Max LTV
Purchase and No cash out Refinance

High closing cost states  (Closing costs above 2.1% of sales price) :AL, AK, AR, CT, DC, DE, FL, GA, HI, IA, KS, KY, LA, MA, MD, ME, MI, MO, MN, MS, MT, NC, ND, NE, NH, NJ, NY, OH, OK, PA, RI, SC, SD, TN, TX, VT, VA, WV

Region

FHA Standard

A complete schedule of FHA mortgage limits for all areas is available at:
https://entp.hud.gov/idapp/html/hicostlook.cfm

Note: Loans in MSAs whose limits are still below $362,790, can fund in the standard FHA program. Only those

MSAs whose limits are greater than $362,790 must use the FHA Jumbo program

Notes
• The number of years will be determined when the loan balance equals 78% LTV, provided that the borrower has paid the annual MIP for at least 5 years, (scheduled or actual.)

• Loan amount multiplied by Annual premium, divided by 12 months equals monthly MIP.

• FHA 203(b) loans, both fixed rate and adjustable rate, will have upfront premiums and monthly premiums

• The financed UFMIP is not included in the statutory loan limit. When the UFMIP is financed, the loan amount is rounded down to the nearest dollar.
 

Refinance

No Cash Out Refinance: (see next table below)

Maximum loan amount is the lesser of the LTV in the Maximum LTV table or the

existing debt calculation as described below:

To calculate existing debt, add together the amount of the applicable items listed below, any

refund of UFMIP must then be subtracted from the total:

• Existing first lien, Any purchase money second mortgage, Any junior liens over 12 months

old, Borrower paid closing costs, Prepaid expenses, Borrower paid repairs required by the

appraisal, Discount points

• Other fees acceptable by the appropriate Homeownership Center (HOC)

• The amount of the existing first mortgage may include up to 60 days interest maximum, but

may not include delinquent interest.

• Prepaid expenses may include the per diem interest, hazard insurance premium deposits,

mortgage insurance premium, and any real estate tax deposits needed to establish the escrow

account.

If the property was acquired less than one year before the loan application and is not already

FHA-insured, the original sales price of the property (rather than the appraised value) must be

used in determining the maximum mortgage.

Expenditures for repairs and rehabilitation incurred after the purchase of the property

may be added to the original sales price when calculating the mortgage amount.

NOTE: $500 cash back is allowed for minor adjustments in estimated versus

final closing costs.
 

Cash Out Refinance:

If owned less than 12 months, use the lesser of either of the following:

• 85% of the appraised value.

• 85% of the original sales price.

If owned 12 months or more, FHA will allow a cash-out refinance up to 95% of the

appraised value subject to all of the following:

• Property is the borrower’s principal residence for at least 12 months prior to loan

application date.

• No payment may be more than 30 days late within the last 12 months. Payment must be

current for the month due.

• 1-2 unit properties only. (Max loan amount = $417,000 for 2 unit properties.)

• Subordinate financing may remain in place only if it is subordinate to the FHA-insured first

mortgage (regardless of the total indebtedness or CLTV) and the homeowner qualifies with

scheduled payments on all liens.

• New secondary financing is limited to 95% CLTV.

NOTE: Cash-out refinances are not permitted for FHA loans in Texas.

Streamline Refinance

• Must result in an immediate payment reduction to the borrower.

• Generally, does not require documentation for verifying income, assets, credit rating,

appraisal, or source of funds. In some cases, however, an appraisal or credit report may be

necessary.

• Are designed to lower the monthly principal and interest payments on a current FHA-insured

mortgage; however, it does not allow for cash back to the borrower, except for minor

adjustments at closing, not to exceed $500.

• Closed on or after April 24, 1992, are exempt from the 0.5% annual premium of the

mortgage, provided the loan being refinanced closed prior to July 1,1991.

Refinance Without Appraisal: the "original value" must be obtained from the FHA

Connection or ECHO systems for a Streamline Refinance, without an appraisal.

If the credit report or payment history shows that the loan being refinanced has had more

than one 30-day delinquency during the past 12 months, the loan must be fully insured prior

to purchase from our investor.

Guidelines

Eligibility

• US Citizens, Permanent and Non-

Permanent Resident Aliens, Non-Occupant

Co-Borrowers.

• Owner Occupied Primary Residence Only.

(except streamline refinance.)

• 10- to 30-year fixed rate and 1/1, 3/1

and 5/1 ARMs with 30-year terms.

Documentation

• All borrowers must have valid social

security number.

• For loans submitted with a credit report,

all borrowers must have at least one valid

credit score.

• Non-Traditional Credit is allowed for

borrowers with no credit scores; borrower

must have 3 trades, rated for 12 months

with no lates in the previous 12 months.

• Use the lower of 2 or middle of 3 scores

for the lowest scoring borrower.

DTI Ratios

• For manual underwriting: 31/43%

Ratios may be exceeded only when

significant compensating factors exist.

• Loans using an AUS may exceed the

ratios above.

Property Flipping

• If 90 days or less since property was

last sold: The property is not eligible for

FHA financing.

• 91 to 180 days since property was

last sold: If the resale price is > 100%

over the seller's acquisition price, a second

FHA appraisal (from a different appraiser)

is required; second appraisal must be paid

for by seller or broker. If the resale price

is < 100% over the seller's acquisition

price, then no additional appraisal

documentation is needed.

Time restrictions do not apply to: FHA

REOs, relocation agency properties,

property inherited by seller, or sales by

government agencies.