FHA: Standard and Jumbo/High Balance Eligibility Matrix

Transcription

1 FHA: Standard and Jumbo/High Balance Loan Purpose FICO Maximum LTV 1 Maximum CLTV Maximum DTI 3 > % 2 45%/55% Purchase Rate and Term Refinance Cash-out Refinance %/43% % 90.00% 31%/43% >620 45%/55% %/43% % 90.00% 31%/43% > % 85.00% 45%/55% % 85.00% 31%/43% 1 Maximum LTV for 2-4 unit properties with non-occupying co-borrower is 75% (FHA B.3.d). LTV is determined by the base loan amount, excluding any financed mortgage insurance. 2 CLTV allowed is 105% for purchases, if using a Govt. Down Payment Assistance Program. 3 Ratios exceeding the 31%/43% for manual underwritten loan are acceptable with documented compensating factors 4 A non-occupying co-borrower may not be added for qualifying purposes on cash out refinance transactions ( Condominium (in FHA approved projects) and site-condos Fixed Rate: 15, 20, 25 and 30 Years Adjustable Rate: 3/1 and 5/1 Owner-occupied properties only DU or LP Approve/Accept DU or LP Refer eligible Manual Underwriting & Non-traditional credit Loans will be approved on a case by case basis. Investor and upper management exception required. A minimum of three months of PITI reserves for 3-4 unit properties on all transactions. Gift and proceeds from loans are not acceptable source ( B.4.d). 2/1 Rate Buydowns Standard Loan Limits only Purchase Transactions only ( A.2.b) Fixed Rate 30-year only ( A.2.b) FHA Flip Waivers Eligible; must meet FHA's Flip Waiver requirements. A second appraisal is required when price increase exceeds 20%. Click here for the flip waiver requirements. Page 1 of 5

2 FHA: Streamline Refinance Standard and Jumbo/High Balance Loan Purpose Minimum FICO Maximum LTV Maximum CLTV 1 Maximum DTI 3 Streamline Non-Credit Qualifying 0 N/A % Refinancewithout appraisal Credit-Qualifying %/43% Streamline Credit-Qualifying % 31%/43% Refinance with appraisal Streamline refinance without appraisal Maximum Loan Amount: cannot exceed the lessor the outstanding principal balance and interest due, minus applicable refund LTV / CLTV: LTV/CLTV for FHA Streamline Refinance is based on the original appraised value reporting in FHA Connection. Streamline refinance with appraisal Maximum loan amount: A credit qualifying streamline with appraisal may be used to increase the loan amount not to exceed LTV/CLTV: Based on new appraisal ordered in conjunction with the transaction. 1 The maximum accessible credit limits must be used when considering HELOCs (FHA C.2 ). 2 A credit-qualifying streamline is required when a change in the mortgage term will result in an increase in the mortgage payment of more than 20% when deletion of a borrower or borrowers will trigger the due-on-sale clause following the assumption of a mortgage that occurred less than six months previously, and does not contain restrictions (i.e. due-on-sale clause) limiting assumption only to a creditworthy borrower, or following the assumption of a mortgage that occurred less than six months previously, and did not trigger the transferability restriction (that is, the due-on-sale clause), such as in a property transfer resulting from a 3 Ratios exceeding the 31%/43% for manual underwritten loan are acceptable with documented compensating factors ( Condominium and site-condos Fixed Rate: 15 through 30 Years Adjustable Rate: 3/1 and 5/1 Owner-occupied, Investment Properties and Second Homes Mortgage Late Payments Available Mortgage History Less than 12 months 12 months or more Requirements All mortgage payments must have been made within the month due No more than one 30 day late allowed in last 12 months All mortgage payments in last 3 months from the application date must have been made within the month due Note: Mortgage must remain current during application period to closing. Mortgage Only Credit Report / Verification of Mortgage Acceptable Modified Mortgages Mortgages that have been modified or have participation in any Loss Mitigation programs are ineligible for Streamline Refinance. AUS is not applicable on streamline refinance loans. All loans are manually underwritten. A minimum of three months of PITI reserves for 3-4 unit properties on all transactions. Gift and proceeds from loans are not acceptable source ( B.4.d) Funds Required To Close If funds are needed to close, the borrower must have the assets to be utilized in accordance with FHA's standards (e.g. 2 months of bank statements) C.3.a Maximum Term Lesser of 30 years or the remaining terms of the mortgage plus 12 years. ( C.2.b) Verbal Verification of Employment (VOE) For non-credit qualifying refinances, at least one borrower must be employed at time of closing. If a VOE cannot be obtained, alternative income documentation is acceptable to support an active source of income, such as: Page 2 of 5

3 For non-credit qualifying refinances, at least one borrower must be employed at time of closing. If a VOE cannot be obtained, alternative income documentation is acceptable to support an active source of income, such as: SSA Award letter / Pension letter 1099 or Tax Returns for other types of income Divorce Degree or Child Support Statement Page 3 of 5

4 FHA: 203(K) Standard and 203(K) Jumbo/High Balance Rehabilitation Loans Loan Purpose FICO Maximum LTV 1,2 Maximum CLTV Maximum DTI 3 Purchase Rate and Term Refinance >620 >620 45%/55% 45%/55% %/43% 31%/43% 1 Purchase Transactions mortgage basis, lesser of: As-is value plus rehabilitation cost or purchase price plus rehabilitation cost, OR 110% of after-improved value (100% for condominiums including site-condos) Refinance Transactions mortgage basis, lesser of: Existing debt plus rehabilitation cost plus prepaid and closing cost, OR of as-is value plus rehabilitation costs, OR 110% of after-improved value (100% for condominiums including site-condos) 2 Maximum LTV for 2-4 unit properties with non-occupying co-borrower is 75% (FHA B.3.d) LTV is determined by the base loan amount, excluding any financed mortgage insurance. 3 Ratios exceeding the 31%/43% for manual underwritten loan are acceptable with documented compensating factors ( F.2.b and c). Condominium (in FHA approved projects) and site-condos Fixed Rate: 15, 30 Years Owner-occupied properties only DU or LP Approve/Accept. A minimum of three months of PITI reserves for 3-4 unit properties on all transactions. Gift and proceeds from loans are not acceptable source ( B.4.d). Loan Amount Limitations Non-Streamline 203(K): Repairs allowed up to 50% of the loan amount. (For repair amount constituting more than 40% of loan amount, max. LTV will be 100% calculated at after improved value.) Streamline 203(K): The maximum rehab amount is $35,000 and will include at least 2 Inspection Fee draws, 2 title updates, and a 15% contingency reserve. FICO Restrictions 680 FICO Score if either: rehabilitation amount is greater than 40% of loan amount calculated at after improved value, or rehabilitation includes additions and utility replacement and/or reconditioning. Types of Repairs that are eligible for a 203(K) loan Non-Streamline 203(K): Roof replacement, health and safety hazard mitigation, landscaping required to mitigate drainage or erosion issues, aesthetic landscaping when appraiser verifies that the value increases the dollar-for-dollar cost, sidewalk/driveway repair necessary for home access, major repair of termite damage, drywall/insulation replacement, most repairs which require permits, finishing basements. Egress window wells for basements will be admissible. Structural and Foundation work will be permitted as long as the Contractors insurance coverage is sufficient (normally general liability insurance coverage of 1,000,000/each occurrence will be acceptable). Streamline 203(K): Cosmetic Repairs such as financing purchase/installation of new appliances; patching holes; replacing doors; painting; lead paint abatement; new counters, cabinets, windows, carpet (subfloor repair requires Non-Streamline 203(K); repair/installation of HVAC; weatherization; minor repair of termite damage. The property should be inhabitable at the time of loan closing. Page 4 of 5

5 Cosmetic Repairs such as financing purchase/installation of new appliances; patching holes; replacing doors; painting; lead paint abatement; new counters, cabinets, windows, carpet (subfloor repair requires Non-Streamline 203(K); repair/installation of HVAC; weatherization; minor repair of termite damage. The property should be inhabitable at the time of loan closing. Note: For Doublewide Manufactured Housing, only non-structural repairs or additions are allowed. Requirement of Home Inspection A complete home inspection is required for all REO and vacant properties and for properties with repair amounts exceeding $15,000. REO and vacant properties are eligible under streamline 203(K); however, underwriter may advise about requirement of consultant depending on the scope of work. Home inspectors may not be an interested party, including the 203(K) consultant. The Inspector must be approved by The American Society of Home Inspectors ( or National Association of Home Inspectors, Inc. ( Home inspections are not required for transactions using the services of RenovationReady ( 203(K) Consultant & Contractors Gotmortgage must approve the use of all parties involved, including the consultant and contractor as applicable. Exclusions on a 203(K) loan Streamline 203(K): Upfront draws are only available for documented material costs (with receipts or invoices). If the contractor is bonded, documenting material cost is not required to obtain an upfront material draw. Draws may not exceed 50% of the total rehabilitation amount. If no draw is required, contractor must provide certification that no initial draw is necessary and that he/she has available funds to complete the cost of rehabilitation. Geographic Restrictions: Gotmortgage currently does not offer FHA 203(K) in the state of TX. Supplemental Origination Fee 1.5% of Rehabilitation Amount or $350, whichever is greater, must be charged. Additional Forms and Work Exhibits Requirements Consultant, if applicable Specification of Repairs and Work Write-up exhibits must itemize material and labor costs. Consultant's Identity of Interest Master Draw Request (HUD-9746a) Contractor Work Write-up exhibits must itemize material and labor costs. Completed IRS-W9 License, E&O and/or Liability Insurance valid until rehabilitation is completed Contractor Profile Form Information for Contractors form Homeowner and Contractor Agreement Evidence of Assets or Sufficient Lines of Credit (VOD, Bank Statements, Credit lines etc.) to reasonably cover cost of material for rehabilitation. Draw request time line is taken into consideration. Not required when initial draw is provided on 203(K) streamline, see Exclusion on 203(K) loan section above. Borrower Borrower Identity of Interest Certification must be signed and dated by borrower(s), Consul 203(K) Borrower Acknowledgement must be signed, dated and completed by borrower(s). Conference call with borrower to be completed by Gotmortgage Additional Guidelines LandSafe Title is not acceptable as the title company FHA Flips are not acceptable with the 203(K) loan 2/1 Rate Buydown Standard Loans Limits only Purchase Transactions only ( A.2.b) Fixed Rate 30-year only ( A.2.b) Page 5 of 5