– You must have current debt to income ratio above 35% to qualify.
– New payments “shall be in an amount that is substantially reduced from the debt service payments due under the existing mortgage or mortgages”. This could be a problem for many people. If you’re getting rewritten from a 5% IO ARM for 600k into 5.8+1.5% fixed 30-year for 450k, your payments go UP even though your balance is reduced by 25%. Those FHA premiums bite.
– Can’t take out second mortgages or loans on the property for 5 years, unless explicitly permitted by “the Oversight Board” to maintain the property.
