FHA 203k Matrix

FHA Parameters for Credit Score 620+

Minimum Credit Score Limitations Minimum Credit Score Limitations Minimum Credit Score Limitations
Product/Term FHA Plus Mid-Island Advantage Fico 580-619
30/15 Yr Standard Loan Limt - 203k or 203k Streamlined (k) 620 580
30 Yr High Balance - 203k or 203k Streamlined (k) 620 Not Available

Maximum LTV / CLTV - see attached for Advantage Loans Maximum LTV / CLTV - see attached for Advantage Loans
Purchase No Cash Out Refinance
96.50% 97.75%
Maximum CLTV on ALL loans are shown above and all mortgages are limited to the Geographical Maximum. Maximum CLTV on ALL loans are shown above and all mortgages are limited to the

2015 FHA Mortgage Limits - see FHA High Balance Notes below Minimum Credit Score Limitations Minimum Credit Score Limitations
Region 1 Unit 2 Units 3 Units 4 Units
Low Cost Areas $271,050 $347,000 $419,425 $521,250
High Cost Areas $625,500 $800,775 $967,950 $1,202,925
A complete schedule of FHA mortgage limits for all areas is available at: https://entp.hud.gov/idapp/html/hicostlook.cfm A complete schedule of FHA mortgage limits for all areas is available at: A complete schedule of FHA mortgage limits for all areas is available at: A complete schedule of FHA mortgage limits for all areas is available at: A complete schedule of FHA mortgage limits for all areas is available at:

Upfront and Annual MIP (case numbers assigned on or after 1/26/15) Minimum Credit Score Limitations Minimum Credit Score Limitations
LTV UFMIP Annual LTV UFMIP Annual
> 15 year term & loan amount ≤$625,500 > 15 year term & loan amount ≤$625,500 > 15 year term & loan amount ≤$625,500 ≤ 15 year term & loan amount ≤$625,500 ≤ 15 year term & loan amount ≤$625,500 ≤ 15 year term & loan amount ≤$625,500
≤ 95% 1.75% 0.80% ≤ 90% 1.75% 0.45%
> 95% 1 75% 0 85% >90% 1 75% 0 70%
> 15 year term & loan amount >$625,500 > 15 year term & loan amount >$625,500 > 15 year term & loan amount >$625,500 ≤ 15 year term & loan amount >$625,500 ≤ 15 year term & loan amount >$625,500 ≤ 15 year term & loan amount >$625,500
≤ 95% 1.75% 1.00% ≤ 90% 1.75% 0.70%
> 95% 1.75% 1.05% >90% 1.75% 0.95%

Guidelines

 

Eligibility
• US Citizens, Inter vivos revocable trusts, Permanent and Non-Permanent Resident Aliens, Non-Occupant Co-Borrowers.
• Owner Occupied Primary Residence Only. Purchase, Rate & Term (no cash-out allowed)
• 30 and 15 year fixed rate

 

Documentation
• All borrowers must have valid social security number.
• Borrowers using non-traditional credit are subject to Mortgagee Letter 2008-11

 

Additional Restrictions for Loan Amounts > $417,000
• 1-4 Unit properties located in appraiser or DU designated soft markets, with loan amounts > $417,000 (excluding UFMIP) will
require a second appraisal; appraisal must be ordered from a different, FHA approved appraiser.
1 Unit

 

DTI Ratios
• For manual underwriting: see advantage matrix
• Loans with 620+ fico use AUS recommendation unless downgraded to a refer by the underwriter

 

Special Requirements on 3-4 Unit Properties
• Purchase and refinance transactions must have 3 months PITI reserves which may not be derived from gift or proceeds from cash out refinance.
• The property must be self-sufficient (including the owner occupant unit) – 85% of gross rents (based on HOC) less the proposed PITI.
• Use of rental income to qualify only allowed if FICO 620+ or if the borrower has maintained a rental property in the recent past.

 

Additional Restrictions for Loan Amounts > $417,000
• 1-4 Unit properties located in appraiser or DU designated soft markets, with loan amounts > $417,000 (excluding UFMIP) will require a second appraisal; appraisal must be ordered from a different, FHA approved appraiser.

FULL 203(k)

DESCRIPTION: minor or major renovation projects including property additions such as dormers, extensions, unit conversions, structural/cosmetic/upgrades (i.e.elimination of health and safety issues such as termites, mold, modernization of kitchens, appliances, bathrooms, floors, walls, painting, trim work, replacements of windows, doors, siding, walkways, driveways, major landscape and site
improvements, alterations for handicap accessibility).

REPAIR AMOUNTS: Minimum amount of repairs $5,000. The maximum amounts of repairs are only subject to
FHA Loan limits.

CONSULTANTS: All full 203k loans require a 203k work write-up as per FHA guidelines prepared by a HUD Approved consultant. Must be ordered through MIM approved consultant list.

APPRAISAL: All 203k appraisals must be ordered through a MIM approved AMC. Appraisals are subject to the completion of all work as detailed in the final 203k work write-up. All required repairs must be included
within the 203k work write-up as per FHA guidelines.
Note: The 203k work write-up shall be annexed to the appraisal.

CONTRACTORS: Contractors must meet all applicable requirements within the State and Municipality covering the subject transaction. A full list of contractor requirements, documentation and forms to be fully executed are available on the MIM support website.

All work to be performed must be allowed and approved where applicable within the local municipality. All applicable plan approvals and permits must be obtained prior to funds being released.

STREAMLINE 203(k)

DESCRIPTION: Geared towards simpler repairs and repairs that are more minor and cosmetic in nature. New construction or newly constructed repairs and additions are not allowed. (i.e. Upgrading or direct replacements to flooring, tiling, walls, ceilings, doors, direct replacement to roofing, siding, gutters, leaders, downspouts, painting, modernization of kitchens and bathrooms…appliances, improvements of property functions and modernization, upgrade of existing electric/heating/plumbing).
New construction and/or newly constructed repairs and additions
are not allowed.

REPAIR AMOUNTS: There is no minimum repair amount required. The maximum rehabilitation escrow may not exceed
$35,000.

PERMITS: Work requiring permits allowed however any work requiring plan approvals within the local municipalities are not allowed.

CONSULTANTS: 203k consultants are not allowed as part of the streamline program. Borrowers may however obtain the services of a HUD consultant to perform a feasibility report to help plan with the work to be performed on the subject property. Any costs for such services may not be part of the streamline transaction.

APPRAISALS: All 203k appraisals must be ordered through a MIM approved AMC. Appraisals are subject to the completion of all work as detailed in the final contractor’s estimate. All required repairs for health, safety and minimal property standards must be included within the Contractor’s estimate. The final contractors estimate shall be annexed to the appraisal.

CONTRACTORS: Contractors must meet all applicable requirements within the State and Municipality covering the subject transaction. A full list of contractor requirements, documentation and forms to be fully executed are available on the MIM support website.
NOTE: All required and desired repairs must be detailed in the final contactor’s estimate. All repair items must be detailed per line item, and must reflect the breakdown of the costs for material and labor.

All work to be performed must be allowed and approved where applicable within the local municipality. All applicable plan approvals and permits must be obtained prior to funds being released.

NOTE: SUBJECT PROPERTIES WHERE UTILITIES ARE NOT OPERATING AT TIME OF INSPECTION WILL REQUIRE A FULL 203K
PROGRAM.

Start your FHA 203k Application Today

FHA Loan Program Guide

Fixed Rate, 3/1 and 5/1 Hybrid ARM

Standard Standard1 Standard1 Specialty Fixed Rate only Specialty2 Specialty2
Occupancy Purpose Units MDCS LTV CLTV MDCS LTV CLTV
Primary Residence Purchase 1-4 620 96.5% 96.5% 560 ≤90% 96.5%
Residence 580 >90% to 96.5%
Primary Rate/Term 1-4 620 97.75% 97.75% 560 ≤90% 97.75%
Residence 1-4 620 97.75% 97.75% 580 >90% to 97.75%
Primary Cash Out 1-4 620 85% 85% Conforming Balance Conforming Balance Conforming Balance
Residence Cash Out 1-4 620 85% 85% 560 75% 80%
Primary Cash Out 1-4 620 85% 85% 600 >75% to ≤80% 80%
Residence Cash Out 1-4 620 85% 85% High Balance ≤80% High Balance
Primary Cash Out 1-4 620 85% 85% 580 ≤75% 75%
Residence Simple Refinance (processed as a Rate/Term until further notice) 1-4 620 97.75% 97.75% 560 ≤90% 97.75%
Primary 1-4 620 97.75% 97.75% 580 >90% to 97.75% 97.75%
Secondary Residence Rate/Term 1 Unit Only 620 85% 85% 560 85% 85%
Residence Simple Refinance (processed as a Rate/Term until further notice) 1 Unit 620 85% 85% 560 85% 85%
Secondary Only 620 85% 85% 560 85% 85%
All Occupancy Types Credit Qualifying Streamline Refinance 1-4 620 N/A N/A 560 ≤90% N/A
1-4 620 N/A N/A 580 >90% N/A
Non-Credit Qualifying Streamline Refinance 1-4 Fixed Rate: 620 N/A N/A N/A N/A N/A
NonTraditional/ Insufficient Credit 1-4 Not Allowed Not Allowed Not Allowed N/A Eligibility is based on the applicable occupancy and loan purpose.

1. Standard product parameters are applicable to Conforming and High Balance loan amounts.

2. Unless noted otherwise, Specialty product parameters are applicable to Conforming and High Balance loan amounts.

3. Maximum 110% LTV/CLTV for HUD REO with escrow repair transactions.

4. Maximum 100% LTV/CLTV for HUD REO $100 Down Payment program transactions.

5. Maximum 85% LTV for Identity of Interest and Tenant/Landlord transactions.

6. Maximum 75% LTV for non-family member, Non-Occupant Co-Borrower transactions.

7. In some circumstances, subordinate financing/CLTV limits may exceed the applicable LTV limit.

8. 85% maximum LTV for properties occupied as a principal residence less than 12 months or owned but not occupied the full 12 months. Refer to Rate/Term Refinance for additional details.

9. ARMs not allowed for Secondary Residences and Investment Properties

 

Pricing Policy

Non-Credit Qualifying Streamlined Refinance:

 A credit report is not required. If a credit report is obtained, pricing will be determined as follows:

 ≥620 credit score: Subject to Standard pricing tier.

 <620 credit score: Subject to Specialty pricing tier.

 If no credit report is obtained or one or more borrowers do not have a credit score: Subject to the lowest (worst case) Specialty pricing tier. Non-Traditional/Insufficient Credit:

 If the loan includes only one borrower and the borrower does not have a credit score, pricing will be based on a 580 credit score.

 If the loan includes multiple borrowers and one or more of the borrowers does not have a credit score, pricing will be based on the lower of the available credit score or 580.

 For accurate pricing, the lower of the available score or 580 must be entered in the LOS.

 

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Fairway Asset Corporation
8555 16th. St, Suite 320
Silver Spring, MD 20910
Office (301) 222-1070
Fax (866) 222-8972

Fairway Asset Corporation
15400 Calhoon Drive, Suite 120
Rockville, MD 20855
Office (301) 222-1070
Fax (301) 222-0862

MD Lic No. 18346, MD State Commissioner of Financial Regulation, VA Lic No. MC-5452, VA State Corporation Commission, PA Lic No. 37448, Commonwealth of PA, CA Lic No. 603 J584, Department of Corporations, State of CA, NJ Lic No. 293044, NJ Dept of Banking and Insurance, CO Lic No. 293044, Colorado Division of Real Estate, DE Lic No. 019327, State of Delaware - Office of the State Bank Commissioner, DC Lic No. MLB293044, District of Columbia Department of Insurance, Securities and Banking, IN Lic No. 27916, Indiana Department of Financial Institutions, NC Lic No. L-169942, North Carolina Commissioner of Banks, GA Lin No. 60069, Department of Banking and Finance, AL Lic No. 22538, State of AL, State Banking Department - NMLS ID 293044 (Click here to view NMLS Consumer Access)

Disclaimer: Rates, Terms, and Conditions dependent on Borrower's Credit/Income/Debt stats and are subject to change without notice. No promises or guarantees are expressed or implied on this entire website or binds Fairway Asset Corporation to any agreement.

Descargo de responsabilidad: de Intereses, termino de préstamo y condiciones dependiendo del crédito/ingreso/deudas del comprador, y sujetó a cambios sin aviso.  Ninguna promesa o garantía están expresadas o indicada en esta información en el website, que sujete a Fairway Asset Corporation a algún acuerdo.