FHA FIXED GUIDELINES. PRODUCT DESCRIPTION 15 and 30 year Fixed Rate

Transcription

1 PRODUCT DESCRIPTION 15 and 30 year Fixed Rate PRODUCT CODE FHA15, FHA30 (Cnfrming Lan Amunt) FHA30HPML (Cnfrming Lan Amunt Higher Priced Mrtgage Lan) FHA30-J (High Balance Lan Amunt) FHA30-F90 (Cnfrming Lan Amunt 90 Day r Less Flip) FHA30-90HP (Cnfrming Lan Amunt 90 Day r Less Flip- Higher Priced Mrtgage Lan) QUALIFYING RATE & RATIOS Maximum 50% DTI regardless f AUS Apprval fr 1 unit prperties Maximum 45% DTI regardless f AUS Apprval fr 2-4 unit prperties TYPES OF FINANCING Purchase, Rate and Term Refinance, and Cash Out Refinance Purchase Fr Nn-Arms Length transactins, refer t Nn-Arms Length Plicy lcated in the Crrespndent Seller Guide Rate and Term Refinance Must be ff market a minimum f 30 days prir t the applicatin date Cash Out Refinance LTV must be based n the lessr f purchase price r appraised value if wned less than 12 mnths Subject mrtgage histry must be 0X30X12 Nn-ccupant c-brrwers are ineligible Must be ff market a minimum f 30 days prir t the applicatin date Fr Streamline Refinance refer t the FHA Streamline Nn-Credit Qualify N Appraisal prduct guidelines. Buydwns are ineligible Energy Efficient Mrtgages (EEM) are ineligible MAX LOAN AMOUNT Maximum Base Lan Amunt cannt exceed the FHA Statutry Mrtgage Limits fr each cunty. Page 1 f 11 Rev. 6/17/13

2 LTV/CLTV Purchase 96.5% LTV/ 100% CLTV NOTE: The CLTV is 100% f the ttal cst t acquire (purchase price + clsing csts + prepaids) if secndary financing is prvided by an instrumentality f the Gvernment r a Gvernment Agency. Rate and Term Refinance: 97.75% LTV/ 97.75% CLTV Cash Out Refinance 85% LTV/ 85% CLTV SECONDARY FINANCING Permitted per FHA guidelines PROPERTY TYPES Eligible Prperties CLTV calculated n 1st mrtgage base lan amunt and 2nd mrtgage amunt. Des nt include upfrnt MIP High Balance Lan Amunts: Allwed up t the maximum FHA LTV calculatin. The maximum CLTV is capped at the FHA maximum LTV fr prduct. High Balance Lan Amunts: Allwed up t maximum FHA LTV calculatin. The maximum CLTV = maximum LTV. 1-2 units 3-4 units PUDs NOTE: Net rents frm all units (including primary unit) must be equal t r exceed mrtgage payment (Net rent is calculated using the allwable vacancy factr fr the applicable FHA HOC). FHA Apprved cnds Ineligible Prperties C-ps and Cndtels Manufactured hmes HUD REO prperties with $100 dwn payment Auctin Sales Unimprved land with prperty currently in litigatin Page 2 f 11 Rev. 6/17/13

3 CONDO REVIEW/WARRANTY Must be FHA apprved Dcuments required in lan file: OCCUPANCY Primary Residence nly FHA Cnnectin printut verifying cnd apprved Lan-level certificatin fr individual unit financing Master HOA Certificate f Insurance with the required hazard/liability/fidelity/fld insurance t ensure the prper cverage and plicies will nt expire within 30 days frm the date f the subject lan Walls-in/HO-6 insurance in an amunt n less than 20% f the cnd r attached PUD s appraised value Site Cnds d nt require cndminium prject apprval. Althugh, appraisal must be cmpleted n FNMA Frm 1073 and applicable insurance required UNDERWRITING Must adhere t FHA guidelines and Platinum Plicies lcated in the Crrespndent Seller Guide All lans must be scred thru FHA TOTAL Screcard and receive Apprve/Accept recmmendatin frm DU r LP AUS Apprve/Accept Ineligible recmmendatin allwed fr dcumented prgramming issues, as lng as in accrdance with FHA guidelines. All lan data submitted t AUS fr Apprve/Accept Finding must be accurate and validated All lans must meet FHA guidelines and eligibility requirements, as well as credit, capacity and dcumentatin requirements in additin t items listed in these guidelines AUS Refer and manually underwritten lans are ineligible If manual dwngrade is required, per FHA guidelines, lan is ineligible Vacating Primary Residence If the brrwer is vacating his/her primary residence, Refer t Vacating Primary Residence Matrix in the Crrespndent Seller Guide fr requirements BORROWER ELIGIBILITY All brrwers (including permanent and nn-permanent resident aliens) must have a valid scial security number Permanent Resident Aliens Cpy f valid Alien Registratin Receipt Card (Resident Alien card), I-551 (frnt & back) Nn-Permanent Resident Aliens Brrwer must be eligible t wrk in the U.S. CO-BORROWERS Permitted per FHA guidelines Cpy f valid eligible visa and unexpired passprt Cpy f the valid Emplyment Authrizatin Card, I-766, with histry f renewal NOTE: A scial security card is nt acceptable as evidence f wrk status Page 3 f 11 Rev. 6/17/13

4 CREDIT Must adhere t FHA guidelines and Platinum plicies lcated in the Crrespndent Seller Guide Minimum FICO Scre requirements Minimum 640 FICO fr each brrwer n Cnfrming Lan Amunts Minimum 660 FICO fr each brrwer n High Balance Lan Amunts Nn-traditinal credit files are ineligible. All brrwers must have traditinal credit histry A detailed explanatin letter frm the brrwer(s) is required n all inquiries within the last 90 days that individually address the purpse and utcme f each. In sme instances, material verificatin may be required. Bankruptcy Chapter 7 Must be discharged fr 2 years Cannt have any husing delinquency r new dergatry credit related public recrd since discharge Chapter 13 Must be discharged fr 2 years Cannt have any husing delinquency r new dergatry credit related public recrd since discharge Freclsure, Deed in Lieu r Shrt Sale 3 years elapsed since cmpletin f Freclsure, Deed in Lieu r Shrt Sale The wait perid fr shrt sales can be waived if all the fllwing cnditins are met The lan was current at the time f the shrt sale The lan was paid n time in the 12 mnths preceding the shrt sale All ther installment debts were paid n time in the preceding 12 mnths All judgments must be paid in full-n payment plans allwed Disputed Accunts In additin t FHA plicy, the brrwer must address in writing the reasn fr any disputed accunts and any disputed accunts within 24 mnths, regardless f paid in full r zer balance require a minimum 680 FICO ASSETS/RESERVES Must adhere t FHA guidelines and Platinum Plicies lcated in the Crrespndent Seller Guide In additin t AUS requirements, a minimum 30 day bank statement r acceptable printut dated within 45 dates f applicatin is required. VOD as standalne dcumentatin is nt acceptable. DOWN PAYMENT ASSISTANCE INTERESTED PARTY CONTRIBUTIONS Dwn Payment Assistance Prgrams are eligible if prvided by a gvernment entity r agency. Evidence f the terms and prvider is required and must meet FNMA requirements. Maximum up t 6% Seller cntributins limited t discunt pints, seller paid clsing csts, prepaid expense, UFMIP (entire amunt f UFMIP) Page 4 f 11 Rev. 6/17/13

5 INCOME Must adhere t FHA guidelines and Platinum Plicies lcated in the Crrespndent Seller Guide If any brrwer is wrking fr a temprary agency, a minimum f 24 mnths wrk histry is required with the temprary agency in rder t cnsider incme fr qualificatin Verbal Verificatin f Emplyment Must be cmpleted within 10 business days prir t nte date fr all salaried brrwers Must be cmpleted within 30 days prir t the nte date fr all self-emplyed brrwers Brrwers in the military may prvide a military Leave and Earnings Statement dated within 30 days prir t the nte date in lieu f a verbal verificatin f emplyment NOTE: Platinum will re-verify prir t purchase Gvernment husing assistance such as Sectin 8 incme brrwers are ineligible In additin t AUS requirements, a cmpleted and signed IRS Frm 4506-T fr each brrwer n lan is required and the 2 mst recent years validated tax transcripts APPRAISAL REQUIREMENTS Must adhere t FHA guidelines and Platinum Plicies lcated in the Crrespndent Seller Guide Must cmply with the FHA Appraisal Independence Plicy Cnditin Rating f C5/C6 r a Quality Rating f Q6 is ineligible Flips 90 days r less, refer t FHA Flip 90 (FHA-F90) sectin f these guidelines Flips greater than 90 days, refer t Prperty Flip Plicy lcated in the Crrespndent Seller Guide. High Balance Lan Amunts: If a 2 nd appraisal is nt therwise required (i.e. flip), a minimum f a Desk Review frm a Natinal Appraisal Cmpany is required frm an appraiser with gegraphic cmpetence including cmp validatin n lans in declining market as identified by the appraiser n the appraisal reprt, r as verified by 3rd party data surces. Nte: Brrwer may nt be charged fr the Desk Review r 2nd appraisal Flips 90 days r less are ineligible MORTGAGE INSURANCE Fllw FHA guidelines MAX PROPERTIES Brrwer may nt have mre than 4 financed prperties including the subject prperty. Platinum limits its expsure t a maximum f 2 ttal prperties (includes all prperties with Platinum n any prgram) Page 5 f 11 Rev. 6/17/13

6 CAIVRS, LDP & GSA SEARCH Dcument the results n the FHA Lan Underwriting & Transmittal Summary (LT) A cpy f the FHA Cnnectin screen results fr all searches must be in the lan file CAIVR System Access FHA Cnnectin t check CAIVRS fr all brrwers n the transactin: brrwers, c-brrwers and c-signrs, if applicable If the name f any party t the transactin appears n any f the lists belw, the lan is nt eligible Limited Denials f Participatin (LDP) List Examine/Search the list fr all parties t the transactin: all brrwers including AKAs, sellers, listing and selling real estate agents and lan fficer. Gvernment Services Administratin's (GSA) Lists f Parties Excluded frm Prcurement fr Nn-Prcurement Prgrams Examine/Search the list fr all parties t the transactin: all brrwers including AKAs, sellers, listing and selling real estate agents and lan fficer. CASE NUMBER All files are required t have a valid case number and this must be entered int AUS fr valid findings Case numbers are attached t prperty addresses and nly ne case number can be assigned t a specific prperty at a time Ordering Case Numbers Sectin f the Act is 203(b) fr all prperty types including cnds All prperty types except cnds Enter 703 as the ADP cde n the Case Number Assignment Screen in FHA Cnnectin Cnds Enter 734 as the ADP cde n the Case Number Assignment Screen in FHA Cnnectin Site Cnds Enter 734 as the ADP cde and select Site Cnd drp-dwn bx n PUD/Cnd Indicatr Line f Case Number Assignment Screen Page 6 f 11 Rev. 6/17/13

7 COMMUNITY PROPERTY STATES List f Cmmunity Prperty States: Arizna Califrnia Idah Luisiana Nevada New Mexic Texas Washingtn Wiscnsin If prperty is lcated in a cmmunity prperty state, r the brrwer resides in a cmmunity prperty state, the fllwing requirements apply: A credit reprt fr the nn-purchasing spuse is required t determine any jint r individual debts. The spuse's authrizatin t pull a credit reprt must be btained. If the nn-purchasing spuse des nt have a scial security number, the credit reprting cmpany must rder a credit reprt with the nn-purchasing spuse's name, address, and date f birth (DOB). The scial security number filed must be left blank. The credit reprt shuld verify that the nn-purchasing spuse has n credit histry and n public recrds recrded against him/her The debts f the nn-purchasing spuse must be cnsidered in the qualifying ratis. All defaulted federal debt, pen judgments and liens, including thse f the nn-purchasing spuse, must be satisfied prir t r at clsing NOTE: Credit histry f the nn-purchasing spuse shuld nt be the basis fr declining the lan OTHER INSPECTIONS Wd Destrying Insects/Organism Requirements FHA n lnger mandates autmatic inspectins. Inspectins are required if: Evidence f active infestatin and/r termite damage Mandated by the state f lcal jurisdictin Custmary t the area Required per sales cntract Lender discretin Well and/r Septic Requirements Inspectins are required if: Appraiser ntes a prblem Mandated by the state f lcal jurisdictin Custmary t the area Required per sales cntract Lender discretin Prperty has been vacant fr an extended perid f time (generally in excess f 30 days) Page 7 f 11 Rev. 6/17/13

8 HIGHER PRICE MORTGAGE LOAN GUIDELINES (FHA30- HPML) Must be lcked under Prduct Cde: FHA30-HPML (30 year nly) Higher Priced Mrtgage Lan Disclsure must be signed as part f the applicatin dcuments Minimum 660 FICO fr all brrwers Cnfrming lan amunts nly 1 unit nly- SFR, PUD and FHA apprved cnd Purchase nly Max LTV factr/cltv rati: 96.5% N Subrdinate Financing, including DPA and cmmunity 2nds. Must pass all High Cst tests, including but nt limited t Agency, City, Cunty, State & Federal Validatin f the brrwer s ability t repay thrugh verificatin f incme, liabilities and assets in accrdance with full dcumentatin requirements Page 8 f 11 Rev. 6/17/13

9 FLIP 90 GUIDELINES (FHA- F90) Must be lcked under Prduct Cde: FHA30-F90 (30 year nly) The seller s date f acquisitin is the date that the seller has the pwer, under the law f the state in which the prperty is lcated, t transfer title t a buyer. The resale date is defined as the earliest date reflected n the sales cntract. Lans must adhere t FHA prperty flipping waiver and all Platinum Plicies lcated in the Crrespndent Seller Guide in additin t the belw criteria: Prperties Re-Sld r Title Changed Within the Mst Recent 90 Day Cnfrming lan amunts nly 1 unit nly- SFR, PUD and FHA apprved cnd Minimum 680 FICO Sales cntracts must be dated prir t 12/31/2014 NOTE: Sales cntracts must be executed after seller has taken title t the prperty If Less Than 20% Increase in Sales Price Abve Seller s Acquisitin Cst Requirements fr prperties re-sld r title changed within the mst recent 90 days: Title cmmitment evidencing seller is in title t prperty, including chain f title fr the previus 24 mnths f wnership: If chain f title des nt include prir sales price infrmatin, additinal dcumentatin will be required (i.e. cnveyance deed, tax recrds, HUD-1). Prperties with multiple transfers in the previus 12 mnths are ineligible Dcument transactin is arms-length; n identity f interest between buyer, seller OR ther parties participating in transactin (mrtgage cmpany, realtr, etc.). Prvide LOX signed by parties stating n relatinship. LLCs, crpratins r trusts that are serving as sellers must meet applicable State and Federal law. Prvide 3rd party lk-up fr LLC and/r Crpratin. Evidence prperty marketed penly and fairly via MLS r develper marketing prir t sales cntract date ("assignment f cntract sale" nt eligible). Appraiser cmments acceptable. NOTE: Fr Sale by Owner listing and auctin sales are ineligible. FHA appraisal with interir phts reflecting any recent imprvements described in the appraisal. If prperty imprvements nt perfrmed, appraiser t prvide apprpriate explanatin fr increase in prperty value since the prir title transfer. Repair-Imprvement List cmpleted by seller f all imprvements made t the prperty since acquisitin and the cst fr each OR appraisal t accurately describe in detail the imprvements made t the prperty: (e.g., updated kitchen is nt acceptable but updated kitchen with granite cuntertps, new cabinets, new sink and faucet, new hardwd flring, etc. will be acceptable). Page 9 f 11 Rev. 6/17/13

10 FLIP 90 GUIDELINES (FHA- F90), cntinued If 20% r Mre Increase in Sales Price Abve Seller s Acquisitin Cst Requirements fr prperties re-sld r title changed within the mst recent 90 days: Title cmmitment evidencing seller is in title t prperty, including chain f title fr the previus 24 mnths f wnership: If chain f title des nt include prir sales price infrmatin, additinal dcumentatin will be required (i.e. cnveyance deed, tax recrds, HUD-1). Prperties with multiple transfers in the previus 12 mnths are ineligible Dcument transactin is arms-length; n identity f interest between buyer, seller OR ther parties participating in transactin (mrtgage cmpany, realtr, etc.). Prvide LOX signed by parties stating n relatinship. LLCs, crpratins r trusts that are serving as sellers must meet applicable State and Federal law. Prvide 3rd party lk-up fr LLC and/r Crpratin. Evidence prperty marketed penly and fairly via MLS r develper marketing prir t sales cntract date ("assignment f cntract sale" nt eligible). Appraiser cmments acceptable. NOTE: Fr Sale by Owner listing and auctin sales are ineligible Repair-Imprvement List cmpleted by seller f all imprvements made t the prperty since acquisitin and the cst fr each OR bth appraisals t accurately describe in detail the imprvements made t the prperty: (e.g., updated kitchen is nt acceptable but updated kitchen with granite cuntertps, new cabinets, new sink and faucet, new hardwd flring, etc. will be acceptable. In additin t initial FHA appraisal with interir phts reflecting the recent imprvements described in the appraisal, a secnd FHA appraisal with interir phts reflecting the recent imprvements described in the appraisal is required. NOTE: The cst f the secnd appraisal may nt be charged t the brrwer. The lwer value will be used. If prperty imprvements nt perfrmed, bth appraisers must prvide apprpriate explanatin fr increase in prperty value since the prir title transfer including cmps clsed since previus sale if available. Hme/prperty inspectin rdered by Lender. Lender may charge brrwer fr inspectin. Inspectr cannt have any interest in the prperty r a relatinship with the prperty seller and cannt receive cmpensatin frm any party ther than the lender. Inspectr may nt be invlved with perfrming any repairs recmmended by the inspectin. At a minimum the inspectin must include: The prperty structure, including the fundatin, flr ceiling, walls and rf. The exterir, including siding, drs, windws, appurtenant structures (decks, balcnies, walkways and driveways). The rfing, plumbing systems, electrical systems, heating and air cnditins systems. All interirs and All insulatin and ventilatin systems, as well as fireplaces and slid fuel-burning appliances. Page 10 f 11 Rev. 6/17/13

11 FLIP 90 HIGHER PRICED MORTGAGE LOAN GUIDELINES (FHA30-90HP) Must be lcked as Prduct Cde: FHA30-90HP (30 year nly) Higher Priced Mrtgage Lan Disclsure must be signed as part f the applicatin dcuments. Minimum 660 FICO fr all brrwers Cnfrming lan amunts nly 1 unit nly- SFR, PUD and FHA apprved cnd Purchase nly Max LTV factr/cltv rati: 96.5% N Subrdinate Financing, including DPA and cmmunity 2nds. Must pass all High Cst tests, including but nt limited t Agency, City, Cunty, State & Federal Validatin f the brrwer s ability t repay thrugh verificatin f incme, liabilities and assets in accrdance with full dcumentatin requirement PRICING/RATES/LOCK Refer t Platinum Crrespndent website fr daily pricing and pricing plicies. Page 11 f 11 Rev. 6/17/13