This is for borrowers who are upside down and are NOT currently financed with FHA.
Short Refi / FHA Refinance of Borrowers in Negative Equity Positions
• 560 Minimum credit score required
• The borrower must be current on the existing mortgage to be refinanced
• All borrower(s) must occupy the subject property as their primary residence
• The borrower(s) must qualify for the new loan under standard FHA underwriting requirements
• The existing loan being refinanced may not be an FHA loan and the existing lien holder must write off at least
10% of the unpaid principle balance
• Existing subordinated mortgages must be re
subordinated and the new loan may not have a CLTV greater than
115%
To find more information on this program, visit the following link:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10
23ml.pdf