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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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