FHA Streamline Program Updates – Revised

HomeBridge is announcing important updates to the FHA Streamline Program as detailed below.

Streamline guidelines are no longer based on the original loan endorsement date for both credit and noncredit qualifying Streamline refinance transactions. Specific requirements, based on whether the transaction is credit qualifying or non-credit qualifying are as follows:

Non-Credit Qualifying Streamlines with or without Appraisal

  • Credit score requirements are now determined by state
    • 680 minimum credit score required in the following states:
      Alabama, Alaska, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Washington, West Virginia, and Wisconsin.
    • 660 minimum credit score required in the following states:
      Arizona, California, Colorado, District of Columbia, Hawaii, Idaho, Maine, Montana, New Hampshire, North Dakota, South Dakota, Texas, Vermont, Virginia, and Wyoming.
  • Mortgage only credit report with credit score on the subject property only
  • Reserves not required
  • Mortgage history requires 0x30 in past 24 months or since loan inception. HomeBridge requires a minimum 12 month payment history on the loan currently being refinanced.
  • If assets are required to close, 1 month bank statement is acceptable to document assets.

As a reminder, do not include income, liabilities or assets (unless assets are needed to close) on the 1003 on non-credit qualifying Streamline transactions (i.e. do not complete Section V – Monthly Income and Combined Housing Expense Information and Section VI – Assets and Liabilities on the 1003).

Credit Qualifying Streamlines without Appraisal

In addition to the credit score requirements the following applies specifically to credit qualifying Streamlines:

  • Reserves not required
  • If assets required to close, 2 months bank statements required
  • Minimum 640 credit score
  • Credit qualifying loans are subject to FHA’s mortgage history requirements:
    • Loan being refinanced seasoned < 12 months
      • 0 x 30 in months 7-12 (≤ 6 months not eligible. See Mortgage Seasoning topic)
    • Loan being refinanced seasoned ≥ 12 months
      • 1 x 30 in previous 12 months, and
      • 0 x 30 in the 3 months preceding the loan application.
  • As a reminder, FHA’s mortgage seasoning requirements also apply to credit qualifying as follows:
    • Borrower has made a minimum of 6 payments on the FHA mortgage that is being refinance, and
    • At least 6 full months have passed since the first payment due date on the mortgage being paid off, and
    • A minimum of 210 days have passed from the closing date of the mortgage being refinanced
  • Credit qualifying requires compensating factors when the DTI is > 31%/43%.

NOTE: Credit qualifying with an appraisal is not eligible for a Streamline refinance; it must be classified as a regular rate/term refinance and run through DU.

Loans that have previously been modified are eligible for a Streamline refinance as long as the loan meets HUD and HomeBridge Streamline guidelines.

These changes are effective with loans submitted on or after January 25, 2013.

The FHA Streamline matrix has been updated and posted to the HomeBridge website at www.homebridgewholesale.com.

If you have any questions, please contact your Account Executive.