Correspondent Guidelines Matrix

Transcription

1 Correspondent Guidelines Matrix October 8, 2013 Version 1.2 For any questions, please call your Account Executive at OK SUNWEST.

2 FHA: STANDARD AND JUMBO/HIGH BALANCE Loan Purpose FICO Maximum LTV 1 Maximum CLTV Maximum DTI % % 2 45%/55% Purchase % 96.50% 45%/55% % 90.00% 45%/55% Rate and Term Refinance % 97.75% 45%/55% % 97.75% 45%/55% % 90.00% 45%/55% Cash-out Refinance % 85.00% 45%/55% % 85.00% 45%/55% % 75.00% 45%/55% 1 Maximum LTV for 2-4 unit properties with non-occupying co-borrower is 75% (FHA B.3.d). LTV is determined by the base loan amount, excluding any financed mortgage insurance. 2 CLTV allowed is 105% for purchases, if using a Govt. Down Payment Assistance Program. 3 Ratios exceeding the 31%/43% for manual underwritten loan are acceptable with documented compensating factors ( F.2.b and c). 4 A non-occupying co-borrower may not be added for qualifying purposes on cash out refinance transactions ( B.2.c). Eligible Properties 1-4 Unit Properties Condominium (in FHA approved projects) and site-condos Manufactured Housing (Manufactured condos are not acceptable) Fixed Rate: 15, 20, 25 and 30 Years Adjustable Rate: 3/1 and 5/1 Significant Derogatory Waiting periods applicable as per FHA/AUS. Credit Events DU or LP Approve/Accept Underwriting Systems DU or LP Refer eligible, see Manual Underwriting Manual Underwriting & Eligible to FHA Lender-Insured (LI) correspondents. Non-traditional credit Reserves A minimum of three months of PITI reserves for 3-4 unit properties on all transactions. Gift and proceeds from loans are not acceptable source ( B.4.d). 2/1 Rate Buydowns Standard Loan Limits only Purchase Transactions only ( A.2.b) Fixed Rate 30-year only ( A.2.b) FHA Flip Waivers Eligible; must meet FHA s Flip Waiver requirements. A second appraisal is required when price increase exceeds 20%. Click here for the flip waiver requirements. Lender Insured (LI) Sun West recognizes lenders who have retained their LI status. Sun West will provide Correspondents greater flexibility and quicker purchase times. Non-Lender Insured (LI) Correspondents Correspondents who do not currently participate in FHA S LI program may experience an additional 3-5 day delay while loan is being reviewed for risk factors. The Mortgage Insurance Certificate may be required when Sun West determines a loan may have insuring issues. Sun West Mortgage Company, Inc. SW-1: Version 1.2 (Updated as of 10/8/2013) Page 1

3 FHA: 203(K) STANDARD AND 203(K) JUMBO/HIGH BALANCE REHABILITATION LOANS Loan Purpose FICO Maximum LTV 1,2 Maximum CLTV Maximum DTI 3 Purchase Rate and Term Refinance % 96.50% 45%/55% % 96.50% 40%/45% % 97.75% 45%/55% % 97.75% 40%/45% 1 Purchase Transactions mortgage basis, lesser of: As-is value plus rehabilitation cost or purchase price plus rehabilitation cost, OR 110% of after-improved value (100% for condominiums including site-condos) Refinance Transactions mortgage basis, lesser of: Existing debt plus rehabilitation cost plus prepaid and closing cost, OR 97.75% of as-is value plus rehabilitation costs, OR 110% of after-improved value (100% for condominiums including site-condos) 2 Maximum LTV for 2-4 unit properties with non-occupying co-borrower is 75% (FHA B.3.d) LTV is determined by the base loan amount, excluding any financed mortgage insurance. 3 Ratios exceeding the 31%/43% for manual underwritten loan are acceptable with documented compensating factors ( F.2.b and c). Eligible Properties 1-4 Unit Properties Condominium (in FHA approved projects) and site-condos Manufactured Housing (Manufactured condos are not acceptable) Underwriting Systems Significant Derogatory Credit Events Reserves Additional Guidebook Loan Amount Limitations Fixed Rate: 15, 30 Years DU or LP Approve/Accept. Waiting periods applicable as per FHA/AUS. A minimum of three months of PITI reserves for 3-4 unit properties on all transactions. Gift and proceeds from loans are not acceptable source ( B.4.d) Sun West Mortgage 203(K) Reference Non-Streamline 203(K): Repairs allowed up to 50% of the loan amount. (For repair amount constituting more than 40% of loan amount, max. LTV will be 100% calculated at after improved value.) FICO Restrictions Streamline 203(K): The maximum rehab amount is $35,000 and will include at least 2 Inspection Fee draws, 2 title updates, and a 15% contingency reserve. 680 FICO Score if either: rehabilitation amount is greater than 40% of loan amount calculated at after improved value, or rehabilitation includes additions and utility replacement and/or reconditioning. Sun West Mortgage Company, Inc. SW-1: Version 1.2 (Updated as of 10/8/2013) Page 2

4 Types of Repairs that are eligible for a 203(K) loan Non-Streamline 203(K): Roof replacement, health and safety hazard mitigation, landscaping required to mitigate drainage or erosion issues, aesthetic landscaping when appraiser verifies that the value increases the dollar-for-dollar cost, sidewalk/driveway repair necessary for home access, major repair of termite damage, drywall/insulation replacement, most repairs which require permits, finishing basements. Egress window wells for basements will be admissible. Structural and Foundation work will be permitted as long as the Contractors insurance coverage is sufficient (normally general liability insurance coverage of 1,000,000/each occurrence will be acceptable). Streamline 203(K): Cosmetic Repairs such as financing purchase/installation of new appliances; patching holes; replacing doors; painting; lead paint abatement; new counters, cabinets, windows, carpet (subfloor repair requires Non-Streamline 203(K); repair/installation of HVAC; weatherization; minor repair of termite damage. The property should be inhabitable at the time of loan closing. Requirement of Home Inspection Note: For Manufactured Housing, only non-structural repairs or additions are allowed. A complete home inspection is required for all REO and vacant properties and for properties with repair amounts exceeding $15,000. REO and vacant properties are eligible under streamline 203(K); however, underwriter may advise about requirement of consultant depending on the scope of work. Home inspectors may not be an interested party, including the 203(K) consultant. The Inspector must be approved by The American Society of Home Inspectors ( or National Association of Home Inspectors, Inc. ( 203(K) Consultant & Contractors 203(K) Self-Help Exclusions on a 203(K) loan Supplemental Origination Fee Home inspections are not required for transactions using the services of RenovationReady ( SWMC must approve the use of all parties involved, including the consultant and contractor as applicable. Not allowed. Streamline 203(K): Upfront draws are only available for documented material costs (with receipts or invoices). If the contractor is bonded, documenting material cost is not required to obtain an upfront material draw. Draws may not exceed 50% of the total rehabilitation amount. If no draw is required, contractor must provide certification that no initial draw is necessary and that he/she has available funds to complete the cost of rehabilitation. Geographic Restrictions: Sun West currently does not offer FHA 203(K) in the state of TX. 1.5% of Rehabilitation Amount or $350, whichever is greater, must be charged. Sun West Mortgage Company, Inc. SW-1: Version 1.2 (Updated as of 10/8/2013) Page 3

5 Additional Forms and Work Exhibits Requirements Consultant, if applicable Specification of Repairs and Work Write-up exhibits must itemize material and labor costs. Consultant s Identity of Interest Master Draw Request (HUD-9746a) Contractor Work Write-up exhibits must itemize material and labor costs. Completed IRS-W9 License, E&O and/or Liability Insurance valid until rehabilitation is completed Contractor Profile Form Information for Contractors form Homeowner and Contractor Agreement Evidence of Assets or Sufficient Lines of Credit (VOD, Bank Statements, Credit lines etc.) to reasonably cover cost of material for rehabilitation. Draw request time line is taken into consideration. Not required when initial draw is provided on 203(K) streamline, see Exclusion on 203(K) loan section above. Borrower Borrower Identity of Interest Certification must be signed and dated by borrower(s), Consul 203(K) Borrower Acknowledgement must be signed, dated and completed by borrower(s). Conference call with borrower to be completed by SWMC. Additional Guidelines LandSafe Title is not acceptable as the title company FHA Flips are not acceptable with the 203(K) loan 2/1 Rate Buydown Standard Loans Limits only Purchase Transactions only ( A.2.b) Fixed Rate 30-year only ( A.2.b) Sun West Mortgage Company, Inc. SW-1: Version 1.2 (Updated as of 10/8/2013) Page 4

6 FHA: STREAMLINE REFINANCE STANDARD AND JUMBO/HIGH BALANCE Maximum Maximum 3 Loan Purpose Minimum FICO 1 Maximum DTI LTV CLTV Streamline Refinance Non-Credit Qualifying 0 N/A 97.75% % without appraisal Credit-Qualifying %/55% Streamline Refinance Credit-Qualifying % % 45%/55% with appraisal Streamline refinance without appraisal Maximum Loan Amount: cannot exceed the lessor the outstanding principal balance and interest due, minus applicable refund of the UFMIP, plus the new UFMIP that will be charged on the refinance or the original loan balance LTV / CLTV: LTV/CLTV for FHA Streamline Refinance is based on the original appraised value reporting in FHA Connection. Streamline refinance with appraisal Maximum loan amount: A credit qualifying streamline with appraisal may be used to increase the loan amount not to exceed 97.75%. (FHA C) LTV/CLTV: Based on new appraisal ordered in conjunction with the transaction. 1 The maximum accessible credit limits must be used when considering HELOCs (FHA C.2). 2 A credit-qualifying streamline is required when a change in the mortgage term will result in an increase in the mortgage payment of more than 20% when deletion of a borrower or borrowers will trigger the due-on-sale clause following the assumption of a mortgage that - occurred less than six months previously, and - does not contain restrictions (i.e. due-on-sale clause) limiting assumption only to a creditworthy borrower, or - following the assumption of a mortgage that occurred less than six months previously, and - did not trigger the transferability restriction (that is, the due-on-sale clause), such as in a property transfer resulting from a divorce decree or by devise or descent. 3 Ratios exceeding the 31%/43% for manual underwritten loan are acceptable with documented compensating factors ( F.2.b and c). Eligible Properties 1-4 Unit Properties Condominium and site-condos Manufactured Housing (Manufactured condos are not acceptable) Fixed Rate: 15, 30 Years Adjustable Rate: 3/1 and 5/1 Occupancy Owner-occupied only. Mortgage Late None in the past 12 months Payments Modified Mortgages Mortgages that have been modified or have participation in any Loss Mitigation programs are ineligible for Streamline Refinance. AUS is not applicable on streamline refinance loans. All loans are manually underwritten. Underwriting Systems Reserves A minimum of three months of PITI reserves for 3-4 unit properties on all transactions. Gift and proceeds from loans are not acceptable source ( B.4.d) Funds Required To If funds are needed to close, the borrower must have the assets to be utilized in Close accordance with FHA s standards (e.g. 2 months of bank statements) C.3.a Maximum Term Lesser of 30 years or the remaining terms of the mortgage plus 12 years. ( C.2.b) Verbal Verification of Employment (VOE) For non-credit qualifying refinances, at least one borrower must be employed at time of closing. If a VOE cannot be obtained, alternative income documentation is acceptable to support an active source of income, such as: SSA Award letter / Pension letter 1099 or Tax Returns for other types of income Divorce Degree or Child Support Statement customers. All loans are subject to approval. Certain restrictions may apply. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice. Sun West Mortgage Company, Inc. (NMLS ID 3277) is licensed by the Department of Corporations as a California Finance Lender (License # ) and is licensed by the Department of Real Estate (License # ). Refer to to see where SWMC is a licensed lender. In all states, the principal licensed office of Sun West Mortgage Company, Inc. is 18303, Gridley Road in Cerritos, CA Sun West Mortgage Company, Inc. SW-1: Version 1.2 (Updated as of 10/8/2013) Page 5

7 VA: STANDARD AND JUMBO/HIGH BALANCE Loan Purpose FICO Maximum LTV 1 Maximum CLTV Maximum DTI Purchase % % 45%/55% Cash-out Refinance % % 45%/55% 1 LTV is determined by the base loan amount, excluding any financed funding/guaranty fees. 2 Cash-out refinance is considered even with the borrower is not obtaining any cash back. Properties owned free and clear are not eligible. Eligible Properties 1-4 Unit Properties Condominiums Manufactured Housing (Manufactured condos are not acceptable) Significant Derogatory Credit Events Underwriting Systems Manual Underwriting & Non-traditional Credit Entitlement Fixed Rate: 15, 20, 25 and 30 Years Adjustable Rate: 3/1 and 5/1 Waiting periods applicable as per VA/AUS. DU or LP Approve/Accept DU or LP Refer eligible, see Manual Underwriting Eligible for correspondents with net worth exceeding $5,000,000 based on most recent year financial statements VA Guaranty plus cash/equity must be equal to at least 25% of the purchase price or Notification of Value (NOV), whichever is less. Veteran must have full entitlement available or additional down payment may be required. Note: The percentage and amount of guaranty is based on the loan amount including the funding fee portion when the fee is paid from loan proceeds. 2/1 Rate Buydowns Allowed Sun West Mortgage Company, Inc. SW-1: Version 1.2 (Updated as of 10/8/2013) Page 6

8 VA: IRRRL STANDARD AND JUMBO/HIGH BALANCE Loan Purpose Minimum FICO Maximum LTV 2 Maximum CLTV 2 Maximum DTI 4 IRRRL 1 Non-Credit Qualifying 500 N/A % N/A Credit-Qualifying %/55% 1 Maximum loan amount for a VA IRRRL is: existing VA loan balances plus late payments and late charges, plus allowable fees and charges (includes up to two discount points), plus the VA funding fee. 2 For LTV purposes, a conventional appraisal or AVM may be used to determine the ratio. If an appraisal is ordered, it must be ordered from an approved AMC or directly from Sun West Vendor Order system. AVMs are acceptable from RELS, CoreLogic or Interthinx. AVMS are acceptable when a value reflects a high or medium confidence rating (FSD.20 or less). 3 A credit-qualifying IRRRL is required when Loan being refinanced is 30 days past due Monthly PITI will increase 20% or more 4 Ratios exceeding VA s benchmark must be within VA s tolerances. Eligible Properties 1-4 Unit Properties Condominium and site-condos Manufactured Housing (Manufactured condos are not acceptable) Fixed Rate: 15, 30 Years Adjustable Rate: 3/1 and 5/1 Occupancy Underwriting Systems Verbal Verification of Employment (VOE) Lesser of the original term of the VA loan being refinanced plus 10 years or 30 years (VA Pamphlet 26-7, Chapter 6.1.i) Owner-occupied only. AUS is not applicable on IRRRL refinance loans. All loans are manually underwritten. For non-credit qualifying refinances, at least one borrower must be employed at time of closing. If a VOE cannot be obtained, alternative income documentation is acceptable to support a borrower has an active source of income, such as: SSA Award letter / Pension letter 1099 or Tax Returns for other types of income Divorce Degree or Child Support Statement Sun West Mortgage Company, Inc. SW-1: Version 1.2 (Updated as of 10/8/2013) Page 7

9 VA MEGA JUMBO LOAN PROGRAM The client needs to be approved for this loan program. Please contact your AE for further details. Loan Purpose Minimum FICO 2 Maximum DTI Purchase / Cash-Out Refinance 1 $1.5 M %/40% > $1.5 M $3.0 M Not available in Texas 2 Non-traditional credit is not allowed. 2 If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report, then the borrower is ineligible. Eligible Properties Attached / Detached SFRs Note: Property cannot be vested in the name of trust Fixed Rate 25 years and 30 years Adjustable Rate 5/1 (Please refer the Underwriting Guide for eligible Interest Adjustment dates on ARMs) Occupancy Owner-occupied properties only Note: Properties converted to a rental property, even temporarily while borrower is on active duty, are not considered owner-occupied. LTV / CLTV Purchase Loan Amount LTV CLTV Less than or equal to $1.0 Million (85% / 85% for all areas except those in Market Recovery Area List) 90% NA Greater than $1.0 Million but Less than or equal to $1.5 Million (80% / 80% for all areas except those in Market Recovery Area List) 85% NA Greater than $1.5 Million but Less than or equal to $2.0 Million (75% / 75% for all areas except those in Market Recovery Area List) 80% NA Greater than $2.0 Million but Less than or equal to $3.0 Million (70% / 70% for all areas except those in Market Recovery Area List) 75% NA Cash-Out Refinance Loan Amount LTV CLTV Less than or equal to $1.0 Million (80% / 80% for all areas except those in Market Recovery Area List) 85% NA Greater than $1.0 Million but Less than or equal to $1.5 Million (75% / 75% for all areas except those in Market Recovery Area List) 80% NA Greater than $1.5 Million but Less than or equal to $2.0 Million (70% / 70% for all areas except those in Market Recovery Area List) 75% NA Greater than $2.0 Million but Less than or equal to $3.0 Million (65% / 65% for all areas except those in Market Recovery Area List) 70% NA Appraisal Less than or equal to $1.5 Million: 1 Full appraisal ordered by Sun West Mortgage. Greater than $1.5 Million but Less than or equal to $3.0 Million 2 Full appraisals ordered by Sun West Mortgage. Appraiser's Condition and Quality of Construction Properties with a condition rating of C5: As is condition is not acceptable unless deficiencies that caused the rating and/or hypothetical condition are completed prior to closing. Properties with a condition rating of either C6 or Q6 are ineligible. Approval Type DU Approve/Eligible or LP Accept/Eligible only. Manual underwriting is not Sun West Mortgage Company, Inc. SW-1: Version 1.2 (Updated as of 10/8/2013) Page 8

10 acceptable. Self Employed Allowed Mortgage Housing Lates None in the last 36 months on any mortgage. Collection Accounts Housing-expense related collection accounts within 24 months are not allowed Housing Payment Subject to SWMC approval. Shock Subordinate Financing Not Allowed Loan Amount Properties Located in Minimum Total Loan Amount* 48 Contiguous States Refer Maximum County Limits Alaska and Hawaii Refer Maximum County Limits *Click Here for County limits Minimum VA Entitlement Maximum Total Loan Amount $3,000,000 $3,000,000 Note: Total Loan Amount includes financed guarantee fees For Cash-Out Refinance: o Funds may only be used to pay for existing liens, prepaids and closing costs o Borrower is not permitted to get more than $500 as cash proceeds. VA Guaranty plus cash/equity must be equal to at least 25% of the purchase price or Notification of Value (NOV), whichever is less Veteran must have full entitlement available or additional down payment may be required. Note: The percentage and amount of guaranty is based on the loan amount including the funding fee portion when the fee is paid from loan proceeds. Minimum Reserves Less than or equal to $1.5 Million: 6 months PITIA Greater than $1.5 Million but Less than or equal to $3.0 Million: 12 months PITIA Additional 3 months PITI reserves for every investment property Flip Waiver Permitted, please see flip guidelines in the VA product guidelines. Escrow Holdback for Minor Repairs Market Recovery Area List Not allowed CA Counties: Contra Costa, Los Angeles, San Benito, San Francisco, San Mateo, Santa Clara, Alameda, Marin, Orange HI Counties: Hawaii, Honolulu, Kalawao, Kauai, Maui MD Counties: Prince George's, Calvert, Charles, Frederick, Montgomery NJ Counties: Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union NY Counties: New York, Bronx, Kings, Nassau, Putnam, Queens, Richmond, Rockland, Suffolk, Westchester Refer the Underwriting Guide for details on departure policy Departure Policy Locks on this program are allowed upon underwriting approval only Sun West Mortgage Company, Inc. SW-1: Version 1.2 (Updated as of 10/8/2013) Page 9

11 USDA: RURAL HOUSING Loan Purpose FICO Maximum LTV 1 Maximum CLTV Maximum DTI Purchase, Rate and Term Refinance % % 36%/50% 1 LTV basis excludes any financed guaranty fees. Eligible Properties 1-Unit Properties Condominium Manufactured Housing (New construction only) Significant Derogatory Credit Events Underwriting Systems Gift Funds Maximum Number of Properties Financed Non-occupying Coborrower Subordinate Financing Subject property must be in an eligible area, Click Here for USDA s property eligibility Fixed 30 year None in the last four years. A significant event includes bankruptcies, foreclosures (including mobile homes), deedin-lieu of foreclosure and short sales. Eligible GUS Approval; Manual underwriting is acceptable when Loan Note Guarantee is provided prior to purchase. Non-traditional credit is not acceptable. 1 (inclusive of subject). Not allowed Not allowed 2/1 Rate Buydowns Allowed Sun West Mortgage Company, Inc. SW-1: Version 1.2 (Updated as of 10/8/2013) Page 10