For non-traditional credit qualifying streamlined refinances, does the loan need to be scored by TOTAL?
A. No. The borrower pays the premium based on the old LTV and non-traditional underwriting requirements. FHASecure & Risk-based Q. Am I correct in assuming that the risk-based pricing grid is applicable to FHASecure? If so, does the 225/55 for delinquent borrowers supersede? How about the minimum 500 FICO for LTVs over 90% – how does that play into FHASecure? A. Yes, the risk-based premium structure is applicable to FHASecure with the exception of borrowers who are delinquent on their mortgage at the time of the refinance. Those borrowers will pay 225 basis points upfront and 55 basis points annually when the LTV is greater than 95 percent. If the borrower is delinquent and the LTV is equal to or less than 95 percent – by law – FHA cannot charge more than 50 basis points for the annual premium. A borrower is considered delinquent if the mortgage payment is 30 days or more past due.
Related Questions
- How is the total monthly mortgage payment on the existing loan(s) calculated for the purpose of qualifying the borrower for the H4H program?
- For non-traditional credit qualifying streamlined refinances, does the loan need to be scored by TOTAL?
- What are CHFA credit guidelines for qualifying for a loan?
