Chapter 9 Product Matrix

Transcription

1 Table of Contents Chapter 9 Product Matrix... 1 CONVENTIONAL CONFORMING LOANS... 2 Secondary Market ARM (Adjustable Rate Mortgage) Loans... 4 HARP (Fannie DU Refi Plus and Freddie Open Access)... 5 FHA/VA Programs... 5 Jumbo Fixed-Rate... 5 Rural Development (RD) Program... 6 HomeReady Mortgage... 7 HOME POSSIBLE PROGRAMS... 9 SPECIALTY PRODUCTS

2 CONVENTIONAL CONFORMING LOANS Excludes HARP loans, manufactured, Home Possible, and Home Ready FANNIE MAE YEAR FIXED, Approve/Eligible (DU) FREDDIE MAC YEAR FIXED, Accept (LP) LOAN LIMITS PRIMARY RESIDENCE 97% LIMITED CASH OUT (DU) NO CASH OUT (LP) (Restrictions apply) LIMITED CASH OUT (DU) NO CASH OUT (LP) CASH OUT REFINANCE SECOND HOME LIMITED/NO CASH OUT $424,100-1 unit $543,000-2 units $656,350-3 units $815,650-4 units Owner occupied only % LTV/CLTV/HCLTV Effective with DU version /13/14 At least 1 borrower must be a 1 st -time buyer Refi of existing Fannie Mae loans only Loan must be fixed-rate only No minimum borrower contribution required NO MANUFACTURED HOMES No income limits Must be approve/eligible in DO/DU 95% LTV/CLTV/HCLTV 2 UNIT 85% LTV/CLTV/HCLTV 3-4 UNIT 75% CLTV / HCLTV 80% LTV/CLTV/HCLTV 2-4 UNITS 75% LTV/CLTV/HCLTV ** ONLY** $424,100-1 unit $543,000-2 units $656,350-3 units $815,650-4 units HOME POSSIBLE ADVANTAGE MORTGAGE Available on loans with a closing date on or after March 23, %LTV/105%CLTV (105% CLTV if Affordable 2 nd Fixed-rate only Owner occupied only NO MANUFACTURED HOMES Income must not exceed 100% of area median income limits Homeownership education required if all borrowers are first time home buyers 95% LTV/CLTV/HCLTV 2-4 UNIT 80% LTV/CLTV/HCLTV 80% LTV/CLTV/HCLTV 2-4 UNITS 75% LTV/CLTV/HCLTV 90% LTV/CLTV/HCLTV ONLY 85% LTV/CLTV/HCLTV ONLY CASH OUT REFINANCE 75% LTV / 75% CLTV / HCLTV ONLY 75% LTV/CLTV/HCLTV ONLY INVESTMENT PROPERTY PURCHASE LIMITED/NO CASH-OUT & NO-CASH OUT CASH OUT REFINANCE ALL LOANS CONDOS, PUDS Note: FL condos Please refer to Geographic Specific condo project STANDARD MORTGAGE INSURANCE COVERAGE PURCHASE 85%LTV/85% CLTV / HCLTV 2-4 UNIT PURCHASE 75% LTV/75% CLTV / HCLTV 1-4 UNIT 75%LTV/ 75% CLTV / HCLTV 75% LTV / 75% CLTV / HCLTV 2-4 UNITS 70% LTV / 70% CLTV 2-4 units Must meet Specific Condo Project Consideration guidelines >20 yrs 20 yrs > % 35% > % 30% 25% > % 25% 12% > % 12% 6% PURCHASE 85%LTV/CLTV/HCLTV 2 UNIT 75% LTV/CLTV/HCLTV 1-4 UNIT 75%LTV/CLTV/HCLTV 75% LTV/CLTV/HCLTV 2-4 UNITS 70% LTV/CLTV/HCLTV Must meet FHLMC project guidelines >20 yrs 20 yrs >95 35% > % 30% 25% > % 25% 12% > % 12% 6% ELIGIBLE BORROWERS LOAN LEVEL PRICE ADJUSTMENTS (LLPA) CUMULATIVE ALL PRODUCTS U.S. Citizens Permanent Resident Aliens Non-Permanent Resident Aliens See Chapter 11 of the online manual U.S. Citizens Permanent Resident Aliens Non-Permanent Resident Aliens See Chapter 11 of the online manual 2

3 PURCHASE ESSENTIALS MINIMUM BORROWER CONTRIBUTION INTERESTED PARTY/SELLER CONTRIBUTION Chapter 9 Product Matrix 0% of the sales price 1 unit primary residence 5% of the sales price 2 unit primary residence and 2 nd homes Can cover closing costs and/or prepaid subject to Fannie Limits LTV < 80% = 0% LTV > 80: 0% of the sales price (1 unit primary residence) 5% of the sales price (2 unit primary residence and 2nd homes) Can cover closing costs and/or prepaid subject to FHLMC limits 3

4 Secondary Market ARM (Adjustable Rate Mortgage) Loans 3/1, 5/1, 7/1,& 10/1 CONFORMING ARMs FREDDIE MAC (LP) ONLY 1 YR TREASURY INDEX 2/2/5 LIMITED / NO CASH OUT PRIMARY RESIDENCE CASH OUT REFINANCE - PRIMARY RESIDENCE LIMITED / NO CASH OUT 2 nd Home CASH OUT REFINANCE 2 nd Home LOAN LIMITS LIMITED CASH OUT Investment Property CASH OUT REFINANCE Investment Property CONDOS, PUDS Note: FL condos Please refer to Geographic Specific condo project MANUFACTURED HOMES STANDARD MORTGAGE INSURANCE COVERAGE ELIGIBLE BORROWERS $424,100-1 unit $543,000-2 units $656,350-3 units $815,650-4 units 95% LTV / 95% CLTV 1 unit 80% LTV / 80% CLTV 2-4 units 80% LTV / 80% CLTV 1 unit 75% LTV / 75% CLTV 2-4 units 85% LTV / 85% CLTV 75% LTV / 75% CLTV 85%LTV/ 85% CLTV 1Unit PURCHASE 75% LTV/75% CLTV 1 Unit - No Cash Out 75%LTV/75% CLTV 2-4 units (Purchase or no-cash-out) 75% LTV / 75% CLTV 1 unit 70% LTV / 70% CLTV 2-4 units Must meet FHLMC guidelines Only 7/1 and 10/1 ARMS allowed > % 30% > % 25% > % 12% U.S. Citizens Permanent Resident Aliens Non-Permanent Resident Aliens LOAN LEVEL PRICE ADJUSTMENTS (LLPA) CUMULATIVE ALL PRODUCTS See Chapter 11 of the online manual MINIMUM BORROWER CONTRIBUTION 0% of the sales price INTERESTED PARTY/SELLER CONTRIBUTION Can cover closing costs and/or prepaids subject to FHLMC limits 4

5 HARP (Fannie DU Refi Plus and Freddie Open Access) **If Mortgage Insurance is required Merchants Bank will only provide final approval for the following MI companies: MGIC United Guaranty Genworth Arch MI **We will modify the MI cert if the current MI provider is one of the four companies listed above. The borrower will need to qualify for standard mortgage insurance if the current MI cert is from a company other than what is shown above. FHA/VA Programs ***Product Not Available at this time*** Jumbo Fixed-Rate ***Product Not Available at this time*** 5

6 Rural Development (RD) Program RD FIXED RATE PROGRAM 30 YEAR LOAN MINIMUM LOAN AMOUNTS ELIGIBLE PROPERTIES NOT APPLICABLE Owner-occupied (1unit) principal dwellings (detached Condo/PUD, Manufactured Home) FEES Upfront Guarantee Fee as of 10/1/16 Annual Fee as of 10/1/16 MAXIMUM LTV RATIOS MAXIMUM CLTV RATIOS 1.00% 0.35% Purchases 100%, * Non-Streamlined Refinance-The maximum loan amount may not exceed the new appraised value, with the exception of the upfront guarantee fee. The following items are eligible to be financed up to the new appraised value: the principal and interest balance of the existing loan, reasonable and customary closing costs, and funds necessary to establish a new tax and insurance escrow account. Streamlined Refinance Maximum loan amounts cannot exceed the original loan amount at the time of purchase ( Merchants Bank must be current servicer) Streamlined-Assist Refinance-The maximum loan amount may include the principal and interest balance of the existing loan, eligible loan closing costs, funds necessary to establish a new tax and insurance escrow account, and the upfront guarantee fee. ( Merchants Bank must be current servicer) Seconds allowed with no limit however, USDA will only guarantee the maximum LTV as provided in DTI REQUIREMENTS PITIA Ratio Total Debt Ratio 29%** 41%** MANUAL DOWNGRADES GUS FINDINGS WITH REFER/ELIGIBLE Minimum credit score is 640. See Chapter 10 of the 3555 Handbook for further requirements Minimum FICO of 640 Max DTI 29/41 Must meet all other RD requirements GUS findings still need to be provided and reflect accurate information even though it is a manual underwrite File should not be locked until file has been underwritten Recommend to submit file for review before appraisal and title to make sure the file is credit approved Reminder this is not for Refer with Caution findings only Refer/Eligible This document does not reflect all of the product information and requirements. Please refer to the RD 3555 Handbook for additional requirements. Must meet RD income limits and property eligibility *The LTV of the loan can exceed 100 percent of the market value of the property when the guarantee fee is financed. Loans may exceed 100 percent LTV only to the extent that the excess represents a financed guarantee fee. **An applicant s PITI ratio may exceed 29 percent and the Total Debt ratio may exceed 41 percent if the lender determines that strong compensating factors demonstrate that the household has higher repayment ability. See Chapter 11.3 of the 3555 Handbook 6

7 HomeReady Mortgage *Fully-Amortizing fixed-rate mortgage with terms up to 30 years* FANNIE MAE LOAN LIMITS PRIMARY RESIDENCE ONLY LIMITED CASH OUT REFINANCE* CASH OUT REFINANCE SECOND HOME ALL LOANS MORTGAGE INSURANCE COVERAGE BORROWERS OCCUPANCY $424,100-1 unit $543,000-2 units $656,350-3 units $815,650-4 units Purchase, 97% DU Only, 1-unit/NOT a manufactured home LTD Cash Out Refi, %, DU Only, Mortgage being refinanced must be owned by Fannie Mae Purchase & LTD Cash Out Refi 95% 1 unit, Minimum Fico 620, can be manufactured home (MH) 85% 2 unit, Minimum Fico 620 (no condos/coops/mh) 75% 3-4 unit, (no condos/coops/manufactured Homes) CLTV up to 105% w/eligible community 2nds (No manufactured homes) & INVESTMENT PROPERTY Standard MI coverage for LTV s of 90% or less LTV s of > 90% < 97% = 25% Required Non-Occupant Borrowers LOAN LEVEL PRICE ADJUSTMENTS (LLPA) Other Income Non-Borrower Household Income Non-Occupant Borrowers permitted to maximum 95% LTV in DU, 90% LTV on manual underwrite with max 43% DTI for occupying borrower. Income considered as part of qualifying income and subject to income limits. See Chapter 11 of the online manual Boarder Income (relatives or non-relatives): Up to 30% of qualifying income; documentation for at least 9 of the most recent 12 months (averaged over 12 months) & documentation of shared residency for the past 12 months. Accessory dwelling units: Rental income may be considered in qualifying the borrower per rental income guidelines. Permitted as a compensating factor in DU only to allow a DTI ratio > 45% up to 50% (non-borrower income is not considered qualifying income and is not applied to income limits). The following additional requirements apply: *Non-borrower income must total as least 30% of the total monthly qualifying income being used by the borrower(s). (Note: Income from more than one non-borrower household member may be considered). *Non-borrower household members may be relatives or non-relatives. *Non-Borrower household income must be documented in accordance with standard Selling Guide policy based on the income type. *Non-borrowers must sign a statement of intent to reside with the borrower for a minimum of 12 months. (See optional Fannie Mae form 1019). *The income must be reflected in DU as an Other Income type of Non-Borrower Household Income (Will be a dropdown choice). This income will not be included as qualifying 7

8 CASH RESERVES Chapter 9 Product Matrix income, and would not impact the DTI ratio used in the risk assessment or displayed on the DU Underwriting Findings Report Determined by DU. Or, if Manual UW: See Eligibility Matrix for additional reserve requirements at fanniemae.com MINIMUM BORROWER CONTRIBUTION 0% 1 unit 3% 2-4 UNIT Income Limits: *No income limits in low-income census tracts *100% of area median income (AMI) for other properties. 8

9 HOME POSSIBLE PROGRAMS LOAN LIMITS NO CASH OUT REFINANCE HOME POSSIBLE FREDDIE MAC $424, units Primary Residence >95% LTV/CLTV 1-4 unit 95% LTV/CLTV 1 Unit 95% LV/CLTV 2 Unit 95% LTV/95% CLTV 3-4 Units FICO % LTV/95% CLTV Manufactured HOME POSSIBLE ADVANTAGE FREDDIE MAC $424,100 PRIMARY RESIDENCE ONLY 97% LTV/105%CLTV if 2 nd is an affordable 2 nd mortgage product NO MANUFACTURED HOMES CASH OUT REFINANCE SECOND HOME & INVESTMENT PROPERTY ALL LOANS CONDOS, PUDS MORTGAGE INSURANCE COVERAGE BORROWERS OCCUPANCY LOAN LEVEL PRICE ADJUSTMENTS (LLPA) LLPA'S are cumulative 95% LTV/CLTV Purchase & No Cash Out - 1 Unit For < 20 Yr Fixed rate only >20Yr Fixed, Arm, & Manufactured >80% 85% = 6% >80%<85% = 12% >85% 90% = 12% >85%-97% = 25% >90% <97% = 25% (MANUFACTURED HOMES LIMITED TO 95% LTV) Required QUALIFYING RATIOS Determined by LP or if Manual UW, Max DTI 45% CASH RESERVES MINIMUM BORROWER CONTRIBUTION HOMEBUYER EDUCATION EARLY DELINQUENCY COUNSELING LANDLORD COUNSELING 97%/105% LTV/CLTV if 2 nd is a affordable 2 nd mortgage product Same as Home Possible (No Manufactured Homes) Affordable 2 nd Mortgage may not be a HELOC Required See Chapter 11 of the online manual See Chapter 11 of the online manual Determined by LP or if Manual UW, Max DTI 43% Determined by LP, Or, if manual UW: No Reserves for 1 Unit primary residence LTV 2 months Reserve Required for 2-4 units Minimum Fico 720. NONE None for 1 Unit and manufactured homes 3% for 2-4 Units LTV/TLTV/HTLTV >80%<95% NONE REQUIRED FOR 1 ST -TIME HOMEBUYERS REQUIRED REQUIRED for 2-4 Units, purchase transactions REQUIRED FOR 1 ST -TIME HOMEBUYERS REQUIRED N/A FAMILY NOT ALLOWED Income Limits: Total income cannot exceed 100% of the area HUD median income except in certain areas as outlined in product description. No income limits apply if the mortgaged premises is located in an Underserved area. Automated Underwriting: Automated underwriting through LP is allowed for Accept/Accept recommendations. Same as Home Possible 9

10 SPECIALTY PRODUCTS MANUFACTURED HOME LOANS Fannie Mae MANUFACTURED HOME LOANS Freddie Mac LOAN LIMITS Conforming loan limits Conforming loan limits PRIMARY RESIDENCE LIMITED CASH OUT/NO CASH OUT 95 % LTV/ 95% CLTV - 30 Years 90 % LTV/ 90% CLTV - 30 Years CASH OUT REFINANCE 65% LTV 20 years 65% LTV 20 years Minimum Borrower Investment 0% borrower s own funds if primary residence 0% from borrower s own funds if primary residence SECOND HOME LIMITED CASH OUT CASH OUT REFINANCE 90 % LTV/ 90% CLTV 5% from borrower s own funds INVESTMENT PROPERTY LIMITED/NO CASH OUT CASH OUT REFINANCE ALL LOANS 85 % LTV/ 85% CLTV - 30 years CONDOS, PUDS Must meet Fannie Guidelines Must meet Freddie Guidelines LOAN LEVEL PRICE ADJUSTMENTS (LLPA) MAXIMUM DTI RATIO RESERVE REQUIREMENTS MISCELLANEOUS MISCELLANEOUS INFORMATION See Chapter 11 of the online manual Determined by DU Additional legal description, lien perfection and title insurance requirements. See manual for details. See Chapter 11 of the online manual Determined by LP Additional legal description, lien perfection and title insurance requirements. See manual for details. APPRAISALS 1004C appraisal 1004C appraisal MISCELLANEOUS REQUIREMENTS 2-4 Units Ineligible 2-4 Units Ineligible 10