FHA Tid-Bit: Full-Qualifying vs Streamline Refinance

When does an FHA loan have to be full credit qualifying?

If the new loan amount is higher than the original loan amount, but, the new payment is less than 120% of the original payment, the loan is still an FHA Streamline.

But, if the payment goes over 120% of the original payment it becomes a full credit qualifying FHA loan.

FHA Mortgage Insurance Premiums

To clarify the amounts charged for FHA Mortgage Insurance Premiums, please see below. You can read the entire mortgagee letter at.... http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2008_MORTGAGEE_LETTERS/08-22%20MORATORIUM%20ON%20RISK-BASED%20PREMIUMS%20FOR%20FHA%20MORTGAGE%20INSURANCE.DOC

In summary:

Upfront Premiums: FHA will charge an upfront premium in an amount equal to the following percentages of the mortgage:

Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75%

Streamline Refinances (all types) = 1.50%

Annual Premium: Loan Term is "over" 15 years -

Over 95% LTV = .55% per year

Less than 95% = .50% per year

Annual Premium: Term is 15 Years or less

90.01% or greater = .25% per year

90% LTV or less = No Annual Premium

Notice: Running AUS files as of Jan 1, 2009

The new FHA guidelines that went into effect Jan 1, 2009 are not in DU / DO and will not be incorporated by Fannie Mae in an update until Jan 24, 2009.

Until then, we will continue to accept DU findings but will manually work around the problems associated with the calculations.

We'll post other updates and notices about this problem as they arise.