fha  loan modification interest rate

Platform Overview:

This program permits the modification of an existing loan only for the purpose of

reducing the interest rate. The existing prepayment penalty must be paid in full

qualified properties

• Properties with existing FHA insured loans are eligible. Must be out of lock-out before the request is submitted

loan amount

• No increase in loan proceeds available; however, a minimum DSC of 1.11x is required  based on T-12 operating financials and the new interest rate

maximum term

• No term extension available

fees and expenses

• Minimal fees and expenses. No financing fees. Prepayment penalties, lender legal fees and  title/recording can all be paid through premium generated by the interest rate. Borrower legal, if any, must be paid out of pocket at closing

timing

• 30 - 45 days

• No underwriting required

• HUD asset management approval required

other FHA requirements

• Replacement reserve escrow remains in place

• No third party reports required

• MIP remains at existing level