HomePath Program Guidelines

Transcription

1 The following guidelines apply to all DIRECTORS MORTGAGE s HomePath loan programs. All loans must adhere to the criteria of these guidelines. This guide addresses the specific areas needed to facilitate a HomePeth Loan and must be used in conjunction with DIRECTORS MORTGAGE Conforming Guidelines. While DIRECTORS MORTGAGE makes every attempt to include all guidelines, the user may also consult the FNMA SELLING GUIDE. Please note, however, that DIRECTORS MORTGAGE HomePath Guides will supersede any conflict with the FNMA SELLING GUIDE. DIRECTORS MORTGAGE may, at its discretion allow exceptions to the guidelines. Exceptions must be requested by a Loan Officer or Processor. Any exception granted will have a price adjustment. DIRECTORS MORTGAGE s philosophy is to consider all the risk factors inherent in the loan file. Consideration is given to each individual transaction, applicant profile, documentation provided, and collateral. Because each loan is unique, underwriters are expected and encouraged to use professional judgment in making a lending decision based on the entire profile presented and the relative risk for DIRECTORS MORTGAGE. Our commitment to fairness and equal opportunity is clear. In keeping with that, all transactions/borrowers will be treated in a consistent and fair manner. And all customers/clients should receive the HIGHEST level of customer service. Page 1

2 Table of Contents Appraisal 3 Condo 3 Credit 3 Down payment 3 Eligible Borrower 3 Geographic Restrictions 4 Income 4 Loan amount 4 Loan Terms 4 Loans to one borrower 4 Mortgage Insurance 4 Non-occupying Co-borrower 4 Occupancy 4 Program Eligibility 4 Property Eligibility 5 Ratios 5 Seller contributions 5 Subordinate Financing 5 Title 5 Underwriting 5 Eligibility Matrix 6 Page 2

3 Appraisal Condos Credit History General Guidelines Appraisal not required. Bedroom Count, year built and rental income is required so a property profile will need to be printed and placed in the file. Value is based on the sales price. documented with a copy of the property details page printed from including the HomePath mortgage logo, evidencing eligibility as a HomePath Loan Condos do not need to be warranted. Evidence of adequate hazard, homeowners, flood and fidelity insurance required. Acceptable Individual Credit Reports: Residential Mortgage Credit Report Merged in-file credit report with information pulled from at least two (2) national credit repositories. Individual in-file credit reports from at least two (2) national credit repositories. Minimum required trade lines per borrower 3 trade lines with a minimum 12 month recent history. Credit Score Determination: Use qualifying score criteria: lower of two (2), middle of three (3). The lowest middle score of all borrowers on the loan will be used. Credit Score Requirements: All borrowers must have a minimum 660 credit score for primary residences to 80% LTV 680 for ARMS 700 score for second homes 740 investment properties. See maximum eligibility chart on page 4 for additional guidance. Down Payment The borrowers must meet the following criteria: No mortgage lates in the past 12 months. No bankruptcy in the past 4 years. No foreclosures in the last 7 years. Borrower must have 3-5% of own funds when: LTV exceeds % require 3% LTV exceeds 80.01% to 95% require 5% All investment properties require 5% Gifts allowed on: Page 3

4 Eligible Borrowers Primary residence Second home Eligible: Individuals only. Social security number required. A Tax I.D. Number will not be acceptable. Permanent Resident Aliens: As long as the borrower holds a Green Card (an Alien Registration Receipt Card, INS Form I- 551), the loan is eligible under the same guidelines/terms as a loan made to a U.S. citizen. A copy of the front and back of the Green Card must be included in the file. An approved Green Card application will not be acceptable. Non-Permanent Resident Aliens: Temporary residents. Granted the right to live and/or work in the U.S. for a specified period of time. Ineligible: Foreign nationals. Borrowers with diplomatic immunity. Borrowers without social security numbers. Geographic Restrictions Income documentation Loan Amount Loan Terms Loans to One Borrower Mortgage Insurance Non Occupying co-borrower Occupancy Program Refer to conforming guidelines additional information Oregon and Washington properties only. Only Full/Alt Documentation types are permitted T is required to be executed by all borrowers on all loans. 2 years taxe returns required. Refer to conforming guidelines for all other income documentation requirements. Conforming limits and high balance in high cost areas. 15 and 30 year fixed rate 5/1 and 7/1 ARMS. Qualify at the note rate. No limit when the subject is an owner occupied. Maximum 4 financed properties when the subject is a second home or investment property. DMI will only finance 4 properties to one borrower. Mortgage Insurance is not required regardless of DU findings. Any DU message regarding MI may be disregarded. Allowed Must be an immediate family member Max LTV 90% Ratios shouldn t exceed 35/43 for occupying borrower. Owner occupied second homes Investment properties are eligible. This program is available for the purchase of Fannie Mae owned properties, sold to the borrower by Fannie Mae and designated as eligible by Fannie Mae. Property eligibility can be Page 4

5 Eligibility accessed at the following link. Property Eligibility HomePath Renovation Mortgages are not eligible. Must be a Fannie Mae owned property and designated as eligible by Fannie Mae. Look up at unit owner occupied properties 1 unit second homes 1-4 unit investment properties PUD s Condos Ratios The lower of 50% or DU finding.. Refinance Not eligible. Reserve Requirements Seller Contributions Subordinate Financing 1-4 unit primary following DU findings Second homes require the greater of 2 months PITI or DU findings Investment homes require the greater of 6 months or DU findings Owner Occupied & Second Home: LTVs/CLTVs %: 6% LTVs/CLTVs < 75% : 9% Non Owner Occupied: 2% regardless of LTV The total financing, including any secondary or subordinate financing, cannot exceed the allowable combined LTV/CLTV ratios. Seller Carry-Backs are NOT permitted; financing must be from an institutional lender. Subordinate/Secondary financing is allowed provided the FNMA criteria are met. Title Underwriting Monthly Payment Calculation on HELOC: If the HELOC is secured by the subject property, a payment of 1% of the total line amount will be used to calculate DTI. However, if the HELOC is secured by a property other than the subject, the payment amount on the credit report will be used to calculate DTI. If the payment amount is not shown on the credit report, then a payment of 1% of the total line amount will be used to generate a payment for DTI calculations A 24 month chain of title will be required for all transactions. Judgment/lien search for all borrowers/title holders DU Finding with Approve Determination. The following DU messages may be disregarded, provided that the loan complies with all HomePath Mortgage requirements: Any message relating to amount of MI required. Any message that says maximum allowable interested party contribution has been Page 5

6 exceed on a principal residence or second home with LTV >90% Any message relating to the appraisal documented with a copy of the property details page printed from including the HomePath mortgage logo, evidencing eligibility as a HomePath Loan ELIGIBILITY MATRIX- DIRECTORS MORTGAGE HOMEPATH Primary Residence Purchase /97/97 700* 1 80/80/80 680* 2 80/80/80 680* /75/75 680* Secondary Residence Purchase 1 90/90/ Investment Property Purchase 1 90/90/ Purchase /75/ *Exceptions will be considered on a case by case basis. Pricing hits may apply. ELIGIBILITY MATRIX- DIRECTORS MORTGAGE HOMEPATH HIGH BALANCE Primary Residence Purchase 1 90/90/90* /75/ Secondary Residence Page 6

7 Transaction Type units Max LTV/CLTV/HLTV Min Credit Score Purchase 1 65/65/ Investment Property Purchase /65/ *ARMS limited to 75% LTV/CLTV Page 7