HOME EQUITY LOAN
Underwriting Guidelines

Loan Purpose
Standalone 2nd lien refinance transactions only.

Occupancy
Primary residence.

Loan Term
Fixed rate 10, 15, 20, and 30-year terms only.

Existing subordinate liens
Must be paid off through this transaction.

Credit Report
Must be dated within 4 months of the note date.

Appraisal
A full appraisal is required for the following:
– Loan amounts >$250,000
– Properties >10 acres < 20 acres
– Texas (a)(6) transactions

Underwriting
All loans are manually underwritten; Automated Underwriting is not utilized.

Mortgage Payment History
– Mortgage payment history must reflect 0x30x24, or since inception, for all of the borrower(s) mortgages.
– The credit report must contain the entire mortgage payment history. If the report covers activity for the previous 24 months or longer the credit report may be relied on for verification.

W-2 Income
– Most recent pay stub covering at least 30 days YTD income.
– Most recent 1-year W-2.
– Verification of employment dated within 10 business days of the note date.

Self-Employed Income
– Most recent one-year signed complete tax return (all pages & schedules).
– The existence of the borrower’s business must be verified within 120 calendar of the note date.

All borrowers obligated on the first lien mortgage (note) must be obligated on the subject transaction, with the following exceptions:
– Death of a borrower (death cert required).
– Divorce (divorce decree required).
– Legal separation (legal separation agreement or separation agreement approved by the court required).

The property must have been purchased or acquired by the borrower at least 12 months prior to the disbursement date of the new mortgage.

Must not have a prior cash-out on the subject property in the last 12 months measured from original note date to new CES note date.

A copy of the note for the first lien mortgage is required