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jcallanan
229 Posts |
 Posted - 07/23/2008 : 12:29:38 PM
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I post this again because I am butting heads with my lender and need an answer
FHA refi Rate and Term not a streamline 96% ltv
borrower owes most recent property tax installment from June. Can we show this as a tax holdback and list it as a prepaid therefore pay it through the loan?
FHA is pretty vague on this and so far I had two underwriters (from different lenders)
said it was OK but my Underwriter is saying it has to be paid by borrower.
please help.
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cpruitt
1686 Posts |
Posted - 07/23/2008 : 12:51:24 PM
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I believe FHA is actually pretty direct in saying that escrow shortages (and a long list of other past due items) can not be included in a rate/term refinance mortgage amount and in my experience a past due tax bill would fit into that. The sad thing is that, had the loan closed before the tax bill was due, the entire amount could easily have been included in setting up the escrow account. Your LTV is too high or the UW would probably have just tried to change it to a cash out to get around that.
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