With rates dropping, and expected to continue to drop, we're going to see more demand for FHA Streamlines (non-credit qualifying rate/term refinances of borrowers who currently have an FHA loan).
Below is some general information on them, and a Submission Checklist
- Appraisal not required if loan amount does not exceed original loan amount
- DU Findings are not required
- Employment information is required on the 1003
- Income and Assets are not required on the 1003
- Max 1x30 on the Mortgage last 12 months
- Max $250 cash out
- VOM required at Submission
- Not allowed in Colorado, Minnesota, Nevada, or Ohio
- Payment must reduce by $50
- A borrower may not be removed from the loan........borrower may be added
- FICO adjustments on rate sheet do not apply
FHA Streamline Submission Checklist
General
q Loan Submission Form
q Borrowers/Co borrowers Signature Authorization Form
q 1003 with NVRL Rate and Terms (signed)
o Employment must be disclosed on 1003
q Good Faith Estimate
q Truth-In-Lending
q Title Report
q Copy of Current Note & HUD
q VOM
FHA Specific
q FHA DU Findings are NOT needed
q Notice to Homebuyers regarding Assumption Disclosure
q Informed Consumer Choice Disclosure
q 92900
q Clear Copy of ID's if Face-to-Face Interview (if applicable)
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