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New FHA Mortgage Underwriting Chart Available

by Peter G. Miller
May 22nd, 2008

HUD has come out with a three-page chart showing refinancing options for FHA mortgage borrowers.

The chart compares FHASecure with a 95% cash-out refinance and an FHA-to-FHA refinance. This is an excellent chart for basic underwriting purposes — and also for borrowers who want to better understand HUD requirements.

For instance, you say you’re a delinquent conventional borrower seeking to refinance with FHASecure? Step right and meet the basic underwriting standards:

Borrower is delinquent but mortgage payment history shows that:

___during the 6 months prior to reset or extenuating circumstance there are no instances of making mortgage payments outside the month due; or

___during the 12 months prior to reset or extenuating circumstance there are no more than 1×60 late payment or 2×30 late payments; or

___no more than 1×90 or 3×30 during the 12 months prior to reset or extenuating circumstance provided the LTV on the FHA first does not exceed 90%.

___Delinquency was caused by rate reset or extenuating circumstance but does not affect borrower’s overall capacity to repay the FHA loan.

___Borrower delinquent on IO and/or payment option ARMs must demonstrate that they were making their monthly mortgage payments within the month due during the 6 months prior to rate reset.

___Standard 31/43 ratios may be exceeded with compensating factor(s), except for loans limited to 90% LTV mortgage payment history.

___Non-occupant co-borrowers may be added.

For the complete chart, please press here.

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This entry was posted on Thursday, May 22nd, 2008 at 12:26 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

One Response to “New FHA Mortgage Underwriting Chart Available”

  1. rob Says:

    I am in a bit of a dilemna and could use some advice. I own a condo which i bought in 2003 (fha loan) i cant sell now because i am upside down in terms of what i can sell for and what i owe. i need to move as my family is growing. I want to rent my condo and purchase a single family home by traditional loan. my mortgage underwriter is saying i cant use my rental income from fha loan towards getting approved for new loan. i have great credit and between my wife and i make a good living. is there any chance that these new fha rules dont apply to older mortgages?
    any advice would be great.

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