New FHA Mortgage Underwriting Chart Available
May 22nd, 2008
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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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March 23rd, 2009 at 6:19 pm
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.