The FHA 203(b) Loan Program - STM Partners

FHA Jumbo, Continued
Refinance
Guidelines
Payment
History
Minimum
Downpayment
Required from
the Borrower
• Six (6) months seasoning (i.e., six (6) permanent mortgage payments made) is
required for the existing mortgage, and
• A twelve (12) month mortgage and/or rental verification is required.
First-Time Homebuyers (applies to AUS and non-AUS loans)
• Borrower must have an established credit history.
Note: An established credit history is defined as a minimum of three (3) active
traditional credit references that have been opened for at least 24 months and
have been active at some time during that period.
• Closed accounts with balances are acceptable.
• A full twelve (12) month satisfactory payment/rental history (0x30) must be
documented through a third party or credit bureau.
Note: Private references are not acceptable.
Borrower Not a First Time Homebuyer:
• If DU “Approve/Eligible,” follow FHA AUS guidelines and findings.
• If traditionally underwritten, no housing late payments within the last 12 months
(all mortgages), and
• Within the last 24 months no more than 2x30 late payments and acceptable to
the DE Underwriter.
Note: Isolated late payments may be acceptable.
• Borrower(s) are required to contribute three and one-half percent (3.50%) from
his/her own funds towards the down payment for purchase transactions.
• Funds must be seasoned for a minimum of sixty (60) days and verified.
• Gift funds are only acceptable if received from a family member.
• gift funds may only be applied to closing cost and prepaids only after the
borrower has made the required three and one half percent (3.50%)
investment into the transaction from their own funds.
• gift funds must meet the sixty (60) day seasoning requirement, either in the
donor’s account or a combination of both donor’s and borrower’s accounts.
Cash Reserves Two (2) months cash reserves are required.
Secondary
Financing
• New secondary financing is eligible, including Community Seconds, on purchase
transactions.
• Existing secondary financing is eligible for subordination on refinance
transactions.
Continued on next page
Section 2.22 July 27, 2012
FHA 203(b) Loan Program Page 22 of 217
Correspondent Seller Guide