FHA Mortgage Guide

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.

Check out these FHA resources for more information

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.