FHA Underwriting Guidelines
FHA Underwriting GuidelinesFHA Underwriting Guidelines.3Overlays .34506-C .3Appraisals .3Appraisal Management Companies .3Assets .3Sweat Equity.3Buy-downs.3Closing .3Closing in Trust .3Escrow Credits .4Condominiums .4Credit Reports .4Credit Scores.4Minimum Credit Scores.4Down Payment Assistance .4Escrow Holdbacks - Repairs .4Insurance.5Manually underwritten transactions .5Maximum Number of Flagstar Bank Loans .5MCC Credits.5Power of Attorney.5Products and Programs .5Ineligible Programs .5Property Eligibility.5Ineligible.5Property Inspections For Presidentially Declared Disaster Areas .6Purchases .6Purchases of Short Sales .6Ratios .6Recently Listed Properties .6Refinance Transactions .6Cash-Out Refinance.6Section 8 HOusing Vouchers .6Processes and Procedures .64506-C .6Appraisals .7Portability .7Property Addresses.8Second Appraisal Policy – Deficient Appraisals .8Borrowers .8Borrower’s Name .8Case Number Assignment/Transfer.9Case Number Functions .9Case Number Assignment – Data Entry .9Closing Requirements .9Notary Policy.9Escrow Credits .9Closing - Miscellaneous . 10Conflict of Interest . 11Credit Reports . 11VI. Underwriting GuidelinesReturn to Top1 of 1804/16//2021
FHA Underwriting GuidelinesAge of Credit Reports . 11DE Customers Only. 11Disclosures/Forms . 11Required Disclosures and Forms. 11Electronic Signatures . 13Escrow States. 13Escrows . 13Escrow Holdbacks - Repairs . 14Higher Priced Mortgage Loans (HPML). 14Industry Links/Flagstar Links/Contacts . 15Insurance. 15Hazard Insurance . 15Flood Insurance. 15Condominium Fidelity/Liability INsurance. 15HO-6 Policy . 16Loan Terms . 16Fixed Rate Mortgages . 16ARMS . 16Maximum Loan Amount. 16Net Tangible Benefit . 16Net Tangible Benefit Calculation Worksheets . 16State-Required Net Tangible Benefit Forms . 16Power of Attorney. 16Refinance Transactions . 17Streamline refinances and cash-out refinance loans . 17Short Payoff on a Rate and Term refinance. 17Social Security and Disability Benefits . 17Title. 17Energy Loan Tax Assessment Program (ELTAP) Liens . 17Mineral Rights – Exceptions to Title . 17Deed Restrictions . 17Unexpired Rights of Redemption. 18Underwriting Turn Times . 18VI. Underwriting GuidelinesReturn to Top2 of 1804/16//2021
FHA Underwriting GuidelinesFHA UNDERWRITING GUIDELINES HUD Handbook 4000.1 – Single Family Housing Policy Handbook FHA Single Family Housing Policy Handbook GlossaryOVERLAYS4506-C A fully executed IRS Form 4506-C must be included in all loan files, except for FHA Non-CreditQualifying Streamlines 1040 transcripts are required for the following income types:o Self-employedo Rental income documented on Schedule Eo Employed by familyo Fixed income types such as disability, social security, retirement, child support, alimony,etc., when the 1040s are obtained in lieu of alternative documentation such as award letters,1099s, bank statements, etc.APPRAISALSAPPRAISAL MANAGEMENT COMPANIESIf Flagstar will underwrite the loan, appraisals for the following properties must be ordered through aFlagstar approved appraisal management company: Property is a doublewide manufactured home Borrower is an employee in the sales or production function of any mortgage originating branchor companyASSETSSWEAT EQUITYNot allowedBUY-DOWNSIneligibleGIFT FUNDS/DPA Gift Funds – FHA transactions using gift funds the maximum DTI will follow AUS and allow giftfunds from blood relatives, employers and close friends only. Down Payment Assistance (DPA) with credit scores below 680: The total debt-to-income (DTI)cannot exceed 43%.CLOSINGCLOSING IN TRUST For loans closing in a trust, a Certificate of Trust (Lending), Doc. #3954 or similar form isrequired. For properties located in California, the California Trust Certificate, Doc. #3951 orsimilar form may be used.VI. Underwriting Guidelines3 of 1804/16//2021Return to Top
FHA Underwriting GuidelinesESCROW CREDITS If the refinance transaction pays off any servicer other than Flagstar, escrow credit for theborrower’s existing escrow balance is not permitted. Flagstar does not provide an interest-free advance for the payment of closing costs orestablishing escrowsCONDOMINIUMSFlagstar does not participate in DELRAPCREDIT REPORTSCredit reports for Streamline refinances must be tri-merge credit reportsCREDIT SCORESMINIMUM CREDIT SCORESMinimum FHA Credit ScoresLoan PurposeMinimum Credit Score1Purchase 1-2 Unit/PUD/Condo/203kPurchase 3-4 Units (excludes 203k)Rate and Term Refinance and Simple Refinance 1-2 Unit/PUD/Condo/203k 1Rate and Term Refinance and Simple Refinance 3-4 Units (excludes 203k)Cash-Out Refinance 1-2 Unit/PUD/Condo 2Cash-Out Refinance 3-4 Units 2, 3Streamline Refinance 1-2 Unit/PUD/CondoStreamline Refinance 3-4 Units1.203k available for approved DE Delegated Correspondents only2.Cash-out refinances maximum DTI cannot exceed 50%3.Cash-out refinances 3-4 Units maximum cash-in-hand 300,000620660620660620660620660DOWN PAYMENT ASSISTANCEAll community second and grant programs must be Flagstar-eligible. Refer to Gift/Grant Programs, Doc.#5935 or Community Seconds Programs, Doc. #5932.ESCROW HOLDBACKS - REPAIRS Closing documents must be prepared through Flagstar’s Web-Based Closing Documents (WBCD),and all repair escrows for Flagstar-underwritten loans are held by Flagstar Two bids required for all repair escrows except HUD REOo Escrow holdback will be 1½ times the highest bid - Bids may not exceed 6,666 formaximum escrow holdback of 10,000. Note: Overlay does not apply to purchases of HUDREO properties where FHA permits 10,000 in repairs and 11,000 repair escrow orproperties subject to disaster repairs where FHA limits the repair escrow to 5,000. One draw only permitted upon completion of repairsVI. Underwriting GuidelinesReturn to Top4 of 1804/16//2021
FHA Underwriting GuidelinesINSURANCEIf Flagstar underwrites the loan, HO-6 insurance coverage for condominiums and PUDs having anycoverage maintained under a master policy must be at least 20% of the property’s appraised value orreplacement cost.MANUALLY UNDERWRITTEN TRANSACTIONSManual Underwrites/Refer Responses/Non-Traditional, Alternative Credit or No Credit Score loans arecurrently suspended.MAXIMUM NUMBER OF FLAGSTAR BANK LOANSFlagstar will not approve and close or purchase loans for borrowers having more than five loans withFlagstar Bank or having an aggregate loan amount 4,000,000. The maximum number of loans andaggregate loan amount calculations include all of the following: Non-closed loans with Flagstar Bank Loans that are closed and currently serviced by Flagstar Bank Loans that were closed with Flagstar Bank but the servicing rights have been sold to another lenderwithin the most recent 24 monthsMCC CREDITSPermitted for Correspondent lenders who close in their own namesPOWER OF ATTORNEY Permitted for purchase or rate and term refinance only. Cash-out transactions may not close withany power of attorney other than a military durable power of attorney Powers of Attorney may not be e-signedPRODUCTS AND PROGRAMSINELIGIBLE PROGRAMS 203(K) and Limited 203(K) Title I Loans Home Equity Conversion Mortgages (Reverse Mortgages) Section 247 – Hawaiian HomelandsSection 248 – Indian ReservationsSection 184 – Indian Home Loan Guarantee ProgramSection 223(e) – Declining Neighborhoods FHA Negative Equity Refinance (ADP Codes 821, 822, 831, 832)Energy Efficient MortgagesPROPERTY ELIGIBILITYINELIGIBLE Properties with a PACE lien that will not be paid off prior to or at closing. Note: HERO loansare issued under the PACE financing program. Properties located in Puerto RicoVI. Underwriting GuidelinesReturn to Top5 of 1804/16//2021
FHA Underwriting Guidelines Manufactured homes unless the loan is a Flagstar to Flagstar rate and term or Streamlinerefinance:o Manufactured homes are not permitted in the following states: Colorado, Illinois,Kentucky, Louisiana, Missouri, New York, Pennsylvania, Texas, or U.S. Virgin Islands3-4 unit properties when one or more borrowers does not have credit scoresProperties having both a stick-built and manufactured home located on the same parcel orproperty unless the manufactured home is unoccupied and utilities are not hooked upInvestment properties under the HUD REO programPROPERTY INSPECTIONS FOR PRESIDENTIALLY DECLARED DISASTER AREASIf the Streamline refinance pays off any servicer other than Flagstar, an inspection meeting FHA’s disasterinspection requirement is required when the loan is cleared to close within 120 days of the disasterinspection.PURCHASESPURCHASES OF SHORT SALES Copy of the fully executed short sale agreement is required Must be an arms-length transactionRATIOS If the credit score is below 660 and the loan receives an AUS approve/accept the maximum DTIratio cannot exceed 55%.RECENTLY LISTED PROPERTIESCash-out, rate and term and Simple refinance: Property must be off the market at least one day prior to applicationREFINANCE TRANSACTIONSCASH-OUT REFINANCE Maximum cash-in-hand for 1-2 Unit – Follow AUS Maximum cash-in-hand for 3-4 Units - 300,000 Maximum DTI ratio for cash-out 1-4 Unit refinances cannot exceed 50%.SECTION 8 HOUSING VOUCHERSDue to system constraints, subsidies paid directly to the servicer are not permitted and may not bededucted from the borrower’s proposed housing payment when calculating the ratios.PROCESSES AND PROCEDURESProcesses and Procedures describe how to use Flagstar’s systems and tools to achieve FHA, GNMA andF
Appraisal Management Companies . Return to Top . FHA UNDERWRITING GUI DELINES HUD Handbook 4000.1 – Single Family Housing Policy Handbook FHA Single Family Housing Policy Handbook Glossary . OVERLAYS . 4506-C A fully executed IRS Form 4506- C must b
FHA Connection Guide FHA Connection Training Resources FHA Connection Training Resources This FHA Connection Guide module describes the FHA Connection's many training, information, and user assistance resources. Table 1: FHA Connection Training and Information Resources lists each title and gives a brief summary of its contents.
HUD requires that lenders use an FHA-registered underwriter to review and certify mortgage origination documents for compliance with the requirements of the FHA's mortgage insurance program. Use Underwriter Registry to add, change, or terminate underwriters registered with the FHA that are employed by your lending institution.
FHA Connection Registration: If you do not have an FHA Connection user ID, see the FHA Connection Guidemodule: FHA Connection Registration Procedures for instructions on how to apply for and receive a user ID (you may also find the other modules in the Getting Startedportion of the FHA Connection Guidehelpful).
7150,7200,7202,7250,7252,7300,7302,JUM7300,JUM7302 FHA Fixed Rate with Jumbo Addendum Page 1 of 27 For Correspondent Lenders Only. FHA Fixed Rate with Jumbo Addendum . General Description: FHA Fixed Rate principal and interest level payments for the life of the loan. Follow published FHA guidelines if item not addressed below.
Jun 06, 2001 · FHA References – Guide – 4155.1 rev 5 – FHA website www.hud.gov Other References – VA www.homeloans.va.gov?Credit Underwriting is the responsibility of the originating lender. . FHA Guidelines The sum of all liens cannot exceed 100% of the cost to acquire the property.
The existing loan is not required to be FHA insured. Loan is fully credit qualifying with appraisal. Impac’s FHA Simple Refinance program is a no cash-out refinance of an existing FHA-insured mortgage in which all proceeds are used to pay the existing FHA-insured mortgage lien on the subject property and costs associated with the transaction.File Size: 849KB
True or False: All FHA Insured Loans must be run through FHA Total Scorecard to be eligible for FHA Insurance. True or False: Borrowers who have entered into a Consumer Credit Counseling Program Must have completed the program a minimum of 2 years prior to loan application. 1-800-CALL FHA Servicing the American Homebuyer Since 1934
find protein coding genes in E.coli DNA using E.coli genome DNA sequence from the EcoSeq6 database maintained by Kenn Rudd. This HMM includes states that model the codons and their frequencies in E.coli genes, as well as the patterns found in the intergenic region, including repetitive extragenic palindromic sequences and the Shine - Delgarno motif. To account for potential sequencing errors .
