On April 22, 2013, FHA issued new guidance allowing select properties outside of the lockout period to benefit from historically low interest rates by requesting a rate reduction. Until now, FHA has only considered such requests to avoid possible default. Borrowers with performing loans had to refinance to secure lower rates.
The new guidelines apply to qualifying loans financed though the Section 223(f) or 223(a)(7) programs. They outline the conditions required to secure a rate reduction, the submission requirements and the FHA processing procedures. Notably, they allow HUD HUB directors to approve requests, eliminating headquarters action and expediting the process.
Questions on the guidance should be directed to NMHC’s Vice President of Finance, David Cardwell, at 202/974-2336 or email@example.com.
Full DocumentFHA Interest Rate Reduction Polices
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