New Changes to Streamline refis

[Brian B The Loan Professor]

here is a list of the changes that go take place starting tomorrow

 

Key program revisions include:

 

· Seasoning - each loan must have a minimum 6 month mortgage payment history

 

· Net Tangible Benefit – the refinance transaction must provide a net tangible benefit to the borrower as determined by meeting one of three qualifiers

 

· Discount points may no longer be included in the new loan amount for streamline refinances with an appraisal You cannot finance buying the rate down

 

· Certifications and Verifications - Bank must certify that the borrower is employed and has income at the time of application

 

 

· Maximum CLTV – the maximum CLTV has been changed from unlimited to 100%

 

 

· Changes to Maximum Mortgage Amount Calculations – there are new maximum loan amount calculations for streamline loans with and without an appraisal Unless you get an appraisal and show equity there will be out of pocket costs as you cannot roll everything back into the loan