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December 22nd, 2009 admin Leave a comment Go to comments

Revised FHA Streamline Refinance Transactions

This Mortgagee Letter provides (1) the revised procedures, and (2) the existing procedures in relation to speed transactions reaffirms Refinancing. This mortgage letter is effective in the case of new numbers assigned on or after 60 days from the date of this letter.

The key revisions:

Seasoning
Payment history
Tangible net benefit to the borrower
Maximum Combined LTV
New maximum mortgage amount for Streamline Refinances WITHOUT A Review
Discounts of points not included in the Streamline Refinances existing debt with an assessment
Verification of all assets required to close
Certification borrower who work and have incomes
Elimination of short uniform residential loan application (Urla)

Home buyers in Florida should know the many advantages of streamline FHA mortgage refinancing. FHA loans refinance steamline were created to help increase homeownership. For the Florida home buyer program can simplify FHA home buying, making it easier and less expensive financing that a conventional mortgage product. Some highlights of the Florida program from the FHA loans include:

Least payment and closing costs.

Down less than 3% of the payment of the purchase price was allowed Gifts
Seller may credit to 6% of the purchase price for closing and prepaid costs.
100% financing
No reservations required.
Closing costs FHA regulated.

Easier credit qualifying guidelines, such as:

- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase of 1 year after a bankruptcy.
- FHA will allow a purchase of a house 2 years after foreclosure.

Ask an FHA streamline refinance:

http://www.fhamortgagefhaloan.com/

Reviews I. ALL operations Streamline Refinance

Seasoning A.

At the time of loan application, the borrower must be at least 6 payments for FHA-insured mortgage to be refinanced.

B. Payment History

At the time of the loan application, the borrower must also submit an acceptable payment history as described below.

1) For mortgages with less 12 month payment history, the borrower must have made all mortgage payments in the month of expiration.

2) For mortgages with a history of 12 months payment or greater, the borrower must have:

a) No experienced more than 30 days delay in the last 12 months,

And

b) Make all payments on mortgages in the month due to the three months preceding the date of loan application.

NET C. Tangible benefits

The lender must determine that there is a tangible net benefit as a result of simplifying the transaction refinancing, with or without an evaluation. net tangible benefit is defined as:

reduction in the total mortgage payment (principal, interest, taxes and insurance fees, homeowners association, ground rents, assessments of all special privileges and subordinates),
refinancing an adjustable rate mortgage (ARM) to a fixed rate mortgage,

reducing the duration mortgage.

Reduction in the total mortgage payment: The new total mortgage payment is 5 percent less than the total mortgage payment mortgage is refinanced. Example: The total mortgage payment on the existing FHA insured mortgage is $ 895; the total payment FHA mortgage insured new mortgage must be $ 850 or less.

This requirement applies when refinancing a fixed rate fixed rate of one arm in arm, a graduated payment mortgage (GPM) at a fixed rate, ARM GPM, a 203 (k) to 203 (b) and a 235 to 203 (b).

Fixed Rate ARM: Mortgage fixed rate can refinance to an ARM to a year provided that the interest rate on the new mortgage is at least 2 percentage points below the rate of mortgage interest current

ARM to Fixed Rate: The interest rate on the mortgage of the new fixed interest rate shall not exceed 2 percentage points above the current rate of one-year ARM. For hybrid mortgages, full payment of the mortgage on the new fixed-rate mortgage may not rise more than 20 percent. Example: total mortgage payment of hybrid ARM is $ 895; the full payment of the mortgage on the new fixed rate mortgage is $ 1074 or less.

Reduction deadline: For transactions that include a reduction in the term of the mortgage, the loan must be underwritten and closed as a rate and term (no cash-out) transaction refinancing.

Investment properties / second homes: In addition to meeting the demand for a reduction in the total payment the mortgage, investment properties or secondary residences are not eligible to streamline funding to arms.

D. Certifications and verifications

In presenting the loan for insurance approval, the lender must include a signed and dated cover in its letterhead certification [1] that the borrower is employed and have income at the time of the loan application.

If assets are needed to close, the lender must verify and document assets.

Lenders also must include the statement reward case folder.

E. Credit Score

If the credit score When available, the lender must enter the credit score FHA Connection. If more than one credit score is available, Lenders must enter all credit scores available

F. Maximum combined loan / asset

If subordinate financing is left in place, the maximum combined loan to value is 125-percent.

To streamline refinancing operations without an assessment, the CLTV is based on the original appraised value of the property.

For streamline refinance transactions with an evaluation, the CLTV is based on the new appraised value.

G. TOTAL Scorecard

Lenders should not rationalize the overall use refinancing operations. If a lender uses the total, that loan must be underwritten and closed as a rate and term (no cash-out) refinance transaction.

H. Uniform Residential Loan Application (Urla)

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