FHA Net Tangible Benefit & Streamline Calculator
Effective April 18, 2011, the Federal Housing Administration (FHA), revised the underwriting requirements (rules) for the FHA streamline refinance program. The most notable change is the “net tangible benefit”. New FHA streamline loans originated after April 18, 2011 must demonstrate a 5-percent reduction to the principal and interest of the mortgage payment plus the annual mortgage insurance premium (MIP), or if refinancing from an adjustable-rate Mortgage (ARM) to a fixed-rate loan must either reduce the interest rate by at least 2% or be no greater than the current interest rate. Please send me an E-mail if you see an error or want to make a comment.