Credit
– Minimum Credit score of 580

Salaried | Hourly Borrower(s)
– Verification of Employment or alternative income verification required to confirm borrower has income source at time of application (only one source of income required). This is required for borrower’s primary employment income only and not required for retired borrowers (of retirement age) or spouse.

Self-Employed Borrower(s)
– 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

Properties Listed for Sale
– Primary residence only |Limited Cash-Out | Cash-Out Refinance loans
-The subject property must be taken off the market on or before the loan closing date and the borrower must confirm their intent to occupy the subject property

Minimum Credit Score
– Minimum credit score of 580 required for all borrowers, regardless of Automated Underwriting decision

Minimum Loan Amount
– Minimum loan amount $125,000 for all property types

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

Mortgage rating
No mortgage lates accepted in the last 12 months. Borrower must have made all payments for 6 months prior to case # assignment.

Appraisal
– All appraisals must be completed by FHA-approved appraisers
– Appraisal must meet FHA minimum property requirements/standards (MPR/MPS)

Bankruptcy
– CH7 Bankruptcy requires 24 months seasoning from discharge date
– CH13 Bankruptcy requires 24 months worth of acceptable payments have been made

Foreclosure
– Minimum 36 months seasoning from completion

Subordinate Financing
– Existing subordinate financing may remain in place and must be re-subordinated. New subordinate financing is permitted only if proceeds are used to reduce the existing FHA insured principal amount or finance origination fees, other closing costs or discount points associated with the refinance.

Cash Back
– $500 maximum cash back allowed

Term
– Loan term must be the lesser of 30 years or the remaining term of the mortgage plus 12 years.

Units
– 3-4 unit properties require minimum 3 months PITIA + MIP in reserves (gift funds not allowed).

Tangible Benefit
– A Net Tangible Benefit determination is required for all transactions: A Net Tangible Benefit is a reduced combined rate, a reduced term, and/or change from an ARM to a fixed rate Mortgage resulting in a financial benefit to the borrower.