Indiana FHA Refi and streamline Changes now in effect

Changes have come to an Indiana FHA Lender near you. The HUD Mortgagee Letter 08-40 gives us changes to Indiana FHA refinances and are effective January 1^st. This Mad Mortgage Machine update will include guidelines that are not being changed, but I have listed them anyway as a review for those Average Joe LOs that read my blog and a refresher to the rest of you already familiar with FHA guidelines.

There are 10 Things that you really need know about the recently updated Indiana FHA Refinance Guidelines:

1. The max LTV for rate & term Indiana refinances (including streamlines WITH an appraisal) is 97.75%*

2. The max LTV for cash-out refinances is 95%* for loan amounts less than the conforming limit and 85%* for loan amounts at or above the conforming limit. (Must be on time 12 months and no 30 day lates)

3. Two appraisals will be needed for all cash-out refinances with an LTV > 85%

4. The mortgage has to be current for the month due

5. New or current 2nd mortgages are eligible with no maximum CLTV

6. Loan amount for the streamline refi WITHOUT an appraisal cannot be greater than the original loan amount

7. Up Front Mortgage Insurance Premium rates are 1.75% for all rate & term and cash-out refinances & 1.5% for all streamlines

8. The FHA Secure refinance has now been taken out behind the barn and shot

9. Loan amount CAN include: Closing costs, current month's interest, any prepayment penalty, prepays, any late charges,escrow shortages and points

10. Cash back on rate & term and/or streamline refinances CANNOT exceed $500

(All LTVs are before adding the UFMIP)

If you have any questions about Indiana FHA home loans or Indiana FHa Streamlines please give me a call at your earliest opportunity. I will be more than glad to help you any way possible.

I am the Mad Mortgage Machine

Dave Woodson