Updated: Eligibility Excel Tool for New FHA Underwater Refinance Program Illustrates Challenges Facing Applicant.

Update:
Made link to prior blog post active/corrected two typos.
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The administration is rolling out a new underwater borrower FHA refinance program. (My prior blog post is HERE). 

After reviewing the FHA mortgagee letter for this program it was clear that to be eligible for the program homeowners would have to pass a number of eligibility tests. 

To help clarify what those eligibility questions are, and what answers are required to be eligible for the new program I

have constructed an Excel worksheet HERE, which ONLY requires the user to select "Yes" or "No" answers to 12 questions, to determine IF they are ELIGIBLE for this new program . 

"Eligible" does not mean borrower is qualified and will GET loan, just that they have no immediate factors that would disqualify them from consideration. 

Note that an incorrect answer to ONE of the 13 questions will disqualify the homeowner from eligibility. I have set the default position for each answer to disqualify the borrower, to qualify the borrower each default answer needs to be changed to the opposite answer.  (I have password protected the sheet to prevent inadvertent entries).

I would encourage readers to share this Excel file with housing counselors and agencies as a tool that may help clarify the requirements of this new program and help homeowners understand why they may or may not be eligible for this program.

Originally created and posted on the Oregon Housing Blog.