|
Item
Changing |
Current
Rules |
New
Rules effective with Case
Numbers starting 4/9/12
|
|
Up Front Mortgage Insurance
Premium (UFMIP) |
1.00% of the loan amount, rolled
into the new loan |
1.75% of the loan amount, rolled
into the new loan.
This increase represents ~
$10/month on a $200k home
purchase with a 3.5% down
payment |
|
> 15yr Term
Annual MIP
(paid Monthly with Mortgage
Payment) |
·
1.15% with < 5.00% down payment
·
1.10% with > 5.00% down
payment |
·
1.25% with < 5.00% down payment
·
1.20% with > 5.00% down
payment
This increase represents ~
$16/month on a $200k home
purchase with a 3.5% down
payment |
|
<
15yr Term
Annual MIP
(paid Monthly with Mortgage
Payment) |
·
0.50% with < 10.00% down payment
·
0.25% with > 10.00% down
payment
·
>
22.00% down payment has no
Annual MIP |
·
0.60% with < 10.00% down payment
·
0.35% with > 10.00% down
payment
·
>
22.00% down payment has no
Annual MIP
This increase represents ~
$16/month on a $200k home
purchase with a 3.5% down
payment |
|
Handling of Disputed accounts |
Disputed accounts must be
reviewed by an FHA underwriter
to ensure they do not affect the
borrower’s ability to repay the
mortgage.
|
An FHA underwriter no longer
needs to review disputed
accounts if BOTH of these
are true:
·
The total outstanding balance of
all disputed credit accounts or
collections are less than
$1,000, AND
·
Disputed credit accounts or
collections are aged two
years from date of last activity
as indicated on the most
recent credit report. |
|
Handling of Collections |
Collection accounts do not need
to be paid off. |
If the total outstanding balance
of all collection accounts is
equal to or greater than $1,000
the borrower must resolve the
accounts (e.g. entered into
payment arrangements with
minimum a
three months verified payments- paid as agreed) or paid in full at the time of, or prior to
closing. – THIS INCLUDES
MEDICAL COLLECTIONS.
Note: Paying “down” of balances
on disputed accounts and
collections to reduce the
singular or cumulative balance
to below $1,000, is not
an acceptable resolution of
accounts. |
|
Handling of Judgments |
Judgments must be paid off
before the mortgage loan is
eligible for FHA Insurance
EXCEPTION:
If the borrower has a payment
agreement with creditor with a
minimum of three months
verified payments paid as agreed. |
NO CHANGE
|
|
Self Employed Borrowers |
A P&L and Balance Sheet are not
required unless income used to
qualify the borrower exceeds the
two-year average of the tax
returns; then either
an audited P&L statement or
quarterly tax returns are
required to support the greater
income stream used to qualify. |
P&L and Balance Sheet ARE
required if more than ONE
calendar quarter (3
months) has elapsed
since date of most recent
calendar or fiscal year end tax
return was filed by the borrower
– with no exceptions.
Additionally, if income used to
qualify the borrower exceeds the
two year average of tax returns,
an audited P&L or signed
quarterly tax returns obtained
from IRS are required. |
