Deal Maker First & Second Mortgage

Transcription

1 Click Here For PDF Version ALL PROGRAMS REQUIRE FULL DOCUMENTATION FIRST MORTGAGE Owner Occupied SINGLE FAMILY PROPERTY Purchase & Refinance Credit Score Max. LTV / CLTV Max. Loan Amount Max. Mortgage Delinquency Maximum Debt Ratio * % / 100% 250,000 0 X 30 Last 12 months 45% % / 100% 250,000 0 X 30 Last 12 months 45% % / 100% 250,000 0 X 30 Last 12 months 45% % / 100% 250,000 0 X 30 Last 12 months 45% % / 100% 250,000 1 X 30 Last 12 months 45% % / 90% 200,000 2 X 30 Last 12 months 45% *See Debt Ratio section below. SECOND MORTGAGE Owner Occupied SINGLE FAMILY PROPERTY Purchase or Refinance Credit Score Max. CLTV Max. Loan Amount Max. Mortgage Delinquency Maximum Debt Ratio * % 150,000 0 X 30 Last 12 months 45% % 150,000 0 X 30 Last 12 months 45% % 150,000 0 X 30 Last 12 months 45% % 150,000 1 X 30 Last 12 months 45% % 100,000 1 X 30 Last 12 months 45% % 100,000 2 X 30 Last 12 months 45% *See Debt Ratio below for Debt Ratio exception criteria. LTV / CLTV limits for other property types and non-owner occupied property are shown below. The maximum loan amount, debt ratio and mortgage delinquency requirements are the same as owner occupied for the respective lien position. OWNER OCCUPIED OTHER PROPERTY TYPES MAXIMUM LTV / CLTV (Purchase & Refinance) LIEN POSITION FIRST LTV / SECOND CLTV SECOND CLTV CREDIT SCORE Attached Single, Condo, Townhouse 90 / / / / / % 100% 100% 90% 90% 2 Family 90 / / / / / % 100% 100% 90% 90% 3-4 Family 80 / / / / 80 N/A 80% 80% 80% 80% N/A Second Home 90 / / / / 90 N/A 90% 90% 90% 90% N/A NON-OWNER OCCUPIED ELIGIBLE PROPERTY TYPES MAX. LTV/CLTV (Purchase & Refinance) LIEN POSITION FIRST only no second allowed SECOND CREDIT SCORE Single Family 80% 80% 80% N/A Attached Single, Condo, Townhouse 80% 80% 80% N/A 2 Family 80% 80% 80% N/A No second liens on investment property 3-4 Family N/A N/A N/A N/A Second Home N/A N/A N/A N/A V. Product Descriptions 1 of 8 Document # 5551

2 SUMMARY: TERM: LOAN AMOUNT: Fully disbursed, fixed rate and term, first and / or second lien mortgage loans with a combined loan-to-value of up to 100% of the value of the property. Purchase or refinance. THIS PRODUCT IS NOT TO BE USED AS A BRIDGE LOAN. (See Bridge Loan Product #5608). First Mortgage: Fifteen (15), Twenty (20) or Thirty (30) year fixed rate Thirty (30) year amortization due in Fifteen (15) years (30 / 15) No ARMs. Second Mortgage: Five (5), Ten (10), Fifteen (15) and Twenty (20) year fixed rate Thirty (30) year amortization, due in 15 years No ARMs. Minimum loan Amount for all programs is $10,000 (No exceptions) ELIGIBLE BORROWERS: United States Citizens Permanent resident aliens with proof of registration and residency Minimum 2 year residence and work history in U.S. All borrowers must meet credit / underwriting standards INELIGIBLE BORROWERS: Non-occupant co-borrowers Non-permanent resident aliens STATE ELIGIBILITY: PRICING/RATE LOCK: Not available in Hawaii or Texas. Other states may be excluded from some programs. Alaska maximum LTV / CLTV is 80.00%; Alabama limited availability (see your Flagstar Bank Representative) Refer to the Deal Maker rate sheet. Rate must float until final approval and can be locked for a maximum of 30 days. ELIGIBLE PROPERTIES: 1- to 4-unit including modular homes Planned unit developments (PUDs) and Townhomes Condominiums (up to 4-story; must be Fannie Mae Type A or Freddie Mac Class III) Rural properties reduce maximum LTV / CLTV by 10% INELIGIBLE PROPERTIES: Manufactured / mobile homes Agricultural or commercial Property under construction Unique or unusual properties Property listed for sale (dome homes, A-frames, etc.) Mid and High rise condominiums (above 4 stories) Row homes Leaseholds CASH-IN-HAND: Purpose of cash out must be shown on the Flagstar Bank reserves the right to limit cash out on any loan, particularly those that show recent derogatory credit, high revolving debt, large recent increases in debt load or limited employment or income stability FICO 700+ Maximum $50,000 FICO Maximum $25,000 FICO 639 or less Maximum is the lesser of 25% of the loan amount or $15,000 Exceptions for scores 640 or higher require underwriter approval and increase rate by 50 basis points (0.50%) Debts paid directly out of proceeds and reflected on the HUD-1 are not considered cash-in-hand. V. Product Descriptions 2 of 8 Document # 5551

3 INELIGIBLE FIRST LIENS: (When our new loan is a second lien) Balloon mortgages where the first mortgage balloon matures earlier than the proposed Flagstar second mortgage. Examples: Ineligible: First mortgage balloon is due in 17 years and proposed Flagstar loan is for 20 years. Eligible: First mortgage balloon is due in 17 years and proposed Flagstar loan is for 15 years. Privately-held mortgages Guaranteed Rural Housing mortgages Land Contracts or Contracts for Deed Reverse mortgages Negative amortization mortgages State/local housing programs Graduated payment or growing equity mortgages (GPM/GEM) FIRST LIEN SEASONING: None required All second mortgage loans closed simultaneously with (or within 2 months of) a Flagstar first mortgage must meet the subordinate financing guidelines of the first mortgage product for CLTV, credit scores, etc. SUBMISSION: Missing items may result in delay of underwriting until received The underwriting submission package must contain: Completed Loan Transmittal (1008) or Second Mortgage Transmittal Form #3250 Application (FNMA completed in its entirety) Borrower s Certification & Authorization (if 1003 is not signed) Current Tri-merged credit bureau report Initial Truth-in-Lending Disclosure Good Faith Estimate Submission of other supporting documents such as 30 days current payroll check stubs, W-2 s, other income verifications, property valuation or appraisal, title report, etc. are appreciated and will help speed up the response time. Additional requirements will be itemized on the Conditional Approval as Prior to Close or At Close conditions. UNDERWRITING: UNDERWRITING: (continued) Loans will be underwritten to the following guidelines: 1. Submission: Second mortgages that are simultaneous with a Flagstar first mortgage should be submitted through the standard underwriting channels and underwritten by the same employee. 2. Employment verification: All Borrowers require verbal VOE if 2 or more years on same job. If less than 2 years, written verification is required for present job and verbal for prior job(s) for min. 2-year history. Self-employed Borrowers may verify minimum of 2 years in business with signed tax returns, a letter from their accountant or professional organization, licenses, etc. 3. No Income Verification (NIV) FICO score 700 or above for all borrowers; selfemployed or commissioned income for minimum of two (2) years; liquid reserves equal to 10% of purchase price or appraised value. 4. Combined loan to value (CLTV) ratios will be calculated off the lesser of the appraised value or the sales price in transactions involving a property with less than 12 months of ownership. If improvements have been made to the property within the last 12 months, they must be documented in order to be added to the sales price. 5. Trusts are not eligible unless the complete trust agreement is reviewed by Flagstar Bank Legal Department and approved. Will require Title Company closing. V. Product Descriptions 3 of 8 Document # 5551

4 6. Credit Primary borrower (the borrower having the most income) minimum credit score 620. Co-borrower must have a minimum score of 620 if co-borrower s income is being used to qualify. Pricing will be based on the Primary borrower s credit score. Tri-merged credit report is required and the middle score will be used to qualify Minimum five (5) trade lines; one currently active and open for more than twelve (12) months with a minimum high balance of $1,000 Max $25,000 loan if no significant prior major credit experience Mortgage credit - Maximum 2x30 in last 12 months (see rate sheet for specifics) Non-mortgage credit limited lates with no 60 day items last 12 months; other history on case by case basis Bankruptcies/CCCS - must be discharged at least five years for standard pricing. Discharged 4 5 Years add an additional 50 basis points. Discharged 2 4 Years add an additional 150 basis points AND MAXIMUM LTV / CLTV is 80.0%. Less than 2 years not allowed Foreclosures not allowed; Repossessions less than 2 years not allowed; over 2 years considered on a case by case basis with documentation of circumstances Collections / charge-offs / non-mortgage liens / judgments < 24 months old or over $1,000 cumulative must be paid off prior to or at closing All credit must be current at time of closing or paid current at closing with underwriter approval (Maximum 30 days delinquent at closing). Property valuation > Purchases - Full URAR > 2 4 Family - Full URAR > Refinance > $100,000 - Full URAR > Refinance $100,000 or less Drive-by, Desk-Top or AVM (Automated Valuation Model) or appraisal within the last 4 months > All appraisals / AVM s must be performed by a Flagstar approved appraiser or vendor. Borrowers can pay off debts to qualify. However, the debt must be paid in full and all remaining debt, except installment loans with 6 payments or less remaining (except leases), will be included in qualifying ratios. All debts to be paid off must be clearly identified on the HUD-1 settlement statement. The underwriter may require revolving accounts being paid off (to qualify debt ratio) to be closed. All instances of mortgage delinquency are counted. Rolling delinquency is not permitted. Student loans can be excluded from debt ratio - requires written verification that loans are deferred for at least 12 months from date of funding. DEBT RATIO: Debt Ratio for all grades is 45%. Exceptions to 50% (with 0.50% rate increase) may be considered at the Underwriter s discretion, if all the following conditions are met: Disposable income of $1,500 No prior bankruptcy FICO score 640 or higher for all borrowers PREPAYMENT PENALTY: ASSUMPTION: ESCROW WAIVER: A prepayment penalty option may be used, where permitted by state law. See the state specific matrix at the end of this product description. Par pricing, as shown on the rate sheet, assumes a prepayment penalty is obtained. If no prepayment penalty is obtained, increase par pricing by 50 basis points (0.50%) Not assumable Escrow for taxes and insurance is not available. NO Escrow Waiver Fee will be charged. (See FEES below). V. Product Descriptions 4 of 8 Document # 5551

5 MORTGAGE INSURANCE: TITLE INSURANCE: HAZARD INSURANCE: Not required. NO PMI waiver fee will be charged. Loans up to $50,000 require a Limited Title Search verifying ownership, liens and taxes. Loans greater than $50,000 require a Full Title Search and Title Insurance back to the date of the last recorded deed, dated within fourteen (14) days of closing. Borrower Affidavit as to Other Liens (document # 3252) to be signed at closing by all Borrowers. Purchase Money loans will always require a full title search and title insurance, regardless of the loan amount. Hazard insurance policy must be in place covering 100% of the replacement value of the improvements. "Flagstar Bank, FSB, its successors and/or assigns" must be named as an additional mortgagee (loss payee) on the hazard insurance policy. FLOOD CERTIFICATE/INSURANCE: A Flood Certificate must be obtained for ALL first and second mortgage loans. For concurrent transactions a separate Flood Certificate is required for both the first and second mortgage. If the Flood Certificate shows the property as being located in a flood zone, flood insurance will be required covering 100% of the replacement value of the improvements. "Flagstar Bank, FSB, its successors and/or assigns" must be named as an additional mortgagee (loss payee) on the flood insurance policy. FEES: Originating Lender Fees: Flagstar Bank limits Originating Lender fees to 5.0% of the loan amount or the maximum permitted by State, Local or other regulation, whichever is LESS. Flagstar Bank will NOT purchase any Section 32 loans. Flagstar Fees: Underwriting Escrow Waiver Waived PMI Waiver Waived **Flagstar Bank will waive the Underwriting Fee on any 2 nd mortgage closed simultaneously with a Flagstar 1 st mortgage. **Flagstar Bank will not pay any Document Administration Fee for loans where Flagstar prepares the closing documents. SECTION 32: POWER OF ATTORNEY: FLAGSTAR BANK WILL NOT PURCHASE ANY SECTION 32 LOANS OR LOANS THAT EXCEED SPECIFIC STATE OR LOCAL REGULATIONS. Powers of Attorney will ONLY be acceptable for purchase money transactions and bona fide rate/term refinance transactions where the second mortgage is used to pay only outstanding mortgage debt on the subject property along with closing costs and prepaid expenses. All borrowers must have signed the original Credit Application (1003). CLOSING DOCUMENTATION: Closing documents must be ordered from one of the following approved document administration services: Document Processing Systems, Inc. (DPS) [Call ] On-Line Mortgage Documents (OMD) [Call ] Tradewinds Mortgage Document Preparation Co. [Call ] Schwartz & Associates Robertson & Anschutz V. Product Descriptions 5 of 8 Document # 5551

6 CLOSING DOCUMENTATION (continued): Brokers and Correspondents who are approved to prepare their own documents must: Use Fannie Mae/Freddie Mac uniform mortgage security agreement, note and disclosures (insure correct first or second lien documents) Use correct late fee and prepayment penalty addendum if required Title search / Commitment (based on product and amount) 30 Due in 15 balloon loans will have either a special balloon note or an addendum to the standard fixed rate note and a rider to the mortgage Final Truth-in-Lending Disclosure Rescission document on non-purchase money loans Borrower identification Section 32 worksheet for all non-purchase money, owner occupied second mortgage loans and first mortgage loans $50,000 or higher All other supporting documentation including signed original 1003 NO CHANGES ARE PERMITTED TO ANY FEES PAYABLE TO THE ORIGINATOR, LENDER OR FLAGSTAR BANK WITHOUT THE EXPRESS APPROVAL OF FLAGSTAR BANK. PURCHASE MONEY TRANSACTIONS: Eligible Properties (Owner Occupied only): 1 4 family units Second Homes Condominiums First Time Home Buyers Requirements Minimum FICO score is 660 Maximum CLTV 90% Maximum debt ratio is 40.0% (Exception to 45.0% maximum may be considered with $2,500 disposable income, no prior bankruptcy and 0 X 30 housing pay history in last 24 months Maximum loan amount is $150,000 Borrowers that have had no ownership interest in a property in the last 36 months are considered first time home buyers 12-month rental history required, verified by VOR and cancelled checks Must have a minimum of five years credit history with five trades, one with at least a 12 month payment history Down Payment Requirements Can not be borrowed funds (other than Flagstar approved seller carry backs) or gifts Funds must be seasoned 60 days Non-Arm s Length Transactions Non-Arm s length transactions will be limited to 80% CLTV Closing Costs Either buyer or seller can pay closing costs in a purchase money transaction If LTV/CLTV is 89.99% or less, the seller may pay up to 6% in closing costs If LTV/CLTV > 90%, the seller may pay up to 3% in closing costs Seller Paid Closing Cost Calculation The following items are not considered Seller paid closing costs: Odd days (interim) interest, if any V. Product Descriptions 6 of 8 Document # 5551

7 PURCHASE MONEY TRANSACTIONS (continued) Seller Paid Closing Cost Calculation (continued) Real estate property taxes (prorated portion) Realtor/Broker commission Property assessment charges (prorated portion) Recording/transfer fees Utilities Deal Maker First & Second Mortgage Purchase Money Second Mortgage (In addition to the above criteria) Available for closed-end loan only Simultaneous closing only First lien position must be held by a financial institution Term: Maximum of 240 months Balloon option not available Additional product and underwriting criteria are in the Purchase Money Section of the Consumer Lending Guidelines. INTEREST RATE ADJUSTMENTS: OWNER OCCUPIED: Rates for Attached Single Family and 2 Family homes are the same as Single Family for respective FICO score. 3 4 Family, Condominiums and Second Homes ADD 50 basis points (.50%) to the rate for the respective FICO score. EARLY LOAN PAYOFF PREMIUM RECAPTURE: NON-OWNER OCCUPIED: Single Family and 2 Family homes ADD 50 basis points (.50%) to the rate for the respective FICO score. 3 4 Family and Condominiums ADD 100 basis points (1.00%) to the rate for the respective FICO score. DEBT RATIO exceptions TO 50.0% - add an additional 50 basis points SELF EMPLOYED - add an additional 50 basis points BANKRUPTCY Discharged 5+ Years no rate increase Discharged 4 5 Years add an additional 50 basis points Discharged 2 4 Years add an additional 150 basis points AND MAXIMUM LTV / CLTV is 80.0% If a loan sold to Flagstar Bank is paid in full within 60 days following the date of purchase by Flagstar, then originator will be charged a penalty fee of the greater of (a) the yield spread premium, or (b) 1% of the original loan amount. If a loan sold to Flagstar Bank is paid in full within days following the date of purchase by Flagstar, then originator will be charged a penalty fee equal to 1% of the original loan amount. OTHER: Refer to the Deal Maker section of the Consumer Lending Underwriting Guidelines for additional product information. V. Product Descriptions 7 of 8 Document # 5551

8 PREPAYMENT PENALTY MATRIX: PREPAYMENT PENALTY MATRIX PREPAYMENT PENALTY ALLOWED STATE OPTION STATE Arizona 6 Mo. Int. / 3 yr. Alabama Arkansas 6 Mo. Int. / 3 yr. Alaska Connecticut 3,2,1, California Delaware 6 Mo. Int. / 3 yr. Colorado NO PREPAYMENT PENALTY Florida 6 Mo. Int. / 3 yr. District Of Columbia Georgia 6 Mo. Int. / 3 yr. Illinois Hawaii 6 Mo. Int. / 3 yr. Iowa Idaho 6 Mo. Int. / 3 yr. Kansas Indiana 1,1,1 Maine Kentucky 3,2,1 Maryland Louisiana 3,2,1 Massachusetts Michigan 1,1,1 New Jersey Minnesota 1,1,1 New Mexico Mississippi 3,2,1 New York Missouri 1,1,1 Pennsylvania Montana 3,2,1 Rhode Island Nebraska 6 Mo. Int. / 3 yr. Tennessee Nevada 6 Mo. Int. / 3 yr. Texas New Hampshire 6 Mo. Int. / 3 yr. Utah North Carolina 1,1,1 Vermont North Dakota 6 Mo. Int. / 3 yr. West Virginia Ohio 1,1,1 Wisconsin Oklahoma 3,2,1, Wyoming Oregon South Carolina 3,2,1 South Dakota 6 Mo. Int. / 3 yr. 6 Mo. Int. / 3 yr. Virginia 1,1,1 Washington 6 Mo. Int. / 3 yr. Description of Prepayment Penalty calculation: 6 Mo. Int. / 3 yr. = Six (6) months interest on the balance being prepaid during the first three years of the loan term. 3,2,1 = Three percent (3%) of the loan amount in the first year, two percent (2%) in the second year and one percent (1%) in the third year of the loan term. V. Product Descriptions 8 of 8 Document # 5551