HUD-Pending Non Credit Qualifying Streamline Refinance with an Appra

NON CREDIT QUALIFYING STREAMLINE REFINANCE

WITH AN APPRAISAL

REFINANCE MAXIMUM MORTGAGE WORKSHEET

Use the No Cash Out Refinance Mortgage Credit Analysis Worksheet, Appraisal Required

The Lesser of:

3-A. APPRAISED VALUE ONLY (No Closing Costs Added)
$	Appraised Value (MCAW #13)
X 97.75%	(Use 98.75% if Value is $50,000 or less)
=	Maximum Mortgage BEFORE LG Fee

OR

3-B. EXISTING DEBT PLUS ALLOWABLE ADDITIONAL ITEMS (Subordinate liens and repairs are not eligible for inclusion in the maximum mortgage)
$	Principal Balance on existing first lien + up to 30 days interest accrued for the current month on the old loan
+	Allowable borrower-paid closing costs (MCAW 7c)
+	Prepaid Expenses (Per diem interest to end of month on new loan + hazard insurance deposits + real estate tax deposits, if applicable)
+	Reasonable Discount Points
=	Maximum Mortgage Amount BEFORE LG Fee

MAXIMUM MORTGAGE BEFORE LG FEE IS LOWEST OF 3-A or 3-B

• Lowest of 3-A, 3-B, or FHA loan limit as of March 3, 2008 is placed on MCAW, Line 14g

• Payoff of Existing Mortgage is placed on MCAW, Line 14a

Section 184A to Section 184A Refinance (file must contain proof that existing mortgage is 184A guaranteed)

• Term of the new loan can be up to 30 years.

• Owner-occupants and DHHL institutional loans.

• An existing 30-year mortgage may be refinanced to a shorter term provided that the new monthly payment to principal and interest increases no more than $50.

• Social Security numbers must be verified for all borrowers (see paragraph 5-23c(12)).

• VOM or other documentation is required which includes principal balance, date loan originated, names of original borrowers and type of loan.

• Subordinate financing may remain in place provided the combined loan to value does not exceed the appraised value. A subordination agreement must be executed and recorded at closing.

• A pay-off statement from the previous lender showing the unpaid principal balance for the month of the closing for the existing loan must be included in the credit package.