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…
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