Conventional and Government Program Overlays

Transcription

1 Financed Properties OVERLAYS All Programs Limited to maximum 2 loans to one borrower, one must be primary residence Minimum Loan Amount $60,000 Allowed for active duty military personnel, military contractors, extenuating circumstances, and documented medical Power of Attorney conditions. Texas OO, C/O Refis - Section 50(a)(6) Not allowed

2 CONVENTIONAL PROGRAM OVERLAYS Fannie Mae Conforming and High Balance Escrow Holdbacks Flip Transactions Inter Vivos Trusts Rent Back S/E Borrower DU Approve/Eligible or LPA Accept/Eligible. Manual Underwrite ineligible Escrow Holdback must have been funded, and work completed prior to purchase Properties re-sold 90 days from acquisition require Planet Home Lending prior approval Eligible subject to Fannie Mae guidelines on owner-occupied and second home transactions only. Ineligible on Investment transactions. The maximum number of days a property seller may rent back the subject property from the buyer (borrower) after loan closing is 30 days. Borrower filed extension, a P&L for prior year must be provided. YTD P&L only for loan apps dated >120 days after the end of the business tax year. DU REFI PLUS Minimum Escrow/Impound Account Inter Vivos Trusts Maximum LTV MI Transfer Mortgage History S/E Borrower Product DU Approve/Eligible. Manual Underwrite ineligible Minimum 620 regardless of DU Findings Required regardless of LTV unless prohibited by state law. Eligible subject to Fannie Mae guidelines on owner-occupied and second home transactions only. Ineligible on Investment transactions. 150% LTV for primary residence and second home 125% LTV for investment property Eligible with: Arch Essent Genworth PMI Radian MGIC **Lender Paid Mortgage Insurance: Single premium only** 0x30 past 12 months Triad United Guaranty National MI If Borrower filed an extension, a P&L for prior year must be provided. YTD P&L required only for loan apps dated >120 days after the end of the business tax year. HomeReady ARM 2/2/6 caps not allowed (2/2/5 caps required) DU Approve/Eligible. Manual Underwrite ineligible CONVENTIONAL PROGRAM OVERLAYS Freddie Mac Escrow Holdbacks LPA Accept/Eligible. Manual Underwrite ineligible Escrow Holdback must have been funded, and work completed prior to purchase Maximum Loan Amount $1,000,000

3 Conversion of Current Residence (Borrower Vacating 2-4 unit O/O Prop) Minimum DTI LTV/CLTV Manufactured Housing Property Flips GOVERNMENT PROGRAM OVERLAYS FHA Standard Rental income from the units rented, excluding owner-occupied units the borrower is vacating, may be used for qualifying. 1-unit conforming and high balance minimum 580 credit score with 90% LTV/CLTV 1-4 units conforming loan amount and 1- unit high balance minimum 620 credit score with maximum LTV/CLTV allowed per matrix Minimum 660 credit score for 2-4 unit high balance transactions Loans, where not all borrowers have a credit score, are eligible subject to the following: If a primary borrower exists, the loan may proceed without any additional documentation. A primary borrower is defined as: The individual has more than 50% of the qualifying income, and Meets the minimum tradeline requirements (3 tradelines with 12-month history; 1 of the 3 tradelines must have been active within the past 24 months), and The individual must occupy the property. If a primary borrower cannot be established because no borrower meets all of the above requirements, then the loan must follow HUD s non-traditional credit requirements. Maximum LTV/CLTV Credit score : Purchase transactions: 90% LTV/CLTV Rate/term refinance transactions: Rate/term: max 90% LTV/CLTV. Credit score : Purchase transactions: 96.50% LTV/CLTV Rate/term refinance transactions: Rate/term: 97.75% LTV/CLTV Credit score unit properties only (SFR, PUD, condos) Gift funds eligible after applicable down payment from borrower own funds requirement is met. Two (2) months bank statements dated prior to loan application date and signed letter attesting all funds are borrower funds required. Purchase transactions - Twelve-month verified housing history with 0x30 in previous 12 months is required. (Document with credit report or checks/money orders or evidence of consistent bank withdrawals). VOR, including VOR from professional management company or landlord letter is not acceptable. Refinance - Minimum 2 year payment history on the current loan with 0x30 in previous 24 months is required. VA residual income requirements apply. Refer to the FHA Program guidelines in the Seller Guide for residual income requirements Max payment shock 100% %-100% require double residual income No property flips (property re-sold 90 days from acquisition). Credit score: is 31%/45% Credit score: per TOTAL Scorecard for conforming and 50% for High Balance Credit score 640+ DTI per TOTAL Scorecard Purchase transactions, the combined loan amount of the first and second lien cannot exceed the lesser of 105% CLTV or 100% of the cost to acquire; Minimum 620 credit score required 96.50% LTV/CLTV may only be exceeded when using government entity for subordinate financing. Fixed Rate Only Ineligible: Singlewide, Condo, Leasehold, and properties located in a 100-yard flood zone No Cash Out Minimum 640 Manual Underwrites are ineligible Properties resold days from acquisition require two appraisals of the sales price has increased > 100% of the acquisition cost Property flips re-sold 90 days from acquisition are ineligible.

4 Credit Qualifying w/ Appraisal Maximum CLTV Occupancy CLTV GOVERNMENT PROGRAM OVERLAYS FHA Streamline Minimum 620 credit score for non-credit qualifying Minimum 580 credit score for credit qualifying ( restrictions apply). Refer to the Credit score topic in the PHL Seller Guide. Borrower must receive benefit of reduced annual MIP or CLTV credit score max. 90% LTV/CLTV and max DTI 31%/43%. Minimum 24 mortgage seasoning on loan being refinanced with 0x30 in 24 months 125% CLTV Credit score max 90% CLTV Investment property eligible for single family residence only FHA 203(k) DU Approve/Eligible, or LPA Accept/Eligible. Manual Underwrite ineligible 1-4 units conforming loan amount and 1- unit high balance minimum 620 credit score with maximum LTV/CLTV allowed per matrix Minimum 660 credit score for 2-4 unit high balance transactions 110% CLTV for all subordinate financing Improvements Repairs of existing swimming pool maximum $1,500 Properties Ineligible Mixed use property with 1-4 l units if > 25% of the Gross Building Area (GBA) is for commercial REO properties Self Help Cash-Out > 90% LTV Not allowed VA Standard Conforming loan amount only; no high balance Minimum 600 credit score 30 year fixed rate Loans must be run through DU or LPA and receive a DU Approve/Eligible or LPA Accept/Eligible Findings. Downgrade to manual underwriting for any of the following: Mortgage history indicates 1x30 in 12 months Disputed tradelines Subject loan was previously restructured/modified mortgage A minimum of 12 months of 0x30 payments have been made on the modified loan If the mortgage was in default at the time of modification, it is not eligible. Minimum 580 credit score Minimum 600 with cash-out and > 90% LTV Maximum 90% LTV/CLTV purchase transactions. Minimum 12 months housing history with 0x30 in 12months Maximum 90% LTV/CLTV refinance transactions. Minimum 2 years pay history on loan being refinanced with 0x30 in 24 months Note: Document with in-file credit report trade line rating or checks/money orders with evidence of bank withdrawals. 1-unit properties only (SFR, PUD, condos) 10% down from borrower own funds required. No gifts/dpa until after 10% borrower own funds requirement met. 2 months bank statements dated prior to loan application date and signed letter attesting all funds are borrower funds required. Max payment shock 100% %-100% require double residual income No property flips (property re-sold 90 days from acquisition)

5 DTI Eligible Borrowers Property Listed for Sale (Refinance) Manufactured Housing Maximum Loan Amount Short Sale >$424,100 Loan Amount (Alaska/Hawaii $636,150 or $954, 225 Honolulu County, Hawaii) Appraisal Occupancy LTV/CLTV Maximum Loan Amount Government Program Overlays VA Standard (cont.) Max DTI 31%/43% with a credit score Max DTI 45% with a credit score; > 45% requires Planet Home Lending prior approval Per DU Findings with a 640 credit score and Approve/Eligible. Only the veteran and the veteran s spouse are eligible. Loans defined as joint loans by VA are not eligible. If the property was listed for sale within the prior 12 months but is not currently listed for sale: Cash-out only eligible if the listing is expired/canceled or withdrawn 180 days prior to the application date The appraised value should be at least 10% below the lowest listing price. If the appraised value is not at least 10% less than the lowest list price, the underwriter must address the variance satisfactorily. The borrower must provide written confirmation of their intent to occupy as their primary residence. Fixed Rate Only Ineligible: Singlewide, Condo, Leasehold, and properties located in a 100-yard flood zone No Cash Out Minimum 640 Manual Underwrites are ineligible $1,000,000 in all states except Hawaii; $1,500,000 in the state of Hawaii 2-4 unit properties subject to a Short Sale Agreement must have been listed on the MLS for a minimum of 30 days prior to the execution of the sales contract. Properties designated as an Exclusive Listing are ineligible. VA IRRRL Credit score requires full credit qualification Credit score 640 non-credit qualifying eligible. Maximum LTV is 100% Full credit report required for both credit and non-credit qualifying to verify mortgage history Mortgage history 0x30 in12 months for credit qualifying 0x30 in 24 months for non-credit qualifying An AVM or 2055 is required for both conforming and high balance transactions as follows: CoreLogic GeoAVM with a standard deviation 18. If standard deviation > 18, a 2055 will be required; or ProTeck AVM with a confidence score of 80% or more for conforming loan amounts. If confidence score is < 80% a 2055 will be required; high balance loan amount requires confidence score of 90% or more; or 2055 Credit qualifying requires minimum 580 credit score Non-credit qualifying requires minimum 640 credit score Credit scores of are subject to specific requirements. Refer to the topic for details. 1-4 unit owner-occupied primary residence (2-4 unit ineligible on high balance) 1 unit second home (ineligible on high balance) 1-4 unit investment (ineligible on high balance) Credit qualification required. Maximum 90% LTV/CLTV refinance transactions. Minimum 2 years pay history on loan being refinanced with 0x30 in 24 months 1-unit properties only (SFR, PUD, condos) Max payment shock 100% %-100% require double residual income. Maximum 125% LTV/Unlimited CLTV on loan amounts $ Maximum 100% LTV/Unlimited CLTV on loan amounts > $424,100 ($636,150 Alaska/Hawaii or $954,225 in Honolulu county, HI) Refer to topic above for LTV/CLTV restrictions. $1,000,000 in all states except Hawaii; $1,500,000 in the state of Hawaii.

6 GOVERNMENT PROGRAM OVERLAYS USDA A GUS Accept/Eligible or Refer Finding required on purchase and non-streamlined refinance transactions. USDA requires manual underwrite for a Refer. USDA requires full file documentation and documented mitigating circumstances/compensating factors are approved loans receiving a Refer from GUS. DTI Purchase and non-streamlined transactions maximum 45%.