Bulletin W1288 – FHA Streamline Update

October 10, 2012Bulletins

This bulletin is an announcement regarding updates to the FHA Streamline program that are effective Friday, October 12, 2012.

  • 3-4 unit properties are no longer eligible for the FHA Streamline program
  • 3-4 unit properties that are currently in process, the following applies:
    • Full appraisal required
    • The property must have a positive 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
  • Updated Product Guidelines can be found at Mortgage Services/Mortgage Lending/Guidelines and Bulletins
    • Updated Product Guidelines will be posted to the Intranet on October 10, 2012 by 9:00 AM PST

Download: Bulletin – #W1288 (PDF)

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