Monday, February 4, 2013

2013 Louisville Kentucky FHA Streamline Refinance Guidelines

2013 Louisville Kentucky FHA Streamline Refinance Guidelines






Louisville Kentucky FHA Streamline Refinances are FHA-to-FHA rate/term refinances designed to reduce the borrower’s principal and interest payments.  FHA offers the following types of processing:

• Streamline with Appraisal
• Streamline without Appraisal
.
Mortgage Payment History
The mortgage history must be 0X30 in the last 12 months, regardless of the AUS decision.
Net Tangible Benefit

The lender must determine that there is a net tangible benefit as a result of the streamline refinance transaction,
with or without an appraisal.  Net tangible benefit is defined as:
• reduction in the total
• refinancing from an adjustable rate mortgage (ARM) to a fixed rate mortgage,
mortgage payment (principal, interest, taxes and insurances, homeowners’
association fees, ground rents, special assessments and all subordinate liens),
OR
• reduction in the term of the mortgage.

Reduction in Total Mortgage Payment:  The new total mortgage payment is 5 percent lower than the
total mortgage payment for the mortgage being refinanced.

Items that can be included in a Louisville Kentucky FHA  Streamline Refinance are:
• The existing unpaid balance
• Interest due for the current month on the FHA loan being paid off
• A credit for excess funds in the borrower’s escrow account
• A charge for escrow shortages or negative escrow balance due
Items that cannot be included in the streamline refinance payoff:
• Fax fees or other miscellaneous fees shown on the payoff
• Any other debt including seasoned subordinate liens or money due an ex-spouse
• The new loan may not include any delinquent interest accrued from late payments
Current FHA loan must be  FHA insured in the state of Kentucky .

LOUISVILLE KY FHA REFINANCE-STREAMLINE WITH APPRAISAL

• Existing second liens may be subordinated, max CLTV is 125%.
• Mortgage must be current at time of closing and be 0X30 in the last 12 months.
• Loan amount may exceed original mortgage amount if supported by current appraised value.
• Incidental cash back at closing limited to a maximum $500.

Kentucky FHA Streamline Guidelines
Maximum Loan Amount
The maximum loan amount is the lower of:
1)  97.75% of the appraised value of the property plus the new UFMIP that will be charged on the refinance
-OR-
2) Outstanding principal balance minus the applicable refund of UFMIP, plus closing costs, prepaid items to
establish the escrow account and the new UFMIP that will be charged on the refinance.

• Current FHA loan must be FHA insured.
REFINANCE-STREAMLINE WITHOUT APPRAISAL
• Mortgage must be current at time of closing and be 0X30 in the last 12 months.
• Incidental cash back at closing limited to a maximum $500.
• Eligible on 203(b).
Maximum Loan Amount
To determine the maximum loan amount, use the outstanding principal balance minus the applicable refund
of the UFMIP plus the new UFMIP that will be charged on the refinance.
For other guidelines not listed in this manual, refer to general FHA (Federal Housing
Authority) guidelines located at:  www.hud.gov or www.hudclips.org



call 502 905 3708 for our free Louisville Kentucky FHA streamline Refinance analysis


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