Wednesday, November 21, 2012

Louisville KY Kentucky FHA Streamline Refinance

 Kentucky FHA Streamline Refinance


Kentucky Streamline refinances are designed to lower the monthly principal and interest payments on a current FHA-insured mortgage. The Federal Housing Administration (FHA) provides mortgage insurance on loans made by FHA-approved lenders throughout the U.S. FHA mortgage insurance provides lenders with protection against loss as the result of homeowners defaulting on their mortgage loans.


FHA requires both a Monthly MIP and Up Front MIP. Information on the latest MIP factors can be found at the following link:
FHA MIP CHART

 Partial financing of the Up Front MIP is not allowed. The Up Front MIP must be 100% financed into the mortgage or paid entirely in cash. MAXIMUM LOAN AMOUNT
 Please see the AVM Requirements listed in the Property Section below for value determination requirements.
 Calculating the Maximum Mortgage Amount for Owner-Occupied Properties (for loans with or without appraisal):
 The maximum insurable mortgage cannot exceed the outstanding principal balance minus the applicable refund of the UFMIP plus the new UFMIP that will be charged on the refinance.
 Note that the outstanding principal balance may include interest charged by the servicing lender when the payoff is not received on the first day of the month but may not include delinquent interest, late charges or escrow shortages.
 The Maximum Base Loan Amount cannot exceed the FHA Statutory Mortgage Limit for each county or the "ceiling" amount listed in the chart below, whichever is less.
Ceiling Amounts

 1-Unit: $417,000
 2-Unit: $533,850
 3-Unit: $645,300
 4-Unit: $801,950

 New secondary financing is not allowed ESCROWS
 Tax and Insurance escrow required


Credit reports are not required, however a credit score and mortgage history must be provided. A mortgage-only credit report satisfies this
condition.

 Mortgage being refinanced must be current and borrower must have no 30 day or greater mortgage lates on the subject property in the most
recent 12 months
 At least six months payments have been made on the existing FHA-mortgage

properties includes the subject property along with any other financed mortgages, conventional or government.
COLLECTIONS  Collections totaling more than $5000 must be paid off prior to or at closing



Borrower must have at least one valid credit score
 Additional DTI restrictions for credit scores between 640-659
 For all files the maximum DTI is 45% (no exceptions)
 Three out of the four following parameters must be met:
 No gift funds from a privately held source to be included in transaction
 No credit delinquency allowed for the previous 12 months. Credit delinquencies will exclude medical collections, but include all other collections, judgments and tax liens within the most recent 12 months
 No mortgage lates in the previous 24 months
 Two months reserves, which must be sourced and seasoned BANKRUPTCY/FORECLOSURE/DEED-IN-LIEU
 Chapter 7:
 Discharged more than 24 months ago may be allowed
 Discharged between 12 and 24 months ago requires satisfactorily established credit and documentation showing the circumstances which caused the bankruptcy were beyond the borrower's control (i.e. unemployment, medical bills not covered by insurance). In these instances, it still falls upon the underwriter to make a final determination as to the overall quality of the file.
 Discharged less than 12 months ago is not allowed
 Chapter 13:
 Which the borrower has finished making all payments satisfactorily may be allowed
 With at least 12 months payments made satisfactorily and with Trustee or bankruptcy judge's approval may be considered.
 Foreclosure, deed-in-lieu, or short sale on delinquent mortgage:
 Not allowed in the previous 3 years






***Starting June 11, 2012 if you currently have an FHA loan you may qualify for a refinance that will reduce your upfront mortgage premium to only .01 percent and your annual premium of .55 percent!**


We service all areas of Kentucky including the areas below:
Louisville | Lexington | Bowling Green | Owensboro | Covington | Hopkinsville | Richmond | Florence | Georgetown | Elizabethtown | Nicholasville | Henderson | Jeffersontown | Frankfort | Paducah | Independence | Radcliff | Ashland | Madisonville | Winchester | Erlanger | Murray | St. Matthews | Fort Thomas | Danville | Burlington | Newport | Shively | Shelbyville | Glasgow | Berea | Bardstown | Shepherdsville | Somerset | Lyndon | Flatwoods | Lawrenceburg | Middlesborough | Mayfield | Mount | Washington | Campbellsville | Maysville | Edgewood | Versailles | Paris | Alexandria | Elsmere | Franklin | Harrodsburg | Fort Mitchell | Hillview | La Grange | London | Villa Hills | Oak Grove | Corbin | Middletown | Russellville | Highland Heights | Pikeville | Mount Sterling | Morehead | Leitchfield | Taylor Mill | Cynthiana | Lebanon | Princeton | Monticello | Wilmore | Central City | Bellevue | Cold Spring | Fort Wright | Douglass Hills | Union | Dayton | Williamsburg | Prospect | Crestwood | Vine Grove | Hazard | Columbia | Ludlow | Benton | Greenville | Scottsville | Grayson | Hurstbourne | Carrollton | Williamstown | Crittenden | Southgate | Crescent Springs | Walton | Stanford | Paintsville



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