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					                                                                                                                                                                                       PRODUCT INFORMATION CENTER

                                                                                                           FHA                                                                               714-841-0776 press 2 for pricing
                                                                                                                                                                                              https://www.jmaclending.com




                                                                                                                 15-Mar-10
             Purchase                            No Cash-out Refinance                  Cash-out Refinance           •   640 minimum credit score required for all Non-Credit Qualifying Streamline refinance loans.
                96.50%                                 97.75%                                   85%                  •   At application, the borrower must have made at least 6 monthly payments on the mortgage being refinanced.
                                                                                                                     •   Mortgage history: 0x30 if < 12 mos OR 1x30x12 if > 12 mos (0x30 required 3 mos prior to application.)
Streamline Refinance with appraisal allows 97.75% LTV max
                                                                                                                     •   A Net Tangible Benefit determination is required for all transactions.
                                                    Loan Limits                                                      •   Client must certify that the borrower is employed and receiving income at application.
           Region                     1 Unit                 2 Units            3 Units              4 Units         •   If assets are needed to close, the Client must verify and document those assets.
      Low Cost Areas                  $271,050              $347,000            $419,400             $521,250        •   Existing subordinate financing may remain in place if the CLTV is 100% or less.
                                                                                                                     •   $500 max. cash back allowed for minor adjustments in estimated versus final closing costs.
      High Cost Areas                 $729,750              $934,200           $1,129,250           $1,403,400
     Alaska and Hawaii            $1,094,625                $1,401,300        $1,693,875            $2,105,100
FHA mortgage limits for all areas: https://entp.hud.gov/idapp/html/hicostlook.cfm
                                            Mortgage Insurance                                                       Streamline Refinance Without an Appraisal: The maximum insurable mortgage may not exceed:
                                                                                                                     • Outstanding principal balance minus the applicable refund of the UFMIP plus the new UFMIP that will be charged.
                       Purchase, No Cash-out Refinance, Cash-out Refinance
                                                                                                                     Streamline Refinance With an Appraisal: The maximum insurable mortgage is the lesser of:
                    › 15 Year terms                             ≤ 15 Year term                                       • 97.75% of the appraised value of the property plus the new UFMIP that will be charged on the refinance, OR
        LTV                  UFMIP                 Annual              LTV              UFMIP            Annual      • Outstanding principal balance minus the applicable refund of UFMIP plus up to 60 days interest,
       > 95%                 1.75%                 0.55%            > 90%               1.75%             0.25%        Borrower paid closing costs, Prepaids (taxes & insurance) as necessary to establish the escrow account,
       ≤ 95%                 1.75%                 0.50%           ≤ 90%                1.75%             0.00%        and the new UFMIP that will be charged on the refinance.

Streamline Refinance: UFMIP = 1.50%; Annual MIP follows the above grids.                                                                                         No Cash-out Refinance
MIP Notes:                                                                                                           The maximum insurable mortgage is the lesser of 97.75% of the appraised value of the property or the total
• Program eligibility is determined using the base loan amount prior to financing UFMIP.                             amount of the applicable items below, any UFMIP refund must then be subtracted:
• Pricing is determined using the Note loan amount. (Base loan amount + UFMIP)                                       • Existing 1st lien, any purchase money 2nd lien, any junior liens over 12 mos. old, borrower paid
• UFMIP must be 100% financed into the mortgage or paid entirely by cash; partial financing not allowed.              closing costs, prepaid expenses, borrower paid repairs (if required), discount points
                                                  Underwriting                                                       • The existing 1st lien may include up to 60 days interest, but may not include delinquent interest.
                                                                                                                     • Prepaid expenses may include per diem interest, hazard/mortgage insurance, and real estate taxes
• 640 min. credit score, regardless of AUS decision,
                                                                                                                      needed to establish the escrow account.
• All loans (except non-credit qualifying streamline refinance) must be decisioned through FHA TOTAL scorecard
                                                                                                                     • If the property was acquired < 12 months before the loan application and is not currently FHA-insured,
 by DU® or LP.                                                                                                        original sales price (rather than appraised value) must be used to determine the max. mortgage.
• A credit report will only be used to validate the credit score for non-credit qualifying streamline refinances.     • Existing subordinate financing (purch. money or > 6 mos old) may remain in place regardless of CLTV;
                                                 Documentation                                                        New subordinate financing (non-purchase money or < 6 mos old) is limited to 100% CLTV.
                                                                                                                     • $500 max. cash back allowed for minor adjustments in estimated versus final closing costs.
• Borrowers using non-traditional credit are not allowed.
• An IRS Form 4506-T must be signed, completed, and dated at application and at closing by all borrowers.
 In addition, IRS transcripts for the time period covered by the required income documentation must be
 obtained prior to loan closing for all borrowers (except on non-credit qualifying streamline refinance.)
                                                                                                                                                                   Cash-out Refinance
                                                   Loan Purpose                                                      • Value Determination: If the subject property has been the borrower’s principal residence owned for:
                                                                                                                       • ≥ 12 months: Use current appraised value
• Purchase       • No Cash-out Refi      • Cash-out Refi      • Streamline Refi (Credit and Non-Credit Qualifying)
                                                                                                                       • < 12 months: Use lesser of current appraised value or the sales price when the property was acquired
                                                  Property Types                                                     • Borrowers whose loans are delinquent or in arrears are not eligible.
• SFR/PUD (Attached and Detached)           • Condos            • 2-4 Units                                          • Existing or modified subordinate financing may remain in place (CLTV maximum at 100%).
                                                                                                                     • New subordinate financing: Maximum 85% CLTV
                                               Eligible Borrowers                                                    • Properties owned free and clear may be financed as cash-out transactions

• US citizens         • Non-occupant co-borrowers             • Permanent and non-permanent resident aliens

                                                    DTI Ratios                                                                                                  Appraisal Requirements
• 31/43%       Note: AUS approved loans may exceed this ratio up to 50%.                                             Appraisal Requirements
• 45% DTI maximum for jumbo loan amount.                                                                             • All appraisals must be completed by HUD-approved appraisers.
                                                                                                                     • A 2nd appraisal is required if property is located by appraiser designated soft market.
                                  Loan Program Names and Terms
                                                                                                                     • Please refer to the HUD Handbook for more information on the following appraisal requirements:
  Fixed Rate Programs                  Terms            ARM Programs                                     Terms           • Second appraisal policies tied to FHA Property Flipping requirements
  Gov 15                         10-, 15-Years          Gov ARM 1y                                       30 years        • FHA appraisal practices for properties located in a declining market
  Gov 30                       20-, 25-, 30-Years       Gov ARM 3/1                                      30 years    When a 2nd appraisal is required, the appraisal must be ordered from a different, HUD-approved appraiser;
  Gov 30 Buydown                      30-Years          Gov ARM 5/1 w/1-1-5 Caps                         30 years
** Maximum Total Fee 2.500% for loan origination and $750.00 for processing fee **

				
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