Malibu Non-Agency Matrix

Transcription

1 Revisin: January 10, 2018 (Prduct Infrmatin Center, , 1 PURCHASE AND R&T REFINANCE FIXED RATE AND FULLY AMORTIZING ARMs CASH-OUT REFINANCE Occupancy Units Max Lan Amunt LTV Min Fic Scre Occupancy Units Max Lan Amunt LTV Min Fic Scre Max Cash-Out Primary 1 Unit $1,000,000 90%* 720 Primary 1 Unit $2,000,000 70% 700 $350K $1,500,000 90%* 740 $2,000,000 75% 720 $350K $2,000,000 80% 680 $2,000,000 60% 700 $500K $2,500,000 70% 720 $3,000,000 60% 720 $3,000,000 70% 740 Secnd Hme 1 Unit nly $2,000,000 80% 680 Secnd Hme 1 Unit $1,000,000 70% 720 $350K $3,000,000 55% 720 $1,500,000 65% 720 $350K $2,000,000 50% 720 $500K Primary 2-4 Unit $2,000,000 75% 700 Nn-Owner Occupied $1,500,000 75% 760 Minimum Lan amunt must be $453,101 effective 1/2/ Unit nly $1,000,000 65% 720 (*) Rate & Term refinance eligible up t 80%. Purchase eligible up t 90% INTEREST ONLY (5/1, 7/1, 10/1 ARM) Owner Occupied Only PURCHASE AND R&T REFINANCE CASH-OUT REFINANCE Occupancy Units Max Lan Amunt LTV Min Fic Scre Occupancy Units Max Lan Amunt LTV Min Fic Scre Max Cash-Out Primary 1 Unit $1,000,000 75% 700 Nt Allwed $2,000,000 70% 720 $3,000,000 65% 740 Declining prperty values - reduce maximum LTV by 5%, max 80% LTV fr any prperty lcated in an area f declining prperty values as reprted by the appraiser. Cndminium restrictins New Cnd prject must be Fannie Mae apprved. Maximum lan amunt $2MM. Minimum 400 square ft. Maximum LTV 85%. LTV > 80% t 85% requires minimum Fic scre 740. Purchase ver 80% LTV maximum lan amunt $1.5M. Rate & Refinance nt allwed ver 80%. Cash ut must be lwer f $2,000 r 1% f the new lan amunt. New Subrdinate Financing permitted n purchase transactins nly up t maximum LTV, CLTV, HLTV as per matrix First Time Hme Buyer Owner ccupied nly. Limited t 80% LTV. Required 12 mnths PITIA. Maximum $1M lan amunt. Interest Only nt allwed.

2 Appendix Q t Part Standards fr Determining Mnthly Debt and Incme Incme Verificatin Early Paid Off Plicy (EPO) General Guidelines All incme use t qualify must be dcumented t Appendix Q guidelines. In absence f a definitin fr a specific tpic in Appendix Q, Investr r FNMA guidelines applies. 4506T required n all lans EPO timeline is 6 mnths (180 days) frm clsing date f the lan. Lan Terms 15 and 30 fixed 5/1, 7/1, and 10/1 Libr ARMS 5/1 IO, 7/1 IO, and 10/1 IO Libr ARMS, 120 mnth IO perid nly ARM Caps / Margins 5/1 ARM 2/2/5: Adjustment = 2.00%; Subsequent Adjustment = 2.00%; Life Cap = 5.00% - Margin = 2.25% 7/1 ARM 5/2/5: Adjustment = 5.00%; Subsequent Adjustment = 2.00%; Life Cap = 5.00% - Margin = 2.25% 10/1 ARM 5/2/5: Adjustment = 5.00%; Subsequent Adjustment = 2.00%; Life Cap = 5.00% - Margin = 2.25% Qualifying Ratis Debt-t-Incme Rati: 43% ; LTV > 80% max DTI 40%; LTV/CLTV > 80% max DTI 40% Adjustable Rate Mrtgage (ARM) Qualifying Calculatin Full Amrtized 5/1 : Qualify at the greater f Nte rate plus 2% r the fully indexed rate. 7/1 and 10/1 : Qualify at the greater f the Nte rate r the fully indexed rate. 5/1 Interest Only: Qualify at the fully amrtized PITI based n 240 mnth amrtizing terms at the higher f the Nte Rate plus 2% r the fully index rate. 7/1 Interest Only: Qualify at the fully amrtized PITI based n 240 mnth amrtizing terms at the higher f the Nte Rate r the fully index rate. 10/1 Interest Only: Qualify at the fully amrtized PITI based n 240 mnth amrtizing terms at the higher f the Nte Rate r the fully index rate. ARMs is n Libr Index ARMs are nn-cnvertible Interest Only is 120 mnths interest nly perid nly. State Restrictins Texas cash ut nt allwed. In additin, rate and term refinance is nt allwed if there was a previus Texas cash ut transactin. Hawaii lava znes 3 thrugh 9 allwed nly Minimum Lan Amunt Minimum Lan amunt $453,101 Mrtgage Insurance Max.# f Financed Prperties Nt applicable Up t 4 financed prperties * The ttal number f prperties regardless if they are free/clear are up t 15 ttal prperties 2

3 Eligible Brrwers US Citizens; Permanent Resident Aliens; Revcable Trust; Must have valid Scial Security Number; Maximum f 4 brrwers per lan applicatin are allwed Nn-Permanent Resident Aliens * Interest Only prgram nt allwed * Required VISAs: A Series E-1, E-2, E-3, G Series (G-1, G-2, G-3, G-4, G-5), H Series (H-1B, H-1C, H-2,H-3,H-4), L Series (L-1A, L-1B, L-2), NATO Series (NATO 1-6), O Series (O-1), TN-1 (Canadian NAFTA VISA), TN-2 (Mexican NAFTA VISA) Must have SSN Maximum LTV 80% Must have a minimum f 2 year emplyment histry in the U.S. and qualifying incme must be frm the U.S. Must be able t verify that current emplyment has a prbability f 3 year cntinuance Must have a 2 year credit histry in U.S. and must meet minimum credit requirements Must have 2 years established U.S. based asset histry. N funds frm utside the U.S. nt allwed. Owner Occupied, single family primary residence nly Eligible Prperty Types 1-4 units attached/detached wner ccupied prperties. 1-unit secnd hmes and nn-wner ccupied prperties. Lw/mid/high-rise new and established Fannie Mae r Freddie Mac warrantable cndminiums. Warrantable cndminium types S nly. Limited review is nt eligible. All attached cndminiums require full lender review. The prject must be reviewed within the 3 mnths preceding the date f the nte. Minimum square ftage 400. Reserves LTV/CLTV <= 80% <= $1,000,000 requires 6 mnths PITI reserves > $1,000,000 t <= $2,000,000 requires 12 mnths PITI reserves > $2,000,000 t <= $3,000,000 requires 24 mnths PITI reserves LTV/CLTV > 80% <= $1,000,000 requires 18 mnths PITI reserves > $1,000,000 t <= $1,500,000 requires 24 mnths PITI reserves * 6 mnths PITI reserves required fr each additinal financed prperty wned * Cash-Out received > $350K requires 24 mnths PITI reserves * Nn-Owner Occupied requires 12 mnths PITI reserves 3

4 Credit Scres and Tradelines Requirements There may be instances where the brrwer s credit scre is valid but insufficient credit exists. In additin, the credit risk f the entire brrwer prfile must be evaluated t determine if the credit histry supprts the brrwer s ability and willingness t repay the lan Rescring and Credit Repair JMAC prhibits the use f credit repair vendrs designed t help a brrwer falsely repair their credit prfile by intentinally manipulating data t imprve their credit scre fr purpses f lan eligibility, pricing imprvement, and/r creditwrthiness. Credit scre is deemed valid r usable if it has been based n a minimum number f tradelines fr each brrwer: Each brrwer must have 2 fic scres. At least 3 pen and active tradelines with 24 mnths histry. 2 f the 3 tradelines must shw activity within the last 12 mnths frm date f applicatin. 1 tradeline must be an installment, rental r mrtgage accunt. Nn-traditinal/alternative credit accunts are nt cnsidered acceptable trade lines. Authrized user accunts are nt cnsidered acceptable trade lines. Trade lines may nt shw significant adverse histry. Revlving credit n mre than 2x30 in last 12 mnths Installment Credit n mre than 1x30 in last 12 mnths Credit If the credit histry are nt met listed abve the fllwing will be cnsidered: N fewer than (10) trade lines are reprting, ne (1) f which must be a mrtgage r a rental histry. At least ne (1) trade line has been pen and reprting fr a minimum f 12 mnths. The brrwer has an established credit histry fr at least 10 years. Liens, Judgements and Cllectins Satisfactry explanatin fr any delinquent credit frm the brrwer is required. Brrwer must pay ff all delinquent credit that has the ptential t impact lien psitin. Cllectin accunts r charged-ff accunts d nt need t be paid ff if the balance f an individual accunt is less than $ r if the ttal balance f all accunts is $1, r less. Bankruptcy, Freclsure, Deed-In-Lieu f Freclsure and Shrt Sales At least seven (7) years must have elapsed since bankruptcy discharge r dismissal, freclsure, shrt sale r deed-in-lieu measured frm the date f cmpletin t the date f applicatin. A satisfactry letter f explanatin fr the event frm the brrwer is required. Brrwer must shw reestablished credit f 24 mnths and meet the minimum credit requirement. 4

5 Mdificatins Only lender initiated mdificatins n wner ccupied prperties with prf that they were nt caused by a distress situatin. The brrwer must have made 48 cnsecutive mnths f timely mrtgage payments n the mdified lan befre clsing n the refinance mrtgage lan. Restructured lans in which the terms f the riginal transactin have been changed resulting in a partial r abslute frgiveness f debt; r a restructure f debt are nt eligible: Frgiveness f a prtin f principal and r interest in either the first r the secnd mrtgage. Applicatin f a principal curtailment r n behalf f the investr t simulate principal frgiveness. Cnversin f any prtin f the riginal mrtgage debt t a subrdinate mrtgage r cnversin f any prtin f the riginal mrtgage debt frm secured t unsecured. If the lender did nt initiate the lan mdificatin than seasning needs t be at 7 years waiting perid frm recrding date t the Nte date. Disputed Accunts Zer balance and n dergatry infrmatin n actin required Zer balance and dergatry infrmatin - remve if less than ne (1) year and pull new credit reprt A psitive balance and n dergatry infrmatin remve and pull new credit reprt A psitive balance and dergatry infrmatin remve and pull new credit reprt NOTE: A credit supplement is nt allwed t dcument disputed accunts. 5

6 Husing Payment Histry A minimum 24-mnth histry f the brrwer s mrtgage and/r rental payment histry must be prvided (This is independent f the husing payment histry verificatin). Mrtgage payment and rental histry must reflect 0X30 dates in mst recent 24 mnths Mrtgage / Rental histry may be dcument as fllws: Revlving Debts Assets and Surce f Funds 24 mnth mrtgage payment histry frm an institutinal lender, as verified thrugh (i) credit bureau reprt reference fr 24 mnths, (ii) 24 mnths canceled checks, r (iii) mst recent 12 mnths canceled checks with a VOM fr the prir 12 mnths. Fr rental verificatin a standard VOR cmpleted by a prfessinal management cmpany r 12 mnths bank statements r canceled checks are required. If a brrwer is refinancing a privately held mrtgage the fllwing payment verificatin requirements apply: The privately held mrtgage payments must be verified with either cancelled checks r bank statements (if the payment is autmatically withdrawn frm the brrwer s accunt). Evidence must be included in the lan file that the lien being paid ff is a current recrded lien against the subject prperty. Paying ff sme revlving debts fr qualificatin is allwed but it s subject t Ability-t-Repay under the ATR/QM rule. The accunts are required t be clsed prir t funding. Fr infrmatin regarding assets and surce f funds nt addressed belw please refer t the mst recent Fannie Mae Selling Guide. Surce f Funds The brrwer must have sufficient liquid assets t meet the requirements fr dwn payment, pre-paid items, clsing csts and reserves. Funds needed fr clsing must be verified with cpies f the mst recent tw (2) mnths bank statements including all pages. Vested funds frm individual retirement accunts (IRA/SEP/Kegh/401K accunts) are acceptable surces f funds fr reserves. If the retirement assets are in the frm f stcks, bnds, r mutual funds, in rder t be cnsidered fr reserves, the accunt must be discunted by 30% t accunt fr market vlatility. Large depsits incnsistent with mnthly incme r ther depsits must be verified. Acceptable surces f verified funds include: Bank depsits Stcks, stck ptins, bnds, and mutual funds. Stcks and bnds will be discunted at 70% f value fr reserves. Sale f real prperty. 6

7 Sale f persnal prperty with supprting dcumentatin. Disbursement frm a Trust Fund. Disbursement frm an IRA/401K. Cash Value frm life insurance plicy can be used fr reserves Business funds can be used fr dwn payment and clsing csts with a letter frm an accuntant verifying the fllwing: The amunt f business assets that can be used must crrespnd t the brrwer s percentage f wnership in the business. The funds are nt a lan. Additinal business funds guidelines: Withdrawal f the business funds will nt negatively impact the business. Business funds may nt be cunted tward cash reserves. Gift funds are an acceptable surce f funds as fllws fr primary residences with LTV <= t 80% as fllws: Brrwer must cntribute at least 5% frm their wn funds. Gift dnr must be an immediate family member. Gift letter frm dnr that incudes name, address, telephne number and relatinship t brrwer Evidence f funds transfer and receipt prir t clsing. Gift funds are nt allwed fr investment prperty transactins. Appraisal Requirements Tw (2) full appraisals are required fr lan amunts > 1.5 millin. Transferred Appraisals nt acceptable. LTV will be based n lwer f the tw values. All incnsistencies between the tw appraisals must be addressed and recnciled. Appraisal must be dated within 120 days prir t the Nte date else a new appraisal needs t be perfrmed (Re-cert f Value is nt allwed). Any additinal cst needs t be paid by brrwer r brker. Desk review (CDA) is required n all lans (Lender t rder): If desk review prduces a value in excess f a 10% negative variance t the appraised value, the lan is nt eligible fr purchase; prvided, the client has the ptin t request t rder a Field Review t supprt value and if the field review als prduces a value in excess f a 10% negative variance t the appraised value the lan remains nt eligible fr purchase. Field review cst needs t be paid by brrwer r brker. 7

8 8 Ineligible Prperties Acreage greater than 10 acres (appraisal must include ttal acreage), Agricultural zned prperty (unless prperty is intended fr residential use and must have like cmps) * Unwarrantable cnds * Cnd in litigatin * Cnd Gut Cnversin * Cnd Newly Cnverted Nn-Gut Prjects * Cnd Htel * C-Ops * Hbby Farms * Incme Prducing prperties * Lg Hmes * Manufactured Husing * Mixed Used prperties * Factry/Mdular hmes * Prperties subject t il and/r gas leases * Title may nt be held in a business name * Unique prperties * Wrking farms, ranches r rchards *Timeshare units *Gethermal hmes *prperties held as leasehld Purchases Must adhere t Agency guidelines. LTV/CLTV is calculated using the lesser f the purchase price r the appraised value f the subject prperty. Seller must have taken title mre than 90 days frm date f cntract. (prperty flip within 90 days nt allwed) Persnal prperty may nt be included in the purchase agreement/sales cntract. Persnal prperty items shuld be deleted frm the sales cntract r reasnable value must be dcumented and the sales price adjusted. Items that are custmary t residential real estate transactins such as lighting fixtures, kitchen appliances, windw treatments and ceiling fans are nt cnsidered persnal prperty. Seasning Rate & Term: Rate/Term and Cash Out Prperties listed fr sale in the past 6 mnths are ineligible fr refinances unless the listing was withdrawn (r expired) prir t the date f clsing. Minimum f 6 mnths seasning frm the nte date f the new transactin required if previus refinance was cash-ut, including the payff f a nn-seasned subrdinate lien. Fr prperties purchased 6 mnths f clsing date the LTV will be based upn the lesser f the riginal sales price r the current appraised value cnclusin frm the appraiser. Original sales price will be determined frm the HUD-1 Settlement Statement/Clsing Disclsure frm the subject acquisitin transactin. Fr prperties purchased mre than 6 mnths prir t the clsing date the current appraised value may be used t calculate LTV. The mrtgage amunt may include the: Principal balance f the existing lien. Payff a purchase secnd lien with n draws exceeding $2,000 within the past 12 mnths frm date f applicatin. Withdrawal activity must be dcumented with a transactin histry f the line f credit. Pay ff a c-wner pursuant t a written agreement. Payff f a nn-purchase secnd lien seasned a minimum f 12 mnths frm date f applicatin. The secnd lien must nt evidence draws exceeding $2,000 within the past 12 mnths frm date f applicatin. Withdrawal activity must be dcumented with a transactin histry f the line f credit. Cash-Out: 6 mnths seasning frm recrding t applicatin date fr cash ut transactin. Inherited prperties are exempt frm this seasning requirement. Prperties that have been listed fr sale within the past 6 mnths f clsing date are nt eligible fr a cash-ut refinance. If the prperty was listed within the previus 6-12 mnths frm clsing date, a letter frm the brrwer explaining the reasn fr retaining the prperty is required. If the subject prperty was purchased within the 6-12 mnth perid prir t the clsing date fr the new lan the LTV will be based n the lesser f the sales price r the current appraised value.

9 Delayed Financing Cntinuatin f Obligatin If the subject prperty was purchased mre than 12 mnths frm the clsing date fr the new lan LTV will be based ff the current appraised value. Fr prperties wned free and clear, the maximum cash ut guideline applies. TX cash-ut refinances are ineligible. Reimburse the applicant fr funds that were used t purchase a prperty fr cash (Price as Cash Out Transactin): The Delayed Financing refinances in which the brrwers purchased the subject prperty fr cash within last 90 days frm the date f the applicatin. Applicants are eligible fr a cash ut refinance if all f the fllwing requirements are met: The riginal purchase transactin is dcumented by a settlement statement, which cnfirms that n mrtgage financing was used t btain the subject prperty. (A recrded trustee's deed (r similar alternative) cnfirming the amunt paid by the grantee t trustee may be substituted fr a settlement statement if a settlement statement was nt prvided t the purchaser at time f sale.) The preliminary title search r reprt must cnfirm that there are n existing liens n the subject prperty The surces f funds fr the purchase transactin are dcumented (such as bank statements, persnal lan dcuments, r a HELOC n anther prperty). If the surce f funds used t acquire the prperty was an unsecured lan r a lan secured by an asset ther than the subject prperty (such as a HELOC secured by anther prperty), the settlement statement fr the refinance transactin must reflect that all cash-ut prceeds be used t pay ff r pay dwn, as applicable, the lan used t purchase the prperty. Any payments n the balance remaining frm the riginal lan must be included in the debt-t-incme rati calculatin fr the refinance transactin. Nte: Funds received as gifts and used t purchase the prperty may nt be reimbursed with prceeds f the new mrtgage lan. The new lan amunt can be n mre than the actual dcumented amunt f the brrwer's initial investment in purchasing the prperty plus the financing f clsing csts, prepaid fees, and pints n the new mrtgage lan (subject t the maximum LTV, CLTV, and HCLTV ratis fr the cash-ut transactin based n the current appraised value). The transactin wuld be priced as cash-ut and nt subject t the cash ut limitatins n the grid. Fr a refinance transactin t be eligible fr purchase there must be a cntinuity f bligatin f the utstanding lien that will be paid thrugh the refinance transactin. Cntinuity f bligatin is met when any ne f the fllwing exists: At least ne brrwer is bligated n the new lan wh was als a brrwer bligated n the existing lan being refinanced. The brrwer has been n title and residing in the prperty fr at least 12 mnths and has either paid the mrtgage fr the last 12 mnths r can demnstrate a relatinship (relative, dmestic partner, etc.) with the current bligr. The lan being refinanced and the title t the prperty are in the name f a natural persn r a limited liability cmpany (LLC) as lng as the brrwer was a member f the LLC prir t transfer. Transfer f wnership frm a crpratin t an individual des meet the cntinuity f bligatin requirement if brrwer is 100% wner. The brrwer has recently been legally awarded, the prperty (divrce, separatin r disslutin f a dmestic partnership). 9

10 Nn-Arm s Length Transactin Lans with an acceptable cntinuity f bligatin may be underwritten, priced, and delivered as either cash-ut r limited cash-ut refinance transactins based n the requirements fr each type f transactin. Nn-Arm s length transactins are nt eligible fr purchase. If a direct relatinship exists between the brrwer and any party t the transactin the transactin is cnsidered nn-arm s length. Parties t a transactin include but are nt limited t the brrwer/buyer, seller, emplyer, lender, brker, appraiser, clsing agent r builder. Examples f nn-arm s length transactins include: Sales between family members. Renter buying frm a Landlrd. Emplyer t emplyee sale. Brrwers wh are emplyed in the real estate r cnstructin business wh are invlved in the cnstructin, financing r sale f the subject prperty. Exceptin: Family member representing buyer as real estate agent is allwed. N credit frm agents cmmissin can be given tward the brrwers clsing csts, prepaids, dwn payment r reserves. Installment Debt Installment debt, including car lease payments, must be included in the qualifying rati regardless f mnths remaining. Student lans must be included as a lng term debt even if payments are deferred. If the mnthly amunt f a student lan is nt shwn n the credit reprt a payment f ne percent (1%) may be used fr qualifying. Payments related t a 401(K) lan d nt need t be included in ttal debt bligatin. Child supprt payments with 10 mnths r less remaining d nt need t be included in ttal debt bligatin. Revlving Debt If the mnthly amunt f a revlving accunt is nt shwn n the credit reprt a payment f 5% may be used fr qualifying. Cnversin f Departing Resident t Investment Prperty If the current primary residence is being cnverted t an investment prperty the fllwing applies: Departing prperty must have 25% f equity psitin. The rental incme frm the departing residence may be used if the brrwer has a lan t value f 75% r less, as evidenced by either: a current residential appraisal (n mre than 6 mnths ld frm applicatin date), an Exterir Only appraisal ( ). A 25% expense /vacancy deductin must be applied t all rental incme. Cpies f the signed lease are required. Reserves f six (6) mnths f PITI must be dcumented in additin t the required reserves fr the primary residence. Nte: The brrwer des nt require previus landlrd histry t use rental incme frm departing prperty. Subrdinate Financing New subrdinate financing is permitted up t the maximum allwable LTVs. Only institutinal financing is permitted. N new subrdinate financing n refinance transactins. Maximum LTV / CLTV / HLTV fr subrdinated HELOCS will be based n the fully drawn balance. Subrdinatin f an existing lan is permitted up t maximum LTV allwed. 10

11 Subrdinate liens must nt have negative amrtizatin, n balln within 5 years, and n prepayment penalties. In cases in which a HELOC is resubrdinated t the subject mrtgage, a 1% minimum payment f the ttal line amunt will be used regardless f whether the HELOC has a zer balance. If the HELOC balance is greater than zer, the minimum payment under the HELOC terms will be used. Rent Back Max 60 days Additinal Restrictins Gift f Equity Transactins nt allwed Nn-Occupant C-Brrwers nt allwed Temprary Buydwn / Leasehld: Nt Allwed Balln mrtgages are nt eligible fr purchase Prepayment penalty mrtgage lans with prepayment penalties are nt eligible fr purchase HERO/PACE/Slar Panels: Paying ff a HERO lan is cnsidered rate and term with the final CD shwing the payff f the HERO taxes. Paying ff a HERO taxes in the lan amunt wuld be cnsidered Rate and Term refinance. N slar items can be remain n title. Escrw hldbacks nt allwed Cnstructin Lan Refinancing Cnstructin lan refinances are eligible as rate and term r cash-ut refinances and must meet the fllwing criteria: Brrwer must have held title t the lt fr a minimum f 6 mnths prir t the clsing f the permanent lan. The LTV will be based n the current appraised value f the lt if the brrwer has held title t the lt fr 12 r mre mnths prir t the clsing date f the permanent lan. If the lt was acquired less than 12 mnths befre the clsing date f the permanent lan the LTV will be based n the lesser f a) the riginal purchase price f the lt plus the ttal acquisitin csts (sum f cnstructin csts) r b) the current appraised value f the lt plus the ttal acquisitin csts. Appraiser s final inspectin is required. A certificate f ccupancy is required frm the applicable gverning authrity. If the applicable gverning authrity des nt require a certificate f ccupancy prf must be prvided. Cash ut is limited t the maximum amunts stated n the Prduct Matrix. Cnstructin lan refinances in which the brrwer has acted as builder are nt eligible fr purchase. 11

12 Incme Rental Incme Rental incme frm ther prperties must be dcumented with the brrwer s mst recent signed federal incme tax return that includes Schedule E. Leases are required fr all prperties where rental incme is used t qualify. Prperties with expired leases that have cnverted t mnth t mnth per the terms f the lease will require bank statements fr the lesser f 12 mnths r the time perid after the lease expired. On wner ccupied purchase transactin with prperty types f 2-4 units, 75% f the rents t qualify; lesser f the rent survey r actual leases. Fr refinance transactin, rental incme is based n Schedule E. First Time Investr des nt require landlrd histry. Retirement r pensin incme Retirement f Pensin Incme may be verified by the fllwing: Cpies f retirement award letters. Cpies f last tw (2) mnths bank statements t dcument the regular depsit f payments. Annuity retirement benefits must have a minimum cntinuance f three years frm the date f the applicatin t be cnsidered as qualifying incme. Scial Security Incme Scial Security Incme may be verified by the fllwing: Cpy f the Scial Security Administratins award letter. Cpies f last tw (2) mnths bank statements t dcument the regular depsit f payments. Benefits must have a minimum cntinuance f three years frm the date f the applicatin t be cnsidered as qualifying incme. Alimny and Child Supprt Incme Alimny and Child Supprt are allwable surces f incme with prf f a minimum f three year cntinuance and with a minimum f n less than six (6) mnths f the brrwer s recent regular receipt f the full payment. Refer t Fannie Mae guidelines. Unreimbursed business expenses must be deducted frm incme. This includes brrwers wh earn cmmissin incme regardless f the percentage f cmmissin incme t ttal incme. 12

13 Unacceptable incme surces include the fllwing: Any surce that cannt be verified. Incme that is temprary. Rental Incme (Barder Incme) received frm the brrwer s primary residence. Expense accunt payments. Retained earnings. Nn-ccupant incme. Incme nt allwed: RSU incme Capital Gain 13

14 Submissin s Requirements Salary/Wage Earner Self-Emplyed The Brrwer's applicatin (1003) must include all surces and amunts f incme Brrwers must have cmpleted tw years f emplyment with the same emplyer r in a similar line f wrk If self-emplyed, the Brrwer must have the same business entity fr tw years Required: IRS Frm W-2's fr the past tw years and mst recent paystub with YTD earnings WVOE shwing earnings fr the past tw years and YTD earnings (if using bnus, vertime, cmmissin, and ther type f incme ther base incme) WVOE fr previus emplyer as nted n 1003 Tw years persnal tax returns with all schedules Required: Tw years persnal tax returns with all schedules and K1 s. Twenty-five percent (25%) r mre wnership interest in an Partnership 1065 and S Crp 1120S requires: Tw years business tax returns with all schedules Tw years Crprate 1120 tax returns. If self-emplyed, cpy f website is nt acceptable surce t verify the business. NOTE: Lender will pull new credit unless client utilizes the fllwing credit vendr (CREDCO, Factual Data/Krll, Infrmative Research, CBCInnvis, r Funding Suite). The reprt needs t be within 30 days f submissin and DU will need t be ran and release t JMAC Lending. Rapid re-scre fr purpse f pricing is nt allwed. The Credit vendr restrictins des nt apply t crrespndent clients. 14