CONVENTIONAL
Loan Guidelines

All loans must be underwritten by the Fannie Mae desktop underwriter system or the Freddie Mac Loan prospector advisor and receive an Approve/Eligible (Fannie Mae) or an Accept/Eligible (Freddie Mac)
– Manual underwriting not permitted
– Purchase | Rate and Term refinance | Cash-out refinance
– Minimum Credit score of 620

Salaried | Hourly Borrowers
– Two-year employment history must be documented via the two most recent tax returns
– Previous two years W-2s
– Recent paystubs to illustrate earnings for the previous 30 days

Self-Employed
– Business must have been in existence for at least two years
– Personal signed individual tax returns as well as the corporate or partnership tax returns for the two most recent tax periods

Multiple Financed Properties
– Primary residence loan- No limits to the number of financed properties
– 2nd Home | Investment property- maximum 10 financed properties

Student Loans
– Underwriting may use the payment on a current credit report or a recent statement for qualifying purposes
– Otherwise 0.5% of the outstanding loan balance reported on the credit report will be calculated to determine the monthly obligation

Qualifying Ratios
– Current guidelines refer to the Fannie Mae or Freddie Mac automated underwriting response
– Traditional guidelines are typically capped at 45-50%% maximum debt to income

Rental Income
– Will be determined by the supplemental income/loss reported on the respective Schedule E from the two previous tax periods

Reserves
– Based upon the Fannie Mae or Freddie Mac automated underwriting response
– Typical reserves is 0-6 months for Owner occupied, 6 months for 2nd Home and Investment

Appraisal
– All loans will require a traditional Fannie Mae form 1073 | Freddie Mac form 465 appraisal report, unless the automated underwriting indicates that a valuation documentation will not be required with what is commonly know as an appraisal waiver or property inspection waiver