3. Streamline Refinances With an Appraisal (No Credit Qualifying)

Change Date

May 10, 2009

4155.1 3.C.3.a Maximum Insurable Mortgage

The maximum insurable mortgage for streamline refinances with an appraisal (no credit qualifying) is the lesser of the appropriate LTV ratio multiplied by either

•	the appraised value, or

•	the existing debt, which is
	•	the sum of the existing FHA-insured first mortgage, closing costs, reasonable discount points, the prepaid expenses necessary to establish the escrow account, accrued late charges, and escrow shortages minus
	•	any refund of UFMIPs.

Notes:

•	The existing first mortgage may include the interest charged by the servicing lender when the payoff is not received on the first day of the month, as is typically assessed on FHA mortgages.

•	The existing first mortgage may not include delinquent interest.

Reference: For information on the maximum LTV ratio, see HUD 4155.1 2.A.2.b.