Underwriting Guideline Matrix

Transcription

1 Underwriting Guideline Matrix NewLeaf HmePssible NewLeaf HmePssible Advantage Fixed Prduct Cdes: NewLeaf HmePssible 30 year Fixed (W258) NewLeaf HmePssible 15 year Fixed (W257) NewLeaf HmePssible 30 year Fixed LPMI (W260) NewLeaf Hme Pssible 15 year Fixed LPMI (W259) NewLeaf Hme Pssible Advantage 30 Year Fixed (W163) NewLeaf Hme Pssible Advantage 15 Year Fixed (W164) NewLeaf Hme Pssible Advantage 30 Year Fixed LPMI (W165) NewLeaf Hme Pssible Advantage 15 Year Fixed LPMI (W166) Subject t change withut ntice Valid as f 12/18/2017 Refer t Agency guidelines fr plicies nt listed in this dcument. Cpyright 2017 Skyline Financial Crp. dba NewLeaf Whlesale, Natinwide Mrtgage Licensing System (NMLS) Cmpany ID# Arizna Mrtgage Banker License #927740, Licensed by the Department f Business Oversight under the Califrnia Residential Mrtgage Lending Act File N: , Clrad Registered with Clrad Divisin f Real Estate, Flrida Mrtgage Lender/Servicer License N. MLD947 issued by the Flrida Office f Financial Regulatin, Gergia Mrtgage Lender License #42980, Hawaii Licensed by the Hawaii Divisin f Financial Institutins N. HI-12072, Idah Licensed by the Idah Department f Finance MBL-7422, Illinis Residential Mrtgage License # MB , Luisiana Residential Mrtgage Lending License, Nebraska Mrtgage Bank License, New Jersey Residential Mrtgage Lender License, New Mexic Financial Institutins Divisin, Registered Mrtgage Cmpany License # 01653, Oregn Mrtgage Lender License ML-2797, Suth Carlina Mrtgage Lender / Servicer License MLS #12072, Tennessee Mrtgage License #108815, Texas Registered with Texas Department f Savings and Mrtgage Lending, Utah Licensed by the Divisin f Real Estate License # , Virginia Lender License MC-5861, Washingtn Cnsumer Lan Cmpany License CL This is a business t business cmmunicatin intended fr Real Estate and Lending Prfessinals nly. Refer t and input NMLS #12072 t see where Skyline Financial Crp. is a licensed lender. Page 1 f 5 Last Updated 12/18/2017

2 NewLeaf HmePssible Fixed The belw matrix includes guidelines fr Freddie Mac HmePssible and HmePssible Neighbrhd Slutins. This matrix may include verlays which are mre restrictive than Freddie Mac guidelines. Refer t freddiemac.cm fr guidelines nt addressed in this matrix. Mrtgage insurance prviders may have additinal restrictins nt listed within this dcument. Please refer t each mrtgage insurance cmpany's website fr cmplete eligibility details. Transactin Parameters # Units Maximum Lan Amunt Owner Occupied: Purchase and Rate/Term Refinance HmePssible & HmePssible Advantage Hawaii Prperties Max LTV / Max HLTV Min FICO 1 $453,100 $679,650 97%/105% 2 $580,150 $870,225 3 $701,250 $1,000,000 95%/95% 95%/95% 620 Minimum Lan Amunt Maximum Lan Amunt Prperty Types 4 $871,450 $1,000,000 95%/95% $75,000 General Guidelines Agency cnfrming lan limits (Refer t matrix abve fr maximum lan amunts and units) HmePssible: -1-4 unit Primary Residences HmePssible Advantage: 1 unit Primary Residence Ineligible: Nn-Warrantable Cnds, Htel/Resrt Prjects, Manufactured Hmes, C-ps, Farms & Ranches, Dme Hmes, Earth Hmes, Timeshares, Cnd Htels, Lg Hmes r ther unique prperties. Maximum size f acreage is 20. Refer t max acreage sectin fr mre details. Eligible States AZ, CA, CO, FL, GA, HI, ID, IL, LA, NE, NJ, NM, OR, SC, TN, TX, UT, VA & WA Eligible Terms 15 and 30 year Fixed Underwriting All lans must be submitted t LP and receive an Accept Methd Manual Underwriting is nt permitted Qualifying Rate Nte Rate Qualifying Ratis The maximum DTI is Determined by LP Buydwns Nt Permitted Incme Limits Ownership Interest Occupancy Type Apprved MI Cmpanies The incme used t qualify the Brrwer cnverted t an annual basis must nt exceed 100% f the area median incme r the percentages (incme multipliers) in the designated high cst areas listed belw: CA 140% HI 170% OR fr the fllwing cunties 120% Clackamas, Clumbia, Multnmah, Washingtn, Yamhill WA fr the fllwing cunties 120% Clark, King, Pierce, Skamania, Snhmish There is n incme limit if the prperty is lcated in an Underserved Area Freddie Mac AMI Lk Up Tl: The Brrwer must nt have an wnership interest in any ther residential prperty as f the Nte Date, except as stated belw. The Brrwer may have an wnership interest in a residential prperty ther than the Mrtgaged Premises if the Brrwer des nt ccupy the prperty. The fllwing dcumentatin is required in the file: The Brrwer inherited their wnership interest in the prperty and shares wnership with anther party, r The Brrwer wns the prperty with anther party and the debt assciated with the prperty was assigned t the ther party by a curt rder (e.g., a divrce decree), r The Brrwer is a csigner/guarantr n the related Mrtgage debt and smene ther than the Brrwer has made payments n the debt assciated with the prperty fr the mst recent 12 mnths, as dcumented with cpies f canceled checks r a statement frm the lender All Brrwers must ccupy the Mrtgaged Premises as their Primary Residence Secnd Hmes r Investment Prperties are nt allwed ARCH Genwrth Essent MGIC Radian UGI Page 2 f 5 Last Updated 12/18/2017

3 Mrtgage Insurance Cverage 30 year Fixed >90% LTV t 97% - 25% >85% LTV t 90% - 25% >80% LTV t 85% - 12% 15 year Fixed > 90% LTV t 97% - 25% >85% LTV t 90% - 12% >80% LTV t 85% - 6% Mrtgage Insurance Types Hmewnership Educatin Mnthly, annual, single premium r cmbinatin is allwed Financed premiums are allwed Flexible insurance ptins are nt allwed LPMI with MGIC must be rdered by NewLeaf Underwriter When all the Brrwers are First-Time Hmebuyers fr purchase transactin Hme Pssible Mrtgages, at least ne qualifying Brrwer must participate in a hmewnership educatin prgram befre the Nte Date. Hmewnership educatin must be prvided by a party nt invlved in the sale r financing f the prperty; if prvided by the riginating lender r by the Seller, the hmewnership educatin must be cnducted by smene nt directly invlved in the lan riginatin, prcessing r apprval prcess. Hmewnership educatin prgrams may use different frmats and require different lengths f time t cmplete. The fllwing are acceptable: Internet (n-line) hmewnership educatin prgrams that have been develped by mrtgage insurance cmpanies Hmewnership educatin prgrams that meet the standards f the Natinal Industry Standards fr Hmewnership Educatin and Cunseling ( Prgrams using Freddie CreditSmart prvided Mdule 1 (Yur Credit and Why It is Imprtant), Mdule 2 (Managing Yur Mney), Mdule 7 (Thinking Like a Lender), Mdule 11 (Becming a Hmewner), and Mdule 12 (Preserving Hmewnership: Prtecting Yur Investment) are included A cpy f Hmewnership Educatin Certificatin must be retained in the Mrtgage file. Landlrd Educatin Lan Purpse Refinance Transactins Age f Lan Dcuments Landlrd Educatin (2- t 4-unit Primary Residences) Purchase Transactins At least ne qualifying Brrwer must participate in a landlrd educatin prgram befre the Nte Date. A cpy f a certificate evidencing successful cmpletin f the landlrd educatin prgram must be retained in the Mrtgage file. Landlrd educatin must nt be prvided by an interested party t the transactin Refinance Transactins Landlrd educatin is nt required but is recmmended fr Brrwers wh have nt previusly attended a prgram. A Hme Pssible Mrtgage must be either a purchase transactin r a rate/term refinance transactin. Cash-ut refinances are nt permitted Fllw the standard LP requirements fr purchase and rate/term refinance plicies 2-4 Unit Prperties: N cash back t the brrwer The new lan amunt is limited t the utstanding unpaid principal balance f the existing first Mrtgage (runded up t the nearest $100 increment), and Any existing secndary financing must be paid ff frm verified Brrwer Persnal Funds and Other Brrwer Funds r resubrdinated t the new refinance Mrtgage and the new refinance Mrtgage must meet the eligibility criteria fr Mrtgages subject t secndary financing. Credit dcuments, including but nt limited t, credit reprts, incme assets and title dcumentatin cannt exceed 90 days frm the Nte Date 1-unit Primary Residence Incme / Assets Rental incme frm a 1-unit Primary Residence may be cnsidered as stable mnthly incme (as defined in Sectin 37.13) if: Cnnectin with Brrwer. The persn prviding the rental incme and the Brrwer: Have resided tgether fr at least ne year Will cntinue residing tgether in the new residence, and The persn prviding the rental incme prvides apprpriate dcumentatin t evidence residency with the Brrwer (i.e., cpy f a driver's license, bill, bank statement, etc., that shws the address f that persn t be the same as the Brrwer's address) Rental Incme Rental payment. Rental incme frm the persn residing in the Mrtgaged Premises: Has been paid t the Brrwer fr the past 12 mnths n a regular basis Can be verified by the Brrwer with evidence shwing receipt f regular payments f rental incme t the Brrwer fr the past 12 mnths (i.e., cpies f cancelled checks) Des nt exceed 30% f ttal incme used t qualify fr the Mrtgage Declining Incme Affidavit and ther dcumentatin. The Brrwer must attest, by affidavit executed at applicatin, t the: Surce f the rental incme Fact that the persn prviding the rental incme has resided with the Brrwer fr the past year and intends t cntinue residing with the Brrwer in the new residence fr the freseeable future. The affidavit need nt be ntarized r acknwledged but must be kept in the Mrtgage file and 4-unit Primary Residences Rental incme frm a 2-, 3- r 4-unit Primary Residence that meets the requirements f Sectin 37.14(b) may be cnsidered as stable mnthly incme; hwever, the reserve requirement stated in Sectin 37.14(b) is reduced t tw mnths. Incme which has declined frm the previus year will be evaluated t determine level f incme likely t cntinue and cnfirm n further decline. Additinally, NewLeaf underwriter will evaluate dcumentatin prvided t determine if declining incme is nw cnsidered stable and eligible t be used fr qualifying. This applies t bth emplyed and self-emplyed Brrwers Minimum Dwn Payment 3% Page 3 f 5 Last Updated 12/18/2017

4 Minimum Brrwer Cntributin frm Brrwer Persnal Funds 1 Unit Prperties Nne 2-4 Unit prperties 3% fr >80% LTV & <= 95% LTV 2-4 Unit prperties Nne fr <= 80% LTV Reserves Surces f Funds fr Minimum Brrwer Cntributin 1 Unit Nne 2-4 Units 2 mnths Brrwer Persnal Funds including cash-n-hand Surces f Funds fr Dwn Payment Dwn Payment fr Purchase Transactins may cme frm: Brrwer Persnal Funds, including cash-n-hand, r Other Brrwer Funds such as gift r equity frm a related Persn, gift r grant frm an Agency, EAH Benefit, Individual Develpment Accunt (IDA) r Prceeds frm an unsecured lan frm an Agency r Related Persn r a Cmmunity Savings System. Surces f Funds fr Clsing Csts, Financing Csts, PrePaids/Escrws Clsing Csts, Financing Csts, Prepaids/Escrws May cme frm: Brrwer Persnal Funds including cash-n-hand r Other Brrwer Funds such as gift r equity frm a related Persn, gift r grant frm an Agency, EAH Benefit, Individual Develpment Accunt (IDA) r Prceeds frm an unsecured lan frm an Agency r Related Persn r a Cmmunity Savings System and/r Flexible Surces f Funds such as financing cncessins, Premium Financing r prceeds frm an unsecured lan Surces f Funds fr Reserves Minimum Tradelines Reserves May cme frm: Brrwer Funds including cash-n-hand r/and Other Brrwer Funds excluding Gift Funds r Brrwer Reserves Credit N minimum number f tradelines required BK/FC/Shrt Sale Refer t NewLeaf1 Cnfrming Matrix Cllectin Accunts Nn-Medical cllectins must be paid ff if the ttal exceeds $2,500 individually r aggregate Disputed Tradelines N further actin is required with LP Accept Page 4 f 5 Last Updated 12/18/2017

5 Secndary financing subrdinated t a Hme Pssible Advantage Mrtgage must be an Affrdable Secnd. The Affrdable Secnd financing cannt be a Hme Equity Line f Credit. All secndary financing must meet the Affrdable Secnds guidelines as fllws : Surce: The Affrdable Secnd must be an Agency under an established, nging, dcumented secndary financings r financing assistance prgram Subrdinate Financing Maturity Date: The terms f the Affrdable Secnd must nt require balln payments due befre the maturity r payment in full f the First Lien Mrtgage If the Affrdable Secnd is an EAH Benefit, the terms f the secndary financing must permit the Brrwer t cntinue making payments n the lan in the event the Brrwer n lnger wrks fr the emplyer and may nt require repayment in full unless: The Brrwer terminates his r her emplyment fr any reasn, r The emplyer terminates the Brrwer s emplyment fr any reasn ther than lng-term disability, the eliminatin f the emplyee s psitin r reductin-in-frce Scheduled Payments: The interest rate applicable t the Affrdable Secnd must nt be higher than the interest rate applicable t the First Lien Mrtgage. Interest accruals, which are added t principal, may nt increase the TLTV rati beynd the maximum TLTV rati allwed fr the First Lien Mrtgage at any time during the term f the First Lien Mrtgage. If mnthly payments n the Affrdable Secnd are required and begin befre the 61st mnthly payment under the First Lien Mrtgage, such mnthly payments must be included in the Brrwer's mnthly husing expense-t-incme rati and mnthly debt payment-t-incme rati. If mnthly payments n the Affrdable Secnd begin n r after the 61st mnthly payment under the First Lien Mrtgage r if repayment f the entire Affrdable Secnd amunt is due nly upn sale r default, the amunt f the Affrdable Secnd mnthly payment may be excluded frm bth ratis. Participatin in appreciatin If the Affrdable Secnd dcuments prvide fr the Agency r its designee t participate in the appreciatin f the Mrtgaged Premises, the Agency's share f appreciatin, as a percentage, must nt exceed the principal amunt f the Affrdable Secnd divided by the value f the Mrtgaged Premises n the Nte Date. Fr example, if the Affrdable Secnd amunt is 5% f value, the maximum appreciatin share is 5%. Financing Structure: The Affrdable Secnd financing cannt be a HELOC Land use: Any Land Use Restrictins included in the Affrdable Secnd dcumentatin must: Be subject t and subrdinate t the First Lien Mrtgage, and Either terminate upn payment in full f the Affrdable Secnd r satisfy the Freddie Mac requirements NOTE: When submitting a Hme Pssible Mrtgage with an Affrdable Secnd t LP, the amunt f the Affrdable Secnd in the Ttal Gifts Funds field my be entered instead f entering it int the Subrdinate Amunt field; prvided that the Affrdable Secnd des nt require a payment befre the Due Date f the 61 st mnthly payment under the Hme Pssible Mrtgage and that it meets all the ther requirements fr an Affrdable Secnd sated in Sectin 25.1(g) f Freddie Mac guidelines. Except fr entering the Affrdable Secnd amunt int LP as a gift, Skyline must include the Affrdable Secnd as Secndary financing in all circumstances including the fllwing: Calculating the TLTV rati fr delivery Dcumenting the Affrdable Secnd in the Mrtgage file All Other Credit Requirements (Paying ff r Dwn Debt, Student Lans, cntingent liabilities, etc.) Appraisal and Review Requirements Prperties Listed Fr Sale Maximum Acreage Cndminiums Deed Restrictins Standard Freddie Mac guidelines apply. Refer t the NewLeaf 1 Cnfrming matrix Cllateral A Full appraisal is required Refinances are nt permitted n prperties presently listed fr sale. If listing was canceled prir t applicatin and appraisal date, the fllwing applies: Rate/Term Refinance - N further restrictins Site size must be typical fr the area and supprted by cmps. Maximum 20 acres as lng as the subject prperty is residential in nature and there is a demnstrated market. Incme prducing prperties are ineligible. Prjects must be warrantable per FHLMC/FNMA guidelines; applicable cnd dcumentatin t be submitted. CPMs available Must be the brrwer s principal residence, 1 t 2 units nly. Original Transactin must have been an arms-length transactin. Full title plicy required. Appraisal t include 2 cmps and 1 listing with the same restrictin. Fr a refinance transactin must use lwer f purchase price r appraised value. Refer t NewLeaf 1 guidelines r Freddie Mac fr plicies nt listed n this matrix Page 5 f 5 Last Updated 12/18/2017