Conventional Fixed Rate Conforming Product Guidelines

Transcription

1 Loan Parameters Loan Purpose Allowed Minimum Credit Score Maximum LTV/CLTV Owner Occupied & Second Home Maximum LTV/CLTV Non-Owner Occupants Max. Loan Amount Subordinate Financing Maximum Ratios Max. No. of Properties Self Employment Mortgage Late(s) Collection Accounts PITI Reserves Property Flip Waiver Conventional Fixed Rate Conforming Product Guidelines Owner Occupied, Second Home (1 unit), & Non-Owner Occupied (N/O/O) 1-4 Units & Approved Condos Purchase, Rate & Term Refis, Cash out Refis 680 Purchase / Rate & Term Refinance: 680 Cash out Refis and Second Homes 700 Non-Owner Occupants (N/O/O) 95% Purchase O/O & Rate/Term Refis (1 Unit) 85% O/O Cash-Out Refis(1 Unit) **Except in TX, Max 80% 80% Second Homes Purchase / Rate & Term Refis (1 Unit) 75% Second Homes Cash-Out Refis (1 Unit) 75% Purchase (1-Unit) 70% Purchase (2-4 Unit) 75% Rate & Term Refis (1-Unit) 70% Rate & Term Refis (2-4 Units) 75% Cash-Out Refis(1-Unit) 65% Cash-Out Refis (2-4 Units) 1 Unit: $625,500 (Check County Loan Limits) 2 Units: $800,775 (Check County Loan Limits) 3 Units: $967,950 (Check County Loan Limits) 4 Units: $1,202,925 (Check County Loan Limits) Is Allowed Alterra s Underwriters & DU 50% with exceptions to 55% and DU approval 4 OK with 6 Months Reserves and with Max. 80% LTV/CLTV Chapter 7/13 4 years from discharge or dismissal date Multiple BK Filings within 7 years - 5 years from most recent discharge/dismissal date -5 years from completion date None in the past 24 months Housing expense related collection accounts within 24 months not allowed. Other collections (including Medical) are subject to underwriter s discretion on the file 6 months Reserves required for Non-Owners Occupants and Second Homes and Self Employed Borrowers Must be ordered by Alterra Wholesale Conventional Property Flip Waiver 1) Alterra Wholesale reserves the right to request a property inspection, field review, or 2 nd appraisal 2) Prior transfers will be carefully reviewed to ensure the values of the transfers represent a benefit to the borrower. The transfers should be arm's length and NOT flipped to set false value trends. 1

2 Cash Out on Short Pays Not Allowed Repair Escrow Holdbacks (Minor Not Allowed Repairs) Approved MI Radian, UGIC Companies Transfer of s Not Allowed NOO Purchase Borrower must have 2 years landlord experience to use rents to qualify 3-4 Units Follow Guidelines for Non-Owner Occupants 2

3 Loan Parameters Conventional JUMBO Product Guidelines Owner Occupied 1-2 Units & Approved Condos Loan Purpose Allowed Minimum Credit Score Maximum LTV/CLTV Max. Loan Amount and Minimum Loan Amounts Subordinate Financing Purchase, Rate & Term and Cash-Out Refis 700 Purchase/ Rate & Term Refis 740 Cash-Out Refis 80% Purchase & Rate & Term Refis (2 Units 75% LTV) 60% Cash-Out Refis 1 Unit: $625,500 (CA Check County Loan Limits) 2 Units: $800,775 (CA Check County Loan Limits) NOT ALLOWED Alterra s Underwriters & DU Maximum Back Ratios 43% Maximum Front Ratios 43% Max. No. of Properties Self Employment Mortgage Late(s) Collection Accounts Repair Holdbacks 2 (Inclusive of the subject property) Allowed Bankruptcy - 4 Years on Purchase/ Rate & Term Refi 5 years on Purchase/Rate & Term Refi Cash-out: No Record of Bankruptcy or in past 7 years None in the past 24 months on any mortgage Housing expense related collection accounts within 24 months not allowed. Other collections (including Medical) are subject t to underwriter s discretion on the file Must be ordered by Alterra Wholesale NOT ALLOWED 3

4 Loan Parameters Conventional DU Refi Plus Product Guidelines Owner Occupied 1-2 Units & Approved Condos Loan Purpose Allowed Rate & Term Refis Minimum Credit Score 680 Maximum LTV/CLTV 105% Mortgage Insurance Existing Mortgage Cannot Have Mortgage Insurance on it Max. Loan Amount 1 Unit: $625,000 (Check County Loan Limits) 2 Units: $800,775 (Check County Loan Limits) Subordinate Financing Allowed, but no new financing Alterra s Underwriters & DU Maximum Back Ratios Per DU Maximum Front Ratios Max. No. of Properties Self Employment Per DU 4 It s Allowed Bankruptcy-must be 4 years from discharge date -must be 5 years from completion date 4

5 Mortgage Late(s) Collection Accounts Repair Holdbacks None in the past 24 months on any mortgage Housing expense related collection accounts within 24 months not allowed. Other collections (including Medical) are subject t to underwriter s discretion on the file Must be ordered by Alterra Wholesale NOT ALLOWED 5

6 Loan Parameters Loan Purpose Allowed Minimum Credit Score FHA 203B Product Guidelines Owner Occupied Only 1-4 Units & HUD Approved Condos Purchase, Rate & Term Refi, Cash out Refi (No TX), & Streamline Refi 640 ( with additional criteria) 680 for Loan amounts > $417,000 FICO Max DTI 43% Max Payment Shock 20% 3 months PITI reserves, not a gift 30 Year Fixed Only 1.00 hit to price on rate sheet Purchase or Rate & Term Only No BK/FC in last 3 years Maximum LTV/CLTV Max. Loan Amount Subordinate Financing Maximum Back Ratios Max. No. of Properties Self Employment Mortgage Late(s) Collection Accounts PITI Requirement Property Flip Waiver Purchase: 96.50% Rate & Term Refi: 97.75% Streamline: % Cash-Out Refi: 85.00% 1 Unit: $625,500 (subject to FHA county limits) 2-4 Units: $750,000 (subject to FHA county limits) Is Allowed subject to CLTV restrictions Alterra s Underwriters and DU 50% (55% on some cases with compensating factors) 45% for Loan Amounts > $417,000 2 (No limitation for Streamlines) 3-4 unit borrower can own no other properties OK with 2 yrs income history 2 years from the date of the discharge & Credit Re-established, No late(s) since the BK 3 years from discharge date for loan amounts > $417,000 3 years from date of foreclosure. None in the past 24 months Housing expense related collection accounts within 24 months not allowed. Other collections (including Medical) are subject to underwriter s discretion on the file 3 months reserves if (cannot be a gift): Credit Score < 640 or Payment shock > 20% or Loan Amount > $417,000 To be ordered by Alterra Wholesale. FHA Property Flip Waiver Please refer to separate section for FHA Property Flip Waiver Guidelines. 1) A Property Inspection Report, ordered by Alterra Wholesale at a cost to the 6

7 Down Payment Assistance (DPA) Payment History Docs Cash Out on Short Pays Repair Escrow Holdbacks (Minor Repairs) broker, is must. If the borrower chose to obtain one, we can utilize the borrower s inspection report. 2) Prior transfers will be carefully reviewed to ensure the values of the transfers represent a benefit to the borrower. The transfers should be arm's length and NOT flipped to set false value trends. 3) Alterra Wholesale reserves the right, at cost to broker, to require a 2 nd appraisal Allowed in conjunction with first mortgage loans with following overlays The DPA meets all published requirements of FHA The first Mortgage funded by Alterra Wholesale is not subject to any terms or conditions of a bond program; and The DPA does not restrict the transfer of servicing rights of the first Mortgage funded by Alterra Wholesale. In addition, it may not require prior notification or approval from the sponsoring authority in the event of the transfer of the first mortgage s servicing rights Non-credit qualifying streamline refi must evidence at least 6 month mortgage history. Not Allowed Additional requirements for Items above: NOTE - An FHA Refinance involving the refinance of both 1st and 2nd liens into a single FHA loan, in which the 2nd lien was a HELOC more than 12 months old, is permissible as a Rate and Term refinance. The HELOC loan balance eligible to be added to the new loan amount would be: The current loan balance, if there were no draws in the last 12 months or if the draws were for the purposes of repairs and rehabilitation. If there were draws in the last 12 months which were for the purposes other than repair and rehabilitation, only the draws of up to $1,000 may be added to the refinance loan amount. If the balance or any portion of an equity line of credit in excess o If $1,000 was advanced within the past 12 months and was for purposes other than repairs and rehabilitation of the property, that portion above and beyond $1,000 of the line of credit is NOT eligible for inclusion in the new mortgage. These amounts must be paid from the Borrower's funds at closing or the transaction must be treated as a Cash Out refinance and must meet the Cash Out loan guidelines (85% LTV, etc) 7

8 Loan Parameters Loan Purpose Allowed Minimum Credit Score FHA 203K Product Guidelines Owner Occupied Only 1-2 Units & HUD Approved Condos (no TX properties) Purchase, Rate & Term Refi 640 ( with additional criteria) 680 for DTI > 43 and > 20% payment shock FICO Max DTI 43% Max Payment Shock 20% 3 months PITI reserves, not a gift 30 Year Fixed Only 1.00 hit to price on rate sheet Purchase or Rate & Term Only No BK/FC in last 3 years Purchase: 96.50% Maximum LTV/CLTV Rate & Term Refi: 97.75% 1 Unit: $417,000 (subject to FHA county limits) Max. Loan Amount 2 Units: $533,850 (subject to FHA county limits) Subordinate Financing Is Allowed subject to CLTV restrictions Alterra s Underwriters and DU Maximum Back Ratios 50% 43% for score <680 and payment shock >20% Max. No. of Properties 2 Self Employment OK with 2 yrs income history 3 years from the date of the discharge & Credit Re-established, No late(s) since the BK 3 years from date of foreclosure. Mortgage Late(s) None in the past 24 months Collection Accounts Housing expense related collection accounts within 24 months not allowed. Other collections (including Medical) are subject to underwriter s discretion on the file PITI Requirement 3 months reserves if (cannot be a gift): Credit Score < 640 or Payment shock > 20% Property Flip Waiver To be ordered by Alterra Wholesale. FHA Property Flip Waiver Please refer to separate section for FHA Property Flip Waiver Guidelines. 1) A Property Inspection Report, ordered by Alterra Wholesale at a cost to the broker, is must. If the borrower chose to obtain one, we can utilize the borrower s inspection report. 2) Prior transfers will be carefully reviewed to ensure the values of the transfers represent a benefit to the borrower. The transfers should be arm's length and NOT 8

9 Down Payment Assistance (DPA) Max Repairs Cash Out on Short Pays Repair Escrow Holdbacks (Minor Repairs) Supplemental Origination Fee flipped to set false value trends. 3) Alterra Wholesale reserves the right, at cost to broker, to require a 2 nd appraisal Allowed in conjunction with first mortgage loans with following overlays The DPA meets all published requirements of FHA The first Mortgage funded by Alterra Wholesale is not subject to any terms or conditions of a bond program; and The DPA does not restrict the transfer of servicing rights of the first Mortgage funded by Alterra Wholesale. In addition, it may not require prior notification or approval from the sponsoring authority in the event of the transfer of the first mortgage s servicing rights $35,000 for cosmetic repairs Not Allowed 1.5% of Rehab amount or $350 whichever is greater Additional requirements for Items above: NOTE - An FHA Refinance involving the refinance of both 1st and 2nd liens into a single FHA loan, in which the 2nd lien was a HELOC more than 12 months old, is permissible as a Rate and Term refinance. The HELOC loan balance eligible to be added to the new loan amount would be: The current loan balance, if there were no draws in the last 12 months or if the draws were for the purposes of repairs and rehabilitation. If there were draws in the last 12 months which were for the purposes other than repair and rehabilitation, only the draws of up to $1,000 may be added to the refinance loan amount. If the balance or any portion of an equity line of credit in excess of $1,000 was advanced within the past 12 months and was for purposes other than repairs and rehabilitation of the property, that portion above and beyond $1,000 of the line of credit is NOT eligible for inclusion in the new mortgage. These amounts must be paid from the Borrower's funds at closing or the transaction must be treated as a Cash Out refinance and must meet the Cash Out loan guidelines (85% LTV, etc) 9

10 FHA Manufactured Housing Product Guidelines Loan Parameters Owner Occupied Only Minimum Double-Wide Home Loan Purpose Allowed Purchase, Rate & Term Refi, & Streamline Refi Minimum Credit Score 680 Purchase: 96.50% Maximum LTV/CLTV Rate & Term Refi: 97.75% Streamline: % Max. Loan Amount 1 Unit: $417,000 (subject to FHA county limits) Subordinate Financing Alterra s Underwriters and DU Maximum Ratios 35/45% Max. No. of Properties 1 Self Employment OK with 2 yrs income history 3 years from the date of the discharge & Credit Re-established, No late(s) since the BK 3 years from date of foreclosure. Mortgage Late(s) None in the past 24 months Collection Accounts Housing expense related collection accounts within 24 months not allowed. Other collections (including Medical) are subject to underwriter s discretion on the file PITI Requirement 3 months reserves (cannot be a gift) Property Flip Waiver Down Payment Assistance (DPA) Payment History Docs Cash Out on Short Pays Repair Escrow Holdbacks (Minor Repairs) Gift Funds To be ordered by Alterra Wholesale. Non-credit qualifying streamline refi must evidence at least 6 month mortgage history. Not Allowed Additional requirements for Items above: NOTE - An FHA Refinance involving the refinance of both 1st and 2nd liens into a single FHA loan, in which 10

11 the 2nd lien was a HELOC more than 12 months old, is permissible as a Rate and Term refinance. The HELOC loan balance eligible to be added to the new loan amount would be: The current loan balance, if there were no draws in the last 12 months or if the draws were for the purposes of repairs and rehabilitation. If there were draws in the last 12 months which were for the purposes other than repair and rehabilitation, only the draws of up to $1,000 may be added to the refinance loan amount. If the balance or any portion of an equity line of credit in excess of $1,000 was advanced within the past 12 months and was for purposes other than repairs and rehabilitation of the property, that portion above and beyond $1,000 of the line of credit is NOT eligible for inclusion in the new mortgage. These amounts must be paid from the Borrower's funds at closing or the transaction must be treated as a Cash Out refinance and must meet the Cash Out loan guidelines (85% LTV, etc) 11

12 Loan Parameters Loan Purpose Allowed Minimum Credit Score Maximum LTV/CLTV Max. Loan Amount Subordinate Financing Maximum Back Ratios Max. No. of Properties Self Employment Mortgage Late(s) Collection Accounts PITI Requirement Property Flip Waiver Cash Out on Short Pays Escrow Holdbacks (MinorRepairs) VA Product Guidelines Owner Occupied Only 1-4 Units & VA Approved Condos Purchase, Cash out Refi (No TX), & IRRRL with 620 for Purchase and Cash out Refi 660 for IRRRL with 720 for Loan amounts > $417,000 Purchase: 100% IRRRL: 100% Cash-Out Refi: 90% $750,000 (subject to county limits) Is Allowed subject to CLTV restrictions Alterra s Underwriters and DU 50% (55% on some cases with compensating factors) 45% for Loan Amounts > $417,000 2 (No limitation for Streamlines) 3-4 unit borrower can own no other properties OK with 2 yrs income history 3 years from the date of the discharge & Credit Re-established, No late(s) since the BK 3 years from date of foreclosure. None in the past 24 months Housing expense related collection accounts within 24 months not allowed. Other collections (including Medical) are subject to underwriter s discretion on the file 3 months reserves if (cannot be a gift): Credit Score < 640 or Payment shock > 20% or Loan Amount > $417,000 To be ordered by Alterra Wholesale. VA Property Flip Waiver Please refer to separate section VA Property Flip Waiver Guidelines. 1) A Property Inspection Report, ordered by Alterra Wholesale at a cost to the broker, is must. If the borrower chose to obtain one, we can utilize the borrower s inspection report. 2) Prior transfers will be carefully reviewed to ensure the values of the transfers represent a benefit to the borrower. The transfers should be arm's length and NOT flipped to set false value trends. 3) Alterra Wholesale reserves the right, at cost to broker, to require a 2 nd appraisal Not Allowed 12

13 USDA Product Guidelines Loan Parameters Owner Occupied Only 1-4 Units & Approved Condos Loan Purpose Allowed Purchase, Rate & Term Refi Minimum Credit Score 660 Purchase: 100% Maximum LTV/CLTV Rate & Term Refi: 100% Max. Loan Amount $417,000 (subject to FHA county limits Subordinate Financing None GUS and Alterra s Underwriters Maximum Ratios 43/50% Max. No. of Properties 1 Self Employment OK with 2 yrs income history 4 years from the date of the discharge & Credit Re-established, No late(s) since the BK 4 years from date of foreclosure. Mortgage Late(s) None in the past 24 months Collection Accounts Housing expense related collection accounts within 24 months not allowed. Other collections (including Medical) are subject to underwriter s discretion on the file PITI Requirement 3 months reserves if (cannot be a gift): Payment shock > 20% or Back End DTI > 43% To be ordered by Alterra Wholesale. Property Flip Waiver Repair Escrow Holdbacks (Minor Repairs) FHA Property Flip Waiver Please refer to separate section for FHA Property Flip Waiver Guidelines. 1) A Property Inspection Report, ordered by Alterra Wholesale at a cost to the broker, is must. If the borrower chose to obtain one, we can utilize the borrower s inspection report. 2) Prior transfers will be carefully reviewed to ensure the values of the transfers represent a benefit to the borrower. The transfers should be arm's length and NOT flipped to set false value trends. 3) Alterra Wholesale reserves the right, at cost to broker, to require a 2 nd appraisal 13