Week of Jan 25, 2010
Loan Program Updates
Non-Arms Length and Identity-of-Interest
- Non-Arms Length and Identity-of-Interest transactions are NOT allowed when the occupancy type is 2nd Home or Investment.
- Non-Arms Length and Identity-of-Interest transactions are NOT allowed when the seller has entered into a short sell agreement with the existing lien holder or when a bank is the seller and the buyer is related to the previous owner.
- Non-Arms Length and Identity-of-Interest transactions ARE allowed – on a case by case basis for primary homes. DMC does not allow “bailouts.”
Cash Out – 2nd and Investment Properties
- Cash-out investment properties and second homes allowed to 70% LTV with 720 credit score, 45% total expense ratio, and 1 year title seasoning.
Turn Times
Funding: Two (2) business days when closing docs are received prior to 10:00 am.
Loans received after 10:00 am will be counted as received the following day.
Underwriting: The oldest loan in the underwriting queue was submitted on 1/22/2009.
Streamline Refinances
During January the underwriting fee for FHA Streamline Refinances is $410.