Andrade Real Estate Services

The FHA Rate & Term Refinance Program is a government-backed mortgage option designed to help homeowners improve their loan terms by lowering their interest rate, reducing their monthly payment, or adjusting the loan’s duration. It provides a simple and flexible way for existing homeowners to make their mortgage more affordable and sustainable over time.

This program is ideal for borrowers who:

Want to lower their monthly mortgage payment or reduce their interest rate
Prefer flexible credit and income guidelines compared to conventional refinance options
Have an existing FHA or conventional loan and wish to improve loan terms
Plan to remain in their primary residence and meet FHA occupancy requirements

Property Type	Credit Score	Max LTV/CLTV	Notes
SFR	580+	97.75%	For properties owned ≥ 12 months and owner-occupied. Properties owned < 12 months limited to 85% LTV.
2-4 units	580+	97.75%	Must meet HUD self-sufficiency requirements for 3–4 units. Owner-occupied only.
Condo	580+	97.75%	FHA-approved condos only. Manual UW or DTI > 50% requires 2nd signature from Team Lead/Underwriting Manager.
Manufactured Home	580+	90.00%	Double-wide or larger, built after 6/15/1976, on a permanent foundation. Must meet FHA appraisal and foundation certification standards.

Occupancy Requirement
Primary residence Required — owner-occupied only. Investment or second homes are ineligible.
Military stationed > 100 miles away May qualify if a family member occupies the home, or the borrower intends to occupy upon discharge.

Residency Eligibility
Eligible Valid SSN — must have a valid Social Security Number (SSN). Permanent residents — must provide a valid, unexpired Green Card.
Ineligible ITIN borrowers are not eligible. Non-permanent residents are ineligible. Foreign nationals are ineligible. Individuals with EAD (Employment Authorization Document) are not eligible. Individuals with work permits are not eligible.

Income Consistency Requirements
Employment History Two years of employment history required with the same employer or with different employers in the same line of work, Education or training may be used to fill gaps in history, If on temporary disability, income used will be the lower of the disability pay or the regular employment income.
Notes Frequent job changes are allowed if they are within the same line of work and the income is stable or increasing, provided this is supported by documentation, Gaps over 6 months require explanation + current 6 months continuous employment, Education and training must be documented with transcripts, diploma, certificate, professional license, or official school/training program documentation, An employer’s letter is required and must confirm the return-to-work date. If the return-to-work date is before the first mortgage payment, use regular income; if the return-to-work date is after the first mortgage payment, use the lower of disability income or regular income.

Income Type	Requirement	Documentation
Wage Earner	2 years employment history; gaps >6 months require explanation + 6 months current employment.	30 days paystubs + 2 years W-2s; VOE if required.
Self-Employed	2 years self-employment (1 year acceptable with ≥2 years prior related work and strong file).	2 years tax returns; YTD P&L; business bank statements if requested.
Part Time	2-year history required; must be likely to continue.	W-2s, paystubs, VOE verifying hours and history.
Seasonal	2-year history required; must be likely to continue.	W-2s, paystubs, VOE or employer letter confirming rehire pattern.
Social Security, Disability, and Retirement Income	Must be expected to continue ≥ 3 years.	Award/benefit letter (SSA, pension, disability) + proof of receipt (bank statements, 1099s, or deposits).
Alimony / Child Support	Must be court-ordered or written agreement; ≥ 3 years continuance.	Divorce decree, separation agreement, or order + 6 months proof of receipt.

Loan Amounts
Minimum Loan Amount $50,000 minimum (case-by-case exceptions possible).
County Loan Limits Must meet FHA county loan limits.

Non-Occupant Co-Borrowers
Eligibility Allowed for purchase and rate/term transactions.
LTV Limits & Exceptions LTV limited to 75% unless it’s a 1-unit property and the co-borrower is a qualifying family member — then up to 96.50% is allowed.

Property Types
Eligible SFR, 2–4 units, PUDS, FHA-approved condos, Manufactured Homes (doublewide or larger, built after 6/15/76, on a permanent foundation; moved homes allowed if DMV title is retired).
Ineligible Second homes, Investment properties, Manufactured Homes (Singlewide, or built before 6/15/76, or no permanent foundation, or parks/subdivisions with lot rent.), Condo Hotels or Motels (projects operated as hotel/motel, hotel/motel conversions), Commercial property, Vacant land or land development properties.

Self-Sufficiency
Requirement Net rental income from all units (including the borrower’s unit) must meet or exceed the property’s monthly PITIA.
Calculation Use actual rental income and expenses as reported on tax returns (Schedule E) to determine net income or loss.

Disclaimer – This matrix was published on 09/20/2025. Program guidelines may have changed since then. Please contact Alexis to confirm the most current requirements. For complete details, refer to the Partner Matrices PDF or reach out directly to Alexis for program-specific guidance.

Rate & Term

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