Portfolio High Balance Fixed

Transcription

1 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 Loan Amount 1-unit, Condo, PUD 90% 1 90% $625, % 75% See 2-4 units below for maximum loan amount Cash-out 1-unit, Condo, PUD 60% 2 60% $625,500 Second Home 3,4,5 Purpose Units LTV CLTV Loan Amount 1-unit, Condo, PUD 65% 65% $625,500 Investment 3,4,5, Purpose Units LTV CLTV Loan Amount % 65% 1-Unit $625,500 See 2-4 units below for maximum loan amount * Maximum loan amount: See HUD s website at: for eligible areas and loan limits that may be lower. * Maximum loan amount can never exceed established limits for the property type and location. Units Maximum High Cost Area (Continental U.S.) Maximum High Cost Area (Hawaii) 1-unit $625,500 $938,250 2-unts $800,775 $1,201,150 3-units $967,950 $1,451,925 4-units $1,202,925 $1,804,375 Footnotes: 1. Above 80% LTV subject to MI availability and guidelines. 2. Maximum DTI per DU Findings 3. Florida condominiums review requirements are as follows: New or newly converted attached condominium projects in Florida require a valid, existing FNMA PERS approval Full Review: o Up to 90% LTV primary residence o Up to 65% LTV second home and investment CPM Expedited or Limited Review: o Up to 75%/75% LTV/CLTV primary residence o Up to 65%/65% LTV/CLTV second home o Investment properties ineligible 4. Delayed Financing is ineligible on High Balance cash-out when the occupancy is second home or investment property. 5. Special requirements for Second home and Investment properties when the borrower has 5-10 financed properties are as follows: Purchase and rate/term transactions are eligible. Minimum credit score 720 Second home and investment purchase and rate and term transaction maximum 65% LTV/CLTV Page 1 of 1

2 4506-T A signed and completed 4506-T is required at application o 1 year processed for W2 borrowers(w2 transcript only) o 2 years processed for self-employed (1040 transcript and business if used) Appraisals Appraisal required per DU Findings. Fannie Mae required appraisal forms: o Form 1004 (SFR/PUD) o Form 1007 (Market Rent Survey required for 1-unit investment properties) o Form 1073 (Condos) o Market Condition Addendum is required on all appraisals. A Field Review Appraisal is required when: o Appraised value is equal to or greater than $1 million and loan is equal to or greater than 75% LTV/CLTV o Loan amount is equal to or greater than $625,500 and the loan is greater than 80% LTV/CLTV All appraisers must meet requirements in RHL s Lending Guide Section 608 Appraisal/Property Valuations pertaining to the Appraiser Requirements. Attached condominiums require the appraiser to provide at least two comparable sales from outside the subject project and outside the influence of the developer, builder or property seller. Property Inspection Waivers are ineligible. Properties must: o Include a functional kitchen with, at minimum, a sink and an oven/range. o Include a functional heat source is required with the exception of properties located in Hawaii. Assets Asset verification per DU Findings All funds used to close the transaction must be disclosed on the application and entered into DU. Funds coming from a source other than what has been disclosed and verified must be re-run through DU and documented per DU Findings. A copy of all documentation for funds used to close the transaction must be in the loan file at time of closing/wire. Funds must be from a verified source. AUS All loans must receive an Approve/Eligible Finding from DU. Available Markets Borrowers Eligible Borrowers - Ineligible Arizona, California, Connecticut, Illinois, Indiana, Nevada, New Jersey, New York, Oregon, Washington Fannie Mae eligible Revocable Inter Vivos Trust See First Time Homebuyer section for specifics. First time homebuyers with a recent 12 month housing payment. See First Time Homebuyer section for specifics. Non-permanent resident aliens with an unexpired Employment Authorization Document (EAD) issued by the United States Citizenship and Immigration Services (USCIS) or an unexpired H series, L, E-1, G series, or TN visa are eligible as evidence of eligibility to work in the U.S. Permanent resident aliens U.S. citizens Borrower without a credit score and/or using non-traditional credit Borrower with diplomatic immunity First Time Homebuyers with less than a 12-month rental/mortgage payment history. Foreign Nationals Non-occupying co-borrowers Cash Reserves Reserve requirements are per DU Findings. Loan proceeds may not be counted towards required reserves. See Rushmore Home Loan s Lending Guide Section 607 Underwriting Assets for additional requirements. Page 2 of 2

3 Credit History Adverse accounts over 24 months not affecting title will not be considered in determining if the borrower s credit is eligible. Bankruptcy, Deed-in-Lieu and Short Sale, see Lending Guide Section Underwriting Credit & Liabilities Credit for specifics. Collection and charge-off accounts, judgments, liens, delinquent property taxes, repossessions, garnishments and accounts showing 90 days or more delinquent are considered to be Major Adverse. Collections with total aggregate balance of less than $1,000 and less than $250 per item are acceptable. Aggregate balance $1000 must be paid prior to close Foreclosure requires a 7 year waiting period from completion date of the foreclosure action. See Lending Guide Section Underwriting Credit & Liabilities Credit for specifics. Exceptions due to extenuating circumstances may be made. No Major Adverse Credit reported in the past 24 months. Tax liens, judgments or garnishments must be paid off, regardless of age. Trade lines require the following: o A minimum 2 year credit history o A minimum of 4 rated tradelines o One trade line must have been open and rated for a minimum of124 months prior to application. o The other 3 trade lines must have been rated for at least 12 months. o All borrowers must meet the minimum trade line requirements. Credit Score 620 minimum credit score regardless of occupancy, product and transaction type. All borrowers whose income and/or assets were required to qualify must meet the minimum credit score requirements. Each borrower must have a minimum of 1 credit score. o If there are 3 credit scores for a borrower, the middle score is used. o If there are 3 credit scores and two are duplicates, the duplicate credit score is used. o If there are 2 credit scores, the lower of the two scores is used. o If there is 1 credit score, that score is used. o The lowest decision score among all of the borrowers is used for loan qualifying. Loans greater than 80% LTV must meet MI guideline requirements Declining Market A property is considered to be in a declining market if: o The appraiser states subject s market or neighborhood is a declining market o Web sources used by underwriting indicate the subject is in a declining market Transactions greater than 80% LTV are subject to specific MI Company declining market guidelines; LTV reductions may apply. Documentation Asset and income documentation is verified per DU Findings. Type DTI Maximum DTI per DU Findings for purchase, rate/term, and cash-out refinance transactions. Fully amortizing Fixed Rate must be qualified at the Note Rate Loans above 80% LTV are subject to MI availability and guidelines. Employment / Income Employment/income documentation per DU Findings. A two year employment history with no gaps must be verified. All gaps require a written explanation from the borrower. In an investment purchase transaction where the borrower does not currently own any other property, including a primary residence, rental income may be used for qualifying if the borrower s tax returns evidence a two year history of managing rental properties. Wage Earner / Salary Income o A 2-year employment history in the same line of work, as stated on the application, is required o A verbal verification of employment confirming the length of employment and position is required within 10 days of note date. o Income documentation requirements are per DU Findings. Self-employed Income o A verbal verification of the business being in existence and operational for a minimum of 2-years is required within 30 days of note date. o Income documentation requirements are per DU Findings Other Sources of Income o Other sources of income may be used to qualify. o Documentation requirements and verification of length of time received and continuation are per DU Findings. o Verification of length of time received and continuation are verified per DU Findings. Page 3 of 3

4 First Time At Underwriter s discretion, a VOR and/or canceled rent checks may be required. Homebuyer Gift Funds Above 80% LTV eligible per DU Finding provided borrower has made a minimum 5% down payment from own funds Owner occupied SFR, Condo, or PUD all funds can be gift 80% LTV and less the full down payment may be from a gift Document gift funds per DU findings Gift funds are ineligible on investment properties Gift of Equity A gift of equity is eligible as follows: o Primary residence provided the loan is a bona fide transaction. o The gift of equity must be between family members (parent to a child, sibling to sibling, etc.) Ineligible as follows: o Between spouses o To satisfy a lack of continuity of obligation o Transaction on second homes and investment properties High Balance Loan Geographical Eligible Areas Interested Party Contributions Interest-Only Feature Specific Mortgage Insurance Coverage Mortgage/Rental Payment History Only certain geographic areas and certain loan amounts are eligible for this program. Geographic eligibility and maximum loan amount can be determined at using the following link: To receive the correct loan limits for this program, select Fannie/Freddie in the Limit Type field and select CY2013 in the Limit Year field. Primary residence or second home: o 75% CLTV: 9% o 75.01% - 90% CLTV: 6% Investment property: o 2% regardless of CLTV Ineligible Above 80% LTV require Mortgage Insurance Coverage per Fannie Mae limits. The value used in determining the LTV ratio in all states except for New York, is based upon the lower of the sales price or appraised value for a purchase transaction, or the appraised value for a refinance transaction. The value used in calculating the LTV ratio in order to determine if mortgage insurance is required on properties in New York, is based solely on the appraised value. The standard LTV calculation is used to determine the following in all states: o Level of mortgage insurance coverage o Eligibility criteria Eligible MI Companies are as follow: Genworth MGIC Radian UGI All loans above 80% LTV are subject to MI Company guidelines and loan limitations. See Lending Guide Section 700 Mortgage Insurance for specifics. Eligible MI products: Borrower paid mortgage insurance (BPMI) monthly and single premium, constant premiums only. Lender paid mortgage insurance (LPMI) is eligible as a single premium only. Maximum 90% LTV LPMI MI providers are Genworth and Radian. See Rushmore's rate sheet for coverage amounts and price adjustors. Ineligible MI products are as follows: Declining premium Lender Paid Monthly and Annual Premiums Split Premium First time homebuyer rental verification may be required. See First Time Homebuyer section for specifics. Mortgage/rental payment history requirements are per DU Findings. At underwriter s discretion, a VOR or cancelled checks may be required. o If the mortgage/rental history does not appear on the credit report and is required by DU Findings, the previous 24 months Page 4 of 4

5 Multiple Properties Owned history must be verified. Rental history may be verified through a legitimate property management company or canceled checks. Primary residence no limit Second home and investment Borrowers with 5-10 financed properties are eligible per LTV/CLTV limitations on page 1.See Refinances for specific requirements. If the property is held in the name of a corporation and borrower is the owner of the corporation, the property will not be included in the number of financed properties provided there is no mortgage rating on the individual s credit report. Rushmore limits its exposure to a maximum of 4 loans per borrower with a total aggregate of $2 million. Programs Fixed Rate 15, 20, 25 and 30 Years Fixed Rate High Balance Properties Eligible 1-4 units Attached properties above 80% LTV are subject to MI availability and guidelines. Condominiums, warrantable, see page 1 for restrictions on Florida condominiums. Single family residence (SFR) Single family residence on leased land eligible provided the lease meets Fannie Mae requirements PUDs attached/detached, warrantable Properties must include: o A functional kitchen with, at minimum, a sink and an oven/range. o A functional heat source is required with the exception of properties located in Hawaii. Properties Listed for Sale Properties listed for sale within the previous 6 months must have evidence the property is off the market before the disbursement date and are subject to the following guidelines Borrower must also provide written confirmation of intent to occupy the property if the transaction involves a primary residence that was listed for sale in the previous 6 months. Maximum LTV for cash-out refinance is the lower of 70% LTV or the maximum LTV if less than 70% LTV per page 1. Refinances Fannie Mae definition for cash-out and limited cash-out refinance apply. Six month title seasoning required for all cash out refinances transactions. Six months mortgage payment required for all cash-out transactions. Six months seasoning required for refinances in which the existing lien to be paid off was used for cash-out. Continuity of Obligation is required for limited cash-out and cash-out transactions; see Continuity of Obligations section for specifics. Limited cash-out refinance transactions use current appraised value to determine LTV/CLTV, regardless of the length of time the borrower has owned the property. Increase in property value must be documented. Cash-out refinances transaction eligible on primary residence only. o If borrower is on title less than 12 months the LTV/CLTV is based on the lower of sales price/acquisition or current appraised value. o Cash-out refinance eligible on properties purchased within previous 6 months subject to the following: An "Approve/Eligible" Finding is required and transaction must meet all other cash-out requirements. Maximum amount of the new loan cannot be greater than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points (subject to the limitation allowed by product). The original purchase transaction must have been an arms-length transaction. The HUD-1/Closing Disclosure from the original transaction must be provided to confirm mortgage financing was not used to obtain the property The source of the funds to purchase the property can be documented (e.g. bank statements, personal loan documents, HELOC against another property, etc.). See Delayed Financing in Guide for additional requirements. Rushmore limits its exposure to a maximum of 4 loans per borrower with a total aggregate of $2 million Subordinate Financing Institutional financing must provide for minimum interest only payments, with no negative amortization. Rate/term refinance transactions, existing subordinate financing may be re-subordinated subject to CLTV and MI restrictions. Maximum term for 2nd TD is 30 years, with no call provision within the first 5 years. The term on the 2nd TD may not exceed the term of the 1st TD. Minimum term for 2nd TD is 5 years. New subordinate financing is ineligible. Seller carry back financing must provide for regular payments of principal and interest. Seller or financial institution may provide secondary financing. Seconds from other sources are ineligible. First Time Homebuyer seller carry back financing is ineligible. See Lending Guide Section 607 Underwriting Assets Subordinate Financing for complete guidelines on subordinate financing eligibility. Page 5 of 5

6 Tax Returns Amended Tax returns filed prior to the application date: o The original filed tax return and the amended return are required. o If the return was amended greater than or equal to 90 days from the application, evidence of the payment is required and the 4506-T must match the amended tax return; less than 90 days not allowed. Tax returns filed after the application date require the following: o Borrower to provide evidence of filing and payment (or ability to pay if the funds have not cleared). o Borrower must provide a written explanation for the reason of the amended filing. Transactions Eligible Purchase, limited cash-out refinance, and cash-out refinances are eligible per program matrix. o Purchase transactions require proof the property seller has owned the property a minimum of 12 months. o A transaction where the property has been sold within the last 12 months will require additional underwriter review to ensure against the following distressed sale, foreclosure bail-out and inflated value due to unsubstantiated improvements. Purchase, limited cash-out refinance and cash-out refinances are eligible per program matrix. Resale purchase transactions with less than 90 days seasoning; subject to MI guidelines. Previously restructured loans are eligible subject to certain restrictions. See Lending Guide Section Underwriting Eligibility Transactions Limited Cash-Out for requirements. Transactions Ineligible Transaction types are ineligible as follows: o Cash-out on properties subject to deed restrictions, if the property is not the borrower s primary residence. o Cash-out transactions on second home and investment properties. o Conventional loan secured by a condominium using an FHA project approval. o Interest-only product. See Lending Guide Section Underwriting Eligibility Borrower eligibility requirements. Page 6 of 6