FHA SIMPLE VS. STREAMLINE REFINANCE COMPARISON

FHA SIMPLE VS. STREAMLINE REFINANCE COMPARISON

FHA Simple Refinance

FHA to FHA only Must have an appraisal Nationwide county loan limits apply Subordinate financing subject to county loan limits Max LTV/CLTV:

o 97.75 principal residence o 85% for HUD approved secondary residence Full credit qualified Must be scored in TOTAL CAIVRS required Can factor in late fees and escrow shortages Can factor in allowable costs including borrower-paid costs associated with new mortgage and borrower-paid repairs required by appraisal Reduced MIP cost (same MIP schedule as streamline): o Case numbers assigned before 05/31/09 are eligible for

reduced MIP of .50 Maximum 1 (x) 30 payment in last 12 months or since date of note

if less than 12 months

FHA Streamline Refinance FHA to FHA only Abbreviated 1003 is allowed ? Sections IV, V, VI, and VII (a-k) are not required to be completed Appraisal is not required Loan limits do not apply Subordinate financing allowed; cannot exceed max LTV/CLTV 100% Max LTV/CLTV 100% Credit qualified or non-credit qualified Manual underwriting only; TOTAL not applicable CAIVRS not required Cannot factor in late fees and escrow shortages Cannot factor in allowable costs including borrower-paid costs associated with new mortgage Funds to close must be documented:

o Large deposits must be documented if the deposit is more than 1% of adjusted value Borrowers may have delinquent federal debts (tax or non-tax debt) Loans seasoned 12 months or more:

o 0 (x) 30 late payments in last 12 months on the existing mortgage Loans seasoned less than 12 months:

o Full Tri Merge o 0 (x) 30 in most recent 12 months on any mortgage for any property the borrower(s) has an ownership interest o Bankruptcy discharged at least 24 months and foreclosure must be completed 36 months from case assignment

date. Loans seasoned less than 6 months since the first payment due date or 210 days from the note date to case number

assignment are not permitted. Maximum amortization period of a streamline refinance is limited to the lessor of: o Remaining amortization period of the existing mortgage + 12 years; or o 30 years Net Tangible Benefit ? any of the following must apply: o Reduced combined rate (interest on mortgage plus the MIP rate) o Reduced term ? all of the following must be met:

? Term is reduced ? New rate does not exceed current rate ? Combined principal and interest plus MIP for new loan does not exceed that of current loan by more than $50 o Change between ARM and fixed rate that results in a financial benefit to the borrower as detailed below: ? Fixed to Fixed: At least 0.5% points below prior combined rate ? Fixed to ARM: At least 2% points below prior combined rate ? ARM to fixed: At least 2% points above the prior combined rate ? ARM to ARM: At least 1% point below the prior combined rate

Equal Housing Lender; Franklin American Mortgage Company, 6100 Tower Circle, Suite 600, Franklin, TN 37067. Company NMLS #1599. For mortgage banking professionals only; not authorized for distribution to consumers or third-parties. All info herein is current as of 9/14/15 and subject to change without notice. WHL_TPL_229V1 MKT-13319

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