FHA STREAMLINES REFINANCE GUIDELINES IN KENTUCKY 2015

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.

—

Joel Lobb
Senior Loan Officer
(NMLS#57916)

phone: (502) 905-3708
Fax: (502) 327-9119
kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/