Standard & High Balance Loan Purpose Minimum FICO Maximum LTV Maximum CLTV Purchase 600** 96.50% 96.50% Streamlines

Transcription

1 FHA Prtfli Prgram Summary Prduct Types Eligible Prgrams 30-year Fixed FHA lans 203(b) 1-4 family, 234(c) Cndminiums, Standard & High Balance Lan Purpse Minimum FICO Maximum LTV Maximum CLTV Purchase 600** 96.50% 96.50% Streamlines % 125% * Refinance N Cash-Out 600** 97.75% 97.75% Refinance Cash-Out 600** 85% 85% ** - See additinal Overlays fr FICO at end f this dcument Fr High Balance Lan Amunts, see the State/Cunty limits at *See belw fr the updated lan limits as f January 1, 2014: Flr Ceiling One Unit $271,050 $625,500 Tw Units $347,000 $800,775 Three Units $419,425 $967,950 Fur Units $521,250 $1,202,925 *Please nte: This ceiling list is the natinal maximum and may nt apply t yur specific prperty. Please make sure t check the FHA lan limits website fr the list f a particular Cunty r MSA at abve link. Mrtgage Insurance Effective fr Case Date n r after April 1, r 30 Year Lan Term 15 Year Lan Term 3 LTV UFMIP Base Lan Amt Annual MIP LTV UFMIP Base Lan Amt Annual MIP >95% 1.75% <95% 1.75% $625, % $625, % > 90% 1.75% > $625, % >$625, % $625, % $625, % < 90% 1.75% > $625, % >$625, % Mrtgage Insurance Effective fr Streamlines with Case Date n r after June 1, 2013 and Endrsed Prir t 6/1/2009 LTV UFMIP Annual MIP Any 0.01% 0.55% Regardless f the amrtizatin term, fr any mrtgage < 90% LTV (excluding financed UFMIP), the annual MIP will be assessed until the end f the mrtgage term, r fr the first 11 years, whichever cmes first. Fr any mrtgage > 90% LTV (excluding UFMIP), the annual MIP will be assessed until the end f the mrtgage term, r first the first 30 years, whichever ccurs first. Prgram eligibility is determined using the base lan amunt prir t financing UFMIP. Pricing is determined using the Nte lan amunt (Base lan amunt + UFMIP). UFMIP must be 100% financed int the mrtgage r paid entirely by cash; partial financing is nt allwed. FHA Prtfli Natins Direct Mrtgage, LLC. Page 1 f 9 These guidelines are nt a cmmitment t lend. Prgram, rates, terms and cnditins are subject t change withut ntice. This infrmatin is intended fr Mrtgage and Real Estate Prfessinals nly and shuld nt be distributed t cnsumers r ther third parties Natins Direct Mrtgage, LLC.

2 Credit Requirements Bankruptcy Credit Reprt Bankruptcy Chapter 7; 2 years discharged exceptin fr 1 year with dcumented *extenuating circumstances beynd custmer cntrl, such as a serius illness r death f a wage earner, and the brrwer has re-established gd credit since. Must be manually underwritten. Chapter 13; 1 year since discharge, discharged already r paid thrugh clsing (cnsidered cash ut if thrugh clsing), 0x30 n BK and n ther derg since. See Back t Wrk Extenuating Circumstance sectin t determine eligibility fr Back t Wrk Prgram. If requirements nted in that sectin cannt met, abve guidelines apply. Minimum FICO scre fr all prducts is 600 and tri merge credit bureau is required fr all transactins (except nn-credit qualifying streamline refinances). Nn-brrwing spuse credit reprt required in cmmunity prperty states and debts must be included in debt rati. Revlving debts must be included in the DTI regardless f the number f remaining payments, unless paid AND clsed. All lans (except nn-credit qualifying streamline refinances) must be decisined thrugh FHA TOTAL screcard via DU r LP. Brrwers must explain all inquires shwn n the credit reprt in the last 120 days. Trade line requirements determined by DU findings. CCCS: 1 yr since filing, all payments must have been made n time & written permissin frm CCCS required. If the credit reprt reveals that the brrwer is disputing any credit accunts r public recrds, the mrtgage lan applicatin must be referred t a DE underwriter fr review (manual underwrite), unless: the accunt has a zer balance; the accunt is marked as paid in full r reslved; OR the accunt has bth a balance less than $500 and the date f the dispute is mre than 24 mnths ld. Handling f Disputed Accunts Disputed Accunts The existence f ptentially inaccurate infrmatin n brrwer s credit reprt resulting in a dispute must be reviewed by an underwriter. Since disputed accunts are nt cnsidered in the credit scre utilized by Ttal Screcard, the lender must cnsider them in the underwriting analysis as described belw. Disputed Accunts, Cntinued Guidance fr TOTAL Mrtgage Screcard Accept/Apprve lans with disputed accunts If the cumulative utstanding balance f disputed dergatry credit accunts f all brrwers is equal t Disputed Dergatry Credit Accunts greater r greater than $1,000, the mrtgage applicatin must than r equal t $1,000 be dwngraded t a Refer and a DE underwriter is required t manually underwrite the lan as described abve. Disputed Dergatry Credit Accunts less than $1,000 Excluded Accunts If the cumulative utstanding balance f disputed dergatry credit accunts f all brrwers is less than $1,000, a dwngrade is nt required. Disputed medical accunts are excluded frm the $1,000 limit and d nt require dcumentatin. Disputed dergatry credit accunts resulting frm identity theft, credit card theft, r unauthrized use are als excluded frm the $1,000 limit. Hwever, the lender must prvide in the case binder a credit reprt, letter frm the creditr, r ther apprpriate dcumentatin t supprt the dispute, such as a plice reprt disputing the fraudulent charges. FHA Prtfli Natins Direct Mrtgage, LLC. Page 2 f 9 These guidelines are nt a cmmitment t lend. Prgram, rates, terms and cnditins are subject t change withut ntice. This infrmatin is intended fr Mrtgage and Real Estate Prfessinals nly and shuld nt be distributed t cnsumers r ther third parties Natins Direct Mrtgage, LLC.

3 Freclsure / Deed in Lieu / Shrt Sale Extenuating Circumstances Extenuating Circumstances/ Back t Wrk Initiative Purchase Transactins Only Cllectin Accunts and Judgments 3 year seasning required n Freclsure, NOD, deed in lieu (*less than 3 years cnsidered based upn extenuating circumstances such as a serius illness r death f a wage earner, and the brrwer has re-established gd credit since. Divrce is nt cnsidered an extenuating circumstance.) Must be manually underwritten. 2 years seasning required if was current fr preceding 12 ms prir t shrt sale; 3 years seasning required if delinquent prir t shrt sale. (*less than 2 years cnsidered based upn extenuating circumstances as defined under Freclsure sectin). *Fr case numbers assigned 8/15/2013 r later, see Back t Wrk Extenuating Circumstance sectin t determine eligibility fr Back t Wrk Prgram. If requirements nted in that sectin nt met, abve guidelines apply. In rder t qualify fr seasning exceptins n BK 7, freclsure, and shrt sales under the standard extenuating circumstance exceptin, must dcument serius illness r death f a wage earner, and the brrwer has re-established gd credit since. Divrce is nt cnsidered an extenuating circumstance. Must be manually underwritten. In rder t qualify fr extenuating circumstance exceptin, fur key cmpnents must be dcumented: (See NDM FHA Detailed Guidelines fr full scpe f requirements). Satisfactry Credit Histry must have been demnstrated prir t Ecnmic Event. Ecnmic Event: Must dcument that credit impairments were due t Ecnmic Event, defined as Lss f Emplyment and/r Lss f Incme f at least 20% fr a minimum f 6 mnths. Lss f Emplyment verified with: Written terminatin ntice, r ther publically available dcumentatin f business clsure, and dcumentatin f receipt f unemplyment incme. Lss f Incme verified with: Written VOE evidencing prir incme, r signed tax returns, paystubs, r W-2s evidencing prir incme. Recvery: Brrwer has demnstrated full recvery (minimum f 12 mnths) frm event, demnstrated by Satisfactry Payment histry since event, and Husing Cunseling: Brrwer has cmpleted HUD-apprved husing cunseling at least 30 days prir t applicatin date, but n mre than 6 mnths prir t applicatin date. HUD Apprved Cunseling agencies can be fund at this link: Cllectins ver 12 mnths may nt have t be paid unless they affect title r are curt rdered. Tax liens may be left pen if they are subrdinated and included in the DTI. Dcumentatin Requirements: Cllectin Accunts and Judgments Lans receiving Ttal Apprve/Eligible findings: Since Ttal Screcard takes all negative credit accunts int cnsideratin; there is n dcumentatin r letter f explanatin requirements fr lans with cllectin accunts r judgments. Manually underwritten lans: The lender must dcument reasns fr apprving a mrtgage when the brrwer has cllectin accunts f judgments. Regardless f the amunt f utstanding cllectin accunts r judgments, the lender must determine if the cllectin accunt r judgment was a result f: The brrwer s disregard fr financial bligatins; The brrwer s inability t manage debt; r Extenuating circumstances The brrwer must prvide a letter f explanatin with supprting dcumentatin fr each utstanding cllectin accunt and judgment. The letter and supprting dcumentatin must be cnsistent with ther credit infrmatin in the file. Capacity Analysis-Cllectins Cllectins accunts dn t have t be paid ff, but a capacity analysis fr brrwers with an aggregate balance f $2000 r mre is required as described belw. Unless prhibited by state law, cllectin accunts f a nn-brrwing spuse in a cmmunity prperty state are included in the cumulative balance. Medical cllectins and charge ff accunts are excluded frm this guidance and d nt require reslutin. Capacity analysis includes any f the fllwing actins: Accunts paid ff in full r at time f clse; funds used t payff must be verified as frm an acceptable surce Brrwer makes payment arrangements with the creditr. Terms f FHA Prtfli Natins Direct Mrtgage, LLC. Page 3 f 9 These guidelines are nt a cmmitment t lend. Prgram, rates, terms and cnditins are subject t change withut ntice. This infrmatin is intended fr Mrtgage and Real Estate Prfessinals nly and shuld nt be distributed t cnsumers r ther third parties Natins Direct Mrtgage, LLC.

4 payment plan must be verified with letter frm creditr, r stated n credit bureau. The mnthly payment must be included in the debt rati. If evidence f a payment arrangement is nt available, calculate the payment using 5% f the utstanding balance f each cllectin and include in the debt rati. Regardless f the Ttal Screcard findings (Apprve/Eligible r Refer), the payment amunts must be included in the brrwer s debt rati. Capacity Analysis-Judgments Judgments must be paid ff befre lan is clsed, unless brrwer has made an agreement with the creditr t make regular and timely payments. Must btain cpy f agreement and evidence that payments were made n time per agreement, and dcumentatin shwing a minimum f 3 mnths payments have been made prir t credit apprval. Brrwers are nt allwed t prepay scheduled payments in rder t meet the required 3 mnth minimum. Must include the agreed-upn payment amunt in the calculatin f the brrwer s debt rati. Judgments f a nn-brrwing spuse in a cmmunity prperty state must be paid in full prir t clse, r meet the exceptin guidance fr judgments abve, unless excluded by state law. High Balance Mrtgage Rating If ttal Mrtgage indebtedness exceeds $1MM, apprval frm the VP f Operatins is required. Last 12 mnths mrtgage histry must be shwn n credit reprt, dcumented via institutinal VOM r 12 mnths cancelled checks. Brrwer may nt have defaulted n any prir gvernment lans (exceptins can be cnsidered if the brrwer has rectified the debt with the gvernment). FHA Prtfli Natins Direct Mrtgage, LLC. Page 4 f 9 These guidelines are nt a cmmitment t lend. Prgram, rates, terms and cnditins are subject t change withut ntice. This infrmatin is intended fr Mrtgage and Real Estate Prfessinals nly and shuld nt be distributed t cnsumers r ther third parties Natins Direct Mrtgage, LLC.

5 Prperty Requirements Appraisal Cnd/PUD Prjects Appraisal must be cmpleted by HUD apprved appraiser and must dated within 120 days f the funding date. Apprved FHA cnds nly. New cnd apprvals nt eligible. When a 2 nd appraisal is required, the lwer f the 2 appraisals will be used if there is a greater than 5% variance. Brrwer may nt pay fr the 2 nd appraisal. The 90 days is calculated frm the seller s acquisitin date t the purchase cntract date f the new transactin. Recently listed fr sale: Rate & Term refi s; the listing agreement must be cancelled at least ne day prir t the lan applicatin. Cash-Out refi s; the listing agreement must be cancelled 6 mnths prir t the applicatin date r the lan is subject t a max 70% LTV (the listing agreement must be cancelled at least ne day prir t the lan applicatin). This plicy des nt apply t streamline refinance lans. Cnds must be FHA apprved prject, spt/new cnd apprvals nt eligible. Site Cnds must be presented n a Fannie Mae frm 1073, Individual Cndminium Unit Appraisal reprt. All Cnd Prjects must have HO6 cverage if the HOA Master Plicy des nt prvide cverage fr the interirs f the prject units. Flips Prperty and Occupancy States Prperties purchased within the last 90 days must be arms-length transactin and reflect n pattern f previus flipping. The 90 days is calculated frm the seller s acquisitin date t the purchase cntract date f the new transactin. Value increases by mre than 20% f the seller s acquisitin cst are eligible, but require the fllwing: Secnd Appraisal, rdered by and paid by Brker,, must supprt the first appraisal and sales price A Prperty Hme Inspectin rdered by NDM and paid by the Brrwer Hme Inspectin reprt Underwriter will review the hme Inspectin reprt t determine if acceptable r if additinal repairs will need t be dne. Additinal repairs will be the Seller s respnsibility t cmplete prir t funding. If additinal repairs are identified n the inspectin reprt, the hme inspectr will need t re-inspect that all repairs have been dne and prvide written acknwledgement prir t funding. List f prperty imprvements justifying value increase must be n all appraisal reprts, if applicable. An MLS print ut shwing subject prperty was listed fr sale must be included in file. Brrwer and seller t sign an Identity f Interest frm. Eligible: SFR, Cnd s, PUD s (attached & detached), 2-4 units. First time hme buyers n 3-4 units are nt eligible. Nn-wner Streamline Refinances are allwed with Operatins Directr apprval. Ineligible: C-ps, manufactured hmes, cndtels, nn-warrantable cnd s, cnds purchased at auctin, earthberm hmes, bard & care hmes, wrking farm/ranches, vacant land, unique prperties, prperties with less than 600sq feet, cnd prjects in and Nevada and Hawaiian Hmelands. Where Natins Direct Mrtgage lends (see ) fr licensed states) FHA Prtfli Natins Direct Mrtgage, LLC. Page 5 f 9 These guidelines are nt a cmmitment t lend. Prgram, rates, terms and cnditins are subject t change withut ntice. This infrmatin is intended fr Mrtgage and Real Estate Prfessinals nly and shuld nt be distributed t cnsumers r ther third parties Natins Direct Mrtgage, LLC.

6 General Requirements Assets Autmated Underwriting Brrwers Asset verificatin is required per DU findings. Cpy f all funds used t clse must be in the file at time f clsing and must be frm verified surce. Nte: Any critical finding frm ur fraud preventin tl and/r Brkers in prbatin status will require a Lender rdered VOD t verify bank statements. All lans must be run thru Ttal Screcard/DU/LP. Lans receiving Refer/Eligible findings must be dwngraded t manual underwrite. Eligible: US Citizens, nn ccupant c-brrwers, inter vivis revcable trusts, permanent and nn permanent resident aliens. Lans made t individual persns nly Ineligible: Brrwers in negative equity psitin Trusts, crpratins, LLC s, and ther nn-individual entities Nn-ccupant C-brrwer(s): Lans with nn-ccupant brrwer must have at least ne valid credit scre. The nn-ccupant c-brrwer must be r have been a hmewner r prvide 12-mnths cancelled checks r VOR frm a prperty management cmpany. The nn-ccupant husing csts must be included in the DTI ratis. Debt Rati Determined per DU Dwn Payment / Surce f Funds Dwn Payment Assistance Gifts Dwn payment/funds t clse (limited t brrwer wn funds and gift funds). Must have 3.5% int transactin. Funds must be surced with any large depsits surced and explained. VOD fr the mst recent 60 days accunt infrmatin; must be supprted by the mst current mnth s bank statement. Dwn payment assistance prgrams frm a nn-prfit r gvernment funded prgram OK. N seller funded assistance N MCCs N cmmunity secnds. Allwed frm any FHA acceptable surce; dcument in accrd with FHA guidelines. FHA Prtfli Natins Direct Mrtgage, LLC. Page 6 f 9 These guidelines are nt a cmmitment t lend. Prgram, rates, terms and cnditins are subject t change withut ntice. This infrmatin is intended fr Mrtgage and Real Estate Prfessinals nly and shuld nt be distributed t cnsumers r ther third parties Natins Direct Mrtgage, LLC.

7 HUD REO 203(b) Repair Escrw Hldback Incme Dcuments 4506 Transcripts Purchases Prperty must be wned by HUD and listed n Purchase Cntract must reflect that the prperty is a 203(b) and Asset Manager fees must be listed REO Cntract required and signed by the Asset Manager Appraisal is valid fr 120-days and a valid HUD REO sales cntract must be ratified within 120 days f the appraisal effective date r a new appraisal is required. Repairs are allwed t be cmpleted after clsing with escrw hldback with the fllwing criteria: Appraisal must list all repairs needed with cst breakdwn f each repair Cntractr invice required with valid license number and itemized repair csts Escrw Hldback must be financed at 110% f ttal repair csts up t a maximum f $5,000 Clsing Agent must prvide fully cmpleted Hldback Frm and signed by escrw fficer, lender agent, and brrwer(s) The estimated HUD shuld reflect $200 fee paid t NDM fr prcessing hldback Cmpletin Inspectin Reprt (CIR) fee must be disclsed n GFE and paid by brrwer All repairs must be cmpleted within 15 days after clsing NDM will authrize all disbursements frm escrw accunt with cnfirmatin frm cntractr shwing payment in full fr repairs Any excess prceeds frm hldback will be applied t lan principal Cndminium Prjects that are nt apprved must have an exceptin in writing frm HUD t be eligible Gift funds are allwed, but if used, Debt Rati maximum is 50% regardless f DU Recmmendatin HUD may credit up t 3% in clsing csts Per DU Tw year emplyment histry, any gaps in emplyment require explanatin letter Handwritten paystubs r W-2 s must be manually dwngraded. Paystubs must have year t date earnings. If n year t date earnings, VOE may be acceptable nly if DU allws. The use f trailing secndary wage earner incme is nt allwed transcript results fr the mst recent available tax year must be rdered and btained frm IRS fr all incme surces. W-2 nly validatin is acceptable t wage earners nly Fr brrwers emplyed by a family-wned business, must rder and btain the mst recent 2 years available 1040 transcripts frm the IRS. If the mst recent tax year transcript is nt available: Obtain the previus year s transcript and prf f extensin fr mst recent year. If the extensin is expired (lans clsing with a nte date n r after Octber 15 th ) must btain tax return and transcript fr mst recent year. Fr incme derived frm self-emplyment, ther business incme, r rentals, qualifying incme calculatins must include the amunts verified with the mst recent available tax transcript. If the lan is clsing with a nte date n r after Octber 15 th, qualifying incme must include mst recent year s figures, and a transcript fr that year must be rdered and btained. If the subject prperty was acquired in a bulk transactin, the lan is subject t additinal review. Max 8% sales cmmissin any aggregate real estate cmmissin greater than 8% f the sales price f the subject prperty is cnsidered an excessive real estate cmmissin. The prtin f the aggregate cmmissin greater than 8% must be deducted frm the sales price fr underwriting purpses. Brrwers with previus shrt sales and shrt payffs are allwed if mrtgage payments n the prir mrtgage were made within the mnth due fr the 12 mnths prir t shrt sale; AND installment debt payments fr the same perid were als made within the mnth due. NDM will nt accept Re-negtiated Purchase Agreements that increase the sales price after the riginal appraisal has been cmpleted if the appraised value is higher than the cntracted sales price prvided t the appraiser, and the new purchase agreement and/r addendum used t mdify the sales price is dated after the appraisal is received, and the nly change t the purchase agreement is an increase in sales price. If the purchase agreement is re-negtiated subsequent t the cmpletin f the appraisal, the LTV will be based n the lwer f the riginal purchase price r the appraised value, unless: re-negtiated f nly seller paid clsing csts and/r pre-paids when seller paid clsing csts/pre-paids are cmmn and custmary fr the market and supprted by the cmparables; Shrt sale renegtiatins excluded.. FHA Prtfli Natins Direct Mrtgage, LLC. Page 7 f 9 These guidelines are nt a cmmitment t lend. Prgram, rates, terms and cnditins are subject t change withut ntice. This infrmatin is intended fr Mrtgage and Real Estate Prfessinals nly and shuld nt be distributed t cnsumers r ther third parties Natins Direct Mrtgage, LLC.

8 General Requirements (cntinued) Refinance Rate/Term Refinance Cashut Reserves Rate/Term Refinances: The maximum insurable mrtgage is the lesser f 97.75% f the appraised value f the prperty r the ttal amunt f the applicable items belw, any UFMIP refund must then be subtracted Existing 1st lien, any purchase mney 2nd lien, any junir liens ver 12 mnths ld, brrwer paid clsing csts, prepaid expenses, brrwer paid repairs (if required) r discunt pints The existing 1st lien may include up t 60 days interest but may nt include delinquent interest. Prepaid expenses may include per diem interest, hazard insurance, real estate taxes t establish escrw accunt. If the prperty was acquired <12 mnth befre the lan applicatin and is nt currently FHA-insured, use the lwer f the riginal sales price r appraised value. Repairs and rehab incurred after purchase f the prperty may be added t the riginal sales price when calculating the max mrtgage amunt Prperties currently listed fr sale nt permitted. The listing agreement must be canceled at least 1 day prir t date f lan applicatin. A cpy f the canceled/expired listing shuld be placed in the file and a search f the current MLS shuld be cmpleted t verify the prperty is nt currently listed by different agency. $500 max. cash back allwed fr minr adjustments in estimated versus final clsing csts Refinances A payff demand statement is required and must reflect that the lan is nt mre than 30 days delinquent, des nt cntain charges assciated with default/frbearance, des nt indicate a curtailment f principal/interest (shrt pay) and meets the mrtgage dergatry requirements. Cashut Refinances: With new subrdinate financing, the maximum CLTV is 85%. Value Determinatin: If the subject prperty has been the brrwer s principal residence wned fr: 12 mnths r mre: Use current appraised value < 12 mnths: Use the lesser f current appraised value r the acquired sales price Nn-ccupant c-brrwers r c-signers may nt be added t meet credit underwriting guidelines Prperties wned free and clear may be financed as cash-ut transactins Brrwers whse lans are delinquent r in arrears are nt eligible Prperties currently listed fr sale are nt permitted. The listing agreement must be canceled fr 6 mnths prir t the lan applicatin date r the lan is subject t the maximum LTV f 70%. Cash ut ver $100K must have VP f Operatins apprval Texas - Primary residences ( Hmestead Prperties ) nt eligible fr cash ut refinance. A payff demand statement is required and must reflect that the lan is nt mre than 30 days delinquent, des nt cntain charges assciated with default/frbearance, des nt indicate a curtailment f principal/interest (shrt pay) and meets the mrtgage dergatry requirements. Seasning; Require 6 mnths seasning, measured frm nte date/clsing date t applicatin date. Purchase; 3 mnths PITI (surced & seasned fr 3 mnths) required n 3-4 units and must be the brrwers wn funds. FHA Prtfli Natins Direct Mrtgage, LLC. Page 8 f 9 These guidelines are nt a cmmitment t lend. Prgram, rates, terms and cnditins are subject t change withut ntice. This infrmatin is intended fr Mrtgage and Real Estate Prfessinals nly and shuld nt be distributed t cnsumers r ther third parties Natins Direct Mrtgage, LLC.

9 General Requirements (cntinued) Streamline Refinance Subrdinate Financing Streamlines ONLY Extenuating Circumstances/ Back t Wrk Initiative Purchase Transactins Only Texas Prperties The initial Brker 1003 must be cmpleted (including emplyment, assets & liabilities). Brrwer must have made 6 regular payments and 210 days must have transpired frm the clsing date. The savings is calculated cmparing ld Principal and Interest plus MIP t the new Principal and Interest plus MIP and must be a 5% savings t shw benefit t brrwer. At applicatin, the brrwer must have made at least 6 mnthly payments n the mrtgage being refinanced The brrwer may nt make payments frward in rder t qualify, If the brrwer has wned the hme less than 12 mnths, there must be n ther delinquency n any ther mrtgage s tied t brrwer within last 12 mnths Mrtgage histry: Fr mrtgages less than 12 mnths, all payments must have been paid in the mnth due. Fr mrtgages with a 12 mnth payment histry r greater, the brrwer must nt have ANY late payments in preceding last 12 ms. If assets are needed t clse, must verify and dcument the assets. $500 max cash back allwed fr minr adjustments in estimated versus final clsing csts CAIVRS des nt need t be checked; LDP & GSA are still required The term f the new lan must be the lesser f 30 years r the remaining term f the mrtgage plus 12 years Owner ccupied nly. Nt allwed n manufactured, 2 nd hmes. Streamlines n an investment prperty are allwed with Operatins Manager apprval. Texas Primary Residences ( Hmestead Prperties )-n cash back allwed. Refinances A payff demand statement is required and must reflect that the lan is nt mre than 30 days delinquent, des nt cntain charges assciated with default/frbearance, des nt indicate a curtailment f principal/interest (shrt pay) and meets the mrtgage dergatry requirements. Streamline Refi withut an appraisal: The maximum insurable mrtgage may nt exceed: Outstanding principal balance minus applicable refund f UFMIP, plus up t 59 days f interest, plus the new UFMIP that will be charged. CLTV exceeds LTV, k if CLTV des nt exceed the riginal purchase price. Secndary Financing must be financed by Gvernment, Agency, r nn-prfit institutin. Streamlines: Existing subrdinate financing may remain in place. Subrdinate financing (nn-purchase mney 2 nd r 2 nd mrtgage< 6 mnths ld) is limited t 125% CLTV. Natins Direct des nt allw City Secnds. Fr case numbers assigned 8/15/2013 r later, in rder t qualify fr extenuating circumstance exceptin, fur key cmpnents must be dcumented: (See NDM FHA Detailed Guidelines fr full scpe f requirements): Satisfactry Credit Histry must have been demnstrated prir t Ecnmic Event. Ecnmic Event: Must dcument that credit impairments were due Ecnmic Event, defined as Lss f Emplyment and/r Lss f Incme f at least 20% ver minimum f 6 mnths. Lss f Emplyment verified with: Written terminatin ntice, r ther publically available dcumentatin f business clsure, and dcumentatin f receipt f unemplyment incme. Lss f Incme verified with: Written VOE evidencing prir incme, r signed tax returns, r W- 2s evidencing prir incme. Recvery: Brrwer has demnstrated full recvery (minimum f 12 mnths) frm event, demnstrated by Satisfactry Payment histry since event, and Husing Cunseling: Brrwer has cmpleted HUD-apprved husing cunseling at least 30 days prir t applicatin date, but n mre than 6 mnths prir t applicatin date. HUD Apprved Cunseling agencies can be fund at this link: Primary Residences ( Hmestead Prperties ) Purchases r rate term refinances nly. Ineligible fr cash ut. FICO Overlays All the abve guidelines apply plus the additinal verlays belw: Prperty types SFR, PUD r cnds nly; Owner ccupied required. Streamlines nt allwed. FHA Prtfli Natins Direct Mrtgage, LLC. Page 9 f 9 These guidelines are nt a cmmitment t lend. Prgram, rates, terms and cnditins are subject t change withut ntice. This infrmatin is intended fr Mrtgage and Real Estate Prfessinals nly and shuld nt be distributed t cnsumers r ther third parties Natins Direct Mrtgage, LLC.