FHA Streamline - Submission Tips

·       Do Not disclose FICO score - do not write FICO score on rate lock form -

·       Do not run automated findings - manual underwrite only -

·       If the new base loan amount does not exceed the total loan amount from the previous loan, an appraisal is not required

·       Credit report - Mortgage rating only w/NO FICO Scores - need most recent 12 months unless loan is less than 12 months old

·       Copy of the current NOTE - not the MORTGAGE, not the HUD-1 - need the NOTE

·       Payoff letter should be submitted with file or as soon as possible as it is needed to calculate the loan amount

·       Satisfactory evidence of Social Security Number - SS card or W2 w/income blacked out is acceptable

·       Case number assignment - must have all streamline information completed

·       Refinance authorization is required - this provides information about their current loan as well as the amount of UFMIP Refund and netting authorization

·       LDP/GSA is required    

·       CAIVR's are not required

·       1003 and HUD addendums - Complete employment information but do not disclose income, assets or liabilities other than mortgage being paid off and the second mortgage if one is being subordinated on the loan application.  Brokers tend to leave this off the application and we are not aware a second exists until we receive the title report at time of conditions and then we have to ask for a subordination agreement at the last minute.  This last minute condition can be eliminated if 1003 is completed properly.  (Reminder: there is no CLTV restriction to subordinate an existing second on a streamline.)

·       All FHA and state disclosures required as usual

·       Title report

·       Hazard Insurance

I hope you find these FHA Streamline submission tips helpful and we ask that you use them to ensure clean loan approvals.