/A. Impound/Escrow accounts are required on all loans. N/A Follow Investor Guide CREDIT Follow Investor Guide => July 6th, if the existing loan being paid off is not serviced by Flagstar, all brwrs must have a 680 FICO minimum. ASSETS Follow Investor Guide If assets are needed to close, a consecutive 2 mos. asset statement required Page 3

4 NET TANGIBLE BENEFIT The new P&I + new MIP must be at least 5% lower than the current P&I + current MIP The recapture period for brwr paid closing costs not to exceed 48 months Term reductions allowed if NTB requirements are met OTHER FINANCED REAL ESTATE OWNED Series 1 (0n Hold) Series 2 (On Hold) Series 3 Borrowers limited to a max of four financed residential properties including the subject property Borrower may own no more than one FHA loan with maximum financing. 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. APPRAISAL REQUIRE- MENTS Series 1 (On Hold) Series 2 (On Hold) Series 3 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. Page 4

5 MORTGAGE INSURANCE Series 1 (On Hold) Series 2 (On Hold) Series 3 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) MIP MIP <= $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 5

6 MORTGAGE INSURANCE Series 1 (On Hold) Series 2 (On Hold) Series 3 CASE NUMBERS ASSIGNED ON OR AFTER JUNE 11, 2012 STREAMLINE REFINANCES OF LOANS ENDORSED PRIOR TO JUNE 1, 2009 ONLY LTV Up-Front MIP Loan Term > 15 Years Annual (Monthly) MIP 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 6