Large Acreage -Owner Occupied Purchase or Refinance

Transcription

1 Wholesale Lending Large Acreage -Owner Occupied Purchase or Refinance This loan program is for owner occupied, single family residences on rural properties on a minimum of 25 acres up to a maximum of 100 acres, being used for farming, ranching or equestrian purposes. Idaho properties are limited to a maximum of 80 acres. LOAN TYPE: Type 200 Permanent fixed and adjustable 201 Custom Construction (fixed product only) LOAN TERM: 20 year fixed rate term with 20 year amortization 3, 5 or 7 year Adjustable with 30 year amortization MAXIMUM LOAN AMOUNT: $1.5 Million max loan amount at 70% LTV $850,000 max loan amount at 75% LTV MAXIMUM LOAN-TO-VALUE: SECONDARY FINANCING: Purchase-Refinance 75% max LTV, if value of the qualified residential structures contributes over 60% of total appraised value 70% max LTV, if value of the qualified residential structures contributes 50% up to 60% of total appraised value 60% max LTV, if value of the qualified residential structures contributes less than 50% of total appraised value Secondary financing may be allowed, no seller seconds. Family held second may be permissible with Underwriting approval.

2 Combining 1 st mortgage and seasoned seconds are okay. ( Seasoned is defined as 1 year old or more.) CASH BACK: TX: Cash-back/refinancing Texas A6 not available. All other states: A refinance with cash-back is designed for a strong borrower where the cash-back makes sense. Not for the borderline borrower with poor credit and excessive debt. The following special parameters apply: Borrower(s) must be credit approved by underwriting before appraisal is ordered. Satisfactory explanation for use of cash. No mortgage late payments. No major delinquencies or derogatory credit in last 48 mos. (i.e. no bankruptcy, tax liens, charge-offs). PROPERTY TYPE: Single family See property requirements Custom Construction Manufactured home requirements must be met PROPERTY CONDITIONS: Property must be in our CRA assessment lending areas. Contact your local AE to confirm. Property must exhibit average or better condition as evidenced by an acceptable appraisal. Any recommended repairs must be completed prior to closing. Escrow holdbacks are allowed on a case-by-case basis and must be approved by underwriting. INTEREST RATE: See the current Wholesale Lending Rate and Fee Schedule and Miscellaneous Adjusters section. 20 year fixed rate based on 30 year fixed rate pricing Adjustable Margins adjusted by acreage size and zoning

3 Example: 7 yr adjustable $850,000 loan amount, on 45 acres zoned Agricultural starting with the base published rate of 4% and add all applicable margin adjusters detailed below: Total start rate 5.5% = current published rate 4% + 1% over 40 acres adjuster+.50% zoned agricultural adjuster Margin Calculations: Standard Margin + Loan Size Margin $850,000 + Acreage Size Over 40 acres Adjuster + + Property Zoned Agricultural Adjuster + = Total Margin UNDERWRITING RATIOS: CREDIT: DOWN PAYMENT: SELLER CONTRIBUTION: LOAN FEES: RESERVES: E-Z PAY: TAX SERVICE: Not to exceed 43% total obligations ratio. Income generated from the property should not be used to qualify. If applicant is dependent on income generated from the property the loan should be referred to our Agribusiness Team. Minimum mid-score FICO 680. Satisfactory credit history with no major derogatory items, i.e. bankruptcy, short sales, foreclosure or recurring revolving/installment lates. Minimum of 10% down from borrower funds. Up to 3% toward closing costs. See the current Wholesale Lending Rate and Fee Schedule. Reserve Accounts waived upon request by the borrower, when the LTV is 70% or less and with payment of a Reserve Account Waiver Fee. Refer to the Wholesale Lending Rate and Fee Schedule for fee amount. for Irrigation District assessments (if applicable) for Flood, (if property is located in a flood zone) and cannot be waived. Reserve Accounts cannot be waived on Higher Priced Mortgage Loan 1 regardless of LTV. Payment Processing Charge will be waived if monthly payments made by E-Z Pay. 1 A Higher Priced Mortgage Loan is any owner occupied home with an APR exceeding the Average Prime Offer Rate by at least 150 basis points if $417,000 or less and at least 250 basis points if over $417,000.

4 PREPAYMENT CHARGE: FLOOD CERTIFICATION: None Special Documentation : Appraisal must be ordered through our Division Review Appraiser. Cost Approach to be provided by the appraiser with support for site value. A Certificate of Occupancy/Final Permit for purchases of new homes within two years of completion. New Mexico: On purchase transactions, a new survey is required by the title company. The applicable charge must be disclosed on the LE if the borrower will be paying this expense. Property Requirements Qualified residential structures to be considered toward structure value include only: Primary Home Garage ADU/Guesthouse Employee living quarters Excluded structures from qualified structure value: Barns Fences Arenas Machine sheds Storage Facilities Grain bins Pump houses/pumps Irrigation equipment Inspection of the property is required. Account Executive to complete the Neighborhood and Lot sections of the WAFED Property Inspection LO168 with written comments about the subject s neighborhood, the subject property including photos of the subject property prior to ordering the appraisal. Retain the completed LO168 in the loan file for internal use only. Water: Public water must be available at the site. If public water is not available, then a well must already be developed on the site. Well flow and purity tests are required. Only drilled wells will be allowed (no dug or spring fed wells). Cost of drilling well cannot be included in the loan. Power: Public power must be available. (Sole source of power cannot be wind/solar generator) Sewer/Septic: Sewer/Septic must be available and in good condition.

5 Access: There must be ingress and egress to the property via a legal road. Road maintenance agreements may be required. Zoning: Must be permissible for intended use and for one single family home. (This program can include an accessory dwelling unit (ADU), guest house or employee living quarters.) Documentation TIL (Regulation Z) disclosure required at application and at closing. Financing Options form to itemize transaction and APR fees Adjustable Loan (CHARM) Handbook for adjustable products This program is not subject to RESPA with properties 25 acres or greater In addition: o Addendum to Uniform Deed of Trust LO41. o Must be in first lien position. o ALTA Policy with applicable endorsements required. o PUD Rider, if applicable. Programs, interest rates, fees, terms and conditions are subject to change without notice. This information is intended for mortgage and real estate professional use only and should not be distributed or shown to consumers or other third parties. If you have received this information from Washington Federal directly by fax or and no longer wish to receive information, please contact us immediately. Washington Federal NMLSR Company #