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Sun West Announces Relaxed Guidelines for FHA Streamline Refinances


Dear Valued Partner,

Good News! HUD has simplified FHA Streamline monitoring. Pursuant to HUD's press release, streamlined refinances will be removed from the public compare ratio in Neighborhood Watch. Sun West is proud to support HUD's efforts to provide relief to homeowners. Effective immediately, FHA Streamline loans with a credit score of 680 or higher are exempt from income and credit qualification guidelines.

If the borrower acquired the property prior to May 1, 2010, the maximum AVM based LTV guidelines of 125% continue to apply.

Please note SWMC's minimum FICO requirements continue to apply for all Streamline transactions.

  • FHA Loan Programs, Fixed and ARM: 640
  • FHA Manufactured Loans: 680
  • FHA Jumbo Loans: 660

For credit qualifying FHA Streamline loans with a FICO below 680, the following DTI caps still apply.

Debt To Income Ratio (DTI) Credit Qualification Caps
Product Type
Unit Properties
Max. Front Ratio
Max. Back Ratio
Standard FHA Loans
1-2 Unit Properties
45
55
3-4 Unit Properties
31
43
FHA Jumbo
1-2 Unit Properties
40
45
3-4 Unit Properties
31
43
FHA Manufactured Housing
Manufactured Properties
35
45
Leasehold Properties
29
35

Documentation Required for a Streamline Refinance:

  • Evidence of SSN and Photo ID
  • Copy of current Note and Monthly Statement
  • Homeowners Insurance
  • Title Preliminary Report, CPL, Wire Instructions, Escrow Instructions, Estimated HUD-1
  • If cash is needed to close; two months of bank statements are required to show that funds are available.
  • Signed 4506T if FICO < 680
Credit Qualifying Borrowers Below FICO 680
Income Type
Example
Documentation Needed to Qualify
W-2 wages only
  • All income is on W-2s
  • A Month of Pay Stubs
  • 2011 W-2s
  • 4506T
Income other than W-2 wages or in addition to W-2 wages
  • Rental income
  • Self-employed
  • Pension income
  • Investment incom
  • 2011 income documentation
  • Full tax returns for 2009, 2010 and supporting documentation
  • VOE
  • 4506T

You may place orders for the AVM (we accept RELS and Corelogic) or the Exterior-Only Appraisal, through the "Vendor Order" screen in SunSOFT. You only need to order an Exterior-Only Appraisal if the AVM results are not available.

If you have any questions, please feel free to call on your Account Executive at (800) 453-7884.

Sincerely,

Sun West Mortgage Company, Inc.
18303 Gridley Road
Cerritos, CA 90703
Phone : (800) 453-7884

Equal Housing OpportunityThis information is provided to licensed wholesale brokers only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.

Sun West Mortgage Company, Inc. (NMLS ID 3277) is licensed by the Department of Corporations as a California Finance Lender (License #603 0119) and is licensed by the Department of Real Estate (License #00793885). Refer to www.swmc.com to see where SWMC is a licensed lender. In all states, the principal licensed office of Sun West Mortgage Company, Inc. is 18303, Gridley Road in Cerritos, CA 90703; Phone: (800) 453-7884