FHA Streamline Refinance Worksheet

FHA Streamline Refinance Worksheet

General Eligibility

Current loan must be FHA-insured No appraisal or minimum property requirements Condominium units allowed even if project approval has expired Manufactured home must have been permanently erected on site for more than 12 mos prior to case number assignment. Original value of property as shown on refinance authorization is used to calculate annual MIP Primary residence, HUD-approved second home or investment property is acceptable Non-credit qualifying streamline ? Borrower is eligible if all borrowers on existing loan remain as borrowers on new loan.

Exception in divorce, legal separation or death when: o divorce or legal separation awarded property and payment to remaining borrower and o the remaining borrower can prove they made the payment for 6 mos prior to case number assignment.

Credit qualifying streamline requires at least 1 borrower from existing loan to remain on new loan. Individuals may be added to title and mortgage on non-credit qualifying streamline with creditworthiness review. Maximum Amortization ? Lesser of:

o remaining period plus 12 years or o 30 years

Seasoning ? At case number assignment date: o Must have made 6 payments on existing FHA loan. o At least 6 full mos have passed since first payment due date of existing FHA loan. o At least 210 days have passed from the closing date of the FHA mortgage being refinanced. o If mortgage was assumed, 6 payments must have been made since assumption.

Payment history o No lates on subject property mortgages for 6 mos prior to case number assignment date. o No more than 1 30-day late for all mortgages for 6 mos prior to case number assignment date. o All subject property mortgages must be paid within month due for the month prior to mortgage disbursement. o If subject property mortgage is not reported on credit report 12 mos VOM must be obtained.

Manual UW required. Loan may be scored in TOTAL but findings are invalid. CLTV - No maximum Short form URLA allowed on non-credit qualifying only. New subordinate financing allowed only if proceeds are used to:

o reduce principal of existing FHA mortgage or o finance closing costs or discount points associated with refinance.

Net tangible benefit must be met. (see chart pg 2) Investment Properties / Second Homes may not refi to an ARM

Assets needed to close in excess of the total mortgage payment must be verified LDP and SAM lists must be checked. $500 excess cash back allowed for estimating errors. Refund of unused escrow balance is not counted in total. Amounts exceeding $500

may be used to reduce outstanding principal balance.

Maximum Mortgage Amount

Primary Residence and Second Homes

Investment Properties

________ Lesser of ? the outstanding principal balance as of the month prior to disbursement; plus: o interest due on the existing mortgage; and o MIP due on existing mortgage; or

? the original principal balance of the existing mortgage (including financed UFMIP); -_________ UFMIP refund* (if financed in original loan)

+_________ New UFMIP (see chart pg 2)

________ Lesser of ? the outstanding principal balance as of the month prior to disbursement; or ? the original principal balance of the existing mortgage (including financed UFMIP);

-_________ UFMIP refund* (if financed in original loan)

+_________ New UFMIP (see chart pg 2)

=_________ Maximum New Mortgage Amount

=_________ Maximum New Mortgage Amount

*use chart on page 2 to calculate

*use chart on page 2 to calculate

Page 1

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FHA Streamline Refinance Worksheet

Net Tangible Benefit Table

To

From

Fixed Rate

Any ARM with Less Than 15 Months to Next Payment Change Date

Fixed Rate New Combined Rate*

At least 0.5 percentage points below the prior Combined Rate.

No more than 2 percentage points above the prior Combined Rate.

One-Year ARM New Combined Rate*

At least 2 percentage points below the prior Combined Rate.

At least 1 percentage point below the prior Combined Rate.

Hybrid ARM New Combined Rate*

At least 2 percentage points below the prior Combined Rate.

At least 1 percentage point below the prior Combined Rate.

Any ARM with Greater Than or Equal to 15 Months to Next

Payment Change Date

No more than 2 percentage points above the prior Combined Rate.

At least 2 percentage points below the prior Combined Rate.

At least 1 percentage point below the prior Combined Rate.

Reduction in Term The net tangible benefit test is met if:

? the mortgage term is reduced; ? the new interest rate does not exceed the current interest rate; and ? the combined principal, interest and MIP payment of the new Mortgage does not exceed the combined principal, interest and MIP of the

refinanced Mortgage by more than $50.

*Combined Rate refers to the interest rate of mortgage plus the annual MIP rate. FHA Upfront Mortgage Insurance Premium Refund Percentages

Month of Year

Year 1

2

3

4

5

6

7

8

9

10

11

12

1

80

78

76

74

72

70

68

66

64

62

60

58

2

56

54

52

50

48

46

44

42

40

38

36

34

3

32

30

28

26

24

22

20

18

16

14

12

10

FHA Streamline Refinance and Simple Refinance Mortgage Insurance Premiums

Up Front MIP For refinance of previous Mortgage endorsed on or before May 31, 2009 All other mortgages For Hawaiian Home Lands Section 247 see 4000.1 Handbook Appendix 1.0 Indian Lands Section 248 do not require UFMIP

.01% 1.75%

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Base Loan Amount Less than or equal to $625,500

FHA Streamline Refinance Worksheet

Annual Mortgage Insurance Premium (MIP)

LTV

Mortgage Term of More Than 15 Years MIP

Duration

90.00% > 90.00% but 95.00% > 95.00%

.80% .80% .85%

11 years Mortgage term Mortgage term

Greater than $625,500

Base Loan Amount Less than or equal to $625,500

90.00%

1.00%

> 90.00% but 95.00%

1.00%

> 95.00%

1.05%

Mortgage Term of Less than or Equal to 15 Years

LTV

MIP

90.00% > 90.00%

.45% .70%

11 years Mortgage term Mortgage term

Duration 11 years Mortgage term

Greater than $625,500

78.00%

> 78.00% but 90.00% > 90.00%

.45%

.70% .95%

11 years

11 years Mortgage term

Annual MIP - All Mortgage Terms When Previous Mortgage Endorsed on or Before May 31, 2009

Base Loan Amount

LTV

Annual MIP

Duration

All

90.00%

.55%

11 years

> 90.00%

.55%

Mortgage term

For Mortgages where FHA does not require an appraisal, the value from the previous Mortgage is used to calculate the LTV.

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