Federal Housing Administration (FHA) Product Matrix

Transcription

1 Federal Husing Administratin (FHA) Prduct Matrix APPRAISAL All FHA appraisals are valid fr 120 days including New Cnstructin and HUD REO s. Per ML , FHA apprved lenders are prhibited frm accepting appraisals prepared by appraisers wh are selected, retained r cmpensated in any manner by a mrtgage brker r any member f a lender s staff wh is cmpensated n a cmmissin basis tied t the successful cmpletin f a lan. When the appraisal is lgged int FHA Cnnectin, the appraiser s name will be added. FHA will n lnger insure lans perfrmed by appraisers wh are nt current n the FHA Appraiser Rster at the time f the effective date f the appraisal. The effective date f the appraisal cannt be befre the case number assignment date f the appraisal unless the lender certifies, via the certificatin field in Appraisal Lgging Screen in FHA Cnnectin, the appraisal was rdered fr Cnventinal lending (including USDA) but was perfrmed by an FHA Rster Appraiser and was cnverted t an FHA appraisal. The file must cntain dcumentatin in the case binder substantiating the cnversin. FHA allws nly ne appraisal t be used t determine value. Please refer t ML fr the circumstances under which a secnd appraisal may be rdered and the value used in underwriting. When a case number is transferred after the appraisal has been cmpleted, the lender is nt permitted t request that the appraiser change the name f the client. FHA des nt require that the client name n the appraisal be changed. BORROWERS (ELIGIBLE AND INELIGIBLE) CAIVRS AND DEFAULTED FEDERALLY INSURED DEBT CASE NUMBER ASSIGNMENTS All brrwers must have a minimum mid FICO f at least 640. All brrwers must have a valid Scial Security number. Permanent and nn-permanent Resident Aliens, prvided they Have a valid SSN Are eligible t wrk in the US Occupy the prperty as a principal residence. At least ne brrwer must be an wner ccupant. Ineligible brrwers include but are nt limited t Any individual withut a valid SSN Individuals with nly US Taxpayer ID (ITIN). An ITIN is frmatted like a SSN, but begins with 9. Any individual listed n HUD s LDP r GSA lists Freign Natinals and brrwer with diplmatic immunity Mre than 4 brrwers n a transactin. Every file must cntain prf f a clear CAIVRS number fr each brrwer. If a brrwer r lan dcumentatin indicates the brrwer has an utstanding indebtedness fr a gvernment verpayment, educatin r hme lan in default, r indebtedness resulting frm a previus claim, they are nt eligible fr a new lan until they can prvide evidence f payment in full f the debt OR there is a pre-existing repayment plan established between the brrwer and the federal agency with 12m paid as agreed verified in writing with FHA cnnectin. Per ML , a case number is valid fr up t 6 mnths. A case number will autmatically be cancelled by FHA systems when there has been n activity fr 6 mnths. Case numbers that were autmatically cancelled will nt be re-instated unless the mrtgagee prvides evidence that the subject lan clsed prir t cancellatin r prf f an undue hardship t the brrwer that is unrelated t recent changes t premiums and underwriting requirements. Fr Spnsred Originatrs, TIB will rder the Case Number. TIB requires that a lan be registered fr the brrwer and the subject prperty. TIB requires this because they will have t certify that an applicatin exists fr the brrwers listed and the subject prperty. FHA Husing Prduct Page 1 f 9

2 Federal Husing Administratin (FHA) Prduct Matrix CASH TO BORROWERS CLOSING COSTS AND ALLOWABLE FEES CLOSING REQUIREMENTS Cash back at clsing n Rate/Term refinances is limited t $500 and due t incidental changes in payff and recalculatin f clsing csts and pre-paid, r fr reimbursement f ut f pcket expenses. Cash back in Texas is nt allwed. Cash back at clsing n a Purchase transactin is rare and must be reviewed n a case by case basis. Brrwer must have a 3.5% investment int the transactin. Any funds reimbursed t the brrwer n the HUD-I cannt impact this investment. Dcumentatin must be prvided that the funds came frm brrwers accunt. Brrwer cannt be reimbursed fr items that were paid by credit card. Fr lans clsing thrugh TIB s Fulfillment prcess, lenders may nt charge an riginatin fee r a prcessing fee if the lan applicatin was taken n r after 4/1/11. FHA des nt allw lenders t charge a Tax Service Fee. Lenders cannt mark up any third party fees. Fr lans clsing by an FHA Spnsred Originatr, the lans must clse in TIB s name. TIB requires that the lender use Piersn Pattersn LLP, r Rbersn/Anschutz s fulfillment services. TIB requires that the appraisal and title wrk reflects TIB as the lender when a lan is clsed by an FHA Spnsred Originatr. Interest credits are allwed. Lan must fund by the 5 th calendar day f the mnth preceding the first payment date. Real Estate Cmmissins are limited t 8%. Pwer f Attrney is allwed prviding the brrwer has signed the initial disclsures and it is specific t the transactin. CREDIT HISTORY All brrwers must have at least ne valid FICO scre. Minimum mid FICO fr all brrwers is 640 fr all lan types. N nn-traditinal credit is allwed. If the credit reprt indicates a disputed accunts ttaling <$1,000.00, the underwriter must dwngrade the lan t a manual underwrite. Manual underwriting guidelines fr ratis and dcumentatin will be fllwed. Per ML , if a lan receives an accept/apprve thrugh TOTAL Screcard, the brrwer s decisin t participate in credit cunseling des nt trigger a requirement fr additinal dcumentatin since the credit bureau scres already reflect any degradatin in credit histry. TIB cnsiders a Shrt Sale and/r Shrt Pay ff as a Freclsure and fllws Freclsure guidelines. FHA des allw that under certain circumstances a brrwer may be eligible fr a new mrtgage prir t the three year waiting perid, but TIB is nt cnsidering thse circumstances at this time. COMMUNITY PROPERTY STATE REQUIREMENTS CONDOMINIUMS AND PUDS ENERGY EFFICIENT MORTGAGE (EEM) Cmmunity Prperty States are Arizna, Califrnia, Idah, Luisiana, Nevada, New Mexic, Texas, Washingtn and Wiscnsin. If a brrwer r a prperty is lcated in a Cmmunity Prperty State, the debts f a nn-purchasing spuse must be cunted in the brrwer s qualifying ratis. Any negative credit des nt impact the lan with the exceptin f items that may impact title r with delinquent Federal debts. FHA requires that the file cntain prf f the nn-purchasing spuse s Scial Security Number. TIB des nt accept prperties in Cndminium cmplexes. FHA requires Cndminiums must be apprved either thrugh DELRAP (DE Endrsement Lender Review and Apprval Prcess) r HRAP (HUD Review and Apprval Prcess). FHA n lnger has any requirements fr the apprval f PUD s. Bth Detached and Attached are acceptable t TIB. Nt available at this time. FHA Husing Prduct Page 2 f 9

3 Federal Husing Administratin (FHA) Prduct Matrix ESCROWS Escrw waivers are nt allwed under any circumstances. ESCROW Nt allwed with TIB. HOLDBACKS FLIPPING FHA defines prperty flipping as the practice whereby recently acquired prperty is resld fr a GUIDELINES cnsiderable prfit with an artificially inflated value, ften abetted by a lender s cllusin with an appraiser ( Handbk) The restrictins d nt apply t New Cnstructin FHA requires that the seller n the transactin must als be the Owner f Recrd FHA restricts the insuring f any prperty which has transferred title within 90 days r less. FHA defines acquisitin as the date f settlement n the seller s purchase, and the re-sale date as the date f cntract executin by the buyer. FHA has issued a Federal Register Ntificatin that the restrictin frm sale in 90 days r less has been lifted until 12/31/2011 under certain circumstances. If the prperty has been sld in 90 days r less, TIB will allw the transactin as lng as the resale price des nt exceed mre than 20% f the seller s acquisitin price; regardless f any wrk that has been dne t the prperty. The transactin must als be a nn-arm s length transactin with a 2 nd full appraisal thrugh FHA registered appraiser [if 2 nd value is mre than 5% less 2 nd value t be used]. If the resale date f a prperty is between 91 and 180 days fllwing the acquisitin and the resale price is 100% r mre than the price paid by the seller when the prperty was acquired, TIB will btain a 2 nd appraisal. This appraisal may nt be charged t the brrwer. FHA has granted exceptins t these requirements fr prperties acquired thrugh a valid relcatin, fr re-sales by HUD, US Gvernment agencies, nnprfits apprved by HUD and sales f prperties by state and federally charted financial institutins and gvernment spnsred enterprises r lcal and state gvernments. Prperties with Presidentially Declared Disaster Areas and sale f prperty that are acquired by the seller thrugh an inheritance are als exempt. Refer t HUD Handbk FORMS AND Applicatin DISCLOSURES FHA Addendum t 1003 pgs. 1 and 2 (HUD 92900a) Imprtant Ntice t Hmebuyer (HUD B) Infrmed Cnsumer Chice Disclsure Ntice FHA Assumptin Ntice Fr Yur Prtectin: Get a Hme Inspectin (HUD CN). This is nt required n New Cnstructin r n Refinances Fr Underwriting Purpses FHA Case Number Assignment Lan Underwriting and Transmittal Summary (HUD LT) FHA Addendum t 1003 pg. 3 (HUD 92900a) Cnditinal Cmmitment Direct Endrsement Statement f Appraised Value (HUD B). The underwriter will use this frm t apprve the appraisal. TIB will generate this frm. Fr Clsed Lan packages FHA Addendum t 1003 pgs. 1 thrugh 4 (HUD 92900a) FHA Amendatry Clause (Fr Purchase transactins nly) FHA Real Estate Certificatin (Fr Purchase transactins nly) Cmpliance Inspectin Reprt (HUD 92051). This frm is used by Fee Inspectrs r Appraisers t reflect cmpletin f Cnstructin r repairs. This frm must als be signed by the DE Underwriter. 1004D - This frm can be used by appraisers fr nnstructural repair cmpletin. Htel and Transient Use Frm (HUD 92561). All 2 4 unit prperties must cntain this frm. FHA Husing Prduct Page 3 f 9

4 Federal Husing Administratin (FHA) Prduct Matrix FORMS AND DISCLOSURES - cntinued Builder Certificatin (HUD 92541). This frm is required n all Prpsed Cnstructin, prperties Under Cnstructin, and Existing prperties that are less than ne year ld. Warranty f Cmpletin (HUD 92544). This frm is required n all Prpsed Cnstructin, prperties Under Cnstructin, and Existing prperties that are less than ne year ld. Termite Inspectin frms NPCA 99a [ shwing chemicals used then] add NPCA 99b. These frms are required n all Prpsed Cnstructin, prperties Under Cnstructin and Existing prperties that are less than ne year ld in termite states. GIFT FUNDS See Surce f Funds sectin LENDER ELIGIBILITY Lenders must either have Full FHA apprval r be accepted as a Spnsring Originatr. TIB will place lenders n ur Spnsred Originatr list nce we receive a request and the lenders EIN number. TIB requires that lenders attend training with ne f the tw Fulfillment Cmpanies prir t clsing any lans thrugh the Fulfillment prcess. LIABILITIES Installment debts under $100 and less than 10 mnths will autmatically be mitted by TOTAL Screcard. Debts ver $100 are cnsidered t impact the brrwer s ability t repay the lan and will be cunted regardless f the number f mnths left. Fr revlving debts, if n payment n the credit reprt use the greater f 5% r $10 Cntingent liabilities can be mitted if the primary bligr fr the accunt can prvide prf they have been making the payments fr the previus 12 mnths and d nt have a histry f delinquent payments. Please nte the debt cannt be mitted if nly the brrwer is bligated n the debt. Payments n 401(k) r ther secured lans d nt have t be added t the debt-t-incme rati. Hwever, the asset securing the debt cannt be cunted as an asset either. Student lans if the actual payment is zer r nt available, use 2 percent f the utstanding balance fr the mnthly payment. Deferred liability-use the payment t be paid n a deferred liability, when available. If the actual payment is nt available, must the terms f the deb r 5% f the utstanding balance. LOAN TERMS 15, 20, and 30 years LOAN TYPES TIB nly ffers 203(b) LEASEHOLDS Must cmply with FHA Requirements fund in Handbk. When the appraisal is lgged int FHA Cnnectin, the leasehld infrmatin must be entered. FHA requires the term f the lease extend at least 10 years beynd the mrtgage maturity. MAXIMUM LOAN AMOUNTS TIB des nt d any FHA Jumb (ver $417,000) FHA publishes Mrtgage Limits at Limits are based n the cunty that the prperty is lcated and by the number f units. Lan limits d nt include UFMIP Bth LP and DU will verify Cunty Limit if infrmatin is entered. 1 Unit 2 Unit Basic Standard $271,050 $347,000 Lan Limits MAXIMUM LTV Maximum LTV varies depending n lan type. TIB des nt allw any new Secndary Financing n Purchase Transactins. 96.5% maximum LTV/CLTV fr Purchase transactins and Build n Own Land (BOOL) transactins % maximum LTV fr Rate/Term Refinances. 85% maximum LTV fr Cash Out Refinances. (Cash Out Refinances are nt available in Texas) Per ML , fr case numbers assigned n r after April 15, 2011, Nn-Qualifying Streamline Refinances are limited t the sum f the utstanding principal balance and the new UFMIP; FHA Husing Prduct Page 4 f 9

5 Federal Husing Administratin (FHA) Prduct Matrix MAXIMUM LTV - cntinued MORTGAGE INSURANCE (Up Frnt and Mnthly) regardless if there is an appraisal r nt. Mrtgagees may nly increase the insurable balance beynd the sum f the utstanding principal balance and the new UFMIP by using a creditqualifying refinance with an appraisal. TIB will require that this be dne as a Rate/Term refinance and the lan scred by TOTAL Screcard. On FHA lans, mrtgage insurance is cllected t insure the lender against default. An upfrnt mrtgage insurance premium (UFMIP) is cllected n all lans. The UFMIP is a percentage f the base lan amunt (lan amunt excluding UFMIP). The mrtgage amunt is runded dwn t a multiple f $1, regardless f whether r nt the UFMIP is financed. If financed in the mrtgage, the UFMIP is nt subject t the statutry lan amunt limits. Additinally, an annual mrtgage insurance premium (MIP), which is paid mnthly, is cllected. The annual MIP is calculated n the base lan amunt and lan term. See HUD Handbk fr additinal infrmatin. Per ML annual mrtgage insurance premiums will decrease with case numbers assigned n r after January 26, 2015 fr lans terms greater than 15 years. Fr mrtgages with terms mre than 15 years, annual mrtgage insurance premiums will remain n the lan until the balance equals 78%, prvided the mrtgagr has paid the annual insurance premiums fr at least 5 years. Fr mrtgages with terms 15 years r less, the annual MIP will be cancelled with the LTV reaches 78%, irrespective f the length f time the mrtgagr has paid the Annual MIP.**Nte: Changing annual culd affect APR n the TIL. Verify still in Reg Z cmpliance Effective fr case numbers assigned n r after January, 26, 2015 Lan Terms Greater than 15 Years Purchase, Full-Credit Qualifying Refinances and UFMIP Annual Streamline Refinances < $625, & <95% LTV 1.75%.80% < $625, & >95% LTV 1.75%.85% > $625, & < 95% LTV 1.75% 1.00% > $625, & > 95%LTV 1.75% 1.05% NEW, PROPOSED AND UNDER CONSTRUCTION Lan Terms Less than 15 Years Purchase, Full-Credit Qualifying Refinances and UFMIP Annual Streamline Refinances < $625, & 78.01% % LTV 1.75%.45% < $625, & >90% LTV 1.75%.70% > $625, & % 1.75%.70% > $625, & 90.00% 1.75%.95% Any Amunt < 78% 1.75%.45% FHA has three categries f newly cnstructed prperties. All require additinal dcumentatin ver an existing prperty. Please refer t fr cmplete dcumentatin requirements. Prpsed Cnstructin is defined as a prperty where n cncrete r permanent materials have been placed. Digging f ftings and placement f re-bar is nt cnsidered permanent. Subterranean Termite Treatment Reprt NPCA 99a and 99b, if applicable Health Authrity apprval f well and septic, if applicable Builder s Certificatin (HUD 92541), signed at dated up t 30 days prir t the date f the appraisal Builder s 1 year Warranty (HUD 92544) Any ne f the fllwing: Building Permit and Certificate f Occupancy FHA Husing Prduct Page 5 f 9

6 Federal Husing Administratin (FHA) Prduct Matrix NEW, PROPOSED AND UNDER CONSTRUCTION - cntinued NON OCCUPYING CO BORROWERS 10-year Warranty and Certificate f Occupancy 10-year Warranty and Final Inspectin by HUD Fee Inspectr 3 Inspectins frm HUD Fee Inspectr. Fr this ptin, appraisal must be cmpleted prir t start f cnstructin Under Cnstructin is defined frm the first placement f cncrete r ther permanent material t 100% cmpletin. Subterranean Termite Treatment Reprt NPCA 99a and 99b, if applicable. Health Authrity apprval f well and septic, if applicable Builder s Certificatin (HUD 92541), signed and dated up t 30 days prir t the date f the appraisal Builder s 1 year Warranty (HUD 92544) Any ne f the fllwing: Building Permit and Certificate f Occupancy 10-year Warranty and Certificate f Occupancy 10-year Warranty and Final Inspectin by HUD Fee Inspectr Existing Less than 1 year is when the appraisal is perfrmed after the hme is 100% cmplete but prir t ne year fllwing cmpletin f cnstructin and btaining ccupancy permit. New cnstructin exhibits are required when the huse is less than 1 year ld, even if previusly ccupied. Subterranean Termite Treatment Reprt NPCA 99a and 99b, if applicable. Health Authrity apprval f well and septic systems, if applicable Builder s Certificatin (HUD 92541), signed and dated up t 30 days prir t date f the appraisal Builder s 1 year Warranty (HUD 92544) Any ne f the fllwing: Building permit and Certificate f Occupancy 10-year Warranty and 100% cmplete appraisal TIB requires that all nn-ccupying c-brrwers t be related t the brrwers by bld, marriage r law r have a dcumented lngstanding substantial family-type relatinship. FHA allws maximum financing fr related parties except fr nn-arm s length transactins. OCCUPANCY Owner ccupied primary residences nly HUD defines a primary residence as the lcatin where the brrwer resides fr a predminant amunt f the year. Family members, wh are nt n the lan, may nt be used t meet their ccupancy requirement. An example f an unacceptable situatin is if the brrwer wrks verseas fr 10 mnths f the year. Even if the spuse resides in the prperty, it des nt FHA requirements and is uninsurable. OVERLAYS Minimum f 640 FICO fr each brrwer Only allwable Nn-Traditinal credit is VOR (Verificatin f Rent); all ther types are unacceptable Maximum DTI f 49% Only Gvernment spnsred dwn payment assistance (DAP) allwed n Purchase Transactins. Maximum number f financed prperties is 4 File must include 2 years f Federal Tax Transcripts 8% cap n Real Estate Cmmissins n purchase transactins N 3-4 unit prperties N Cndminiums All lans must be scred thrugh TOTAL Screcard. TIB will nly purchase lans with Apprve/Eligible findings. TIB requires letter f explanatin n any mrtgage late reflected n the credit reprt. N EEM s FHA Husing Prduct Page 6 f 9

7 Federal Husing Administratin (FHA) Prduct Matrix PROPERTY ELIGIBILITY 1-2 unit prperties nly All prperties must be shwn in average r better cnditin. (TIB will nt accept any prperty listed in fair cnditin.) Ineligible Prperties include: Cndminiums r C-Ops 3 r 4 unit prperties Manufactured Hmes Prperties with water purificatin systems Lans riginated under expanded FHA back t wrk guidelines. Prperties in Special Fld Hazard Area where fld insurance is nt available Castal Barrier Resurces Systems areas Prperties with site hazards and nuisances High vltage, Overhead twers, High Pressure Gas easements ETC. Prperties which d nt meet HUD s minimum prperty standards r TIB Q & C ratings. RATIOS Standard underwriting guidelines are 31/43. T exceed these guidelines, file must cntain valid cmpensating factrs r have a valid TOTAL Screcard apprval. TIB has a maximum DTI f 49%. REFINANCE TRANSACTIONS Per ML11-11, if there is an existing subrdinate lien n the prperty such as a HELOC, the entire lien must be subrdinated at refinance. Als fr the calculatin f the CLTV, the mrtgagee must use the maximum accessible credit limit f the existing subrdinate lien. Rate/Term refinance Maximum LTV/CLTV is 97.75% Brrwer must be current Lan must be underwritten by TOTAL Screcard New lan amunt may include payff f existing 1 st lien, payff f any purchase mney 2 nd liens, any junir liens ver 12 mnths ld, clsing csts, prepaid expenses, brrwer paid repairs required by the appraiser, discunt pints, and then subtract any UFMIP refund. Any prtin f an equity line f credit in excess f $1000 that was advanced in the last 12 mnths is nt eligible t be included unless file cntains prf it was used fr repairs and rehabilitatin. If the prperty is wned less than 12 mnths and nt currently FHA insured, the lwer f the sales price when acquired r new appraised value is used when determining LTV. Cash Out Refinances Maximum LTV/CLTV is 85% Brrwer must be current and have made all payment within the mnth due fr the last 12 mnths. Fr mrtgages with mre than 6 mnths and less than 12 mnths f payment histry, the mrtgagr must have made all payments when due. Mrtgages with less than 6 mnths f payment histry are nt eligible fr a cash-ut refinance. Lans must be underwritten by TOTAL Screcard. Nn-ccupant c-brrwers may nt be used fr qualificatin purpses. Any c-brrwer r c-signer being added must be an ccupant f the prperty. If the prperty is wned less than 12 mnths, regardless if it is FHA insured, the new lan amunt is limited t the lesser f 85% f the new appraised value r sales price when acquired. Streamlines Refinances NO appraisals allwed n Streamline REFI Per ML 11-11, as f April 15, 2011, an appraisal cannt be used t increase the insurable mrtgage balance beynd the sum f the utstanding principal balance, less UFMIP refund, plus the new UFMIP. FHA Husing Prduct Page 7 f 9

8 REFINANCE TRANSACTIONS Cntinued Federal Husing Administratin (FHA) Prduct Matrix Maximum CLTV is 125% using the riginal value shwing n the refinance authrizatin. Assets sufficient fr clsing must be dcumented. Since these are manually underwritten lans, 2 mnths bank statements r a VOD must be prvided. TIB will require a verbal VOE and 4506T signed fr all brrwers, even thugh FHA n lnger requires certificatin f emplyment. RESERVES All reserves used t qualify a brrwer in TOTAL Screcard must be dcumented. FHA des require 6 mnths PITI in reserve fr all transactins (bth purchase and refinances) fr 3 and 4 unit prperties regardless f TOTAL Screcard. These reserves cannt be frm a gift. SPONSORED ORIGINATOR PROGRAM As f January 1, 2011, FHA n lnger allws Crrespndent Lenders but has instituted a Spnsred Originatr Prgram. Due t TIB s status as a Fully Apprved Supervised Lender, we are participating in this prgram. Lenders may be added t ur Spnsred Originatr list by prviding their Tax ID # t TIB. Piersn Pattersn, LLC and Rbertsn/Anschutz have been designated as ur Fulfillment Centers. Please cntact an FHA Underwriter fr all the specific details fr this prgram. SUBORDINATE FINANCING SELLER CON- TRIBUTIONS SOURCE OF FUNDS TEMPORARY BUYDOWNS TOTAL SCORECARD On Refinance Transactins, the existing subrdinate lien n the prperty must be subrdinated in its entirety. Per ML , n Refinance Transactins, when calculating Cmbined Lan t Value (CLTV), the mrtgage must use the maximum accessible credit limit f the existing subrdinate lien. On a purchase transactin, TIB allws nly Gvernment Spnsred Dwn Payment Assistance (DAP) Subrdinate Financing. FHA allws 6% seller cntributins. FHA requires all funds used t qualify be dcumented. Lans receiving an apprval thrugh TOTAL Screcard qualify fr dcumentatin relief. They require nly 1 mnth bank statement which has bth a beginning and an ending balance. FHA requires all large depsits be surced. Acceptable surces Gifts can cnstitute the entire investment and reserve requirements. Secured lans Grants Subrdinate financing frm Gvernment entity r an apprved Nn-prfit Unacceptable surces Unsecured signature lan Cash advance n credit cards Dnr s gift funds cannt be frm cash Origin must be dcumented Nt available at this time Technlgy Open T Apprved Lenders It is cnsidered a Screcard rather than an Autmated Underwriting System It is accessed thrugh either DU r LP FHA has set the fllwing tlerance levels Cash Reserves verified cannt be reduced by mre than 10% Incme verified cannt be mre than 5% less than verified Tax and Insurance escrw used cannt increase debt-t-incme rati by mre than 2%. TOTAL Screcard User Guide, Frequently Asked Questins and Develpers Guide can be fund at the fllwing link: FHA Husing Prduct Page 8 f 9

9 Federal Husing Administratin (FHA) Prduct Matrix UNDERWRITING CONSIDERATIONS TEXAS REFINANCE- SPECIFIC OVERLAY GUIDELINES TIB requires that all lans, with the exceptin f Streamline Refinances, be run thrugh TOTAL Screcard. TIB nly purchases Apprve/Eligible lans. FHA requires that a file which cntains any f the fllwing items, be manually dwngraded t a refer Dergatry Credit nt evaluated by TOTAL Screcard Previus freclsure in the last 3 years frm applicatin date Bankruptcy discharged in the last 2 years frm applicatin date Any mrtgage trade line r ther credit bligatin, during the last 12 mnths shws 3 r mre late payments f greater than 30 days, r 1 r mre late payment f 60 days plus 1 r mre 30 day late payments, r 1 payment greater than 90 days. Disputed accunts A TOTAL Screcard apprval des nt cnstitute lan apprval. Incidental cash back t the brrwer is nt allwed-effective with RESPA applicatin dates n r after July 1, 2014: Fees paid utside f clsing (POC) cannt be financed int the lan amunt In rder fr fees t be included in the lan amunt, the fee must be reasnable, incurred, and be a necessary clsing cst (i.e., required t clse the transactin) Principal curtailments are nt allwed n the HUD as the lan amunt is nt being reduced n the lan dcuments; clsing dcuments must be re-drawn lwering the lan amunt Reducing cash back t the brrwer by increasing the payff amunts n HUD results in prhibited cash back t the brrwer in the frm f a payff refund, and is therefre nt allwable Adding pre-paids/escrws t the new lan amunt when they have nt been netted frm the lan payff is nt allwable A TOTAL Screcard apprval des nt cnstitute lan apprval. FHA Husing Prduct Page 9 f 9