- Require only one FICO for each borrower and an AUS approval
- DU or LP Permitted
- Gift Funds: only copy of donor’s check required if funds are in borrowers account at submission or sent to title (FHA requires bank statements)
- 2016 Expenses Not Counted: OK when bonus, OT & commissions are less than 25% of qualifying income
- Delayed Financing: Cash out with less than 6 months ownership is OK for owner or non-owner loans
- Asset Depletion: Permitted from employment assets (Fannie Mae & Jumbo Expanded)
- Accessory Unit Income: Can be used on HomeReady program (Fannie Mae)
- Max Financed Properties: Up to 10 financed properties on investment and second homes for conforming Fannie Mae loans with a 720 FICO. For primary loans there is no limit to the number of financed properties owned
- Conventional 97% Program: For first time homebuyers or no property owned in the past 3 years. The 3% down payment can be a gift.
Government
- DELRAP & HRAP FHA-approval done in-house
- USDA permitted with 620+ FICO
- Standard and Streamline FHA & VA down to 580 FICO
Jumbo
- Fixed to $2.5M
- One Appraisal Required: Up to $1.5M for low LTV/CLTVs
- Max 89.9% LTV: Up to $1.5M on 5/1 Expanded
- Employment Asset Depletion: Permitted on 5/1 Expanded
- Interest Only 5/1 ARM: Up to $2.5M with residual income
Affordable Lending — New HomeReady Program
- Reduced MI coverage available
- LLPAs Waived: Credit scores >680
- Flexible Sources of Income: Non-occupant co-borrower, accessory unit, boarder income or rental income
- Other household income may count as compensating factor
- No minimum borrower contribution required for purchases of SFRs
- Gifts, grants, community seconds or cash-on-hand may be used