Freddie Mac Home Possible Mortgages

Transcription

1 Freddie Mac Hme Pssible Mrtgages A respnsible, lw dwn payment mrtgage ptin fr first-time hmebuyers and lwand mderateincme brrwers Freddie Mac Hme Pssible and Hme Pssible Advantage mrtgages (cllectively referred t as Hme Pssible mrtgages) ffer utstanding flexibility and ptins t meet a variety f brrwers needs. With Hme Pssible, yu ll capitalize n pprtunities t meet the hme financing needs f lw- and mderate-incme brrwers lking fr lw dwn payments and flexible surces f funds. Hme Pssible Advantage ffers mre flexibility fr maximum financing. This ffering adpts the respnsible and affrdable flexibilities f Hme Pssible, but with additinal requirements. Brrwer Prfile Key Features Brrwer Benefits Yu may ffer this mrtgage ptin fr: Purchase and n cash ut refinancing. Stable mnthly payments with fixed-rate mrtgages. First-time hmebuyers, mve-up brrwers, and retirees. Families in underserved areas. Very lw-, lw- and mderateincme brrwers. Maximum 97 percent LTV and 105 percent TLTV ratis fr Hme Pssible Advantage. Mrtgage insurance ptins. Lan Prduct Advisr SM r manual underwriting. N reserves required fr 1-unit prperties. Flexible surces f funds fr dwn payment. Reduced mrtgage insurance cverage levels fr LTV ratis greater than 90 percent. Minimum dwn payment f 3 percent allwed fr Hme Pssible Advantage. Maximum credit fee in price f 1.5 percent. Publicatin Number 572 September 2017 The infrmatin in this dcument is nt a replacement r substitute fr infrmatin fund in the Single-Family Seller/ Servicer Guide and/r the terms f yur Master Agreement and/r Master Cmmitment.

2 ORIGINATION & UNDERWRITING REQUIREMENTS Eligible Prperty Types Hme Pssible Hme Pssible Advantage 1- t 4-unit primary residences 1-unit primary residences nly Cnds Cnds PUD PUDs Manufactured hmes (with restrictins) See Guide Sectin A4501.6(a). Eligible Mrtgages Hme Pssible mrtgages eligible fr purchase must be first lien mrtgages that are fully amrtizing. Hme Pssible mrtgages must be cnventinal, cnfrming mrtgages. Hme Pssible mrtgages, ther than mrtgages secured by manufactured hmes, must have an riginal maturity date nt greater than 30 years. Hme Pssible mrtgages secured by manufactured hmes must have a maximum riginal maturity nt greater than that specified in Guide Sectin (d). Fixed-rate mrtgages Hme Pssible 7/1 and 10/1 ARMs if secured by a 1- r 2-unit primary residence 5/1 ARMs if secured by a 1- r 2-unit primary residence ther than a manufactured hme Cnstructin Cnversin and Renvatin Mrtgages riginated accrding t Guide Chapter 4602 Mrtgages with an RHS Leveraged Secnd riginated accrding t Guide Sectin Fixed-rate mrtgages Hme Pssible Advantage Cnstructin Cnversin and Renvatin Mrtgages riginated accrding t Guide Chapter 4602 Temprary Subsidy Buydwns Allwed fr mrtgages secured by 1- t 2-unit prperties, ther than manufactured hmes (See Guide Sectins and ). If a mrtgage with a temprary subsidy buydwn plan is subject t secndary financing, including an Affrdable Secnd that requires repayment t begin befre the due date f the 61 st mnthly payment under the Hme Pssible mrtgage, the secndary financing must have a fixed interest rate. Maximum Ratis Maximum LTV/TLTV/LTV (Purchase and n cash-ut refinance transactins) Prperty Type LTV TLTV HTLTV Hme Pssible 1- t 4-unit 95% 95% 95% Manufactured hme See Guide Chapter Hme Pssible Advantage 1-unit 97% 105% Minimum Brrwer Cntributin, and Reserves Minimum Cntributin frm Brrwer Persnal Funds (Purchase transactins nly) Prperty Type Hme Pssible ratis <= 80% Hme Pssible ratis >80% <= 95% Hme Pssible Advantage mrtgages 1-unit Nne Nne Nne 2- t 4-unit Nne 3% Manufactured hme Nne Nne Minimum Reserves Prperty Type Hme Pssible Hme Pssible Advantage 1-unit Nne required Nne required 2- t 4-units Tw mnths

3 Permitted Surces f Funds Use Minimum brrwer cntributin Dwn payment fr purchase transactin (difference between the purchase price and the first lien amunt) Additinal equity if needed fr a n-cash-ut refinance transactin Clsing csts, financing csts, prepaids/escrws Reserves Permitted Surces f Funds Brrwer persnal funds Brrwer persnal funds Other brrwer funds Brrwer persnal funds Other brrwer funds Brrwer persnal funds Other brrwer funds Flexible surces f funds Brrwer persnal funds Other brrwer funds Eligible assets (Guide Sectin ) Secndary Financing Fr Hme Pssible mrtgages ther than Hme Pssible Advantage mrtgages, any secndary financing that meets Freddie Mac requirements is allwed. Any secndary financing subrdinated t a Hme Pssible Advantage mrtgage must be an Affrdable Secnd. An Affrdable Secnd that des nt require a payment befre the due date f the 61st payment under the Hme Pssible mrtgage may be entered in Lan Prduct Advisr SM in the Ttal Gift Fund field. In all ther respects, the Affrdable Secnd must be cnsidered as secndary financing. Credit Underwriting (Lan Prduct Advisr) A brrwer s credit reputatin is acceptable if the Hme Pssible mrtgage receives a risk class f Accept. Brrwers withut credit scres may be underwritten fr up t 95% LTV using Lan Prduct Advisr. A Hme Pssible mrtgage secured by a manufactured hme must be submitted t Lan Prduct Advisr. See Guide Sectin fr additinal requirements. Use Lan Prduct Advisr Offering Identifier Cde 241 fr Hme Pssible Mrtgages and 250 fr Hme Pssible Advantage Mrtgages. Credit Underwriting (Manually Underwritten Mrtgages) The minimum Indicatr Scres fr manually underwritten mrtgages are: Prperty/Mrtgage Type Hme Pssible Minimum Indicatr Scre 1-unit ther than an ARM r a n cash-ut refinance mrtgage unit that is an ARM, r a n cash-ut refinance mrtgage and 4-unit 700 Manufactured hmes 720 Hme Pssible Advantage 1-unit fixed-rate mrtgages that are purchase transactins unit fixed-rate mrtgages that are n cash-ut refinance transactins 680 See Guide Sectin (b) fr additinal underwriting requirements fr manually underwritten mrtgages. Mrtgage Credit Certificates Mrtgage Credit Certificates (MCCs) may be cnsidered as qualifying incme prvided the requirements in Guide Sectin are met. The amunt used as qualifying incme must be calculated as fllws: (mrtgage amunt) x (nte rate) x (MCC rate %) divided by 12. The amunt used as qualifying incme cannt exceed the maximum mrtgage interest credit permitted by the IRS. The mrtgage file must cntain a cpy f the: (i) MCC. (ii) Seller s calculatin f the amunt used as qualifying incme. A histry f receipt f MCC tax credit is nt required. Eligible Brrwers All brrwers must ccupy the mrtgaged premises as a primary residence. The brrwer may nt, as f the nte date r the effective date f the permanent financing fr Cnstructin Cnversin and Renvatin Mrtgages, have any wnership interest in any ther residential prperties ther than as permitted in Guide Sectin The brrwer must meet incme limits. Lan Prduct Advisr will indicate incme eligibility; fr nn-lan Prduct Advisr mrtgages, use the Hme Pssible Incme & Prperty Eligibility tl n FreddieMac.cm. The Seller must attempt t verify all incme reprted n the Unifrm Residential Lan Applicatin. All reprted incme that has been verified and that is stable mnthly incme must be used t qualify the brrwer and in determining whether the brrwer meets the incme limits.

4 Additinal Special Underwriting Requirements Mrtgage Insurance Requirements Rental incme frm a 1-unit primary residence that meets the requirements f Guide Sectin (a) may be cnsidered as stable mnthly incme. Rental incme frm a 2- t 4-unit primary residence that meets Guide Chapter 5306 may be used as qualifying incme. The standard required r custm MI cverage levels fr Hme Pssible mrtgages are as fllws: Transactin type Hme Pssible, fixed-rate, term < 20 years MI cverage LTV Rati >80% & <85% >85% & <90% >90% & <95% >95% & <97% Standard 6% 12% 25% 25% Custm 16% 18% Hme Pssible, fixed-rate, term > 20 years; ARMs; and manufactured hmes 1 Standard 12% 25% 25% 25% Custm 6% 12% 16% 18% 1 Manufactured hmes are limited t maximum LTV ratis f 95%. Seller must btain Freddie Mac's apprval t sell mrtgages with annual r mnthly premium lender-paid mrtgage insurance t Freddie Mac. See Guide Sectin fr additinal MI requirements and ptins including custm MI. Cllateral Evaluatin 1-unit primary residences: Use Frm 70, Unifrm Residential Appraisal Reprt. Hmebuyer and Landlrd Educatin and Brrwer Disclsure DELIVERY REQUIREMENTS Cndminiums: Use Frm 465, Individual Cndminium Unit Appraisal Reprt. 2- t 4-unit primary residences: Use Frm 72, Small Residential Incme Prperty Appraisal Reprt. Manufactured husing: Use Frm 70B, Manufactured Hme Appraisal Reprt. See Guide Sectin fr hmewnership educatin and landlrd educatin requirements related t: Brrwer(s) wh are all first-time hmebuyers. Restrictins n parties that may prvide the hmewnership educatin. Hmewnership educatin dcumentatin that must be retained in the mrtgage file. Acceptable types f hmewnership educatin, including Freddie Mac CreditSmart financial educatin curriculum r CreditSmart Steps t Hmewnership Tutrial. Brrwer disclsure requirements. Landlrd educatin (2- t 4-unit primary residences) requirements fr purchase transactins. Eligible Executins Hme Pssible Hme Pssible Advantage Servicing-Released Cash Servicing-Released Cash Servicing-Retained Cash Servicing-Retained Cash WAC ARM Cash Fixed-rate Guarantr Fixed-rate Guarantr MultiLender Swap WAC ARM Guarantr MultiLender Swap Delivery Requirements See Guide Sectin (b) fr special delivery instructin fr Hme Pssible mrtgages and Guide Sectin fr applicable secndary financing delivery requirements. In additin, Sellers must prvide the applicable infrmatin, as utlined in Guide Sectin (b), fr dwn payment, clsing csts, autmated underwriting system, and brrwer cunseling. Sellers must deliver the fllwing ULDD Data Pints: Lan Affrdable Indicatr: true Lan Prgram Identifier: Hme Pssible Mrtgage Lan Prgram Identifier Hme Pssible Advantage Mrtgage if applicable If applicable, Sellers must deliver the fllwing Investr Feature Identifiers (IFI) in ULDD Data Pint IFI: IFI 532 (If mrtgage satisfies the minimum number f payment reference requirement using nncredit payment references). IFI 583 (Hme Pssible mrtgage with an Affrdable Secnd). IFI G18 (Hme Pssible mrtgage with Affrdable Secnd entered int Lan Prduct Advisr in "Ttal Gift Fund" field). Pling Requirements There are n special pling requirements fr Hme Pssible mrtgages. Refer t Guide Chapter 6202 fr pling requirements. Mrtgages may be pled with nn-hme Pssible mrtgages. Credit Fees in Price See Guide Exhibit 19 fr details n credit fee in price caps and credit fees in price applicable t Hme Pssible mrtgages. Learn mre abut Hme Pssible mrtgages Review Chapter 4501 f the Single-Family Seller/Servicer Guide.

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