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FHA Streamline Policy

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					                                          FHA Streamline Policy



MegaStar will originate non-credit qualifying streamlines following the specific investor guidelines and
MegaStar overlays under following terms:

       Minimum fico 640 to $417,000 680 for loans >$417,800
       Three bureau credit report is required with fico scores
       Loan must be seasoned at least 6 months
       Loan must be current for month refinancing
       LDP/GSA must be checked
       5% Net Tangible Benefit applies and the comparison is based upon principal and interest and
        monthly MIP
       There can be no mortgage lates in last 12 months and for mortgages with less than 12 months
        payments made , the borrower must have made all payments within the month due
       Non-qualifying streamlines should not run through Total Scorecard
       All FHA guidelines (most current reference Mortgage letter 2011-11) must be followed
       All assets needed for closing must be verified with at least one month’s bank statement
       A reduction in term always requires full FHA refinance and is not eligible for a streamline loan
       Condominiums do not have to be warranted on an FHA streamline without an appraisal

MegaStar will still require income information in the file (current paystubs and W2s or tax returns for
self employed borrowers) and will still qualify the borrower in house. The DTI cannot exceed 50%.

Most investors only allow credit qualifying streamlines. Investor overlays and guidelines should be
consulted.

				
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