ALL GOVERNMENT PRODUCTS

Transcription

1 OVERLAYS and GUIDELINES ALL GOVERNMENT PRODUCTS Agricultural Exemptins Texas purchase and rate term refinances n prperties with agricultural exemptin A ne acre parcel, that includes the hme t be financed, must have the agricultural exemptin remved. The fllwing dcumentatin is acceptable prf: T-30 Endrsement t the Title Plicy, OR A tax search(es) clearly identifying that remval has ccurred, AND a letter frm the title cmpany r taxing authrity that separated parcel is nt subject t rll back taxes. If neither f the abve can be btained, please cntact Crnerstne fr further assistance. Amrtizatin Crnerstne will nt allw dd amrtizatins. All lcks must be 30, 25, 30, 15 r 10 year terms. ATR/QM All cnfrming lans delivered t Crnerstne must be QM, Temprary Agency QM, HPML QM r Temprary Agency HPML QM. Crnerstne will nt accept nn QM cnfrming lans (see Jumb guidelines fr specific ATR/QM guidelines n that prduct) Crnerstne will nt accept lans under the Nn-Standard t Standard exemptin. N cures allwed. Cllateral Underwriter increase in value nt allwed Clear t Clse (New Mexic lans ONLY) Must have dcumentatin in the file shwing that the brrwer(s) were ntified that they were clear t clse. Use Clear t Clse dcument in the Mandatry link in the Frms sectin f the crrespndent web-site: OR similar frm. Credit Histry Minimum FICO 600 (FHA nly). N manual underwrites n FICO between , 43% Max DTI VA Minimum FICO 640 Single credit scre allwed: Must be run thrugh DU. LP nt allwed. Must receive an Apprve/Eligible. If ne brrwer des nt have credit scre, must cntact Secndary. Allwed n a case by case basis nly. Disaster Declaratin Crnerstne will require a cmpleted Certificatin f Prperty Cnditin Prir t Clsing fr lans in affected cunties frm beginning f incident date thrugh 120 days frm end f incident date. Dwn Payment Nt allwed. Assistance E-Sign Allwed n all initial disclsures Allwed n Purchase Cntract Nt allwed n final disclsures. Except fr final Clsing Disclsure

2 prvided t brrwer(s) 3 days prir t clsing. Escrw Hldback Weather related will purchase prir t release, but will withhld SRP until release dcumentatin is received Minr nn weather related must be released prir t purchase See sectin h f the Lan Manual fr cmplete details. Future Emplyment NOT allwed. 4506T Must be wet signed at clsing Must send 4506T signed at clsing with purchase review package. Crnerstne will nt accept 4506T signed with initial disclsures. Sectin #5 must be blank. If lender has a brrwer that refuses t sign a blank frm, then the fllwing name and address must be put in the this sectin: Credit Plus Inc., Winter Place Parkway, Salisbury, MD 21804, Interest Calculatin Is based ff f a 365 day calendar year fr all prducts. Hazard Insurance Will allw up t 5% deductible prvided it des nt cause a hardship t the brrwer(s). Dwelling cverage must equal the lan amunt r the replacement cst per appraisal. Guaranteed replacement cst is acceptable. HPML Crnerstne will purchase HPML lans meeting the fllwing requirements: 1) Ability t Repay 2) Verify Obligatins 3) Escrws fr 5 years 4) N pre-pay after 2 years 5) N Balln with payment due sner than 7 years Lender must prvide a written signed statement that all requirements utlined abve have been met. Lan Amunt Minimum lan amunt $50,000 Whle lan amunts nly (n cents) Maximum Number f Financed Prperties & Brrwer Expsure Maximum number f prperties wned, per brrwer Owner ccupied: n restrictins; secnd hme and NOO, maximum f 4 financed. Maximum lans sld t Crnerstne, per brrwer 4 prperties. Name Affidavit Will accept a discrepancy between brrwer signature and what is typed n the clsing dcuments IF name affidavit reflects variatin AND signature is same thrughut the file. Will nt accept if brrwer signs different name variatins thrughut the file. Nn-Standard t Must meet ATR/QM requirements. Exemptins nt eligible fr delivery t Standard Refinance Crnerstne. One-Time/Single Clse Nt allwed. Lans Pwer f Attrney Must be specific t the lan transactin. Dated n mre than 90 days prir t funding date. Cannt be dated after Nte date.

3 Principal Reductins/Curtailments at clsing. Nte and DOT must be signed exactly as typed. N Texas Equity lans clsed under a Pwer f Attrney Principal Curtailment is allwed at the time f clsing up t $500 and must clearly be reflected n the HUD1. All lans must cntinue t cmply with all current prduct eligibility guidelines, prgram requirements, and state specific regulatins regarding cash-back t the brrwer. Prperty Flipping Ineligible f < 90 days; regardless f published waivers. Prperty Taxes A fully cmpleted Tax Infrmatin Sheet must be in each file. Crrespndents may use their wn frm, but it must cntain the same infrmatin. If there is mre than ne parcel, prvide the same infrmatin fr each parcel. There must be a crrespnding tax search in each file. Taxes that are due within thirty (30) days f clsing must be paid by the settlement agent with evidence f payment frwarded t Crnerstne. If the taxing authrity has a "discunt" date n which the taxes may be paid, this date must be used t calculate escrws. Crnerstne will pay taxes based n discunt date. Prperty Type N Manufactured Husing. Scial Security Validatin A validatin f each brrwer s scial security number with the Scial Security Administratin. Tax Transcripts Fllw AUS findings fr tax and/r W-2 transcripts required. WHEN MOST RECENT TAX YEAR TRANSCRIPT IS NOT AVAILABLE*: Tax Return Incme Used fr Tax Return Incme NOT Used fr Qualifying Qualifying May btain a stamped as received W-2 transcript(s) allwed. cpy frm IRS, r if filed electrnically, may btain electrnic receipt frm IRS, prir t clsing. ONLY allwed if incme is cnsistent* with previus year s incme. Cnsistent is defined as: Gvernment: Annual Incme = 10% Cnventinal: Annual Incme 100,000: <10% > 100,000 but 200,000: <9% > 200,000 but 300,000: <8% > 300,000 but 400,000: <7% > 400,000 but 500,000: <6% > 500,000 but 600,000: <5% > 600,000 but 700,000: <4% > 700,000 but 800,000: <3% > 800,000 but 900,000: <2% > 900,000: <1% File must always include N Recrd Fund printut. Must always have prf that federal taxes wed have been paid. * When Applicatin fr Extensin (IRS Frm 4868) is nt filed, lans underwritten n r after 6/15/15, must have a 2014 transcript, AND all lans must have a cpy f the mst recent

4 year s tax transcript fr lans clsing n r after 10/15/15. Verificatin f Emplyment/ Incme WHEN IRS REJECTS AN IRS FORM 4506-T FOR IDENTITY THEFT OR OTHER REASONS: When the Reasn fr the IRS Then Prvide Rejectin is Unable t Prcess, r Limitatin Evidence the IRS rejected the IRS Frm 4506-T request, A brrwer-btained Recrd f Accunt Transcript, in pdf frmat, fr all applicable years missing frm the website, and A signed IRS Frm 4506-T fr the year(s) impacted by the IRS rejectin. Ntes: The Recrd f Accunt Transcript cmbines infrmatin frm the tax accunt and the tax transcripts. This transcript must validate that the dcuments prvided by the brrwer are accurate and may nt be used in lieu f the tax returns prvided by the brrwer Yu may need t access the IRS website, Get Transcripts several times, as the lcatin may be temprarily unavailable. Identity Theft Prf identificatin theft was reprted t and received by the IRS (IRS Frm 14039) r A cpy f the ntificatin frm the IRS alerting taxpayer t pssible identificatin theft, and Validatin f the reprted incme n the tax returns by prviding the fllwing dcumentatin: Brrwer btained Recrd f Accunt Transcript, in pdf frmat, fr all applicable years missing frm r all f the fllwing: W-2 f 1099 transcripts which match the W-2 r 1099 incme reflected n the transcripts, Validatin f prir tax year(s) incme (incme fr the current year must be cmparable t prir year(s), 1099 Mrtgage interest shuld match reprted interest n Schedule A f Schedule E (if applicable), 1099G Unemplyment shuld match reprted unemplyment (if applicable), 1099 Dividend and Interest shuld match reprted dividend and interest incme (if applicable) A verbal VOE fr each brrwer, whse incme is being cnsidered in qualifying fr the mrtgage lan, dated within 10 days prir t clsing.

5 FHA FHA MANUAL UNDERWRITE Credit Histry N NSF s n bank statements. N dergatry credit in the last 12 mnths frm date f applicatin Maximum LTV 96.5% excluding UFMIP. Underwriting Fllw all ther FHA guidelines pertaining t manual underwriting very carefully. Pay particular attentin t Nn-Traditinal Credit, Self Emplyed Brrwer and Maximum DTI guidelines Verificatin f Rental Verificatin f Rental, with brrwer explanatin fr budget, if payment increasing mre than 50%. FHA REFINANCE SEE FHA REFINANCE MATRIX LINK IN OVERLAYS SECTION OF THE CORRESPONDENT WEB-SITE: USDA High Cst Mrtgage Nt allwed Lan Minimum Scre Minimum credit scre is 640 and requires GUS apprval Manufactured Nt allwed Husing Manual Underwrite Nt allwed, t include dwngrades t manual Nn Traditinal Credit Public Assistance Nt allwed Rural Energy Plus Nt Allwed Buydwn Rate N Buydwns allwed Nt allwed, Hwever, brrwers wh meet the min credit scre f 640 may use nn-traditinal trade lines t meet the requirements as utlined in USDA handbk, Chapter 10.6, t augment thin credit.

6 VA DTI The mre restrictive f either the AUS findings r 50% HIGH BALANCE Will need t be lcked as a VA Jumb LOAN Lan must meet VA published guidelines APPRAISAL MUST BE SUBMITTED TO CORNERSTONE FOR APPROVAL PRIOR TO CLOSING. N exceptins! A lan is cnsidered high balance if it exceeds: Fr prperties lcated in: With the fllwing number f units: The maximum TOTAL mrtgage amunt exceeds: 48 Cntinental States* 1-unit $453,100 2-unit $533,850 3-unit $645,300 4-unit $801,950 Alaska* 1-unit $625,000 2-unit $800,775 3-unit $967,950 4-unit $1,202,925 *Crnerstne des nt purchase in: Flrida, Gergia, Hawaii, Illinis, Maine, Mntana, Nevada, New Yrk, Ohi, Vermnt If the ttal lan amunt (including VAFF) exceeds the applicable amunt abve, the fllwing criteria must be met: Permitted with 30 and 15 year fixed rate nly Secndary financing is nt allwed except fr Interest Rate Reductin Lan (IRRRL) with existing secndary financing that will be resubrdinated t the new first mrtgage. There is n CLTV limit under this scenari. Temprary interest rate buydwn nt allwed Nn-traditinal credit nt allwed N freclsure r bankruptcy in last 7 years N husing payment 30 days r mre past due in the last 12 mnths FICO Scre requirements as fllws: Transactin Ttal Lan Amunt 1 Minimum Lan Scre Purchase and Rate/Term >$417,000 t </=$700, Refinance, including IRRRL >$700,000 t </=$1,000, >$1,000,000 t </=$1,500, Cash-Out Refinance <$417,000 t </=$700, >$700,000 t </=1,000, >$1,000,000 t </=$1,500, Start pint f when t require the Minimum Lan Scre depends upn prperty lcatin and number f units as per high balance table abve. VA Lan > $424,100 will be subject t a cnditin that the VA Lan Guarantee Certificate (LGC) be included in the clsed lan file when delivered fr purchase. VA Lan >$700,000 and </=$1,500,000 with debt-t-incme rati greater than 41% must receive an exceptin frm Crnerstne. Exceptin must be requested prir t submitting lan fr purchase. Fr lan amunts >$1,000,000, including IRRRL s, be sure t request a certified appraiser when requesting the appraiser assignment frm VA Regardless f the lan amunt, the VA guaranty plus cash/equity must be equal t at least 25% f the purchase price f Ntificatin f Value (NOV), whichever is less, n purchases and nn-irrrl refinances. THERE MAY BE DOWN PAYMENT REQUIREMENTS DEPENDING ON STATE. See VA requirements fr additinal details. LTV/CLTV VA Purchase 100% maximum; excluding funding fee

7 VA Cnstructin t Perm Rate/Term Refinance 100%; excluding funding fee VA Rate/Term Refinance 90% maximum; excluding funding fee VA Cash Out Refinance 90% maximum; excluding funding fee VA IRRRL Must have either an AVM r a 2055 appraisal. 100% LTV/CLTV maximum; including Funding Fee. New subrdinate financing is nt permitted. Dcumentatin t shw interest rate, lan amunt, fixed r ARM n ORIGINAL VA lan (i.e. cpy f Nte). Rebuttable Presumptin nt allwed. Cnfrming lans nly. VA Jumb nt allwed.