GMAC BANK FHA STREAMLINE REFINANCE OPTIONS MATRIX
CREDIT QUALIFYING STREAMLINE REFINANCE WITH APPRAISAL CREDIT QUALIFYING STREAMLINE REFINANCE WITHOUT APPRAISAL
1. ELIGIBLE • FHA Fixed Rate Product
PROGRAMS • FHA ARM Products
2. CURRENT FIRST • Existing Endorsed FHA Fixed Rate product
MORTGAGE • Existing Endorsed FHA ARM Product
ELIGIBILITY
At the time of loan application, the borrower must have made at least 6 consecutive payments on the FHA-insured mortgage being refinanced.
3. LOAN The loan amount may exceed the current statutory loan limits if the new mortgage The loan amount may exceed the current statutory loan limits if the new mortgage
AMOUNTS/LTV complies with standard product guidelines and all of the following requirements: complies with standard product guidelines and all of the following requirements:
LIMITS The maximum loan amount (including financed UFMIP) of the new FHA- The maximum loan amount (including financed UFMIP) of the new FHA-
insured mortgage, including all fees, closing costs, mortgage insurance insured mortgage, including all fees, closing costs, mortgage insurance
premiums (MIP), interest, etc., must not exceed the original principal premiums (MIP), interest, etc., must not exceed the original principal
amount of the existing FHA-insured mortgage. Should the maximum amount of the existing FHA-insured mortgage. Should the maximum
loan amount (based on the original principal balance of the existing FHA loan amount (based on the original principal balance of the existing FHA
mortgage) be insufficient to cover allowable interest, MIP, closing costs, mortgage) be insufficient to cover allowable interest, MIP, closing costs,
fees, etc., the borrower shall provide cash to cover the costs that fees, etc., the borrower shall provide cash to cover the costs that exceed
exceed the allowable maximum loan amount. the allowable maximum loan amount.
The new FHA-insured mortgage may not have a term of more than 12 The new FHA-insured mortgage may not have a term of more than 12 years
years in excess of the unexpired term of the existing FHA-insured in excess of the unexpired term of the existing FHA-insured mortgage.
mortgage. The monthly PI & MI payment due under the new FHA-insured mortgage is
The monthly PI & MI payment due under the new FHA-insured less than PI & MI payment that is due under the existing FHA-insured
mortgage is less than PI & MI payment that is due under the existing mortgage.
FHA-insured mortgage.
• Statutory County Limits: (https://entp.hud.gov/idapp/html/hicostlook.cfm)
Statutory County Limits: (https://entp.hud.gov/idapp/html/hicostlook.cfm)
• If subordinate financing is remaining in place, the maximum CLTV is 125%
• If subordinate financing is remaining in place, the maximum CLTV is 125% • The CLTV is based on the original appraised value of the property. The Case
• The CLTV is based on the new appraised value. Query function in FHA Connection will display the appraised value. Prior to loan
• If the junior lien is a home equity line of credit, the maximum CLTV is based on approval, a copy of the Case Query screen must be available for review by the DE
the full credit line amount Underwriter.
• Refer to Calculating the Mortgage with a New Appraisal • If the junior lien is a home equity line of credit, the maximum CLTV is based on the
• FHA maximum Mortgage Calculation Worksheet to be completed, reviewed and full credit line amount
signed by the DE Underwriter • Refer to Calculating the Mortgage Without a New Appraisal.
• Refer to “Geographic Locations/Restrictions” for additional state specific • FHA maximum Mortgage Calculation Worksheet to be completed, reviewed and signed
restrictions or requirements by the DE Underwriter
• Refer to “Geographic Locations/Restrictions” for additional state specific restrictions
or requirements
Product Summaries contain eligibility guidelines only. Consult the Client Guide for full details 10-1-2011
Page 1
GMAC BANK FHA STREAMLINE REFINANCE OPTIONS MATRIX
CREDIT QUALIFYING STREAMLINE REFINANCE WITH APPRAISAL CREDIT QUALIFYING STREAMLINE REFINANCE WITHOUT APPRAISAL
4. TYPES OF
FINANCING Streamline Refinance transactions on properties in Texas Streamline Refinance transactions on properties in Texas
The following guidelines pertain to owner-occupied Streamline refinance transactions for The following guidelines pertain to owner-occupied Streamline refinance transactions for
properties in Texas properties in Texas
• If the first mortgage is subject to Texas Section 50(a)(6), FHA insured financing • If the first mortgage is subject to Texas Section 50(a)(6), FHA insured financing is
is not permitted. Once a cash-out, always a cash-out. not permitted. Once a cash-out, always a cash-out.
• If an existing second lien is subject to Texas Section 50(a)(6), FHA insured • If an existing second lien is subject to Texas Section 50(a)(6), FHA insured
financing is not permitted. Once a cash-out, always a cash-out. financing is not permitted. Once a cash-out, always a cash-out.
• The title policy will reference Texas Section 50(a)(6) or Article XVI of the • The title policy will reference Texas Section 50(a)(6) or Article XVI of the Texas
Texas Constitution effective January 1, 1998. Constitution effective January 1, 1998.
• When FHA insured financing is permitted, Underwriting conditions and • When FHA insured financing is permitted, Underwriting conditions and closing
closing instructions must indicate “No Cash back to borrower is instructions must indicate “No Cash back to borrower is permitted” (not even
permitted” (not even one dollar is permitted) one dollar is permitted)
5. CALCULATING THE MAXUIMUM MORTGAGE CALCULATION WORKSHEETS MAXUIMUM MORTGAGE CALCULATION WORKSHEETS
MORTGAGE
Refer to “Geographic Locations/Restrictions” for additional state specific restrictions or Refer to “Geographic Locations/Restrictions” for additional state specific restrictions or
requirements requirements
The maximum base mortgage is the lower of the following 3 calculations: The maximum base mortgage cannot exceed:
• Unpaid principal balance (plus up to one month of monthly MIP + 60 days interest
st
1 Calculation – LTV Limitation: charged by servicing lender for the current month)
• 97.75% of the appraised value • Plus the interest charged by the servicing lender when the payoff will not be
received on the first day of the month, but may not include delinquent interest, late
nd
2 Calculation – Existing Debt Calculation charges or escrow shortages.
• Unpaid Principal Balance (plus up to one month of monthly MIP + 60 days MINUS
interest charged by servicing lender for the current month) • The lesser of:
• Plus allowable closing costs (excluding discount points*) o Unearned UFMIP (from FHA refinance Authorization or appropriate MIP
• Plus Prepaid expenses including: Refund Schedule)
o per diem interest to end of month on new loan OR
o hazard insurance deposits needed to establish escrow account o New Estimated UFMIP
o real estate tax deposits needed to establish the escrow account
• Plus the interest charged by the servicing lender when the payoff will not be Total New Mortgage Amount
received on the first day of the month, but may not include delinquent interest, • Maximum base mortgage
late charges or escrow shortages. PLUS
MINUS • New UFMIP
• Lesser of:
o Unearned UFMIP Refund (From FHA Refinance Authorization or Closing costs, pre-paid expenses and discount points, late changes and escrow shortages
appropriate MIP Refund Schedule) may not be finance into the new loan.
OR
o New Estimated UFMIP Additional Requirements
• Owner Occupied properties only
• LTV calculation is required only to determine if annual MIP is required on loans with
Total New Mortgage Amount 15-year term or less. The original appraised value is used to make this determination
• Maximum base mortgage and is obtained using the Case Query Screen in FHA Connection
PLUS • Term of new mortgage is the lesser of 30 years or the un-expired term of the current
• New UFMIP mortgage plus 12 years. (This is particularly important when the term of the original
loan was 15 years)
Product Summaries contain eligibility guidelines only. Consult the Client Guide for full details 10-1-2011
Page 2
GMAC BANK FHA STREAMLINE REFINANCE OPTIONS MATRIX
CREDIT QUALIFYING STREAMLINE REFINANCE WITH APPRAISAL CREDIT QUALIFYING STREAMLINE REFINANCE WITHOUT APPRAISAL
*Discount points may not be included in the new mortgage. If the borrower has agreed to • New secondary financing is not permitted.
pay discount points, the lender must verify the borrower has assets to pay them along • May subordinate existing junior liens up to a maximum 125% CLTV. For
with any other financing costs that are not included in the new mortgage amount. streamline refinance transactions WITHOUT an appraisal, the CLTV is based on
the original appraised value of the property.
Additional Requirements
• A subordination agreement should be a condition of loan approval
• Owner Occupied properties only • No cash back to borrower permitted (incidental minor adjustment at closing not
• Delinquent interest may not be included in loan amount exceeding $500.00 cash back is acceptable).
• New secondary financing is not permitted. • Refinance Authorization information must be obtained at Case Number Assignment
• May subordinate existing junior liens up to a maximum 125% CLTV. directly from FHA Connection
• A subordination agreement should be a condition of loan approval • Premium pricing is permitted
• No cash back to borrower permitted except for minor adjustments at closing not
exceeding $500.00 cash back.
• Refinance Authorization information must be obtained at Case Number
Assignment directly from FHA Connection and included in the loan file
• Premium Pricing is permitted
6. OCCUPANCY • Primary Residence
• A borrower who has re-occupied an investment or second home within 12 months from the application date is not permitted.
7. PROPERTY TYPES Eligible Properties Eligible Properties
• 1-4 units • 1-4 units
• PUDs • PUDs
• Modular Pre-Cut/Panelized housing • Modular Pre-Cut/Panelized housing
• Condos • Condos (including site condos) do not require condominium project approval
• Must be on FHA approved list and meet the guidelines as determined by the Loan-
level certification for Individual Unit Financing process The following streamline refinance transactions may only be done without an appraisal:
• Subject project must be reviewed for project approval. Refer to the Client Guide • Unit in a condo project that is withdrawn from FHA’s approved list
for the HUD Review and Approval Process (HRAP) and Direct Endorsement • Unit in a condo project that no longer meets the 51% occupancy requirement
Lender Review and Approval Process (DELRAP)
• If not approved, loan is only eligible for credit-qualifying streamline refinance Ineligible Properties
without appraisal • Co-ops
• Site Condos do not require condominium project approval • Manufactured Homes
• Properties located within designated Coastal Barrier Resource System (CBRS)
Ineligible Properties areas
• Co-ops
• Manufactured Homes
• Properties located within designated Coastal Barrier Resource System (CBRS)
areas
Product Summaries contain eligibility guidelines only. Consult the Client Guide for full details 10-1-2011
Page 3
GMAC BANK FHA STREAMLINE REFINANCE OPTIONS MATRIX
CREDIT QUALIFYING STREAMLINE REFINANCE WITH APPRAISAL CREDIT QUALIFYING STREAMLINE REFINANCE WITHOUT APPRAISAL
8. GEOGRAPHIC • Continental US, Alaska and Hawaii
LOCATIONS/ • Owner-occupied properties in Kansas with an LTV exceeding 100% require an appraisal.
RESTRICTIONS • Owner-occupied properties in West Virginia require an appraisal.
Note: Loans in West Virginia where the value is less than the combined loan amounts are not eligible. Therefore, maximum LTV/CLTV is 100% (excluding UFMIP)
• State specific regulatory requirements for all loans can be viewed at the following link. These restrictions supersede all underwriting guidelines set forth by GMAC Bank.
State Specific Requirements
9. UNDERWRITING • Loan must be underwritten by a DE Underwriter employed by GMAC Bank or by a GMAC Bank FHA Delegated Lender
• Loan may be underwritten by manual underwrite. Loans are eligible for submission to TOTAL Scorecard.
• The Loan Application (URLA) plus the HUD Addendum 92900A must be complete and fully executed by all borrowers prior to underwriting. An abbreviated version of the URLA is
not acceptable.
10. INVESTOR FHA
ELIGIBILITY
11. PROCESSING Streamline
STYLE
12. RATIO • AUS Approved Loans – Ratios evaluated by TOTAL Scorecard
REQUIREMENTS • Manual Underwrite and AUS Refer loans - Ratios 31% / 43%
• The DTI ratio of 43% may be exceeded with significant compensating factors provided the DTI does not exceed 50%
Ratios >43% 95% LTV
Greater than 15years 1.00% 1.15% 1.00% 1.15%
=or 90% LTV
Less than or equal to 15 years 1.00% .50% 1.00% .50%
> 78 and = or 95% LTV
Greater than 15years 1.00% .90% 1.00% .90%
=or 90% LTV
Less than or equal to 15 years 1.00% .25% 1.00% .25%
= or 95% LTV
Greater than 15years 2.25% .55% 2.25% .55
= or 90% LTV
Less than or equal to 15 years 2.25% .25% 2.25% .25%
= or < 90.00% LTV
Less than or equal to 15 years 2.25% None 2.25% None
Product Summaries contain eligibility guidelines only. Consult the Client Guide for full details 10-1-2011
Page 9
FHA MAXIMUM MORTGAGE CALCULATION WORKSHEET
FOR STREAMLINE REFINANCES WITH APPRAISAL
EFFECTIVE FOR CASE NUMBERS ASSIGNED ON OR AFTER NOVEMBER 17, 2009
Borrower Name(s): GMACM Loan #: FHA Case #:
1st CALCULATION – LTV Limitation
1. Appraised Value * 97.75% (0.9775) $
2. 1st Calculation Maximum Base Mortgage: 1. $
2nd CALCULATION – Existing Debt Calculation
1. Unpaid Principal Balance (plus up to one month of $
monthly MIP + 60 days interest charged by servicing
lender for the current month
2. Plus Allowable Borrower-Paid Closing Costs excluding
discount points* $
3. Plus Prepaid Expenses (includes per diem interest to
end of month on new loan + hazard insurance deposits
+ real estate tax deposits needed to establish the
escrow account) $
4. Minus Lender credit for closing costs and prepaid
expenses $
5. Subtotal $
6. Minus LESSER of:
a. Unearned UFMIP Refund (from
FHA Refinance Authorization or
appropriate MIP Refund $
Schedule)
- OR -
b. New Estimated UFMIP
$
c. Maximum UFMIP (lesser of a or b) $( )
7. 2nd Calculation Maximum Base Mortgage: 2. $
*Discount points may not be included in the new mortgage. If
the borrower has agreed to pay discount points, the lender
must verify the borrower has assets to pay them along with
other financing costs that are not included in the new mortgage
amount.
MAXIMUM BASE MORTGAGE $ Lesser of calculations 1, or 2
Plus UFMIP (if financed) $ (Maximum Base mortgage x UFMIP
factor based on when case # was
ordered – refer to UFMIP chart)
TOTAL NEW MORTGAGE AMOUNT: $ (Must be <= 100% of the Appraised
Value)
The loan amount may exceed the current statutory loan limits if the new mortgage complies with standard product guidelines and
specific requirements. Refer to the FHA Streamline Refinance Options Matrix.
Last updated 10-1-11
FHA MAXIMUM MORTGAGE CALCULATION WORKSHEET
FOR STREAMLINE REFINANCES WITHOUT APPRAISAL
EFFECTIVE FOR CASE NUMBERS ASSIGNED ON OR AFTER NOVEMBER 17, 2009
Borrower Name(s): GMACM Loan #: FHA Case #:
1st CALCULATION – Total Loan Amount of Current FHA Loan $
2nd CALCULATION - Existing Indebtedness
1. Unpaid Principal Balance (plus up to one
month of monthly MIP + 60 days interest $
charged by servicing lender for the current
month
2. Minus LESSER of:
a. Unearned UFMIP (from
FHA Refinance
Authorization or $
appropriate MIP Refund
Schedule)
- OR -
b. New Estimated UFMIP $
c. Maximum UFMIP (lesser of a or b) $( )
3. Maximum Base Mortgage: $
FINAL COMPUTATION
MAXIMUM BASE MORTGAGE $ Based on the lesser of calculations 1
or 2
Plus New UFMIP $ (Maximum Base Mortgage x
UFMIP factor based on when case
# was ordered – refer to UFMIP
chart)
TOTAL NEW MORTGAGE AMOUNT: $
The loan amount may exceed the current statutory loan limits if the new mortgage complies with standard product
guidelines and specific requirements. Refer to the FHA Streamline Refinance Options Matrix.
Last Updated 10-1-11