When considering an FHA streamline refinance, one of the things a lender will look at is whether the home has been on the market recently.
Cash-Out refinances are not eligible until the property has been off the market and the listing canceled at least 180 days prior to the origination of the loan.
A copy of the canceled listing must be in the file and a current multiple listing service search must be done to verify the property is not currently listed by a different agency.
To be eligible for a rate and term refinance, properties previously listed for sale must have been off the market and the listing canceled at least 1 day prior to the application date of the loan.
- Property must be off the market and listing expired or cancelled for a minimum of one day.
- The application must be executed after the one day expiration/cancellation period;
- The appraisal must confirm the home is not currently listed on the MLS;
- The appraisal must confirm the home is not publicly offered for sale by owner;
- The appraisal must confirm the listing has been withdrawn or expired;
- Evidence the borrower is occupying the property; and
- Explanation letter from borrower on intent to occupy, reason for listing the home and why they are now
When doing any kind of FHA refinance – including the FHA streamline, all of the above requirements MUST be met and documented in the file for the transaction to be eligible for rate and term refinancing.