FHA Streamline Refinances and Greyhawk Updates
FHA Streamline Refinances
Effective for all loans locked or relocked on and after March 6th, 2009 we will require a credit current credit report on all refinances transactions. This requirement applies to all streamline refinances and traditional refinance. We also will now be requiring the following documentation on all Streamline refinance transactions as well;
- Evidence the existing loan is current
- If the loan is seasoned 12 months or more, evidence that the existing loan has not had any 30 day or greater mortgages lates in the past 12 months.
- If the loan is seasoned less then 12 months, evidence;
- The existing loan has no 30 day or greater mortgage lates since the inception of the loan, and
- No 30 day or greater mortgage lates for any other first mortgage loans associated with the property and borrower(s) in the most recent 12 months.
Effective with all locks or relocks received on or after February 23rd, 2009 the Greyhawk program is being revised as follows;
- Greyhawk Lender Paid MI; all loans must be funded to the borrower by March 6th, 2009
- No longer available in the state of Florida
- Arizona and California now have a max DTI of 45%
- Minimum fico is being raised to
- Arizona - 720
- Rest of the US - 680
- Delinquent Homeowners Association Dues (HOA): If more than 15% of units are more than 30 days delinquent, the project is ineligible.
- Fidelity bond coverage: Fidelity bond coverage is required on all projects more than 20 units..
- Commercial or non-residential space: May not exceed 20% of the total square footage and must be compatible with residential use.
- Pre-sale requirements: At least 70% of units in the project or subject phase must be sold, including closed sales and units under contract with bona fide purchasers.
- Illegal concession offerings: Concessions higher than the Wells Fargo Funding allotment make the project ineligible.
- Incomplete common amenities: All common areas and amenities within the project or subject phase must be complete. If incomplete, the project must meet all applicable Agency requirements.
- Insurance changes: Pooled insurance is ineligible.
- High Balance Loan Program: All project approvals must meet applicable Agency requirements.
- Maximum financing in the state of Florida: Maximum LTV cannot exceed 80% for any conforming condominium transaction in the state of Florida.
Please feel free to contact your VP of Wholesale Lending or the Commitment Desk for further clarification if needed.
Thank you for your continued business!!