Changes to FHA Streamline Affecting 3-4 Unit Properties

October 10, 2012

Effective Friday, October 12, 2012, 3-4 Unit Properties are no longer eligible for the FHA Streamline program.

For 3-4 unit FHA Streamline refinances that are currently in the pipeline the following applies:

  • Full appraisal required
  • The property must cash flow; full income documentation is required to verify cash flow of the subject property
  • The property must pass a self-sufficiency test in that the gross rents less vacancy factor for all units, including the owner occupied unit, must be => the PITI for the subject property.
  • Verification of three (3) months reserves is required
  • The appraised value will be used to calculate the LTV
  • The loan must fund no later than Friday October 26, 2012.

Active loans in the pipeline that are not currently locked should be locked on or before October 12, 2012.  Loans that are locked after October 12, 2012, will need to contact the Lock Desk for pricing and locking.  To contact the Lock Desk please email CMSLockdesk@carringtonms.com.

Government Agency Approvals

FHA Non-Supervised Mortgagee Approval #:
24751-0000-5
VA Automatic Lender Approval #:
902324-00-00

Mortgagee/Loss Payee Clause

Carrington Mortgage Services LLC
ISAOA/ATIMA
P.O. Box 692408
San Antonio, TX 78269-2408

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This information is provided for your convenience and Carrington Mortgage Services, LLC makes no warranties concerning the accuracy or completeness of any of the information. This is not financial or legal advice and should not be taken as such. This information is for mortgage professionals only and is not intended for distribution to consumers.
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Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00

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