Doctor Loan Portfolio Plus

Transcription

1 Overview Offered to our HVF Premier Partners. Contact your Account Executive to learn how to become eligible. Underwriting follows Freddie Mac Loan Product Advisor (LPA) findings unless specified differently in this product guide. This product is available to all business channels but must be originated as a broker or non-delegated correspondent loan. Conforming Loan Limits Product Codes and Eligible Terms Name Eligible Amortization Terms Doctor Loan Portfolio Plus 10 Year Fixed Doctor Loan Portfolio Plus 15 Year Fixed Doctor Loan Portfolio Plus 20 Year Fixed Doctor Loan Portfolio Plus 30 Year Fixed Doctor Loan Portfolio Plus 7/1 ARM Doctor Loan Portfolio Plus 10/1 ARM Property Type Transaction Type # Units Max LTV/CLTV Loan Amount 10 Years Years Years Years 30 Years 30 Years Minimum Credit Score # Months Reserves Max DTI Primary SFR, Warrantable Condo & PUDS Purchase and No Cash Out Refinance 1 95% Min $50,000 Max $424, ** Follow LPA Guidelines* Follow LPA Findings High Cost Area Loan Limits Product Codes and Eligible Terms Name Eligible Amortization Terms Doctor Loan High Bal Portfolio Plus 15 Year Fixed Doctor Loan High Bal Portfolio Plus 30 Year Fixed Doctor Loan High Bal Portfolio Plus 7/1 ARM Doctor Loan High Bal Portfolio Plus 10/1 ARM Property Type Primary SFR, Warrantable Condo & PUDS Transaction Type Purchase and No Cash Out Refinance # Units 1 Max LTV/CLTV Max Loan Amount Years Years 30 Years 30 Years Minimum Credit Score # Months Reserves Primary Residence 95% $636, ** Follow LPA Guidelines* $636,151-90% $954,225 (maximum Super 720 Conforming Loan Limit) Max DTI Follow LPA Findings *In addition to the required reserves determined by LPA, the borrower must have adequate reserves after the Note Date to pay the monthly housing expense (PITI), during the employment gap plus one additional month **720 Minimum Credit Score when using the Deferment of Student Loan Debt Feature Page 1 of 8

2 General Eligibility Doctor Loan Portfolio Plus Overview The following is the general guideline requirements and summary for the Doctor Loan Portfolio Plus Product. Where the summary is silent please follow the conventional underwriting guidelines. AUS Submission The Doctor Loan Portfolio Plus Loan must be submitted through LPA and receive a Risk Classification of Accept. The reports must be included in the file and all loans must be submitted through the Huron Valley Financial Partner site. Manual Underwriting on the Doctor Loan Portfolio Plus Conforming and Super Conforming program is NOT allowed. Fannie Mae Desktop Underwriting (DU) and Desktop Originator (DO) are not allowed. TPO Partners without LPA access may utilize the UWAnswers inbox to obtain LPA Findings. A borrower s certification and authorization in name of Huron Valley Financial must be provided so credit can be pulled to associate with LPA findings. If the TPO uses Kroll a credit report in Huron Valley Financials name will not be required. Calculation of Borrower Debt Ratio/Exclusion of Certain Student Loan Payments Allowable Age of Documentation Deferred student loan payments of the borrower meeting medical licensing requirements that are in a period of deferment or forbearance a minimum of 12 months after the note date may be excluded from the calculation of a Borrower s monthly DTI ratio for a Borrower in, or who has recently completed a medical residency program and/or medical clinical fellowship program, provided that: Student loans with an Income Based Repayment (IBR) maybe be used. Deferred student loan debt of additional borrowers without the required medical licensing must be included in DTI calculation Document Allowable AGE Existing Property as of Note Date Initial Application 120 Days 120 Days *Credit Report 120 Days 120 Days Income 120 Days 120 Days Asset 120 Days 120 Days Appraisal 120 Days 120 Days Allowable AGE New Construction as of Note Date * Credit report must be dated within 30 days of the loan application. Any discrepancies or inconsistencies between credit reports must be explained and documented in writing. Page 2 of 8

3 General Eligibility- Continued Index: 1 Year London Interbank Offered Rate (LIBOR) Margin: 2.250% I/O period: NA ARMS are not convertible, are due-on-sale during the initial fixed rate period, and assumable subject to the condition on the Note once the interest rate becomes adjustable ARM rates are equal to the note margin plus index rounded to the nearest 0.125% Rate may never be less than the floor rate or margin ARM Features ARM CAP and Qualifying Rate Table ARM Initial Cap CAPS and Floor Rate Subsequent Lifetime Cap Cap Floor Rate 7/ % 2.000% 5.000% 2.250% 10/ % 2.000% 5.000% 2.250% Qualifying Ratio Greater of the fully indexed rate or the note rate Greater of the fully indexed rate or the note rate Escrow Accounts Interested Party Contributions (IPC) HPML Escrow accounts are required for all loans with LTV s greater than 80.00% Properties located in the State of California may waive escrows up to but not greater than 89.99% LTV Occupancy LTV/TLTV Maximum IPC >90% (max. 95%) 3% Primary Residence 75.01% % 6% <=75% 9% Thresholds are as follows: No Rebuttable Presumption. (An APR 1.5% or more than the APOR for a loan secured by first lien.) All loans must have Safe Harbor Page 3 of 8

4 BORROWER(S) ELIGIBILITY Borrower(s) Eligibility Eligible Designation: At least one borrower on the loan must have one of the following designations/professions (as stated on the 1003 loan application and indicated in employment documentation). Medical Resident Medical Doctor (MD) Doctor of Dental Science (DDS) Doctor of Dental Medicine (DMD) and dental surgeons specializing in oral and maxillofacial surgery Doctor of Optometry (OD) Doctor of Podiatric Medicine (DPM) Doctor of Osteopathy (DO) US Citizens, Permanent and Non-Permanent Resident Aliens are allowed with a valid Social Security number and credit history/fico scores. Must have an eligible Visa class/type (H, L, E, O, G series, TN/TC, EAD card, etc.) o Permanent Resident Aliens require green card/permanent resident alien card o Non-U.S. Citizens must provide acceptable documentation from the Bureau of Citizenship and Immigration Services to evidence they are a lawful nonpermanent resident of the United States o If the EAD card will expire within 12 months the borrower must show evidence they have applied for an extension or a letter from their employer indicating they have applied for an H1-B visa for the borrower as their sponsor Ineligible Borrowers Borrower not meeting one of the Borrowers without social security eligible designations above numbers Foreign Nationals Land Trusts Borrowers with Diplomatic Life Estates Immunity Corporations, General and Real Estate Syndicates Limited Partnerships Partnerships Religious/Nonprofit Organizations Irrevocable Trust Non-Revocable Trust Non-Occupying Co-Borrowers Co-signers: Borrowers applying for a loan will not take title are considered guarantors or co-signers. Guarantors or co-signers are ineligible. All borrowers must be on title. Eligible Transactions and Financing Subordinate Financing Follow the eligibility matrices within this product summary for maximum TLTV limits. Page 4 of 8

5 INCOME Tax Transcripts Types of Income Salary and or Hourly Income Personal transcripts: When tax returns are not required to qualify, provide W-2 transcripts per LPA findings. When tax returns are needed to qualify, provide 2 years 1040 transcripts regardless of LPA findings. Business transcripts: A fully completed and accurate 4506-T must be present in the loan file for each business tax return used to qualify (resulting in either a gain or loss). The 4506-T does not need to be processed, and business transcripts will not be required unless the Seller or Huron Valley Financial Underwriter determines that additional confirmation of the business income documentation is needed. Minimum Documentation Requirements Paystub must be dated no earlier than 30 days prior to the initial loan application and it must include all year-to-date earnings. IRS W-2 forms must cover the most recent one- or two-year period based on the documentation requirements determined by LPA. Bonus and Overtime Income Borrower(s) most recent paystub and IRS W-2 s for most recent 2- year period. Written VOE covering the most recent two years. Must have a two-year history of receipt to use as qualifying income. To document, obtain the following: Commission Income Written VOE covering the most recent two years W-2 s and/or 1099 s covering the most recent two years Complete signed individual 1040 s for most recent two years Commission income showing a decrease from one year to the next requires significant compensating factors in order to use the income and if used, must be averaged over the most recent 12-month period. Self-Employment Income Two-year history of the borrower s prior earnings is required as a means of demonstrating the likelihood that the income will continue to be received. Signed individual and business tax returns for the most recent two years are required. However, a person who has a shorter history of self-employment (12-24 months) may be considered, as long as the borrower s most recent signed federal income tax returns reflect the receipt of such income as the same (or greater) level, in a field that provides the same products or services as the current business, or in an occupation in which he had similar responsibilities to those undertaken in connection with the current business. Page 5 of 8

6 Income received from a salary increase that will be effective no more than 60 days after the Note Date may be used to qualify the borrower provided that: The Borrower s employer verifies in writing the amount and effective date of the salary increase No more than 10 Business Days prior to the Note Date, a verbal verification of employment (VOE) that meets the requirements in the underwriting guide must obtained All other income verification required on the LPA findings must be followed Salary Increase and Future Income Income received from future primary employment that will be effective no more than 60 days after the Note Date may be used to qualify the borrower provided that: Borrower s fully executed employment contract must be non-contingent must be in the mortgage file Verbal VOE is NOT required in connection with the Borrower s future primary employment. The borrower must have adequate reserves after the Note Date to pay the monthly housing expense (PITI), equal to the number of months between the note date and the start date of the new employment plus one additional month. This is in addition to any reserve requirements that LPA requires. Example If a loan closed on April 1st, the first payment due would be due on June 1st. The borrower is scheduled to begin employment on June 20th. In this scenario, the borrower would be required to have any reserves required by LPA and 4 months PITI reserves for April, May and June plus the one additional month. Depository Accounts Business Assets ASSETS Bank statements or investment portfolio statements must be provided. The statements must cover account activity for the most recent two-month period. Borrower s minimum contribution is not applicable. Cash flow analysis must be completed using three months bank statements to determine if the use of the funds will have a negative impact on this business. A review of the statements must ascertain what is normal and typical for the business. Letter from the borrower or CPA confirming the impact to the business if funds are withdrawn from business. The borrower must be listed as an owner of the account and must comply with Bank Statements and Verification of Deposits (VOD) Funds must be sourced according to Large Deposits The funds are not a loan against future earnings Personal tax returns and business tax returns (if the business is not a Schedule C) are required Page 6 of 8

7 Donations from Entities A copy of the letter awarding the gift or grant to the borrower or a copy of the legal agreement that specifies the terms and conditions of the gift or grant The document must include language indicating that repayment of the gift or grant is not expected, and how the funds will be transferred to the borrower, lender, or closing agent Employer Assistance A copy of the letter awarding the gift or grant to the borrower or a copy of the legal agreement that specifies the terms and conditions of the gift or grant The document must include language indicating that repayment of the gift or grant is not expected, and how the funds will be transferred to the borrower, lender, or closing agent Gift Evidence of Transfer of Gift Gifts must be evidenced by a letter signed by the donor, containing the following: Specify the dollar amount of the gift; Specify the date the funds were transferred; Include the donor s statement that no repayment is expected; and Indicate the donor s name, address, telephone number, and relationship to the borrower The loan file must contain evidence that the funds were received by the borrower. Refer to HVF gift fund transfer policy MORTGAGE INSURANCE Mortgage Insurance (MI) is required on all conventional loans with a LTV of greater than 80%. Private Mortgage Insurance (PMI) Acceptable MI Providers Genworth Radian Note: MI providers may require additional documentation or credit requirements for transactions to be considered eligible. Mortgage Insurance Coverage LTV Amortization Term 20 Amortization Term >20 Years Years and ARMS % 30% % 25% % 12% Huron Valley Financial does not allow Custom or Reduced MI that may be available per the LP findings. A copy of the MI Certificate must be in the loan file. Borrower Paid MI Lender Paid Mi, Single Premium only May be priced via Optimal Blue. Page 7 of 8

8 Ineligible Property Types PROPERTY ELIGIBILITY Time-Share projects Manufactured/Mobile Homes Co-operatives Non-warrantable Condos Unimproved land Commercial Properties Condotels Working and/or hobby farms Properties with excess (>20) Geodesic dome homes acres Log homes Mixed use properties Houseboats Assisted Living Projects Properties without Utilities Properties with Resale Restrictions Subject Property Geodesic domes or subterranean homes Properties with permanent manufactured/mobile homes Appraisal conditions C5 or C6 or Quality of Q6 Builder model leaseback Number of Financed Properties Multiple Financed Properties Primary residence For LPA scored loans if the mortgage being delivered is the borrower s primary residence there is not a limit on the number of financed properties. Geographic Restrictions Conventional Underwriting Guidelines have the full list of restrictions Florida GEOGRAPHIC RESTRICTIONS Resort Condos are ineligible Page 8 of 8