Maximum loan amount is the lesser of the LTV in the Maximum LTV table or the existing debt calculation as described below:
To calculate existing debt, add together the amount of the applicable items listed below, any refund of UFMIP must then be subtracted from the total:
| • | Existing 1st lien, any purchase money 2nd lien, any junior liens over 12 mo. old, borrower paid closing costs, prepaid expenses, borrower pair repairs required by the appraisal, discount points;
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| • | Other fees acceptable by the appropriate Homeownership Center (HOC);
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| • | The amount of the existing first mortgage may include up to 60 days interest maximum, but may not include delinquent interest;
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| • | Prepaid expenses may include the per diem interest, hazard insurance, mortgage insurance, and any real estate tax deposits needed to establish the escrow account.
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| • | If the property was acquired less than one year before the loan application and is not already FHA-insured, the original sales price of the property (rather than appraised value) must be used in determining the maximum mortgage. Expenditures for repairs and rehabilitation incurred after the purchase of the property may be added to the original sales price when calculating the mortgage amount.
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| • | Existing subordinate financing may remain in place (regardless of CLTV) if the borrower qualifies with payments on all liens.
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| • | NOTE: $500 cash back is allowed for minor adjustments in estimated versus final closing costs.
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| • | Property must be owned minimum of 6 months (Title in borrower's name). |
