Changes to FHA Streamline Affecting 3-4 Unit Properties

Effective Friday, October 12, 2012, 3-4 Unit Properties are no longer eligible for the FHA Streamline program.

For 3-4 unit FHA Streamline refinances that are currently in the pipeline the following applies:

• Full appraisal required
• The property must cash flow; full income documentation is required to verify cash flow of the subject property
• The property must pass a self-sufficiency test in that the gross rents less vacancy factor for all units, including the owner occupied unit, must be => the PITI for the subject property.
• Verification of three (3) months reserves is required
• The appraised value will be used to calculate the LTV
• The loan must fund no later than Friday October 26, 2012.

Active loans in the pipeline that are not currently locked should be locked on or before October 12, 2012.  Loans that are locked after October 12, 2012, will need to contact the Lock Desk for pricing and locking.  To contact the Lock Desk please email CMSLockdesk@carringtonms.com.