Generally, the streamline refinance mortgage amount may never exceed the statutory limits, except by the amount of any new UFMIP. However, the maximum mortgage may exceed the statutory limits on certain specialty products.

The streamline refinance mortgage term is the lesser of

• 30 years, or
• the remaining term of the mortgage plus 12 years.

The maximum insurable mortgage for streamline refinances without an appraisal cannot exceed the outstanding principal balance

• minus the applicable refund of the Upfront Mortgage Insurance Premium (UFMIP),
• plus the new UFMIP that will be charged on the refinance.

Note: The outstanding principal balance

• may include interest charged by the servicing lender when the payoff is not received on the first day of the month, but
• maynot include delinquent interest, late charges or escrow shortages.

Reference: For step-by-step instructions on calculating the existing debt, see HUD 4155.1 3.B.1.b.

The mortgage calculation process described in HUD 4155.1 3.C.2.c applies only to owner occupied properties. Non owner occupant properties, even if originally acquired as principal residences by the current borrowers, may only be refinanced for the outstanding principal balance.

Streamline financing by investors, or for secondary residences may only be made without an appraisal. The loan must be made solely in the business entity's name, if the residence was previously insured in the business entity's name.

The new security instruments must contain FHA's standard provision permitting acceleration of the mortgage when assumed by an investor, or as a secondary residence. However, FHA does not authorize the lender to exercise the acceleration provision if the investor assumptor is found to be creditworthy.

Although a property purchased as a principal residence, under certain circumstances as described in the security instruments, may be rented or become a secondary residence, a streamline refinance without an appraisal does not "convert" the mortgage to one eligible for assumption by an investor.

References: For more information on refinancing non owner occupant properties, see

• 4155.1 4.B.3
• 4155.1 4.B.4
• 4155.1 6.C.5.a, and
• 4155.1 6.C.5.b.

Subordinate liens, including credit lines, regardless of when taken, may remain outstanding, but must be subordinate to the FHA-insured mortgage.

If subordinate financing remains in place, the

• maximum combined loan-to-value (CLTV) is 125 percent
• CLTV is based on the original appraised value of the property, and
• maximum CLTV is calculated by taking the original FHA base loan amount (the original FHA principal balance excluding financed UFMIP), adding all other financed liens still outstanding, and dividing by the appraised value. This calculation may not exceed 125 percent.