All Refinances Net Tangible Benefit is required for FHA Streamline Refinance Transactions only.
CAIVRS Perform and document a CAIVRS screening on all borrowers, except on Streamlines
Cash-out Refinance Are allowed at maximum LTV/CLTV of 85%. Six months seasoning required, unless inherited the property. Cash out less than 12 months must be calculated using the original sales price or current appraised value whichever is the
lessor of the two.
Eligible Borrower(s) U.S. Citizens, Permanent and Non-Permanent Resident Aliens. Non-permanent aliens require a current EAD card and evidence of previous renewal if expires less than one year. Resident Aliens require a copy of front and back of
Resident Alien Card.
High Balance 1-4 Properties. Min FICO 620 on Streamlines. 30 and 15 year terms. Cash–out Transactions allowed at 85%.
Loan Terms Available 15 and 30 Years. No ARMS
Maximum Number of Properties Subject to the “Seven-Unit” Limitation.
Non-Occupying Co-Borrower
• Maximum LTV is 75% or less when a parent is selling a residence to a child and is also a co-borrower.
• Maximum financing is allowed for loans having non-occupant co-borrowers related by blood, marriage or law or for unrelated individuals that can document evidence of a long-term family-type relationship provided the non- occupant co-borrower is not the seller and the property is a single-family residence.
• Maximum LTV is 75% when property is 2 to 4-units and there is one or more non-occupant co-borrower(s).
• Not allowed for cash-out refinances, unless the non-occupant co-borrower(s) are on the loan being refinanced.
• Unless otherwise exempted (e.g., military service with overseas assignments, U.S. citizens living abroad), any non-occupying co-borrowers or co-signers must have a principal residence in the United States. All references to co- borrowers – including the 75 percent LTV limits. (4155.1: 4.A.1.f).
— The borrower’s U.S. residence must be reflected as the present address on the loan application.
— The borrower’s foreign address must be reflected as the mailing address on the loan application.
— A LOE from the borrower must be obtained to explain the borrower’s current residency situation.
• All borrowers, regardless of occupancy status, must sign the security instrument and mortgage note. Note: Co-signers do not execute the security instrument or take title, but they must sign the mortgage note.
• A party who has a financial interest in the mortgage loan transaction, such as the seller, builder, or real estate agent, may not be a co-borrower or a co-signer.
— Exception: Exceptions may be granted when the party with the financial interest is related to the borrower by blood, marriage, or law.
• FHA does not require that additional underwriting criteria, such as specific qualifying ratios, be met by either:
— Non-occupying borrowers, or
— Occupying borrowers with sufficient credit.
Property Listed for Sale * Properties listed for sale within the past 180 days are eligible for rate/term or cash out refinance, however cash out refinances are limited to 70% LTV. Properties listed for sale must have been taken off the market at least one day prior to the date of the application
Qualifying Fixed Products Qualify at Note Rate
Streamline Refinance Post loan endorsed on or after 01-01-2010. At least one Borrower must be employed. If on fixed income must verify SSI/Pension deposits on bank statements; Must meet FHA’s required Net Tangible Benefit per ML 11-11. Social
Security Card and/or SSA89 Validation is required.
1) Current Residential Bancorp Servicing Loan: A mortgage only rating with FICO score credit report is required. No minimum FICO score is required for qualification. However, if FICO score is below 620, the price adjustment listed on the rate sheet that reads “FICO <620 Streamline RB to RB" applies.
2) New Borrowers (loans currently not serviced by RB): A mortgage only rating with FICO score credit report is required. Minimum FICO score required is 580. Use the price adjustment reflected on RB's rate sheet for 580-619.
Streamline Subordination Process for All CalHFA Junior Loans Homeowners can refinance their first mortgage loans, without being forced to pay off their existing CalHFA Junior loan (s) or declare a hardship.
1) New first loan must lower borrower's monthly mortgage payment or replace an existing loan with a more stable product.
2) Borrower must have insufficient funds to pay-off existing CalHFA Junior loans(s), and
3) Property must continue to be the borrower's principal residence.
4) Subordination process, procedures and forms can be found at www.calhfa.ca.gov/homeownership/programs/subordination.pdf