Refinance Transactions
• Refinance transactions where any open debt secured by the subject property is delinquent or in arrears,
not current for the month due, has been re-structured, or will be re-subordinated for less than the total
amount due are not eligible.
• In order to comply with HUD’s directive, refinance transactions should “make sense”
and be in the borrower’s best interest.
• In states with predatory lending laws, the state-specific refinance or “Tangible Net Benefit “worksheet will
supersede guidelines.
