MPF Government MBS: Document Due Diligence VA Loans. Combined Loan-to-Value (CLTV)

Transcription

1 MPF Government MBS: Document Due Diligence VA Loans Combined Loan-to-Value (CLTV) GNMA s Definition of Combined Loan-to-Value: Source: On the 1008, the following rules apply: CLTV 1008/Uniform Underwriting and Transmittal Summary (to be used for VA and RHS/USDA Loans Only): HCLTV/HTLTV 1. If there is NO SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 will match one another. 2. If there IS SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 WILL NOT MATCH one another. ***Rounding: values with decimals will be rounded up to the next one s position. For example, a CLTV/TLTV of % will be rounded to %.***

2 CLTV without Subordinate Financing Example of CLTV without Subordinate Financing Lien Position If there is NO SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 will match one another. Combined Loan-to-Value Ratios CLTV with Subordinate Financing Example of TLTV with Subordinate Financing Lien Position *The CLTV (or HCLTV/HTLTV) in this example is 78%. If there IS SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 WILL NOT MATCH one another. Combined Loan-to-Value Ratios *The CLTV (or HCLTV/HTLTV) in this example is 84%.

3 Loan-to-Value (LTV) GNMA s Definition of Loan-to-Value: Source: On the 1008, the following rules apply: LTV 1008/Uniform Underwriting and Transmittal Summary (to be used for VA and RHS/USDA Loans Only): CLTV/TLTV 1. The CLTV/TLTV on the 1008 is considered the "LTV." A. If there is NO SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 will match one another. B. If there IS SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 WILL NOT MATCH one another. ***Rounding: values with decimals will be rounded up to the next one s position. For example, a CLTV/TLTV of % will be rounded to %.*** Example of LTV Loan-to-Value Ratios

4 Total Debt Ratio (DTI) Total Debt Ratio 1008/Loan Underwriting and Transmittal Summary: Total Obligations/Income VA & RHS/USDA Only For VA & RHS/USDA Loans, the Total Debt Ratio (DTI) must match the value on the 1008/Loan Underwriting and Transmittal Summary, under the Qualifying Ratios section: 1. Total Obligations/Income ratio ***Rounding: Values MUST BE rounded up to the next hundredth s place.*** Example: Documentation Value: -Total Obligations/Income: % Rounded (LOS Value): -Total Obligations/Income Rounded: 24.66% Total Obligations/Income

5 First Time Home Buyer First Time Home Buyer For Purchase Transactions Only Declaration M: Have you had an ownership interest in a property in the last three years? 1. If the borrower answers No to, have you had an ownership interest in a property in the last three years, then the borrower IS a first time home buyer. 2. If the borrower answers Yes to, have you had an ownership interest in the last three years, then the borrower IS NOT a first time home buyer. ***Note: If there are multiple borrowers on the loan and one of the borrowers answers "no," then the loan IS still considered a first time home buyer loan.*** 1. Borrower is First Time Homebuyer 2. Borrower is First Time Homebuyer

6 Agency Case Number (Loan Number or Case Number) Agency Case Number (or MI Certificate Number) For VA Loans Only 1. Loan Number, or 2. Case Number The VA Case Number can be found on any of the following documents: 1. Loan Guaranty Certificate a. Loan Number 2. Form 1805: VA Request for Determination of Reasonable Value a. Case Number 1. Loan Guaranty Certificate ***Note: When entering the value on the csv file, dashes are not required.*** 2. Form 1805: VA Request for Determination of Reasonable Val