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AVM IS NO LONGER REQUIRED FOR
INCOME QUALIFIED FHA STREAMLINES WITH 680 FICO or ABOVE


Dear Valued Partner,

Effective immediately, income qualified FHA Streamline transactions with a FICO of 680 or higher are exempt from AVM requirements and LTV / CLTV caps. Income qualification is as simple as documenting three months of PITI cash reserves (see Option 1 in the chart below) or a simple Limited Doc Review (see Option 2 in the chart below).

Streamline Refi Income Qualification Options
Option 1
Acceptable Forms
Unacceptable Forms
3 Month PITI Reserves*
1 month of bank statements sourcing all large deposits in accordance to FHA guidelines
401K, IRA, Pensions, Gift Funds
*3-month PITI reserves is net of the funds required at closing
Option 2
Income Type
Documentation Needed to Qualify
Limited Doc Review
For W-2 wages only
  • 4506-T
  • 2011 W-2(s)
  • 1 month of pay stubs
For income other than W-2 wages
  • VOE
  • 4506-T
  • 2011 income documentation
  • Full tax returns for 2009, 2010 and supporting documentation

Additionally, if you have an approved AVM and the CLTV is less than 125% and the FICO is 680 or higher then income qualification is not neccessary.

The following chart summarizes your FHA Streamline Options:

FHA Streamline Refinance Qualifying Requirements
FICO
Option 1
Option 2
Above 680
Income Qualification
AVM based LTV / CLTV < 125%
Below 680
Income Qualification Required and AVM based LTV / CLTV < 125%

As a reminder, the following is a chart of the Sun West DTI and FICO requirements for FHA products.

Debt to Income Ratio (DTI) & FICO Matrix
Product Type
Unit Properties
Max. Front Ratio
Max. Back Ratio
Minimum FICO
Standard FHA Loans
1-2 Unit Properties
45
55
640
3-4 Unit Properties
31
43
640
FHA Jumbo
1-2 Unit Properties
40
45
660
3-4 Unit Properties
31
43
660
FHA Manufactured Housing
Manufactured Properties
35
45
660
Leasehold Properties
29
35
660

For all FHA Streamlines, an AVM is not required if the borrower acquired the property after May 1, 2010.

If you have your own AVM account with RELS or CoreLogic GeoAVM Core Cascade, you may order your own AVM and submit the AVM report to Sun West. Additionally, you have the option to place orders for the AVM through the "Vendor Order" screen in SunSOFT. You may need to order an Exterior-Only Appraisal through SunSOFT if the AVM results are not available for that property.

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