Refinancing FHA Mortgage loans.
FHA STREAMLINES: FHA to FHA Refinance
- 620 minimum Credit Score
- NO AUS findings run
- NO Income stated on application or verified
- NO Appraisal – COSTS CAN NOT BE ROLLED INTO LOAN –No longer an allowable option
- Verify assets only for cash to close
- If you pay ALL costs with interest rate credit, no assets needed to be verified.
- This would mean paying for the re-establishment of their escrows.
- If they pay for their new escrow account, verify those assets. They will get reimbursed by their previous servicer 2-3 weeks after closing.
- New annual MI is Life of Loan, but is .85% instead of 1.35% in most cases.
- FHA loans endorsed prior to May 31, 2009 may be eligible for up front MI of .01
- Dropping a borrower usually requires credit qualifying – see full guidelines
- 5% PI & MI reduction required for Net Tangible benefit to be met
We will do a verbal VOE to confirm their employment, but we won’t be verifying income. No DTI calculations are performed. You WILL need to provide a 3 bureau credit report.
Remember that a borrower may NOT get any cash back on a streamline so any credit in excess of closing costs must be applied as a principal reduction, with a max of $2k towards principal.
Senior Loan Officer
phone: (502) 905-3708
Fax: (502) 327-9119