Properties currently listed for sale are not eligible for FHA or VA refinances, whether fully qualifying rate/term, streamline, or cash out. Properties previously listed and then canceled, are eligible for refinance with the following loan-to-value guidance:
- Refinances, including fully qualifying rate/term and streamline: Maximum loan-to-value allowed.
- Cash out transactions: Maximum 70% loan-to-value if the listing was canceled within six months preceding the application date.
The following evidence must be provided to verify cancellation of the listing:
- The property’s listing history must be shown in the subject section of the appraisal;
- Documentation of canceled listing agreement;
- Evidence a search was made of the Multiple Listing Service (MLS); and
- The borrower’s confirmation of their intent to continue to occupy the subject property as their primary residence and a reasonable explanation for removing the house from the market.
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