FHA OVERLAY MATRIX. A Closing Protection Letter (CPL) is required

Transcription

1 This dcument is a summary f mst Platinum Hme Mrtgage guideline verlays and FHA requirements. This dcument shuld be used as a reference tl in cnjunctin with the Crrespndent Seller Guide and is nt meant t be used as a replacement t the published guidelines. ALL FHA LOAN PRODUCTS (APPLY TO ALL PRODUCTS, IN ADDITION TO THE SPECIFIC OVERLAYS LISTS FOR THE DIFFERENT PRODUCTS) APPRAISAL Appraiser must carry E&O Insurance Cnditin Rating f C5/C6 r a Quality Rating f Q6 is ineligible ASSETS A written VOD cannt be standalne dcumentatin. A minimum ne mnth's bank statement r acceptable bank print-ut is required n all lans regardless f AUS decisin when a written VOD is used. CHAIN OF TITLE 12 mnth chain f wnership n title required. If prperty is a flip transactin, 24 mnth chain f wnership n title required CLOSING PROTECTION LETTER A Clsing Prtectin Letter (CPL) is required CREDIT Nn-traditinal credit is nt permitted. A detailed explanatin letter frm the brrwer(s) is required n all inquiries within the last 90 days f the credit reprt date that individually address the purpse and utcme f each. In sme instances, material verificatin may be required. Chapter 13 Bankruptcy must be discharged/dismissed fr 2 years Chapter 7 r Chapter 13 Bankruptcy cannt have any husing delinquency r new public recrd since discharge Back t Wrk Prgram is ineligible DISPUTED ACCOUNTS Disputed accunts within the mst recent 24 mnths, regardless if paid in full r zer balance require a minimum 680 FICO DOWN PAYMENT ASSISTANCE Dwn Payment Assistance Prgrams are eligible if prvided by a gvernment entity r agency ESCROW HOLDBACKS Nt allwed unless cmpleted prir t purchase (Des nt apply t 203(K) lan) EXCESSIVE VALUE FLAG ON AUS A desk review frm a Natinal Appraisal cmpany is required frm an appraiser with gegraphic cmpetence including cmp validatin FICO Minimum 640 FICO fr all brrwers FLIPS Flip transactins 90 days r less, refer t requirements in FHA Fixed Guidelines Sectin FHA-F90 and minimum 680 FICO required Flip transactins 91 days t 12 mnths, refer t the Prperty Flipping Plicy lcated in the Crrespndent Seller Guide 30 Year fixed rate nly HUD REO $100 dwn prgram is ineligible (Des nt apply t 203(K) lan Gd Neighbr Next Dr is ineligible (Des nt apply t 203(K) lan) INCOME A written VOE cannt be standalne dcumentatin. A YTD day paystub with 30 days f YTD earnings is required n all lans, regardless f AUS decisin Gvernment husing assistance such as Sectin 8 incme brrwers are ineligible Page 1 f 5 Rev. 12/19/13

2 INCOME-4506T IRS frm 4506T must be prcessed and incme validated fr a minimum f the mst recent 2years thrugh tax transcripts. A signed 4506T is required at applicatin AND at clsing. INELIGIBLE FINANCING Buydwns, and Lans clsing in trust Auctin sales and Energy Efficient Mrtgages (Des nt apply t 203(K) lans) MAX PROPERTIES Limit f 4 financed prperties regardless f ccupancy. Platinum limits its financing expsure t a maximum f 2 ttal prperties (includes all prperties with Platinum n any prgram) PROPERTIES LISTED FOR SALE On refinances, if prperty listed within the mst recent 12 mnths prir t the lan applicatin date; prvide canceled listing and a letter f explanatin frm the brrwer. Must be ff the market a minimum f 30 days prir t applicatin date PROPERTY TYPES C-ps, Cndtels, Nn-warrantable cnds, Lg hmes, unimprved land with prperty currently in litigatin, Gedesic hmes, and prperties with re-sale deed restrictins are ineligible. Leasehlds are ineligible fr nn-delegated lenders Manufactured Hmes: Refer t FHA Manufactured Hme sectin f this matrix RATIOS Maximum 50% DTI n 1 unit with an AUS Apprve/Accept Maximum 45% DTI n 2-4 unit prperties with an AUS Apprve/Accept RENTAL INCOME A family member, an individual with an established relatinship, r an interested party t the transactin may nt execute the lease agreement Three (3) cnsecutive mnths cancelled checks r bank statements required, verifying evidence f receipt f rental incme, if using rent t qualify n rental prperties acquired subsequent t the mst recent tax year filing STATE RESTRICTIONS Texas 50(a)(6) cash ut refinances are ineligible Illinis Land Trust Vesting s are ineligible New Jersey 2-4 prperties are ineligible (Des nt apply t 203(K) lan) UNDERWRITING Must be submitted t FHA TOTAL screcard via DU/LP and receive Apprve/Accept recmmendatin. Refer recmmendatins and manual dwngrades are nt permitted UNPERMITTED ADDITIONS Refer t the Unpermitted Additins and Cnversins Plicy lcated in the Crrespndent Seller Guide. VACATING PRIMARY RESIDENCE POLICY A letter is required, written and signed by the brrwer, regarding their mtivatin and intent t ccupy the new subject prperty alng with third party supprting dcumentatin VERBAL VOE 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 Page 2 f 5 Rev. 12/19/13

3 FHA HIGH BALANCE LOANS APPRAISAL A desk review frm a Natinal Appraisal cmpany is required frm an appraiser with gegraphic cmpetence including cmp validatin n lans in a declining market as identified by the appraiser n the appraisal reprt, r as verified by 3 rd party data surces. FICO Minimum 660 FICO fr all brrwers FLIPS Flip transactins 90 days r less are ineligible 30 year fixed rate nly PROPERTY TYPES Manufactured Hmes are ineligible RATIOS Maximum 45% DTI n 1 unit High Balance Lan amunts SECONDARY FINANCING Maximum CLTV is capped at FHA maximum LTV requirement FHA STREAMLINE NON-CREDIT QUALIFY NO APPRAISAL CREDIT A tri-merged in-file credit reprt is required fr all brrwers. Requires 0X30 lates in the last 12 mnths n any mrtgage assciated with the subject prperty. FICO Minimum 720 FICO fr all brrwers Ineligible INCOME Refer t FHA Streamline Nn- Credit Qualify N Appraisal Guidelines fr dcumentatin requirements fr emplyment, passive incme and ther incme types. Tw years emplyment histry must be listed n lan applicatin Must cmply with any applicable city, cunty, and state incme requirements regarding brrwer s ability t repay PROPERTY TYPES 3-4 Units and Manufactured Hmes are ineligible SECONDARY FINANCING Maximum CLTV is capped at 100% FHA 203K STREAMLINE AND STANDARD FICO Minimum 640 FICO fr each brrwer n 1-2 unit prperties n Cnfrming lan amunts Minimum 660 FICO fr each brrwer n 1-2 unit prperties n High Balance lan amunts Minimum 680 FICO fr each brrwer n 3-4 unit prperties n Cnfrming lan amunts FLIPS Flip transactins 90 days r less are ineligible if the sales price increase is 20% r greater frm the seller acquisitin cst PROPERTY TYPES 3-4 units are ineligible n High Balance lan amunts Manufactured Hmes: Refer t FHA Manufactured Hme sectin f this matrix Page 3 f 5 Rev. 12/19/13

4 RENOVATION ITEMS Minimum10% cntingency required n all lans Self- help r brrwer acting as the general cntractr is generally ineligible. Refer t FHA 203(K) Guidelines fr cnsideratins. FHA SHORT PAYOFF REFINANCE CREDIT 12 mnth satisfactry mrtgage payment histry with 0 X 30 day lates required Disputed accunts (either paid in full r with an unpaid balance) are ineligible. All disputed accunt must be cleared frm the brrwer s credit reprt and lan re-scred thrugh TOTAL. Credit supplements may nt be utilized. FICO Minimum 680 FICO fr all brrwers PROPERTIES LISTED FOR SALE Must be ff market a minimum f 90 days prir t the applicatin date PROPERTY TYPES 3-4 Units and Manufactured Hmes are ineligible RATIOS Maximum 35%/48% ratis regardless f AUS Apprval SECONDARY FINANCING If payments are required, they must be included in the qualifying ratis, regardless if deferred UNDERWRITING Eligible n Delegated Lans nly Mrtgage lans in a Trial Payment Perid as described in ML 12-5 are ineligible FHA MANUFACTURED HOMES ASSETS AUS dcumentatin waivers are NOT eligible. Assets must be dcumented using Full/Alt dc as detailed in the Assets dcumented with VOD and 30 day bank statement with n verdrafts OR 60 days bank statements with previus and current balance with n verdrafts Tw mnths reserve required If payment shck % Three mnths reserve required OR 10% dwn payment If payment shck exceeds 100% CO-BORROWERS Nn ccupying c-brrwers are ineligible CREDIT At least 3 satisfactry traditinal trade lines reprting fr a minimum f 12 mnths with activity in mst recent 24 mnths. 12 mnth satisfactry verificatin f rent/mrtgage required reprting n late payments in last 12 mnths. If landlrd is a management cmpany, VOR r credit supplement is acceptable. If landlrd is a private party, 12 mnths canceled checks required. If brrwer des nt have a dcumented husing payment, refer t additinal reserve requirements in Asset sectin Disputed accunts (either paid in full r with an unpaid balance) are ineligible. All disputed accunts must be cleared frm the brrwer s credit reprt and new credit reprt btained. New credit reprt must be submitted thrugh TOTAL Screcard. Chapter 13 Bankruptcy requires 2 year seasning frm discharge/dismissal date Paying ff r paying dwn f debt t qualify is nt allwed DOWN PAYMENT ASSISTANCE Ineligible FICO Minimum 660 FICO fr each brrwer with maximum 31%/43% ratis Minimum 680 FICO fr each brrwer with maximum 35%/48% ratis Page 4 f 5 Rev. 12/19/13

5 FLIPS Flips less than 91 days are ineligible HUD REO Ineligible INCOME AUS dcumentatin waivers are NOT eligible. Incme must be dcumented using Full/Alt dc as detailed in the INELIGIBLE FINANCING Cash-Out Refinances and Streamline Refinances, MAX PROPERTIES Maximum ne financed prperty (including subject prperty). Exceptins may be cnsidered n a case-by-case basis by Crrespndent Underwriting. PROPERTIES LISTED FOR SALE On refinances, if previusly listed fr sale, must be ff the market a minimum f 90 days prir t the applicatin date PROPERTY TYPES Single wide, Cnd Prjects, New cnstructin, Cnstructin t Perm lans, and prperties with less than 700 square feet are ineligible RATIOS Maximum 31%/43% ratis regardless f AUS Apprval n FICO s Maximum 35%/48% ratis regardless f AUS Apprval n FICO s >= 680 SECONDARY FINANCING Ineligible UNDERWRITING Eligible n Delegated Lans nly AUS dcumentatin waivers are NOT eligible. Assets, credit and incme must be dcumented using Full/Alt Dc guidelines as detailed in the Page 5 f 5 Rev. 12/19/13