USDA STREAMLINE ASSIST

Transcription

1 USDA STREAMLINE ASSIST (MUST CURRENTLY BE A USDA LOAN-CANNOT BE DIRECT) Minimum Credit Score Max Loan Amount Balance Appraisal Seasoning Current Mortgage Credit Can GUS be used Net Tangible Benefit Annual Income Limitation 600 Includes payoff Balance of old loan, closing costs, funds to establish insurance escrow and upfront guarantee fee NONE Loan must have closed 12 months prior to loan request Loan paid as agreed for last 12 months prior to loan request NO Yes New PITI vs old PITI. Savings must be $50 or more (note: PITI calc. includes annual guaranty fee) YES The new interest rate may not be greater than the old interest rate May ONLY ADD borrowers-cannot delete any borrower Owner occupied ONLY NO ratio calculation required Cannot refinance late mortgage fees Property doesn t have to fall in an eligible area since already owned by USDA Must be employed at time of closing LSMG USDA Matrix and Guidelines Page 1 of 5 Revised 11/2/2016

2 USDA STREAMLINE ASSIST A streamlined assist must be a current guaranteed USDA loan that has at least 12 satisfactory monthly payments (no 30 days) prior to closing the new loan. The borrower must save at minimum $50 or more in their housing payments. Compare the borrowers current PITI to the proposed PITI (Don t forget to include the monthly escrow for the annual MIP). If they are saving $50 or more, you may proceed. WHAT DO I NEED TO ORIGINATE A USDA STREAMLINE ASSIST? 1 Complete loan application complete income, assets, declarations, etc. Current paystub for borrower- you still have to determine maximum income for the household Current bank statements for borrower- you still have to make sure there is no other income in the household Tax transcripts for all household members for max income A credit report - the credit report must have a tri-merge with a credit score. RD form request for single family housing loan guaranty WHAT ARE THE FEES? There is an upfront funding fee of 1% and a monthly (annual) fee of.35. The upfront fee can be added to the loan amount. Regular closing costs and pre-paids apply. UNDERWRITER RESPONSIBILITIES Ensure there are no late fees added to the payoff amount Verify the borrower does not go over the max income limits for the area. Remember it is household income that needs to be considered. The website to verify maximum income limits is: Items needed for CTC (all docs must be within 120 days of closing) 11 LSMG USDA Matrix and Guidelines Page 2 of 5 Revised 11/2/2016

3 Current mortgage payoff Income calculation Paystubs (i.e. alimony, child support, disability, etc.) Tax transcripts (all that live in the household) Flood certification Hazard Title RD form Credit report- the credit report must have a tri-merge with a credit score. You cannot close the loan if the loan is less than 12 months old. Only review the mortgage history. No late payments If subordinate financing it may be subordinated but cannot be included in the new loan Commitment from USDA (Follow page 1 of this guide for all other restrictions) 1008 signed by the underwriter. PROCESSOR RESPONSIBILITIES Ensure there are no late fees added to the payoff amount Verify the borrower does not go over the max income limits for the area. Remember it is household income that needs to be considered. The website to verify maximum income limits is: Items needed for submission to RD (all docs must be within 120 days of closing) Current mortgage payoff Income calculation Paystubs or other forms of income (i.e. alimony, child support, disability, etc.) Tax transcripts all that live in the household LSMG USDA Matrix and Guidelines Page 3 of 5 Revised 11/2/2016

4 Flood certification Hazard Title RD form signed by the underwriter Credit report- the credit report must have a tri-merge credit score. We are checking on the mortgage payment history ONLY. You cannot close the loan if the loan is less than 12 months old. If subordinate financing it may be subordinated but cannot be included in the new loan (Follow page 1 of this guide for other restrictions) Once all items above have been received, submit form to local RD office. Do not run through GUS. Submit required documentation with RD checklist. (Next page) CLOSING Borrower can get back a minimal amount of cash for incidentals. Maximum cash $ Additionally, there will NEVER be a case where the upfront fee is less than 1% and the monthly fee is greater than.35. Borrowers cannot be deleted but they can be added. Never close the loan without a commitment issued by Rural Housing. LSMG USDA Matrix and Guidelines Page 4 of 5 Revised 11/2/2016

5 HB Attachment 15-A Page 2 of 2 File Stacking Order Checklist Manual Underwriting, GUS Refer/Refer with Caution Underwriting Recommendation, Please stack the credit package in the following document order: Form RD , Request for Single Family Housing Loan Guarantee Note: Must be fully completed and executed by all applicants and lender. Must include income worksheet pages. Final GUS Underwriting Findings and Analysis Report, if applicable Underwriting Analysis, confirmed and executed by Underwriter (FNMA 1008/FHLMC 1077 or similar) Note: Last final submission. Note: Include credit waiver and/or repayment ratio waiver request in comment section. A GUS ACCEPT with quality control message does not require credit or repayment ratio documentation/justification. Include supporting documentation when credit package includes a buy down. Uniform Residential Loan Application Income Verification Documentation: For all household members Note: (URLA FNMA 1003/FHLMC 65) Verification of Employment (VOE) + (1) earning statement OR verbal VOE + (2) earning statements (30 days) + W-2 s (2 years) OR computer generated verification + W-2 s (2 years) + verbal VOE Self-Employment: income tax returns/ all schedules (2 years) + profit / loss, balance and income/expense statements Child support, pensions, disability, Social Security, retirement annuity award(s) Tax return information as a result of IRS 4506-T: Request for Transcript of Tax Return Asset Verification Documentation: For all household members Note: Required for all adult members of the household Verification of Deposit, bank statements, gift letter etc. Credit Report, Non-Traditional Report and all credit supplements, as applicable Note: Include adverse credit explanation and documentation used in credit waiver. Credit Report, Non-Purchasing Spouse (If the applicant or property is in a community property state AZ, CA, ID, LA, NV, NM, TX, WA, WI) Verification of Rent, as applicable. See Section of Chapter 10 for further guidance. Note: Applicable to manually underwritten loans with credit scores less than 680. A GUS Accept subject to a fully documented file does not require a Verification of Rent. FEMA Form , Standard Flood Determination Form Note: New construction properties located in 100-year flood plains will require additional documentation. Confirmation the base flood elevation (BFE) is below lowest floor of subject. Sales Contract, all pages and amendments Evidence of qualified alien (If the applicant is not a US citizen) Uniform Residential Appraisal Report (URAR) not applicable to Streamlined Refinance Product (FNMA 1004/FHLMC 70 or applicable Report) Note: 1004 MC (Market Conditions Addendum) must be part of report. = Not Required LSMG USDA Matrix and Guidelines Page 5 of 5 Revised 11/2/2016