FANNIE MAE FIXED 5/1 LIBOR ARM REVISED 5/25/2012

Size: px
Start display at page:

Download "FANNIE MAE FIXED 5/1 LIBOR ARM REVISED 5/25/2012"

Transcription

1 FANNIE MAE FIXED 5/1 LIBOR ARM REVISED 5/25/2012 Transaction Type (1) Primary Residences Purchase Money Mortgage and Limited Cash-Out Refinance Cash-Out Refinance Number of Units Eligible Property Types (2) Maximum LTV/CLTV/HCLTV Condominium 97% / 97% / 97% 1-Unit PUD Manufactured ( < 30 Years) 85% / 90% / 90% 2-Units Multi-Family 80% / 80% / 80% 3-4 Units Multi-Family 75% / 75% / 75% Condominium 85%/ 85% / 85% 1 Unit PUD Manufactured ( < 20 Years) 65% / 65% / 65% 2-4 Units Multi-Family 75% / 75% / 75% Second Homes Owns 5-10 Financed Properties = See Page 12 Purchase Money Mortgage and Limited Cash-Out Refinance Cash-Out Refinance Investment Properties 1-Unit 1-Unit Condominium PUD Manufactured ( < 30 Years) Condominium PUD Manufactured ( < 20 Years) Owns 5-10 Financed Properties = See Page 12 1 Unit Condominium Purchase Money PUD Mortgage Limited Cash Out Cash-Out Refinance Minimum Credit Score (3) 90% / 90% / 90% LTV > 80% 720 LTV % 660 LTV < 75% % / 90% / 90% 75% / 75% / 75% NA / NA / NA 80% / 80% / 80% (5) Maximum DTI Ratio (4) % if LTV > 75% 620 if LTV < 75% 1 Unit Manufactured NA / NA / NA NA 2-4 Units Multi-Family 75% / 75% / 75% Units Condominium PUD Multi-Family 75% / 75% / 75% 1-2 Units = Units = Unit Manufactured NA / NA / NA NA 1 Units Condominium PUD 75% / 75% / All LTV 2-4 Units Multi-Family 70% / 70% / 70% All LTV (1) Highlights are based on FNMA Eligibility Guidelines. Although loan may be eligible for FNMA, it may not be eligible for MI or DGU. Refer to MI or DGU for qualifying guidelines. (2) Attached Condominium and PUD must meet secondary market and MI minimum project review guidelines (3) Loans not meeting minimum credit score must receive AUS approval, and have direct approval by MI Company, if applicable (4) Ratios exceeding maximum must have strong compensating factors, receive AUS approval, and direct approval by MI Company (5) Investment Property LTV reduced from FNMA guideline due to LTV > 80% is ineligible for Mortgage Insurance 45% 45% M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 1 of 13

2 GENERAL GUIDELINES: All loans must be eligible to be sold to Fannie Mae. (Refer to efanniemae.com, MRI FNMA Standards Quick Reference, and/or MI Company site for complete guidelines) LOAN TYPE / AMORTIZATION: 10, 15, 20, 30, 40-Year Fixed 30- and 40-Year 5/1 LIBOR ARM 5/1 LIBOR ARM: ARM Features: 5/1 Libor ARM Index 1-Year LIBOR Index Margin 1.75% Fixed Rate Period 60 Months First Adjustment Cap 5.00% Periodic Interest Rate Cap 2.00% Lifetime Interest Rate Cap 5.00% Conversion Option to Fixed Rate No Qualifying Rate: Qualifying rate is the note interest rate plus 2% or the fully indexed rate whichever is greatest. MAXIMUM LOAN LIMITS: 1 Unit $417,000 2 Units $533,850 3 Units $645,300 4 Units $801,950 GEOGRAPHIC MARKET AREAS: Washington State only ELIGIBLE APPLICANTS: Borrower must be eligible for credit union membership U.S. Citizens Inter Vivos Revocable Trusts (Must be approved by title company - see investor guidelines for requirements) Permanent Resident Aliens (the right to live and work in the US permanently) Non-permanent Resident Aliens (the right to live and work in the US temporarily) are eligible for: Purchase and Rate/Term Refinance Owner-Occupied only Evidence of Occupancy status is validated by one of the following required INS documents: - Unexpired foreign passport containing INS form I-94 stamped with Employment Authorized - Temporary Resident Card form I Employment Authorization Card form I-688 A or O containing the applicant s photograph Evidence of Residency status is validated by a copy of the borrower s temporary work Visa (INS form I- 94). The following documentation is required for Residency eligibility: - Borrower must have established a 2-year history of residency, employment and credit within the US - VISA status must provide a remaining duration of at least three years - Heavy emphasis will be placed on employment and likelihood of continuation - Assets for down payment, closing costs and reserves should be verified on deposit in a US financial institution for at least 6 months M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 2 of 13

3 Ineligible: Non-Resident Aliens, Partnerships, Corporations, Syndications, Trusts (other than Inter Vivos Revocable Trusts), and Foreign Nationals DOCUMENTATION: If MI or DGU, loan must meet their minimum documentation requirements; regardless of AUS recommendation Credit documentation cannot be over 90 days old at time of closing DU recommended documentation acceptable. Verbal verification of employment and copy of business license, if applicable IRS 4506T for each applicant; verified prior to doc prep FraudGuard and clearance of red flags Liabilities not reflected on the credit report are to be fully documented by supplement to credit report, direct verification of loan-mortgage, or copies of most recent real estate tax and insurance statement for other real estate owned. Investment transactions require documentation verifying primary residence mortgage payment includes PITI or member is to provide copies of current real estate tax statement and insurance statement underwriting comments to clearly characterize the loan and justify approval Any additional documentation deemed necessary by underwriter NON-OCCUPANT CO-APPLICANTS: Non-occupant co-applicants are allowed Refer to Mortgage Insurance Company Guidelines For mortgage loans with a non-occupant co-borrower, the LTV, CLTV, and HCLTV ratios cannot exceed 90% for manually underwritten loans, or 97% for loan case files underwritten with DU. These limitations are not applicable if the maximum LTV ratios for the transaction are lower than 90 or 97%, respectively. DU will analyze the risk factors in the loan casefile without the benefit of the non-occupant co-borrower's income or liabilities and will not require verification of employment or income for the non-occupant coborrower. For manually underwritten loans, the income from a non-occupant co-borrower may be considered as acceptable qualifying income. This income can offset certain weaknesses that may be in the occupant borrower s loan application, such as limited financial reserves, limited credit history, or higher-than-normal qualifying ratio. However, it may not be used to offset significant or recent instances of major derogatory credit in the occupant borrower s credit history. The occupant borrower must still reasonably demonstrate an ability and willingness to make the mortgage payments and maintain homeownership. Note: If loan is manually underwritten, DU report would not be part of the loan file, and ALL Fannie Mae manual underwriting requirements for the loan in its entirety applies. MORTGAGE INSURANCE: Refer to MI Premium Schedule Delegated MI Underwriting is not allowed - Direct MI Approval Required LTV > 95% to be insured by MGIC Loan must meet MI company minimum underwriting guidelines; regardless of AUS recommendation CREDIT HISTORY: A joint credit report on more than one individual applicant, without regard to marital status, is acceptable. 3-file instant merged credit reports, with 3 credit scores are generally required. Two credit scores are acceptable if that is the extent of the data available for the member; the lesser of the two will be used as the representative credit score. Non-Traditional Credit - Refer to MI Company, efanniemae.com and/or MRI FNMA Standards Quick Reference guidelines Contingent Liability - Refer to MI Company, efanniemae.com and/or MRI FNMA Standards Quick Reference guidelines Revolving Accounts: All outstanding revolving accounts, regardless of remaining number of months, are to be considered in qualifying DTI ratio. If the revolving accounts will be paid off and closed on or before M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 3 of 13

4 closing, the payment does not have to be included in the DTI ratio providing the file is documented that the revolving account has be paid off and closed. If the revolving account is not closed, the payment based on the reported balance must be included in the DTI ratio. Installment Loans: All outstanding installment debts, including deferred student loans, are to be considered in qualifying DTI ratio. An exception may be made if less than 10 months remaining and verified adequate cash reserves to cover monthly payment. Verified Minimum Payment: If the payment is not verified on the credit report, 5% of the unpaid balance for revolving accounts, and 2% of the unpaid balance on student loans is to be used in qualifying. LTV > 80% - No bankruptcies, deeds in lieu, short sales or foreclosures in the past 4 years Bankruptcy (Chapter 7 and 10) LTV < 80% 4 years (2 years exception for extenuating circumstances) from the date of discharge or dismissal of bankruptcy action Bankruptcy (Chapter 13) - LTV < 80% 2-years from discharge date, or 4 years (2 years exception for extenuating circumstances) from dismissal date Multiple Bankruptcy Filings - LTV < 80% 5-years if more than one filing within the past 7 years from most recent dismissal or discharge date. (3 years exception for extenuating circumstances) The most recent bankruptcy must have been the result of extenuating circumstances. Foreclosures - LTV < 80% 7-years from completion date (3 years exception for extenuating circumstances). Purchase of a principal residence is permitted with a minimum of 10% down payment and minimum representative credit score of 680. Second home and investment property are not permitted. Cashout refinances are not permitted for any occupancy. Deed-in-Lieu - LTV < 80% 2-years from completion date. Purchase of a principal residence, second home or investment property with the greatest of 10% minimum down payment or the minimum down payment required for the transaction. Limited cash-out and cash-out refinance transactions secured by a principal residence, second home, or investment property are permitted. Pre-foreclosure Sale - LTV < 80% - 2-year period from completion date. Short Sale - LTV < 80% - 2-year period from completion date. Past-Due, Collections, and Charge-Off Accounts o If mortgage insurance is required, all collections, and charges-off accounts are required to be paid in full at or before closing. o Accounts that are reported as past due (not reported as collection accounts) must be brought current. o For one-unit, owner-occupied properties, borrowers are not required to pay off outstanding collections or charge-offs regardless of the amount provided the collection will not threaten Fannie Mae s first-lien position. o o For two- to four-unit owner-occupied and second home properties, collections and charge-offs totaling more than $5,000 must be paid in full prior to or at closing. For investment properties, individual accounts equal to or greater than $250 and accounts that total more than $1,000 must be paid in full prior to or at closing. Judgments, garnishments, and liens. Open judgments, garnishments, and all outstanding liens that are in the Public Records section of the credit report will be identified in the Underwriting Findings report, and must be paid off at or prior to closing. Documentation of the satisfaction of these liabilities, along with verification of funds sufficient to satisfy these obligations, must be maintained in the permanent loan file. Extenuating Circumstances: Extenuating circumstances are nonrecurring events that are beyond the borrower s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations. If a borrower claims that derogatory information is the result of extenuating circumstances, the lender must substantiate the borrower s claim. Examples of documentation that can be used to support extenuating circumstances include documents that confirm the event (such as a copy of a divorce decree, medical reports or bills, notice of job layoff, job severance papers, etc.) and documents that illustrate factors that contributed to the borrower s inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, property listing agreements, lease agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.). The lender must obtain a letter from the borrower explaining the relevance of the documentation. The letter must support the claims of extenuating circumstances; confirm the nature of the event that led to the bankruptcy or foreclosure-related action, and illustrate the borrower had no reasonable options other than to default on their financial obligations. M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 4 of 13

5 SOURCE OF DOWN PAYMENT AND / OR CASH RESERVES: Down payment and cash reserves may derive from the following sources: Member s checking-savings accounts, stocks, bonds & mutual funds, trust accounts, retirement account. 70% of the value of stock and investment account balance. If used for down payment, copy of liquidation check and bank deposit slip is required. 60% of borrower s vested retirement account balance will be considered as cash reserves providing borrower funds are accessible and loan is documented on the terms under which the retirement funds can be accessed. If used for down payment, copy of liquidation check and bank deposit slip is required. Gift from a relative (spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption or legal guardianship) or a fiancé, fiancée, or domestic partner, who is not a party to the transaction (not allowed on investment transactions). Gift letter, copy of gift check received along with copy of bank deposit slip depositing funds is required. Loan secured by a marketable asset such as 401(k), CD, cash value of life insurance or vehicle. Copy of loan documents, proceeds check along with copy of bank deposit slip depositing funds required. If loan is secured by a financial asset (401(k), TSP, CD, or cash value of life insurance) vested financial asset amount is to be reduced by the loan amount. Monthly payment will not be considered in qualifying. Refer to efanniemae or MRI FNMA Quick Reference Guide for details concerning funds derived from donations from entities, employer assistance, bridge loan, trade equity, rent credit, sale of personal property, gift of equity, cash value of life insurance, and pooled savings. Proceeds from sale of other real estate. Copy of final HUD-1 settlement statement is required prior to closing. Source of any large deposits reflected on bank statements to derive from an acceptable source and be documented in the loan file. Bank statements that include account ownership by unknown parties must include explanation why unknown parties are on account, and certification funds represent applicant s own funds and can be used towards transaction. Unacceptable Source of Funds: Cash-on-Hand Proceeds from subject refinance GIFT FUNDS - MINIMUM BORROWER CONTRIBUTION REQUIREMENTS FROM BORROWER S OWN FUNDS: Gifts funds for down payment, closing costs or cash reserves is not allowed on investment loans. Occupancy Units LTV / CLTV / HCLTV Minimum Contribution 1-4 Units < 80% No minimum contribution All funds to complete transaction can come from gift. 1-Unit > 80% No minimum contribution All funds to complete Primary Residence transaction can come from gift. (IF MI REQUIRED, REFER TO MORTGAGE INSURANCE COMPANY GUIDELINES FOR THEIR MINIMUM REQUIREMENTS). 2-4 Units > 80% Minimum 5% No minimum contribution All funds to complete 1-Unit < 80% Second Home transaction can come from gift. 1-Unit > 80% Minimum 5% Investment Property 1-4 Units ALL Gift funds not allowed Minimum Cash Reserves: The reserves calculation for a financed property is based on the monthly housing expense of the financed property. All reserve requirements are based on the definition of reserves (PITIA) as defined below. M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 5 of 13

6 DEFINITION OF LIQUID FINANCIAL RESERVES: The definition of reserves to include all components of the monthly housing expense (PITIA), including: Principal and interest, Hazard, flood, and mortgage insurance premiums (as applicable), Real estate taxes, Ground rent, Special assessments, any owners association dues (excluding any utility charges that apply to the individual unit), and Any subordinate financing payments on mortgages secured by the subject property. The definition of reserves applies to both manually underwritten mortgage loans and those underwritten through DU. Owner Occupied Minimum Cash Reserves: Reserves Required (PITIA) in Months Primary Residence Transaction # of Units Borrower Will Own 1-4 Financed Properties Borrower Will Own 5-10 Financed Properties 1-Unit * DU: Per DU or * Manual: 0 Months 2-4 Units * DU: Per DU or * Manual: 6 Months on Subject Property However, if the borrower also has a: Current principal residence- Pending Sale Current principal residence- Converting to second home Current principal residence- Converting to investment property DU: Per DU Manual: If 30% equity or more on previous principal residence: 2 months on subject property, and 2 months on previous primary; or If less than 30% equity on previous principal residence: 6 months on subject property, and 6 months on previous principal residence. * DU: Per DU or * Manual: 0 Months * DU: Per DU or * Manual: 6 Months on Subject Property DU: Per DU Manual: If 30% equity or more on previous principal residence: 2 months on subject property, and 2 months on previous primary; or If less than 30% equity on previous principal residence: 6 months on subject property, and 6 months on previous principal residence. REFER TO MI COMPANY CONVERTING CURRENT RESIDENCE CASH RESERVE REQUIREMENTS SECOND HOME AND INVESTMENT PROPERTIES- MINIMUM CASH RESERVES: The amount of required reserves varies depending on whether the subject property is a second home or investment property, and on the number of other financed properties the borrower currently owns. DU is not able to determine the exact number of other financed properties the borrower owns, and as a result, the underwriter must manually apply the reserve requirements to investment property and second home transactions as applicable and is to be clearly condition for on UW Disposition sheet. Cash Reserve amount for other financed properties is to be entered as a negative <-> cash asset on 1003 prior to submitting to DU. Second Home Minimum Cash Reserves: Second Home Transaction # of Units 1-Unit Reserves Required (PITIA) in Months Borrower Will Own 1-4 Financed Properties Borrower Will Own 5-10 Financed Properties * DU - Per DU or * Manual: 2 Months * DU - Per DU or * Manual: 2 Months M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 6 of 13

7 Other Financed Properties: (Need to Manually Calculate & Condition For): 2 months on each other financed second home or investment property. Investment Property Minimum Cash Reserves: Reserves Required (PITIA) in Months Investment Transaction # of Units 1-4 Units Other Financed Properties: (Need to Manually Calculate and Condition For): 6 months on each other financed second home or investment property. Borrower Will Own 1-4 Financed Properties Borrower Will Own 5-10 Financed Properties * DU - Per DU or * Manual: 6 Months Other Financed Properties: (Need to Manually Calculate & Condition For): 2 months on each other financed second home or investment property. * DU - Per DU or * Manual: 6 Months Other Financed Properties: (Need to Manually Calculate and Condition For): 6 months on each other financed second home or investment property. EMPLOYMENT HISTORY: AUS and/or MI company minimum income verification documentation is required LTV > 80% requires current and prior employment verification Employment gaps greater than 1 month is to be explained INCOME STABILITY: A member must have a history of receiving stable income from employment or other sources and a reasonable expectation that the income will continue to be received in the foreseeable future (usually for three years). Other sources of income may derive from social security, pension, retirement, child support / alimony, notes receivable, dividend, interest, public assistance, foster care, VA disability, relative boarder income, etc. A salaried or commissioned borrower's income may come from many different sources. Salary and wage income is the easiest to determine and verify. Special consideration may need to be given to income from sources other than wages and salaries, particularly if it is difficult to verify through an independent and knowledgeable source. The specific treatment for these other types of income is discussed in more detail in the FNMA Selling Guide Chapter 4. Income from most sources other than salary and wages can be considered as qualifying income as long as it is properly documented (and the lender is able to determine that it is stable, predictable, and likely to continue). Income received from any source that cannot be verified is not acceptable for the purpose of qualifying a member. Special consideration to regular sources of income that are nontaxable-such as child support payments, social security benefits, disability retirement payments, workers' compensation benefits, certain types of public assistance payments, food stamps, etc. Verify that the particular source of income is nontaxable and that both the income and its tax-exempt status are likely to continue. Documentation that can be used for this verification includes award letters, policy agreements, account statements, or any other documents that address the amount of income and the likelihood of its continuance for at least three years after the date of the loan application. (Nontaxable income status and the related tax savings can also be verified from IRS publications.) If the income is nontaxable and the income and its tax-exempt status are likely to continue, the lender may develop an "adjusted gross income" for the member by adding an amount equal to 25% of the nontaxable income to the member's income. If the actual amount of federal and state taxes that would generally be paid by a wage earner in a similar tax bracket is more than 25% of the borrower's nontaxable income, may use that amount to develop the "adjusted gross income." This adjusted gross income should be used in calculating the borrower's qualifying ratio. If member is self-employed, minimum length and documentation required by AUS and/or MI-DGU company length is acceptable. APPRAISAL REQUIREMENTS: Automated underwriting system level of property evaluation is acceptable Attached Condominium-PUD projects to meet Fannie Mae and/or MI company minimum project review requirements M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 7 of 13

8 Manufactured homes to meet investors minimum standards (refer to efanniemae.com for details) Agriculture use of property is not permitted Refinance Transactions: - Underwriter is to pay particular attention to current occupant and prior listing-sales history on refinance transactions. - Valuation inaccuracies are more likely to occur in appraisals used in cash-out refinance transaction. Appraisals in such transactions should be scrutinized with particular care to ensure that the value conclusion is solidly supported by appropriate comparables and related adjustments. Report should include the following: Written and presented in a narrative format or on forms that satisfies all requirements of this section or secondary market minimum appraisal requirements; Sufficiently descriptive to enable the reader to ascertain the estimated market value and the rationale for the estimate; Provide the detail and depth of analysis that reflect the complexity of the real estate appraised; An analysis on current revenues, expenses, and vacancies for property if it is and will continue to be income producing; An analysis on the marketing period for the subject property; An analysis on current market conditions and trends that will affect the value of the subject property; In addition to the certification required by the USPAP, include a statement that the appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan; A legal description of the real estate being appraised; An identification and separate valuation of any personal property, fixtures, or intangibles items that are not real property but included in the appraisal, and discuss the impact to their inclusion or exclusion on the estimate of market value; Demonstrate a reasonable valuation method that addresses the direct sales comparison, income, and cost approaches to market value, reconciles those approaches, and explains the elimination of each approach not used. Underwriter is to pay particular attention to the neighborhood analysis within the appraisal report specifically in the areas of built up, growth rate, and property values as described below: Built Up Growth Rate Property Values Ensure that the built up or degree of development shows the percentage of available land in the neighborhood that has been improved. The degree of development can indicate whether a particular property is residential in nature. Areas less than 25% developed may not be acceptable for financing. Ensure that rapid, stable, or slow is selected. A stable growth rate is preferred when maximum financing is requested. Ensure that the appraiser indicates whether the property values in the subject neighborhood are "increasing", "stable" or "declining". If property values in the neighborhood are declining, maximum financing is not allowed. Refer to MI Company guidelines concerning declining values TITLE VESTING AND COMMUNITY PROPERTY STATE: Members requesting a mortgage loan with vesting as married, as their separate estate are acceptable. However, additional documentation and non-borrowing spouse signatures are necessary to ensure title to the property is perfected and our mortgage lien interest is protected. Purchase Transactions - Required Documentation / Signatures Necessary document that is acceptable to title company to vest title in applicant s name only Owner Occupied - Non-borrowing spouse to acknowledge deed of trust Refinance Transactions Required Documentation / Signatures Necessary document that is acceptable to title company to vest title in applicant s name only M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 8 of 13

9 Generally, escrow will not prepare document to vest title in applicant s name only in which case the applicant is responsible to provide the document. Under no circumstances are we to prepare the document for members. Owner Occupied - Non-borrowing spouse to acknowledge deed of trust Owner Occupied - Non-borrowing spouse to sign Truth-in-Lending and three day rescission if property is primary residence of borrower WAIVER OF ESCROW ACCOUNT: An escrow account for taxes, insurance, and special assessments is required when LTV > 80% First Time Home Buyer Flood Insurance is required Private Mortgage Insurance is required Borrower has a blemished credit history Loans identified has a HOEPA Loan with conforming loan rate spread > 1.500% or Jumbo loan rate spread > 2.500% If a special assessment levied against the property was not paid at loan closing, the borrower s payment must include appropriate accruals to ensure that any estimated annual payment toward the assessment will be accumulated by the time it comes due. PURCHASE TRANSACTIONS: 1) Conversion of Current Residence: Applicants who currently own their home typically have three options when they decide to purchase a new principal residence. They can: Sell the current residence and payoff the outstanding mortgage, Convert the property to a second home, assuming they can qualify with both the existing and new mortgage payments, or Convert the property to an investment property and provide documentation that they will rent the property and use the income to offset the mortgage payment. The following is required in order to ensure that applicants can support both the existing financing and the new mortgage being originated. Current principal residence is pending sale but the transaction will not be closed prior to the new transaction: Both the current and the proposed PITIA must be used to qualify, Copy of listing agreement, including delinquency-short sale certification is required FNMA will not require the current principal residence s PITIA to be used in qualifying the borrower as long as 6 months of reserves (or 2 months with 30% documented equity) for both properties are document and the following additional documentation is provided: The executed sale contract for the current residence; and Confirmation that any financing contingencies have been cleared Conversion to a Second Home: Both the current and the proposed mortgage payments must be used to qualify the borrow for the new transaction; and 6 months of PITIA for both properties is required in reserves. 2 months PITIA may be considered if there is documented equity of at least 30 present in the existing principal residence (derived from an appraisal, AVM, or Broker Price Opinion, minus outstanding liens). Conversion to an Investment Property: 75% of the rental income can be used to offset the PITIA in qualifying providing there is documented equity of at least 30 percent in the existing property residence (derived from an appraisal, AVM, or Broker Price Opinion, minus outstanding liens). M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 9 of 13

10 Rental income must be documented with a copy of the fully executed lease agreement; and the receipt of a security deposit from the tenant and deposit into the member s account. If the 30 percent equity in the current residence cannot be documented, rental income may not be used to offset PITIA. 2) THIRD PARTY CONTRIBUTIONS: The maximum allowable third party contributions are limited to: Occupancy LTV / CLTV Maximum Limit Principal Residence > 90.00% 3% Principal Residence & Second Home 75.01% % 6% < 75.00% 9% Investment Property All 2% When contributions exceed these limits or seller is giving buyer something of value (including credit for property improvements), they are considered sales concessions. For underwriting and eligibility purposes, the underwriter must make a downward adjustment to the property s sales price to reflect the amount of any contributions that exceed the maximum limits. The maximum LTV/CLTV ratios must then be calculated using the lesser of the reduced sales price or appraised value. 3) Non-Arms Length Transactions: Non-arm s length transactions are purchase transactions in which there is a relationship or business affiliation between the seller and the buyer of the property. Fannie Mae allows non-arm s length transactions for the purchase of EXISTING properties are acceptable. For purchase of NEWLY Constructed Properties, if the borrower has a relationship or business affiliation (any ownership interest, or employment) with the builder, developer, or seller of the property, Fannie Mae will only purchase if property will be buyer s PRIMARY residence. Second home and investment properties are not allowed. REFINANCE TRANSACTIONS: 1) Continuity of Obligation for Limited Cash-Out and Cash-Out Refinances: This guidance refines the determination of whether continuity exists, and if not, what additional eligibility restrictions are applicable. An acceptable continuity of obligation (assuming that there is an outstanding lien against the property) exists when one of the following exists: At least one borrower obligated on the new loan who was also a borrower obligated on the existing loan being refinanced. The borrower has been on title and residing in the property for at least 12 months and has either paid the mortgage for the last 12 months or can demonstrate a relationship (relative, domestic partner, etc.) with the current obligor. The existing loan being refinanced and the title have been held in the name of a natural person or an LLC as long as the borrower was a member of the LLC prior to transfer. Transfer of ownership from a corporation to an individual does not meet the continuity of obligation requirement. The borrower has recently inherited or was legally awarded the property (divorce, separation, or dissolution of a domestic partnership). Loans with an acceptable continuity of obligation may be underwritten, priced, and delivered as either a limited cash-out refinance or a cash-out refinance based on the standard definitions in the Selling Guide. Fannie Mae will continue to allow buy-outs resulting from divorce settlements or property inheritance as limited cash-out refinances in accordance with the Selling Guide, Part VII, Section In addition, the requirements in the M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 10 of 13

11 Selling Guide, Part VII, Section : Payoffs of Installment Land Contracts remain in place and are unaffected by these changes. No Acceptable Continuity of Obligation: If the borrower is currently on title but is unable to demonstrate an acceptable continuity of obligation, or there is no outstanding lien against the property, the loan is still eligible for delivery to Fannie Mae but with additional restrictions described in the following table. The loans must be underwritten, priced, and delivered as a cash-out refinance transaction. Outstanding Liens Purchase Date LTV Ratio Requirements No (the property was Within the 6- to 12-month period prior to the purchased for cash, application date for new financing previous mortgages have been paid off, etc.) Yes More than 12 months prior to the application date for the new mortgage The borrower has been on title for at least 6 months The LTV / CLTV / HCLTV ratios must be based on the lesser of the original sales price / acquisition cost (documented by the HUD-1 Settlement Statement) or the current appraised value. The LTV / CLTV / HCLTV ratios must be based on the current appraised value. The maximum LTV / CLTV / HCLTV ratios are limited to 50% based on the current appraised value. 2) Rate Term Refinances: A limited cash-out refinance may consist of the following components: The unpaid principal balance of an existing first mortgage; Closing costs and prepaid escrows The amount required to satisfy any subordinate mortgage liens if the proceeds were used to acquire the property. A copy of the HUD1 Settlement Statement or title Warranty Deed dated same as the date the subordinate lien was opened. Cash back to the member in an amount not more than the lesser of 2% of the balance of the new refinance mortgage or $2000. Owner buy-out will be considered as limited cash-out refinance as long as the following conditions are met: 1. Property must have been jointly owned by all parties for at least the 12 month preceding the date of the loan application. (parties who inherit an interest in the property do not have to satisfy this required); 2. All parties must be able to demonstrate that they occupied the property as their principal residence, by providing an acceptable source of verification such as a driver s license, bank statement, credit card bill, utility bill, etc. that was mailed to the individual at the address of the property. (Parties who inherit an interest in the property do not have to satisfy this requirement). 3. All parties must sign a written agreement that states the terms of the property buy-out and the proposed disposition of the proceeds from the refinance transaction. The borrower cannot receive any proceeds from the refinance. 4. The party who is buying out the other party s interest must be able to qualify for the mortgage 3) Cash-Out Refinances: Payoff of Privately Held Contract / Deed of Trust: Loan is ineligible for cash out and is restricted to limited cash out only. Property Ownership Seasoning Requirement: If the property was purchased by the borrower within the 6 months preceding the application for new financing, the borrower is ineligible for cash-out refinance transaction unless the loan meets the delayed financing exception. Refer to the delayed financing exception in the FNMA Selling Guide. Short-Term Refinance: A short-term refinance mortgage loan that combines a first mortgage and a non-purchase money subordinate mortgage into a new first mortgage is considered a cash-out transaction. Any refinance of that loan within 6 months will also be considered a cash-out transaction. Basically, the existing loan that M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 11 of 13

12 will be paid-off from the new refinance loan needs to be seasoned 6 months or it will be considered short time cash out refinance. Property Listing History for Cash-Out Refinances: Properties listed for sale in the 6 months proceeding the application date are limited to 70% LTV (65% for manufactured homes) for cash-out refinance Properties must be taken off the market prior to application date Documentation Needed: Copy of cancelled listing agreement Letter explaining why members decided not to sell property and certify to their intended use of occupancy (primary, secondary, or investment) of the property Maximum Cash-Out Limitation: No limitation MULTIPLE MORTGAGES TO THE SAME BORROWER: (Announcement February 6, 2009) ELIGIBILITY REQUIREMENTS: FIVE TO TEN FINANCED PROPERTIES Transaction Type Second Home Number Of Units Maximum LTV / CLTV / HCLTV Purchase 1 Unit 75% / 75% / 75% Limited Cash Out Refinance 1 Unit 70% / 70% / 70% Cash Out Refinance (Only if delayed financing exception requirements are met-see ) Investment Property Purchase And Limited Cash Out Refinance Cash Out Refinance (Only if delayed financing exception requirements are met-see ) Minimum Credit Score Unit 70% / 70% / 70% Unit 75% / 75% / 75% 2-4 Units 70% / 70% / 70% Unit 65% / 65% / 65% 720 UNDERWRITING AND DELIVERY REQUIREMENTS: The borrower cannot have any history of bankruptcy or foreclosure within the past seven years. The borrower cannot have any delinquencies (30-day or greater) within the past 12 months on any mortgage loans. Rental income on the subject investment property must be fully documented according to the Selling Guide, Part X, : Rental Income. Rental income from other properties owned by the borrower must be supported by two years federal income tax returns. DU messages permitting reduced rental income documentation must be disregarded and full documentation must be obtained. The borrower must have reserves for the subject property and for other properties currently owned by the borrower (i.e., other financed second home and investment properties) in accordance with the Reserve Requirements for Second Homes, Investment Properties, and Multiple Financed Properties. Lenders must use Special Feature Code 150 when delivering mortgage loans secured by second home and investment properties that meet the five to ten financed property requirements. APPLYING THE MULTIPLE MORTGAGES TO THE SAME BORROWER POLICIES TO DU LOAN CASE FILES: DU is not able to determine the exact number of financed properties the borrower owns but does issue a message on second home and investment property transactions when the borrower appears to have financed properties. This message will be updated with the DU Version 7.1 April Update release to be issued on all second M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 12 of 13

13 home and investment property transactions in order to remind lenders of the new policies. The lender must apply the eligibility and underwriting requirements manually to DU investment property and second home transactions as applicable. M:\Mortgage Procedures\Program Highlights\FNMA Conforming Guidelines.doc Page 13 of 13

DU REFI PLUS FIXED AND 5/1 LIBOR ARM - APP DATE ON OR AFTER 12-1-2011 REVISED 5/25/2012

DU REFI PLUS FIXED AND 5/1 LIBOR ARM - APP DATE ON OR AFTER 12-1-2011 REVISED 5/25/2012 DU REFI PLUS FIXED AND 5/1 LIBOR ARM - APP DATE ON OR AFTER 12-1-2011 REVISED 5/25/2012 DEFINITION OF DU REFI-PUS: Loan is serviced by an Outside Lender Existing Loan is owned by Fannie Mae All loans must

More information

1030HARP DU REFI PLUS (6/8/12)

1030HARP DU REFI PLUS (6/8/12) 1030HARP DU REFI PLUS (6/8/12) DESCRIPTION REQUIRED BORROWER BENEFIT DU Refi Plus is a limited cash-out refinance program that allows for expanded eligibility criteria, as well as reduced documentation

More information

Conventional Jumbo seven year/one year adjustable rate mortgage 30 year term Fully amortizing

Conventional Jumbo seven year/one year adjustable rate mortgage 30 year term Fully amortizing 1. PRODUCT DESCRIPTION Conventional Jumbo fixed rate mortgage 15 and 30 year terms Fully amortizing Conventional Jumbo five year/one year adjustable rate mortgage 30 year term Fully amortizing Conventional

More information

PURCHASE AND RATE TERM REFINANCE 1. Occupancy Units FICO LTV/CLTV Loan Amount

PURCHASE AND RATE TERM REFINANCE 1. Occupancy Units FICO LTV/CLTV Loan Amount EXPRESS JUMBO FIXED RATE AND ARM PROGRAM MATRIX: PURCHASE AND RATE TERM REFINANCE 1 Occupancy Units FICO LTV/CLTV Loan Amount 80/80 $1,500,000 Primary Residence 1 720 75/75 $1,750,000 70/70 $2,000,000

More information

E MORTGAGE MANAGEMENT LLC 303 DU REFI PLUS

E MORTGAGE MANAGEMENT LLC 303 DU REFI PLUS E MORTGAGE MANAGEMENT LLC 303 DU REFI PLUS PRODUCT GUIDELINES 12/8/2014 MORTGAGE ELIGIBILITY Product Description and Product Codes Code Short Description Long Description CF30RP 30 YR REFI PLUS CF30RP

More information

Conventional DU Refi Plus

Conventional DU Refi Plus Endeavor America Loan Services Conventional DU Refi Plus Guidelines Conventional Guidelines... 3 Matrix... 3 Overview... 3 Program Expiration... 3 Loan Purpose... 4 Maximum LTV, CLTV, and HCLTV Ratios

More information

FHA STREAMLINE REFINANCE PRODUCT PROFILE

FHA STREAMLINE REFINANCE PRODUCT PROFILE Terms 30 Year Terms 15 Year Terms Maximum LTV/CLTV LTV/CLTV Score LTV/CLTV Score Non-Credit Qualifying N/A N/A Credit Qualifying 97.75% 97.75% Applies to Case Numbers assigned on or after January 26, 2015

More information

Portfolio High Balance Fixed

Portfolio High Balance Fixed Minimum Credit Score: 620 Minimum Loan 1 unit: $417,001 2 unit: $533,851 AUS: DU Approve Eligible Maximum LTV: 90% Amount*: 3 unit: $645,301 4 unit: $801,951 Primary Residence 3 Purpose Units LTV CLTV

More information

ditech BUSINESS LENDING FREDDIE MAC ELIGIBLE ARM PRODUCT CORRESPONDENT ONLY

ditech BUSINESS LENDING FREDDIE MAC ELIGIBLE ARM PRODUCT CORRESPONDENT ONLY 1. PRODUCT DESCRIPTION Conventional Conforming five year/one year adjustable rate mortgage Servicing retained 30-year term Fully amortizing Non-convertible ARM Plan ID 2725 Manufactured homes not eligible

More information

GMAC BANK JUMBO FIXED RATE PRODUCT

GMAC BANK JUMBO FIXED RATE PRODUCT GMAC BANK PRODUCT 1. PRODUCT DESCRIPTION Conventional Jumbo Fixed Rate 10 to 30 years in five-year increments Fully amortizing 2. PRODUCT CODES 002 15 Yr Jumbo Fixed 004 30 Yr Jumbo Fixed 3. INDEX N/A

More information

Announcement 08-16 June 25, 2008

Announcement 08-16 June 25, 2008 Announcement 08-16 June 25, 2008 Amends these Guides: Selling Bankruptcy, Foreclosure, and Conversion of Principal Residence Policy Changes; and Revised Property Value Representation and Warranty Requirements

More information

Revolving Debt & Other Agency Guideline Revisions Note: SunTrust specific overlays are underlined.

Revolving Debt & Other Agency Guideline Revisions Note: SunTrust specific overlays are underlined. Assets Section 2.04 DU Refi Plus Loan Program DU Refi Plus STM to STM Transactions Asset Documentation Requirements Assets must be documented in accordance with DU Refi Plus eligible DU Findings report.

More information

Multiple Financed Properties Program Fannie Mae/Freddie Mac. Table of Contents

Multiple Financed Properties Program Fannie Mae/Freddie Mac. Table of Contents Table of Contents 1. Category... 2 2. High Balance... 2 3. Property Types...2 4. Applying the Multiple Financed property Policy to Manually Underwritten Loans... 2 5. Applying the Multiple Financed property

More information

Contents. VA Credit Overlays

Contents. VA Credit Overlays Contents... 1 Introduction... 3 Links... 3 Transaction Types... 3 Purchase Transactions... 3 Refinance Transaction Regular Refinance... 3 Refinance Transaction Interest Rate Reduction Refinance Loan/IRRRL...

More information

Page 1 of 9 Table of Contents

Page 1 of 9 Table of Contents Page 1 of 9 Table of Contents LTV MATRIX... 2 PROGRAM SUMMARY... 3 LOAN AMOUNTS... 3 Conforming... 3 High Balance... 3 LOAN PROGRAM CODES... 3 LOAN TERMS... 3 ADJUSTMENT RATE DETAILS... 4 ELIGIBLE PROPERTY

More information

FHA Guideline Changes Effective for Case Numbers Assigned On or After Sept 14, 2015

FHA Guideline Changes Effective for Case Numbers Assigned On or After Sept 14, 2015 Topic Current FHA Guideline New FHA Guideline Assets Gift Funds as Reserves Manual Underwriting: Not allowed as reserves Manual underwriting: Not allowed as reserves TOTAL Scorecard: Not allowed as reserves

More information

E MORTGAGE MANAGEMENT, LLC 504 FHA STREAMLINES

E MORTGAGE MANAGEMENT, LLC 504 FHA STREAMLINES E MORTGAGE MANAGEMENT, LLC 504 FHA STREAMLINES PRODUCT GUIDELINES 2/10/2015 504 FHA Streamlines Mortgage Eligibility Product Code Short Description Long Description Description FF15SL FHA 15 YR SL FF15SL

More information

Max LTV/CLTV. Units. Max Debt Ratio Purchase or Refinance. 700 1 70% $1,500,000 40% Rate/Term Refinance Cash-Out N/A

Max LTV/CLTV. Units. Max Debt Ratio Purchase or Refinance. 700 1 70% $1,500,000 40% Rate/Term Refinance Cash-Out N/A Jumbo Series 3 Summary Product Types Minimum Loan Amount 5/1 and 7/1 ARMs $417,001 or Fannie/Freddie loan limits 5/1 ARM qualifies at the greater of the fully indexed rate or Note rate +2%. 7/1 ARM qualifies

More information

PORTFOLIO ARM CLOSED END 2 ND TD. Table of Contents

PORTFOLIO ARM CLOSED END 2 ND TD. Table of Contents Table of Contents 1. Program Codes...2 2. Product Overview...2 3. Product Summary...2 4. Documentation...2 5. Underwriting...2 6. Qualifying Rate...2 7. Borrower Eligibility...2 8. Appraisal...3 9. Appraised

More information

VA FIXED RATE PROGRAM HIGHLIGHTS

VA FIXED RATE PROGRAM HIGHLIGHTS Program Summary Loan Term & Program Category Entitlement These guidelines represent underwriting requirements for VA fixed rate mortgages. Also review the VA Lender s Handbook for any guidelines not specifically

More information

DU Refi Plus. Eligibility Matrix Loan Amount & LTV Limitations

DU Refi Plus. Eligibility Matrix Loan Amount & LTV Limitations This matrix is intended as an aid to assist in determining if a property/loan qualifies for the DU Refi Plus program. It is not intended as a replacement for the full DU Refi Plus guidelines. Users are

More information

Announcement 08-22 September 5, 2008. Miscellaneous Eligibility, Policy, and Pricing Updates

Announcement 08-22 September 5, 2008. Miscellaneous Eligibility, Policy, and Pricing Updates Announcement 08-22 September 5, 2008 Amends these Guides: Selling Miscellaneous Eligibility, Policy, and Pricing Updates Introduction This Announcement contains updates and clarifications to Fannie Mae

More information

Multiple (5-10) Financed Properties Retail and Wholesale

Multiple (5-10) Financed Properties Retail and Wholesale Multiple (5-10) Financed Properties Retail and Wholesale Revisions Date Revisions 2/3/15 Updated Sections: Overview, Subject Property is Second Home or Investment Property, Delayed Financing Exception,

More information

Section 2.04 - DU Refi Plus Loan Program

Section 2.04 - DU Refi Plus Loan Program Section 2.04 - DU Refi Plus Loan Program In This Product Description This product description contains the following topics: Overview... 2 Related Bulletins... 5 Existing Mortgage Eligibility Requirements...

More information

CONVENTIONAL - DU FANNIE MAE

CONVENTIONAL - DU FANNIE MAE PRODUCT DESCRIPTION * Fully-Amortized Fixed Rate and ARMs * DU Approve/Eligible required. No manual underwriting (Updated 03/16/2015) * Minimum Credit Score is 620 * Electronic Fraud Detection required

More information

ditech BUSINESS LENDING FREDDIE MAC ELIGIBLE FIXED RATE TEXAS HOME EQUITY PRODUCT

ditech BUSINESS LENDING FREDDIE MAC ELIGIBLE FIXED RATE TEXAS HOME EQUITY PRODUCT 1. PRODUCT DESCRIPTION Conventional Conforming fixed rate mortgage Servicing retained 10 to 30 years in 5 year increments Fully amortizing Qualified Mortgage (QM) Safe Harbor loans are permitted Qualified

More information

FNMA Jumbo Conforming Fixed (HIGH BALANCE LOANS) T300J09. 09-30 Year Fixed & T301J09-15 Year Fixed

FNMA Jumbo Conforming Fixed (HIGH BALANCE LOANS) T300J09. 09-30 Year Fixed & T301J09-15 Year Fixed These guidelines cover the new Temporary Increase in conforming loan limits for high-cost areas authorized by the American Recovery and Reinvestment Act (ARRA). Specifically, the ARRA permits loans originated

More information

QUICK MORTGAGE GUIDE

QUICK MORTGAGE GUIDE QUICK MORTGAGE GUIDE TABLE OF CONTENTS FNMA CONVENTIONAL LOANS - Page 3 FHA LOANS - Page 7 VA LOANS - Page 11 ADJUSTABLE RATE MORTGAGES - Page 15 CONTACT INFORMATION - Page 16 FNMA CONVENTIONAL LOANS The

More information

Non-occupant co-borrowers are allowed. Borrowers to qualify at combined income and assets for standard FHA guidelines.

Non-occupant co-borrowers are allowed. Borrowers to qualify at combined income and assets for standard FHA guidelines. PRODUCT CHEAT SHEET-CA FHA $729,750 max loan amount in Orange County. If doing a loan in another county you can check max loan amount on the following link: https://entp.hud.gov/idapp/html/hicostlook.cfm

More information

Conforming Fixed RateTexas Section 50(a)(6) (Texas Cash-out)

Conforming Fixed RateTexas Section 50(a)(6) (Texas Cash-out) Minimum Credit Score: 620 Doc Type: Full Doc Maximum LTV: Maximum CLTV: 80% Maximum Loan Amount: $417,000 AUS: DU Approve/ 80% Maximum DT: 45% Standard Fixed Rate Purpose Units LTV CLTV Cash-out 1 80%

More information

Product Product Code Loan Term 30-Year FRM FHA FHA30 30-years 15-Year FRM FHA FHA15 15-Years. Property Type Lowest Maximum (Floor)

Product Product Code Loan Term 30-Year FRM FHA FHA30 30-years 15-Year FRM FHA FHA15 15-Years. Property Type Lowest Maximum (Floor) FHA Guidelines Product Description FHA Fixed Rate 15 and 30 Year Terms Fully Amortizing Product Codes Maximum s Product Product Code Loan Term 30-Year FRM FHA FHA30 30-years 15-Year FRM FHA FHA15 15-Years

More information

Conventional Non-Conforming Jumbo Underwriting Guidelines

Conventional Non-Conforming Jumbo Underwriting Guidelines Conventional Underwriting Guidelines Contents Conventional Underwriting Guidelines... 1 Conventional Jumbo Guidelines... 4 All conventional conforming guidelines apply unless noted in the following documentation....

More information

VA Product Guidelines

VA Product Guidelines July 16, 2015 VA Product Guidelines Purchase Occupancy Units LTV CLTV Minimum Credit Score Primary 1-4 100 100 620 Rate/Term Refinance Occupancy Units LTV CLTV Minimum Credit Score Primary 1-4 90 90 620

More information

E MORTGAGE MANAGEMENT, LLC 702 VA ARMS PRODUCT GUIDELINES

E MORTGAGE MANAGEMENT, LLC 702 VA ARMS PRODUCT GUIDELINES E MORTGAGE MANAGEMENT, LLC 702 VA ARMS PRODUCT GUIDELINES 2/24/2015 Mortgage Eligibility Product Code Short Description Long Description Description VF31 VA 3 YR ARM VF31 - VA 3-1 ARM VF51 VA 5 YR ARM

More information

Product Overview. Minimum Loan Amount $25,000. Maximum Loan Amount 1 Unit $417,000. Occupancy Owner occupied primary residence and second homes.

Product Overview. Minimum Loan Amount $25,000. Maximum Loan Amount 1 Unit $417,000. Occupancy Owner occupied primary residence and second homes. Product Overview The Federal Housing Finance Agency (FHFA) announced changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing

More information

VA IRRL 2. CURRENT FIRST MORTGAGE ELIGIBILITY

VA IRRL 2. CURRENT FIRST MORTGAGE ELIGIBILITY 1. PRODUCT DESCRIPTION VA Fixed Rate and ARM Mortgages for Refinance Transactions Fixed Rate Mortgage 10 to 30 years in 5 year increments Fully amortizing Qualified Mortgage (QM) Safe Harbor loans are

More information

E MORTGAGE MANAGEMENT, LLC 704 VA

E MORTGAGE MANAGEMENT, LLC 704 VA E MORTGAGE MANAGEMENT, LLC 704 VA IRRRLs PRODUCT GUIDELINES 1/26/2015 Mortgage Eligibility Product Code Short Long Description Description Description VF15IRL VA 15 YR IRRRL VF15IRL - VA 15 YR IRRRL VF30IRL

More information

E MORTGAGE MANAGEMENT LLC 501 FHA FIXED RATE

E MORTGAGE MANAGEMENT LLC 501 FHA FIXED RATE E MORTGAGE MANAGEMENT LLC 501 FHA FIXED RATE PRODUCT GUIDELINES 2/18/2015 501 FHA Fixed Rate Mortgage Eligibility Product Codes Code Short Description Long Description FF10 FHA 10 YR FF15 - FHA FIXED 10

More information

ditech BUSINESS LENDING FHA STANDARD REFINANCE PRODUCT FOR CASE NUMBERS ASSIGNED ON OR AFTER 9/14/15

ditech BUSINESS LENDING FHA STANDARD REFINANCE PRODUCT FOR CASE NUMBERS ASSIGNED ON OR AFTER 9/14/15 1. PRODUCT FHA Fixed Rate and ARM Mortgages for Rate and Term Refinance, Cash-Out Refinance and Simple Refinance Transactions DESCRIPTION Fixed Rate 5 to 30 year term in annual increments Fully amortizing

More information

FHA Underwriting Changes

FHA Underwriting Changes FHA Underwriting Changes Effective for case numbers issued on and after September 14, 2015 Same Day Turn Times, Everyday Housekeeping All attendees are in listen only mode This seminar is being recorded

More information

VA Product Profile 05.01.2014

VA Product Profile 05.01.2014 Maximum LTV / CLTV and FICO Requirements Purchase VA IRRRL / Rate & Term Cash-out Refinance Maximum LTV 1 / CLTV 1 Min FICO 2 Maximum LTV 1 / CLTV 1 Min FICO 2 Maximum LTV 1 / CLTV 1 Min FICO 2 100% 640

More information

HARP DU REFI PLUS Training

HARP DU REFI PLUS Training HARP DU REFI PLUS Training Offered by FIRST MORTGAGE CORPORATION JUNE 14, 2013 Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered trademark of Freddie Mac. This

More information

Lending Guide. Section 604.02 Underwriwting Eligiblity Transactions

Lending Guide. Section 604.02 Underwriwting Eligiblity Transactions Continuity of Obligation A continuity of obligation is required for all refinance transactions. A continuity of obligation exists when one or more of the following occur: At least one borrower on the existing

More information

WHOLESALE FHA 580 619 PRODUCT PROFILE

WHOLESALE FHA 580 619 PRODUCT PROFILE Maximum LTV/CLTV & Minimum Credit Score Requirements LTV CLTV MIN CREDIT 2 INVESTOR CODES PURCHASE 96.50% 96.50% 580 I-12, I-15 1 NO CASH-OUT REFINANCE 97.75% 97.75% 580 I-12, I-15 1 CASH-OUT REFINANCE

More information

A Simplified Overview of FHA Loan Origination

A Simplified Overview of FHA Loan Origination Introduction to FHA Origination A Simplified Overview of FHA Loan Origination Topics of Discussion Introduction to FHA Fundamentals of Loan Origination FHA Loan Limits Borrower Eligibility Property Eligibility

More information

PennyMac Correspondent Group Fannie Mae Standard and High Balance Product Profile 07.08.16

PennyMac Correspondent Group Fannie Mae Standard and High Balance Product Profile 07.08.16 PennyMac Correspondent Group Fannie Mae Standard and High Balance Product Profile 07.08.16 Overlays to Fannie Mae are underlined Agency Finance Type Occupancy Term Fannie Mae - DU Approval Purchase and

More information

Choice Jumbo Mortgage

Choice Jumbo Mortgage Finance Type Purchase/Rate and Term Refinance Property Type Primary Residence Second Home Investment Max Loan Max LTV Min FICO Max LTV Min FICO Max LTV Min FICO $1,000,000 80% 70% 80% N/A N/A SFR/PUD/

More information

RATE/TERM REFINANCE AND CASH-OUT - FIXED RATE

RATE/TERM REFINANCE AND CASH-OUT - FIXED RATE RATE/TERM REFINANCE AND CASH-OUT - FIXED RATE Occupancy Max Loan Amount Maximum LTV Maximum CLTV Min FICO Max Ratios Minimum Cash Investments Mortgage/Rental History Reserves Primary 1 Unit $417,000 80%

More information

Desktop Originator/Desktop Underwriter Release Notes DU Version 9.2

Desktop Originator/Desktop Underwriter Release Notes DU Version 9.2 Desktop Originator/Desktop Underwriter Release Notes DU Version 9.2 October 14, 2014 Last updated December 8, 2014 During the weekend of December 13, 2014, Fannie Mae will implement Desktop Underwriter

More information

FHA HIGH BALANCE FIXED PROGRAM HIGHLIGHTS

FHA HIGH BALANCE FIXED PROGRAM HIGHLIGHTS Product Summary These guidelines represent underwriting requirements for FHA fixed rate and ARM mortgages with increased loan size limits with a minimum floor of greater than $417,000. These guidelines

More information

Section 2.08 - Jumbo Solution Second Mortgage

Section 2.08 - Jumbo Solution Second Mortgage - In This Product Description This product description contains the following topics: Overview... 2 Related Bulletins... 3 Loan Terms... 4 Assumptions... 4 Eligible First and Second Mortgage Products...

More information

Quick Reference Program Summary. The following is an outline of the underwriting and closing requirements of New Hampshire Housing.

Quick Reference Program Summary. The following is an outline of the underwriting and closing requirements of New Hampshire Housing. Quick Reference Program Summary The following is an outline of the underwriting and closing requirements of New Hampshire Housing. Specific Program Rules are attached to this reference. A reservation cannot

More information

Section C. Borrower Credit Analysis Overview

Section C. Borrower Credit Analysis Overview Section C. Borrower Credit Analysis Overview In This Section This section contains the topics listed in the table below. Topic Topic Name See Page 1 General Guidelines for Analyzing Borrower 4-C-2 Credit

More information

VA Product Guidelines

VA Product Guidelines August 10, 2015 VA Product Guidelines Purchase Occupancy Units LTV CLTV Primary 1-4 100 100 620 Rate/Term Refinance Occupancy Units LTV CLTV Primary 1-4 100 100 620 IRRRL Occupancy Units LTV CLTV Primary

More information

VA Quick Reference Guides

VA Quick Reference Guides Finance Type Occupancy Product Codes Purchase, Cash-Out and Rate & Term Refinance, Interest Rate Reduction Refinance Loan (IRRRL) Owner Occupied only, Second Homes not allowed, Investment properties not

More information

MAGNOLIA BANK FHA STANDARD REFINANCE OPTIONS MATRIX

MAGNOLIA BANK FHA STANDARD REFINANCE OPTIONS MATRIX RATE REDUCTION REFINANCES EQUITY (CASH OUT) REFINANCES 5. CACULATING THE MORTGAGE AMOUNT WITH A NEW APPRAISAL If the junior lien is a home equity line of credit, the maximum CLTV is based on the full credit

More information

FHA LOAN PROGRAM Conforming and High Balance Loan Amounts

FHA LOAN PROGRAM Conforming and High Balance Loan Amounts FHA PRODUCT MATRIX Purchase Rate and Term Cash Out Units LTV/CLTV Fico* Units LTV/CLTV Fico Units LTV/CLTV Fico 1 4 96.5/105 620 1 4 97.75/97.75 620 1 4 85/85 620 FYIs: Complete HUD guidelines can be referenced

More information

E MORTGAGE MANAGEMENT, LLC 703 VA HIGH BALANCE PRODUCT GUIDELINES

E MORTGAGE MANAGEMENT, LLC 703 VA HIGH BALANCE PRODUCT GUIDELINES E MORTGAGE MANAGEMENT, LLC 703 VA HIGH BALANCE PRODUCT GUIDELINES 4/30/2014 Mortgage Eligibility Product Code Short Description Long Description Description VF30HB 30 YR VA HB VF30HB - 30 YR VA HIGH BALANCE

More information

Magnolia Bank VA Refinance Options

Magnolia Bank VA Refinance Options Interest Rate Reduction Refinance Loans (IRRRLS) Eligibility Cash Out Refinance 1. ELIGIBLE PRODUCTS VA Fixed Rate Product VA Hybrid ARMs VA High Balance Products VA Fixed Rate Product VA Hybrid ARMs VA

More information

E MORTGAGE MANAGEMENT, LLC 701 VA FIXED PRODUCT GUIDELINES

E MORTGAGE MANAGEMENT, LLC 701 VA FIXED PRODUCT GUIDELINES E MORTGAGE MANAGEMENT, LLC 70 VA FIXED PRODUCT GUIDELINES 2/24/205 Mortgage Eligibility Product Code Short Description Long Description Description VF5 VA 5 YR VF5 - VA FIXED 5 YEAR VF20 VA 20 YR VF20

More information

EFFECTIVE SEP 14, 2015. FHA Rule Changes. www.greenpathfunding.com

EFFECTIVE SEP 14, 2015. FHA Rule Changes. www.greenpathfunding.com EFFECTIVE SEP 14, 2015 FHA Rule Changes www.greenpathfunding.com FHA Changes: Assets 2015 1 Any single deposit that exceeds 25% of the total monthly qualifying income on the loan. Additionally, any questionable

More information

VA FIXED RATE PRODUCT

VA FIXED RATE PRODUCT Primary 1 Unit Max Loan Amount Max Loan Amount Max Loan Amount See VA County Limits LTV CLTV Min FICO Max Ratios 96.50% 96.50% 55% 600 100% 100% 50% LTV CLTV Min FICO Max Ratios Minimum Cash Investments

More information

PRODUCT GUIDELINES CONVENTIONAL NON-CONFORMING FIXED 15-20-30 YEAR HEF

PRODUCT GUIDELINES CONVENTIONAL NON-CONFORMING FIXED 15-20-30 YEAR HEF Several states and local municipalities have enacted legislation that define High Cost loans based on APR and fee thresholds which may or may not relate to the HOEPA thresholds. These types of loans typically

More information

Conforming DU Refi Plus (HARP 2)

Conforming DU Refi Plus (HARP 2) Conforming DU Refi Plus (HARP 2) Investor 04 Retail Only SNMC will accept loan submissions for the Home Affordable Refinance Program - HARP 2. These loan submissions will be subject to the current FNMA

More information

FHA Changes 4000.1 Effective With Case Numbers assigned on or after 9/14/15. Skyline / New Leaf

FHA Changes 4000.1 Effective With Case Numbers assigned on or after 9/14/15. Skyline / New Leaf FHA Changes 4000.1 Effective With Case Numbers assigned on or after 9/14/15 Skyline / New Leaf Manual downgrade regardless of a Total Scorecard Approval When the date of the Borrower s bankruptcy discharge

More information

VA Refinance Cash Out

VA Refinance Cash Out VA Refinance Cash Out This matrix is intended as an aid to help determine whether a property/loan qualifies for certain financing. It is not intended as a replacement for VA guidelines. Users are expected

More information

CITY OF SAN DIEGO 3% INTEREST DEFERRED LOAN PROGRAM GUIDELINES

CITY OF SAN DIEGO 3% INTEREST DEFERRED LOAN PROGRAM GUIDELINES CITY OF SAN DIEGO 3% INTEREST DEFERRED LOAN PROGRAM GUIDELINES Program Overview: BUYERS EARNING 100% OR LESS OF AREA MEDIAN INCOME (AMI) The 3% Interest Deferred Loan Program is a homeownership program

More information

The Chase Guaranteed Rural Housing Refinance Program Features

The Chase Guaranteed Rural Housing Refinance Program Features PROGRAM ELIGIBILITY Borrower Eligibility In order to be eligible for a Rural Development guaranteed loan, the Borrowers adjusted household income cannot exceed the maximum allowable income limit set forth

More information

FREDDIE MAC RELIEF REFI OPEN ACCESS INVESTOR 12, RETAIL ONLY

FREDDIE MAC RELIEF REFI OPEN ACCESS INVESTOR 12, RETAIL ONLY FREDDIE MAC RELIEF REFI OPEN ACCESS INVESTOR 12, RETAIL ONLY To determine if the mortgage is currently owned or securitized by Freddie Mac, the following website may be used: https://ww3.freddiemac.com/corporate/

More information

FHA Underwriting Guideline Changes Effective for Case Numbers Assigned On or After September 14, 2015

FHA Underwriting Guideline Changes Effective for Case Numbers Assigned On or After September 14, 2015 Assets Gift Funds Documenting Not clear about requiring donor s bank statement in all Requires donor s bank statement showing withdrawal of Transfer instances. funds. Earnest Money Document source of funds

More information

Desktop Originator /Desktop Underwriter Version 5.5

Desktop Originator /Desktop Underwriter Version 5.5 Desktop Originator /Desktop Underwriter Version 5.5 Release Notes May 20, 2005 Updated June 8, 2005 In July 2005, we will implement DU Version 5.5. This new version will contain a number of enhancements

More information

SONYMA FHA Plus Correspondent Term Sheet

SONYMA FHA Plus Correspondent Term Sheet Product Type 30 Year Fixed Rate Mortgages Sales Focus This program provides the flexibility offered by FHA s 203(b) or 234(c) mortgages along with SONYMA s Down Payment Assistance Loan (DPAL). HUD Mortgagee

More information

100 CONVENTIONAL UNDERWRITING GUIDELINES

100 CONVENTIONAL UNDERWRITING GUIDELINES E MORTGAGE MANAGEMENT, LLC 100 CONVENTIONAL UNDERWRITING GUIDELINES 5/29/2015 Lender NMLS 2926. This document is intended for use only by and its business partners. It may not be distributed without express,

More information

Loan Prospector Documentation Matrix

Loan Prospector Documentation Matrix Use the following information as a reference for documenting your Loan Prospector loans. For complete documentation information and specific program eligibility requirements, refer to the Freddie Mac Single-

More information

Appraisal Standards and Guidelines chapter

Appraisal Standards and Guidelines chapter Appraisal Standards and Guidelines chapter Union Capital requires appraisers and appraisal reports to meet USPAP and applicable Union Capital, FNMA, FHLMC, FHA and VA policies and requirements, as applicable.

More information

Credit. 3.3-A General Requirements_. 3.3-B Credit Analysis. Section 3.3: Credit

Credit. 3.3-A General Requirements_. 3.3-B Credit Analysis. Section 3.3: Credit Credit 3.3-A General Requirements_ Obtain at least one, preferably two or three, credit scores for each borrower; all available scores must be obtained. The scores must be obtained from all major repositories

More information

FMC Product and Credit Guidance for Wholesale Divisions

FMC Product and Credit Guidance for Wholesale Divisions FMC Product and Credit Guidance for Divisions Ineligible Product Programs and Properties FMC does not accept Loan Prospector AUS for Conventional, FHA or VA loans The Negative Equity FHA (MHA) loan program

More information

11.1 INTRODUCTION 11.2 THE RATIOS

11.1 INTRODUCTION 11.2 THE RATIOS 0BCHAPTER 11: RATIO ANALYSIS 11.1 INTRODUCTION Ratios are used to determine whether the borrower s repayment income can reasonably be expected to meet the anticipated monthly housing expense and total

More information

VA Refinance IRRRL. VA Refinance IRRRL

VA Refinance IRRRL. VA Refinance IRRRL This matrix is intended as an aid to help determine whether a property/loan qualifies for certain financing. It is not intended as a replacement for VA guidelines. Users are expected to know and comply

More information

Section 1: Loan Characteristics

Section 1: Loan Characteristics Home Flex Quick Reference: Program Summary The following is an outline of the underwriting and closing requirements of New Hampshire Housing Home Flex program, which is available to lenders who have signed

More information

Maximum loan amounts, LTV, CLTV & HCLTV per Desktop Underwriter (DU) or Loan Prospector (LP) guidelines

Maximum loan amounts, LTV, CLTV & HCLTV per Desktop Underwriter (DU) or Loan Prospector (LP) guidelines Section 500 Loan Products 500.01 Product Overview In general, Loans eligible for purchase by LAKE MICHIGAN FINCIAL must meet the standards and guidelines of Fannie Mae and Freddie Mac (Agencies), dependent

More information

UNDERWRITING GUIDELINES (Applicant and Income Requirements)

UNDERWRITING GUIDELINES (Applicant and Income Requirements) (Applicant and Income Requirements) Applicant Eligibility Have the ability to personally occupy the dwelling Be a citizen of the United States or be admitted for permanent residency Non-occupant co-borrowers

More information

CHAPTER 9 PRODUCT MATRIX

CHAPTER 9 PRODUCT MATRIX Contents CHAPTER 9 PRODUCT MATRIX Conventional Conforming Loans 2 Secondary Market Arms... 4 HARP (Fannie DU Refi Plus & Freddie Open Access)... 5 Rural Housing 5 VA Programs. 5 Jumbo Programs 5 My Community

More information

NOTE: This matrix includes overlays, which may be more restrictive than FHA requirements. A thorough reading of this matrix is recommended.

NOTE: This matrix includes overlays, which may be more restrictive than FHA requirements. A thorough reading of this matrix is recommended. This matrix is intended as an aid to help determine whether a property/loan qualifies for certain financing. It is not intended as a replacement for FHA guidelines. Users are expected to know and comply

More information

Underwriting Guideline Matrix

Underwriting Guideline Matrix : Program / Product Codes: 30 Year Fixed (W130) 15 Year Fixed (W132) Subject to Change Without Notice Valid as of: 06/10/2014 Copyright 2015 Skyline Financial Corp. dba Skyline Home Loans Nationwide Mortgage

More information

What s s New With FHA?

What s s New With FHA? What s s New With FHA? Presented By: Bill Ladewig 866.204.9733 http://www.mortgage- FHA Calculator Calculates everything needed to quote or qualify FHA loans Click to Open: http://www.themtgmentor.com/fha_mortgage_calculator.html

More information

PennyMac Correspondent Group DU Refi Plus 04.11.2016 The loan must have an application date on or before December 31, 2016

PennyMac Correspondent Group DU Refi Plus 04.11.2016 The loan must have an application date on or before December 31, 2016 PennyMac Correspondent Group DU Refi Plus 04.11.2016 The loan must have an application date on or before December 31, 2016 Overlays to Fannie Mae are underlined Maximum Loan Amounts Units Contiguous States,

More information

Variable Names & Descriptions

Variable Names & Descriptions Variable Names & Descriptions Freddie Mac provides loan-level information at PC issuance and on a monthly basis for all newly issued fixed-rate and adjustable-rate mortgage (ARM) PC securities issued after

More information

Program Type Occupancy Units LTV/CLTV * Purchase Owner-occupied 1-4 100%

Program Type Occupancy Units LTV/CLTV * Purchase Owner-occupied 1-4 100% Maximum DTI: 41% Maximum Loan Amount: 1-unit $417,000 2-units $533,850 DU Approve/ 3-units $645,300 4-units $801,850 Minimum Loan Amount: $75,000 Maximums LTVs Purchase 100% LTV Rate/term & Cash-out 90%

More information

CONVENTIONAL - LP FREDDIE MAC. Purchase, R/T. Refinance Conforming 1 90% PRIMARY. High Bal. 2-4 75% RESIDENCE 1 80% Conforming 2-4 75% Cashout 1 75%

CONVENTIONAL - LP FREDDIE MAC. Purchase, R/T. Refinance Conforming 1 90% PRIMARY. High Bal. 2-4 75% RESIDENCE 1 80% Conforming 2-4 75% Cashout 1 75% CONVENTIONAL - LP FREDDIE MAC PRODUCT DESCRIPTION (Updated 03/17/2015) GEOGRAPHIC RESTRICTION LTV/(H)CLTV MATRICES (a) (b) 1031 TAX DEFERRED EXCHANGE * Fully-Amortized Fixed Rate and ARMs * LP Accept/Eligible

More information

Annual Standard Underwriting Guidelines*

Annual Standard Underwriting Guidelines* Annual Standard Underwriting Guidelines* August 2014 Table of Contents Industry Update... 3 Qualified Mortgage... 3 Underwriting Criteria Approach... 3 Underwriting Guidance Summary Chart... 5 General...

More information

Announcement 09-13 May 11, 2009. Home Affordable Refinance Updates and Clarifications to Announcement 09-04

Announcement 09-13 May 11, 2009. Home Affordable Refinance Updates and Clarifications to Announcement 09-04 Announcement 09-13 May 11, 2009 Amends these Guides: Selling Home Affordable Refinance Updates and Clarifications to Announcement 09-04 Introduction On March 4, 2009, Fannie Mae announced two new refinance

More information

ditech BUSINESS LENDING JUMBO AA PRODUCT

ditech BUSINESS LENDING JUMBO AA PRODUCT ditech BUSINESS LENDING JUMBO AA PRODUCT See attached Client Guide Supplement: The Client Guide Supplement is to be used in conjunction with the Product Matrix and the Jumbo Chapter of the Client Guide.

More information

Program Type Occupancy Units LTV/CLTV * Purchase Owner-occupied 1-4 100%

Program Type Occupancy Units LTV/CLTV * Purchase Owner-occupied 1-4 100% Maximum DTI: 41% Maximum Loan Amount: 1 unit $417,000 2-units $533,850 DU Approve/Eligible Minimum Credit Score: 620 2 2- units $645,300 3-units $801,805 (Excluding VA IRRRL) Maximum LTVs Purchase 100%

More information

Announcement 09-19 June 08, 2009. Miscellaneous Underwriting, Eligibility, and Property-Related Updates

Announcement 09-19 June 08, 2009. Miscellaneous Underwriting, Eligibility, and Property-Related Updates Announcement 09-19 June 08, 2009 Amends these Guides: Selling Miscellaneous Underwriting, Eligibility, and Property-Related Updates Introduction Fannie Mae conducted a comprehensive review of current underwriting

More information

Home Affordable Refinance Program (HARP) 2.0 DU Refi Plus and Freddie Mac Relief Refinance-Open Access Training Updated - May 4, 2012

Home Affordable Refinance Program (HARP) 2.0 DU Refi Plus and Freddie Mac Relief Refinance-Open Access Training Updated - May 4, 2012 Home Affordable Refinance Program (HARP) 2.0 DU Refi Plus and Freddie Mac Relief Refinance-Open Access Training Updated - May 4, 2012 The Federal Housing Finance Agency (FHFA) announced changes to the

More information

Fannie Mae DU Refi Plus Helping borrowers efficiently refinance Fannie Mae loans

Fannie Mae DU Refi Plus Helping borrowers efficiently refinance Fannie Mae loans Why DU Refi Plus Fannie Mae DU Refi Plus Helping borrowers efficiently refinance Fannie Mae loans 2 Why DU Refi Plus Provides a competitively-priced, streamline refinance option to qualified borrowers

More information

VA FIXED RATE PRODUCT

VA FIXED RATE PRODUCT Primary Primary Primary Age of Documents Borrower Eligibility 1 to 4 Units 1 to 2 Units 1 Unit Max Loan See VA County Limits Max Loan See VA County Limits Max Loan See VA County Limits LTV CLTV Min FICO

More information

Jumbo Fixed 30 Year Eligibility Guide

Jumbo Fixed 30 Year Eligibility Guide Jumbo Fixed 30 Year Eligibility Guide Disclaimer: This Wholesale Product Presentation is the property of New York Community Bank ( NYCB ) and is provided for the sole use of NYCB's Clients. The information

More information

Desktop Originator/Desktop Underwriter Release Notes DU Version 9.3

Desktop Originator/Desktop Underwriter Release Notes DU Version 9.3 Desktop Originator/Desktop Underwriter Release Notes DU Version 9.3 September 29, 2015 During the weekend of December 12, 2015, Fannie Mae will implement Desktop Underwriter (DU ) Version 9.3, which will

More information