1) Streamline Refinance
This document provides detailed FHA policy and underwriting guidance for several loan programs and scenarios. It outlines borrower eligibility, documentation, and underwriting requirements for non‑credit qualifying and credit‑qualifying Streamline Refinance loans, including special rules for payment‑history and forbearance. It explains the Section 203(h) disaster‑victim mortgage program, covering timing, credit‑score thresholds, LTV limits, and flexible documentation expectations. The guidance also covers HUD REO purchases, specifying which FHA products can be used for owner‑occupant versus investment buyers and the associated LTV caps. Broad manual‑underwriting approval requirements are listed, such as credit analysis, income and asset verification, PTI/DTI ratio frameworks, compensating‑factor considerations, and required HUD form documentation. Finally, the document notes CCM overlays that impose additional constraints, including a minimum FICO 550 for cash‑out refinances after May 1 2024, prohibition of LPA, and bans on temporary buydowns.
Topics
Non‑Credit Qualifying Streamline Refinance: Eligibility & Documentation
Eligibility hinges on all existing borrowers staying on the new loan, with limited exceptions (divorce, death). No credit report is required; an abbreviated URLA is used and many underwriting sections (credit, income, assets, DTI, appraisal, etc.) are omitted unless otherwise noted.
Credit‑Qualifying Streamline Refinance: Manual Underwriting Requirements
At least one original borrower must remain. All manual‑underwriting criteria apply except appraisal and LTV calculations, streamlining the process while preserving credit, income, and asset verification.
Mortgage Payment History & Forbearance Guidance for Streamlines
Specifies payment‑history thresholds for Streamline eligibility, including how to handle borrowers who completed forbearance plans. When the mortgage isn’t on the credit report, alternative documentation (VOM, bank statements) must be obtained to verify payments.
Section 203(h) Disaster‑Victim Mortgage Program: Eligibility & Flexibility
Covers the disaster‑victim loan product for properties in a Presidentially‑Declared Major Disaster Area. Highlights timing (case number within one year), credit‑score floor (500), 100% LTV, documentation of damage, and the expectation of flexible underwriting with alternative documentation when traditional sources are unavailable.
HUD REO Purchasing: Product Options and LTV Limits
Describes how borrowers may acquire HUD‑owned REO properties using FHA products. Owner‑occupants can use 203(b), 203(b) with Repair Escrow, or 203(k); investors may use 203(b) or 203(b) with Repair Escrow, subject to TOTAL Scorecard and manual underwriting. Maximum LTV for owner‑occupant REO purchases is 96.5% (subject to credit‑score‑based caps).
Core Manual Underwriting Approval Requirements
Lists the universal criteria applied when a file is manually underwritten: comprehensive credit analysis, income and asset verification, PTI/DTI ratio calculations, compensating‑factor framework, and required HUD form documentation (HUD‑92900‑LT, HUD‑92900‑A, HUD‑92800.5B). Also notes conditional approval and denial procedures per FCRA and ECOA/Regulation B.
CCM Overlay Requirements Impacting FHA Loans
Details overlay rules that add constraints beyond base FHA policy: minimum FICO 550 for cash‑out refinances after 5/1/2024, prohibition of LPA on FHA loans, and disallowance of temporary buydowns (both borrower‑paid and realtor‑funded).