Conventional Lender Minimal Over-Lays

Assets

Ernest Money Deposit (EMD) Requirements

The condition "Purchase: Source & season Earnest Money Deposit in the amount of $XXXX is usually not required.

Stock and Mutual Funds Accounts one recent monthly or quarterly statement is required. There is no requirement for a 2-month history if a most recent one-month statement is provided.

Large Deposits on a Refinance Documentation or explanation for large deposits is not required, however, the lender remains responsible for ensuring that any borrowed funds, including any related liability, are considered.

Condo Detached and 2 to 4 Unit Projects FNMA does not require a project review for detached condo units or units in small projects of 2-4 units.

Credit & Letters of Explanation (LOE)

Address LOE If there is an address variation on the credit report there is no requirement for an LOE. If W2s, paystubs or other file data show a different address when the subject is owner-occupied that would warrant further investigation.

Cash Out LOE Not required. The Seller Guide Section B2-1.2-03 contains this verbiage "acceptable uses for cash out refinance transactions: taking equity out of the subject property that may be used for any purpose.

Inquiry LOE Not required for the submitting broker or their credit agency. Also not required for any new debts that appear on the credit report. Inquiries from utility companies do not need to be addressed.

Sales Price vs. Appraised Value LOE A letter from the borrower addressing the purchase of a property that has an appraised value less than the purchase price is NOT required.

Mortgage Ratings If the mortgage is rated on the credit report within 45 days of the application date, we DO NOT need condition for "Credit supplement to document all mortgages are current with no late payments through the month of closing".

Employment

Paystubs Only one paystub showing at least 30 days of YTD earnings is required. This means that a June 15 paystub with YTD is sufficient. If the paystub is January 15 and only shows two weeks of YTD pay, then we would require an additional paystub or the December paystub with the full year reflected.

P & L / Balance Sheets Not required unless we need to document income stability, such as the end of a negative income trend, these are an underwriter discretion. A Balance Sheet should never be required.

Signed 1040s or Signed Business Returns Signed tax returns are not required if tax transcripts are obtained. If we are using a "no record found" then signed returns are required for that year.

Teachers If a teacher qualifies with nine months of income divided over 12 months, then a written VOE to verify annual salary & number of months paid is not required.

Real Estate Owned

Non-Subject REO If the mortgage statement is recent and includes impounds, we do not need hazard and tax statements. OK to use the impound amount on the mortgage statement. Tax and HOI statements are always required on the subject property.

FHA (Federal Housing Administration)

Not all FHA Loans are Created Equally.

A government loan is an FHA  USDA Nearly all FHA lenders require a minimum 600 middle credit score, this program does not. This program does not have a Tradeline (credit report accounts) overlay or Debt-to-Income (DTI) overlay and does require Form 4506-T (IRS Transcripts) for W-2 Wage Earners. Cash Out OK to 85% Loan-to-Value (LTV)

Credit Scores

  • Minimum credit scores
  • 500 with Automated Approval - 1 Credit Score OK for Primary Borrower
  • 560 with Manual Underwrite - 1 Credit Score OK for Primary Borrower
  • Gift funds allowed

Property Types

  • Single Family Residence (SFR)
  • Manufactured Homes OK
  • Non-traditional credit (Rent, Utility Bills, etc) for Streamline Refinance OK

Escrow holdback REO - OK

  • Down payment
  • Closing cost

Manual underwrites & Blended Ratios - OK

Conventional

  • Fannie Mae Home Ready
  • Freddie Mac Home Possible
  • Fannie Mae DU Refi Plus
  • Freddie Mac Relief Refinance
  • Open access.
  • Escrow holdback allowed

Jumbo

  • $2,500,000 Maximum Loan Amount
  • 700 Credit Score Required
  • Terms:Maximum LTV - 80%
    • 30 Fixed Rate, Fully Amortized
    • ARM's
    • 5/1 ARM, Fully Amortized
    • 7/1 ARM, Fully Amortized
    • 3/1 ARM, Fully Amortized

VA

  • Cash out to 100%
  • Manufactured Homes OK
  • Credit:
    • 500 Minimum credit score with Automated Approval
    • 560 Minimum credit score with Manual Underwrite Approval
    • Foreclosures - 2 Years Seasoned
    • Short Sales - 2 Years Seasoned
    • Bankruptcy - 2 Years Seasoned

Non-Agency

Credit:

  • Alternative income documentation OK
  • 560 Minimum Credit Score
  • Foreclosures - 1 Year Seasoned
  • Short Sales - 1 Year Seasoned
  • Bankruptcy - 1 Year Seasoned
  • Loan Modification - 1 Year Seasoned
  • Terms
    • 30 Fixed Rate, Fully Amortized -10 year Interest-Only Available
    • ARM's
      • 5/1 ARM, Fully Amortized
      • 7/1 ARM, Fully Amortized
      • 3/1 ARM, Fully Amortized
  • Cash Out
    • Owner Occupied
    • Second-home
    • Non-Owner Occupied / Investment property

USDA.

  • Minimum Credit Score 580
  • 100% Maximum LTV
  • Manual Underwrites Available
  • No Maximum Loan Amount
  • USDA Streamlined Streamlined - assist
  • Cash Out Available
  • Manufactured Homes OK

Mortgage Pre Qualification Form - Credit Check Not Required

We are not in any way affiliated with FHA, VA, Fannie Mae, Freddie Mac, etc. However, If you need help with your down payment, here is a link to the official HUD (Housing of Urban Development) website for a list of downpayment assistance programs for each and all states.