FHA HOPE for Homeowners H4H
In addition to the
standard FHA documentation requirements the following
additional documentation for H4H loans must be included.
Mortgage Origination Date: Evidence the mortgage(s)
being refinanced was originated on/before January 1, 2008,
such as a HUD-1 Settlement Statement or the mortgage payment
history from the servicer.
History: If delinquent at the time of the refinance,
evidence that the borrower made 6 full payments during the
life of the first mortgage loan being refinanced, such as
the mortgage payment history from the servicer.
Mortgage Payment: Evidence that the prior aggregate
mortgage DTI was more than 31 percent on March 1, 2008, such
as pay stubs for March 2008, or a signed and dated copy
of the individual 2008 Federal tax return, when available, to
determine gross monthly income for that month (earnings
divided by 12), or W-2s, financial records, or verification of
employment from the borrower’s employer.
Lenders may also rely on the
borrower’s signed and dated 2007 Federal tax return if the
lender has no reason to believe that the borrower’s income in
March 2008 was materially different than the income reported
on the 2007 Federal tax return.
To determine March
2008 income for self-employed borrowers, obtain a copy of the
quarterly tax return that contains income stream information
for March 2008 or a signed and dated Profit and Loss
Statement and balance sheet that contains income stream
information for March 2008 or a signed and dated copy
of the individual 2008 Federal tax return, when available,
(earnings divided by 12).
From the servicer, evidence of
what the borrower’s total mortgage payment was for March 2008,
including any subordinate liens. For mortgages without escrow
accounts, evidence regarding the amount of taxes and the cost
of hazard insurance and flood insurance (if applicable). If
the lender must estimate the cost of all insurance, it must
document how it arrived at that estimate based on the
property’s location and the rates in effect for 2008. If the
borrower does not provide information on real estate taxes,
the lender must also include public record information.
Residence: Evidence that the property is the borrower’s
primary residence, such as a Federal or state tax return,
driver’s license and/or voter registration card.
Homeowners Consumer Disclosure and Certifications: The
initial and final HOPE for Homeowners Consumer Disclosure
and Certifications, signed and dated by the borrower(s),
along with the initial and final URLA and Addendum to the
of Fraud: In instances where a warning is received that
the borrower was convicted of fraud and the lender believes
it is an error, the lender must document that the borrower
has not been convicted of fraud under Federal or state law
in last 10 years.
Returns: Copies of the previous two years Federal tax
returns or transcripts of the borrower’s income tax returns
obtained directly from IRS.
Modification: If a ‘trial modification’ period was used
to exceed the 31/43 DTI ratios, the lender must document
that the borrower, using his or her existing gross income,
made timely mortgage payments on the existing senior
mortgage pursuant to the terms of the trial modification for
the three consecutive months preceding application for the
H4H loan, and in an amount that is at least 90
percent of the estimated total monthly mortgage payment on
the new H4H mortgage payment.
Payment Made: Evidence that the first payment on the
new mortgage was made by the borrower and not by any
interested party to the transaction, from the loan proceeds
or escrowed at closing.
Certifications: The HOPE for Homeowners Lender and
Underwriter General Certifications, signed by an officer of
the lending institution and the Direct Endorsement