FHA issued Mortgagee Letter 2020-03 (Letter), revising HUD’s policy that applications for refinancing or acquisition of existing properties may not be accepted unless and until three years have passed since completion of construction or substantial rehabilitation of the property. Per the Letter, applications for refinancing of newly built or substantially rehabilitated properties will now be accepted as soon as properties achieve the applicable programmatic Debt Service Coverage Ratio for at least one full month.
The revised policy is effective immediately.
https://www.hud.gov/sites/dfiles/OCHCO/documents/20-03hsgml.pdf
