Foreign National Lender Programs & Guidelines

Transcription

1 Foreign National Lender Programs & Guidelines

2 Lender Names, Contact Information & Phone Numbers First Choice Loan Services Mortgage Consultant: Frank Fisher Phone: Cell (407) or (877) Website: BBVA Compass Mortgage Banking Officer: Michael Knight Phone: Office (407) ; Fax (205) Website: FBC Mortgage, LLC. Loan Officer: Scott Stinson Phone: (407) ; Fax (305) [email protected] Website:

3 First Choice Loan Services Foreign National Program #1 Minimum loan amount is $100,000 Interest only available on 30 yr. fixed and 10/1 ARMS only Maximum LTV is 65% Taxes and insurance escrows are required Occupancy is considered primary and secondary homes only International credit reports are required on all Foreign Nationals Credit reference letter, on letterhead required from financial/banking institution, with all contact information provided and length and relationship noted If borrower has a valid SS# or tax ID, a traditional credit report is also required. Minimum credit score is 680 (if score is provided) Must be self employed for 4 years. 2 full years of self-employment and 2 years in the same line of work will be considered CPA signed, on letterhead documentation last 2 years income and YTD.

4 First Choice Loan Services Foreign National Program #1 (Continued) Debt-to-income rations are 35/45. No expanded ratios Salaried/Wage Earners are required to provide paystubs and written VOE verifying income for the past 2 years and YTD. All assets to be seasoned for 90 days (funds in US account not required to be seasoned if the transfer of funds is documented from borrowers foreign account) 24 months liquid reserves on all loans regardless of loan amount Of the above mentioned 24 months, 12 months of liquid reserves must be held in a US Bank (Direct Debit) All files require 90 days of asset statements IRA/401K, use 70% of current value. Terms and conditions of withdrawal are required on ALL Use 100% on Stocks/Bonds, CD/Money Market and Checking/Savings

5 First Choice Loan Services Foreign National Program #2 Two Years tax returns and YTD income from their country We do asset conversion International credit or if not, 4 vendor reference letters TIN (Tax ID number) and if not, provide a copy of the application Assets in an internationally recognized financial institution like HSBC, Chase, Bank of America, etc. Max LTV is 60% (Investment property Max LTV is 55%) Can close in LLC, Trust, Sub S Corp or Corporation as long as it is a U.S. entity Asset Depletion-amortize assets to add to full doc income Asset Pledge-pledge assets to increase LTV to 90% Min loan amount $300,000 Close in an entity

6 First Choice Loan Services Foreign National Program #3 Max LTV is 40% No credit is required (either U.S. or International) Applicant must provide last 2 years of tax returns or income documents (depending on what is used in their country) Letter from accountant or professional who prepared the tax return attesting to the income; it may be necessary also to have the income docs authenticated at the U.S. Embassy if required by underwriting Asset documentation showing the ability to complete the transaction A certified translation of the documents to English by a translation company that is a member of the American Translation Association. There are many of these companies operating in the U.S. Two products are available for this program---a 2/1 and a 5/1 ARM, both are treasury-based.

7 First Choice Loan Services Foreign National Program #4 Right now case by case at Max LTV 50% with Max 40% DTI Can do owner occupied, second home and investment properties If borrower has SS# a credit report is required. Two years tax returns Assets seasoned for 90 days

8 BBVA Compass Foreign National Program 70% LOAN TO VALUE TO 1 Million 70% LOAN TO VALUE TO 1.25 MILLION SECOND HOME FINANCING 38% DEBT TO INCOME RATIO WITHOUT EXCEPTION FINANCING FOR SINGLE FAMILY RESIDENCES, CONDOS, NON-WARRANTABLE CONDOS FIXED RATES AND ARMS OFFERED LOW BANK FEES CAN CLOSE IN AN LLC Compass Bank is a leading U.S. banking franchise with operations throughout the Sunbelt Region and ranks among the top 20 largest U.S. commercial banks based on deposit market share. Under the brand name BBVA Compass, we operate 712 branches in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas. BBVA Compass ranks among the largest banks in Alabama (3rd), Texas (4th) and Arizona (5th).

9 BBVA Compass Foreign National Program - Checklist Foreign National Checklist: Complete on-line Application (with all debt liabilities listed) Borrower s contact phone number with world prefix Address Identification (Copy of Passport and Visa) Employment and Income Documents (Non-self employed borrowers) Employment Verification letter from employer stating last 3 years income (Translated) Most recent pay slips or bank statement showing direct deposit of payroll Two years tax returns Employment and Income Documents (Self Employed borrowers) Most recent two years & YTD business balance sheet and profit/loss statements prepared (and signed) by CPA/Accountant. (Translated) Current personal financial statement prepared (and signed) by CPA/Accountant Letter from CPA stating last 3 years gross income Two years tax returns, corporate and personal Copy of CPA s license and/or certificate (Cedula)

10 BBVA Compass Foreign National Program Checklist (Continued) Credit Documentation Two Credit Letters (i.e. credit cards, auto loans, mortgages, etc.) No utilities or bank accounts. Letter must state type of credit account, account number, credit balance and monthly payment. Credit Report from country of origin Assets Most recent two months bank statements (MUST have name, account number and 60 day activity). Source of large deposits must be documented along with Escrow Deposit Source Earnest Money Deposit by providing statement showing debit. Additional Information Fully executed sales contract Name and phone number of appraisal contact Title Company contact information Please submit a complete application with ALL required supporting documentation.

11 BBVA Compass Foreign National Program: Checklist for Realtor Locate a Property for the Borrower Determine if the client will be closing in the USA or closing through a Durable Power of Attorney a) If by Durable Power of Attorney make sure you have approved version of Example from Mike Knight with BBVA. Set up a BBVA Checking Account with Auto Debit. a) This is now mandatory for the Foreign National to set up. b) The client will need to fund the account with a minimum of $25.00 that can be a US check or money order. c) Your client has to do it face to face at either the nearest branch, or come into our Orlando location. d) Your client will be given a.25% interest rate reduction for setting up the account with auto debit for the mortgage. Provide your client with the BBVA Documentation Checklist Your client can fill out an Online Application at a) This is the easiest way for your client to apply. b) There are three glitches that will have to be overcome on the online application. a. The client will have to input a Social b. The client will have to add a state and zip code on all addresses Florida, c. The client will also have to put in a US phone number d. Once completed your client will need to me the correct info so I can go in and correct.

12 BBVA Compass Foreign National Program: Checklist for Realtor (Continued) Provide the following to Mike Knight with BBVA Compass Bank once you have gone to contract. a) Executed Contract b) Title Company contact info. c) Appraisal Access info. d) addresses for clients Inform your client that all paperwork need to be received in order to complete the application process.---if they need example of what some of the requirements are, I can assist. Establish a timeline with your client. a) It takes approx. two weeks from the time a complete file is received to get a commitment letter with the Foreign National underwriting team. a) During this two week time period your client will need to do the following. a. Shop for Homeowners insurance. b. Provide Durable Power of Attorney executed by a US Notary, or US Embassy Notary.-(If applicable) c. Provide Non-Borrowing Spouses name, and ID (required acknowledgement of mortgage at closing) d. Provide contact info for Verbal Verification of Employment if you aren t self employed. e. Provide Proof of Escrow Deposit Wire confirmation, transaction summary showing debit required. f. Provide Appraisal Fee form, and confirmation to order the appraisal prior to commitment. (If Applicable) g. Realtor will want to let title company know to order survey.

13 FBC Mortgage Foreign National Loan Guidelines Second Home Foreign National ARM product only 1 unit Purchase SFR, PUD 65% LTV Maximum loan amount: $625, months PITI in reserve account for life of loan, 12 months reserve to qualify

14 FBC Mortgage Foreign National Requirements Offered to Canadian Citizens Australian Citizens Citizens of Great Britain and the United Kingdom Copy of Passport or Visa showing stamp entrance to United States Income requirements may consist of the following: Verification of Employment/VOE Letterhead from accountant or employer stating income/salary position/title, dates of employment information to cover the most recent two (2) year period If available, obtain the most recent two (2) years personal & business income tax reports, in English If business income applies, obtain a letterhead from the Accountant defining his/her relationship, the length of time he/she has represented the borrower, summary of the borrower s business and disclose the borrower s current income and the past two (2) years W-8 Form

15 FBC Mortgage Foreign National Requirements (Continued) Asset/Cash Reserve requirements may consist of the following: 12 Months reserves required to qualify. Most recent two (2) months bank statements, all pages. Documentation of the source of funds for any unusual large deposits is required. Quarterly bank statements must be dated within 90 days of the initial application. All other acceptable asset sources verified according to industry standards. If bank statements can t be provided in English, a letterhead, in English, from the banking institution to document the borrower s assets & history for the most recent sixty (60) days. If borrower is a business owner, one of the above will need to be provided for the business to document the business liquidity. VOM/VOR or certified copies of past twelve (12) months canceled checks to evidence mortgage/rental history in lieu of VOR/VOM.

16 Non occupant borrower not allowable for Foreign National loans Credit Requirements: FBC Mortgage Foreign National Requirements (Continued) Obtain a foreign national credit report or three (3) credit reference letters, including one housing related. Credit letters must state the date the account was open (minimum 2 years), the credit limit, minimum monthly payment and that the account has been in good standing and is current. Obtain verification of mortgage when applicable, and obtainable, disclosing a 12 month history. Three (3) months statement history on 1 credit card required (Visa, MC, Amex, Discover). All documentation must be provided in English, UTB will not translate. 6 months reserves required to be held in an FBC designated institution.