florida

PRODUCT GUIDELINES
VA STANDARD and HIGH BALANCE PROGRAM 
PROGRAM CODE: V30F, V25F, V20F, V15F, H30FVA, H25FVA, H20FVA, H15FVA

PURCHASE

Maximum LTV/CLTV*

Max Loan Amount

Min FICO

Max Ratios

Mortgage/Rental History

100% Excluding VA Funding Fee

Per VA Max County Limits See Loan Amount Matrix Below

550

Per AUS**

0 x 30 last 12 Months

*Regardless of the LTV, the Veteran must have sufficient entitlement to guaranty the loan.

** Refer to Debt Ratio topic below for information/requirements on DTI > 50% and compensating factors.

CASH OUT REFINANCE

Maximum LTV/CLTV*

Max Loan Amount

Min FICO

Max Ratios

Mortgage/Rental History

100% Excluding VA Funding Fee

Per VA Max County Limits See Loan Amount Matrix Below

620

Per AUS**

0 x 30 last 12 Months

90%*** Excluding VA Funding Fee

Per VA Max County Limits See Loan Amount Matrix Below

550

*Regardless of the LTV, the Veteran must have sufficient entitlement to guaranty the loan.

** Refer to Debt Ratio topic below for additional information/requirements on DTI > 50% and compensating factors. *** Refer to Cash Out Refinance Section for additional detail.

Loan MAY exceed 100% CLTV when a CMS approved Down Payment Assistance program is used in conjunction with the transaction - up to 110%

Underwriting Guidelines Requirements

MAXIMUM LOAN AMOUNTS

Continental U.S.

# of Units

Standard Maximum

High Balance Minimum

High Balance Maximum

1-4 Units

$417,000

$417,001

$1,094,625

Maximum Loan Amt (Base)

Maximum base loan amount does not include the financed funding fee. If the base loan amount is greater than $417,000, a down payment may be required and the LTV reduced accordingly.

VA FUNDING FEE TABLE

Applies unless Veteran is Exempt

Purchase Transactions

The VA funding fee is calculated on the veteran's portion of the loan. If a reduced funding fee percentage is required as a result of a down payment, the veteran benefits from this reduction as the funding fee will be calculated on his/her portion of the loan. Down payment must be made in liquid funds. Gift equity, borrowed funds or seller-equity is not an acceptable down payment to reduce the funding fee.

Type of Veteran/Military Status

Down Payment1

Percentage For First Time Use

Expires 9-30-2016

Percentage For Subsequent Use2

Expires 9-30-2016

Less than 5%

2.15%

3.30%

5% or more (up to 10%)

1.50%

1.50%

10% or more

1.25%

1.25%

Reserves/National Guard

Less than 5%

2.40%

3.30%

5% or more (up to 10%)

1.75%

1.75%

10% or more

1.50%

1.50%

Disabled Veteran (Service-

connected disability)

N/A

0.00%

0.00%

1. Does not include down payment from gift of equity or equity earned from lease-to-purchase transaction

2. The higher subsequent use fee does not apply if the veteran's only prior use of entitlement was for a manufactured home NOT classified as real estate

Joint Loans: Apply the appropriate funding fee percentage to any portion of the loan allocable to a veteran using his/her entitlement who is not exempt from the funding fee

CASH OUT REFINANCE FUNDING FEES

There are no reduced funding fees for regular refinances based on equity. Reduced fees only apply to purchase loans where a down payment of at least 5% is made.

Type of Veteran/Military Status

Percentage for First-Time Use

Percentage for Subsequent Use

Regular Military

2.15%

3.3%*

Reserves/National Guard

2.40%

3.3%*

*The higher subsequent use fee does not apply to these types of loans if the veteran's only prior use of entitlement was for a manufactured home.

COLLATERAL

Condos

Must be VA-approved condominium complex and meet all requirements.

Eligible Collateral

Owner Occupied Only. 1-4 Units. PUD's, Condos, Manufactured Homes permanently affixed to the foundation, built on or after June 15, 1976, and meet VA requirements, Modular Homes

Ineligible Collateral

Mobile homes, single-wide manufactured homes, State-approved medical marijuana producing properties, co-ops, Condo Hotels, properties serviced

by hauled water, energy efficient homes

Appraisal Requirements

VA Approved/VA Fee panel appraisers

Limitations on other R.E. owned

None

PRODUCT GUIDELINES

VA STANDARD and HIGH BALANCE PROGRAM

PROGRAM CODE: V30F, V25F, V20F, V15F, H30FVA, H25FVA, H20FVA, H15FVA 

TYPES OF FINANCING

Purchase Transactions

Permitted. Refer to LTV matrix above

Cash Out Refinance

No Seasoning requirements. Must have existing lien. Not available in the state of TX. Credit score > 550 and < 620 - maximum $50,000 cash out proceeds and maximum 90% LTV Credit score >= 620 - there is no limit on the amount of cash out proceeds but LTV is limited to 90% LTV > 90% - 100%: the maximum cash out is the lower of 1.5% of the loan amount or $5000. Paying off an unseasoned subordinate lien is not included in the amount of cash out.

Down Payment Assistance

Down Payment Assistance programs are permitted. Please refer to the CMS Down Payment Assistance approved list and webpage for program details and requirements. http://carringtonhome.corp.int/mortgage/lending/Pages/Down-Payment-Assistance-Programs.aspx

CREDIT

Non-Traditional Credit

Borrowers who have no established credit references may be eligible using non-traditional credit references. A minimum of 3 credit references each rated for 12 months is required. There can be no housing lates and maximum 1x30 day late payment with the other credit references in the previous 12 months. There can be no major adverse or public records filed in the last 12 months. Non-traditional credit references may not be used to offset derogatory pay histories on traditional credit. Non-traditional credit may not be used to manufacture credit for borrowers with no credit history or enhance a credit history of a borrower with derogatory pay histories. Refer to CMS FHA Lending Guides for additional information regarding the use of non-traditional trade references. All loans with non-traditional credit require a manual underwrite, maximum financing is allowed with a minimum of 2 compensating factors, maximum DTI of 41%, 2 months PITI reserves required, gift funds not allowed, 2 years tax returns and tax transcripts required, and must follow standard VA guidelines as outlined in the VA Lender's Handbook.

Insufficient Credit History

Borrowers with insufficient credit history may be eligible with adding non-traditional trade references. Non-traditional trade references may not be used to overcome poor pay histories of traditional credit. When using non-traditional trades to supplement an insufficient credit history, a minimum of 3 trade references rated for 12 months is required. Loans with insufficient credit history are to be run through the AUS. At the SAR Underwriter's discretion, the loan may be downgraded to a manual underwrite. Additional trade references or asset documentation may be required regardless of the AUS Findings. The max DTI for borrowers with insufficient credit history is 41%. Compensating factors for higher ratios are not applicable. 2 months PITi reserves after closing are required. Gift funds may not be used for reserves.

CAIVRS

CAIVR clearance must be obtained for all borrowers on the transaction.

Bankruptcy

Ch. 7 discharged for 24 mos. Discharged Ch. 13 requires 12 months satisfactory pay history and court permission to enter into transaction. Consumer counseling services must be paid in full prior to closing.

Social Security Numbers

Required for ALL borrowers

Collections/Charge Offs

AUS Approve/Eligible - follow AUS Findings.

Non-medical collections > $7500 may be required to be paid regardless of AUS findings.

Manually underwritten loans:

- Medical collections > $10,000 may be required to be paid prior to or at closing.

- Non-medical collections > $7500 may be required to be paid prior to or at closing.

- Manually underwritten loans with non-medical collections > $7500 and DTI > 41% require a minimum of 2 compensating factors.

Judgments/Liens

All outstanding judgments and liens must be paid prior to or at closing. Includes judgments and tax liens of non-purchasing spouse.

Foreclosure / Deed-in-lieu

Must be >2yrs from date of trustee's deed. Documentation required, credit report is unacceptable. (CAIVRS-if applicable).

Late Payments

VA Credit Standards apply

FICO

Minimum FICO 550. 2 reported credit scores required. Refer to Non-traditional credit section for borrowers with no established credit.

Minimum Payment

5% of outstanding balance for revolving accounts if no payment is indicated

Mortgage/Rental History

AUS - per AUS decision. Mortgage/Rental Delinquencies: Loans will be ineligible if there is one or more housing delinquency that is 1x30 Manual underwriting - VOM/VOR with 0x30 in the previous 12 months required.

Non Purchasing Spouse

Credit report required in community property states. Debts must be added to DTI Ratio and Credit History may be considered. Non-purchasing spouse may be added to title on a purchase transaction or may remain on title when refinancing. No other party other than the borrower or their spouse may be permitted to have a vested interest to the property.

Community Property States

The following states are known community property states: AZ, CA, ID, LA, NV, NM, TX, WA, WI

PRODUCT GUIDELINES

VA STANDARD and HIGH BALANCE PROGRAM

PROGRAM CODE: V30F, V25F, V20F, V15F, H30FVA, H25FVA, H20FVA, H15FVA 

INCOME/ASSETS

Residual

Income

Requirements

Loan Amounts $79,999 and below

Family Size

Northeast

Midwest

South

West

1

$390

$382

$382

$425

2

$654

$641

$641

$713

3

$788

$772

$772

$859

4

$888

$868

$868

$967

5

$921

$902

$902

$1,004

Above 5

Add $75 for each additional member up to a family of seven

Loan Amounts $80,000 and above

Family Size

Northeast

Midwest

South

West

1

$450

$441

$441

$491

2

$755

$738

$738

$823

3

$909

$889

$889

$990

4

$1,025

$1,003

$1,003

$1,117

5

$1,062

$1,039

$1,039

$1,158

Above 5

Add $75 for each additional member up to a family of seven

* States are broken down by Region. Check with Underwriting for breakdown

Debt Ratio

Loans with AUS Approve/Eligible - follow AUS Findings for DTI <= 50%. DTI > 50% requires a minimum of 2 compensating factors regardless of AUS findings. Manually underwritten loans - max DTI is 41%. The DTI may exceed 41% with compensating factors. Manually underwritten loans with DTI > 50% require a minimum of 3 compensating factors and UW Manager second sign. All loans must meet the residual income requirements regardless of DTI or AUS approval. Refer to CMS Lending Guide for a list of VA acceptable compensating factors.

Non-Taxable Income

Nontaxable income such as Social Security, Pension, Workers Comp and Disability Retirement income must be grossed up.

Income

Residual income requirements apply and vary by region/loan amount/property type. See above matrix.

Assets

Must have sufficient assets to close. Non-liquid accounts may not be used as an asset for cash to close or reserves. Liquidated funds from non-liquid accounts can be used if liquidation and deposit into a demand deposit account are documented. Large deposits and/or deposits that are excessive for borrower's history need to be sourced and seasoned.

Payoff Debt to Qualify

Payoff of revolving debt is allowed if paid in full prior to closing. Payoff & zero balance must be documented directly from credit. Cannot payoff on the HUD-1.

Documentation/4506T or 2907

Full income documentation loans only. IRS Form 4506T must be processed and income validated for most recent 2 years. Borrowers with income

Puerto Rico Tax Returns

from Puerto Rico must: Sign form Modelo SC 2907 to obtain tax transcripts, returned Modelo SC 2903 transcripts for 2 years, and transcripts must be translated to English and notarized by 3rd party. The 4506T must be in the file with confirmation that states "no records found" when using Puerto Rico tax returns. The confirmation must be from the IRS website and contain the borrowers name and SSN.

Minimum Reserves

1 Unit: None. 2-4 Units: Rental Income NOT used to Qualify: None. 2-4 Units: Rental Income USED to Qualify: 6 mos. PITI. Borrowers with non- traditional credit and insufficient credit require 2 months PITI reserves.

Gifts

Acceptable. Gift of Equity is acceptable but cannot be applied as down payment purposes to reduce VA funding Fee. Gifts are not allowed on transactions involving borrowers with non-traditional credit. Gift funds may not be used as reserves.

Non Occupant co borrower

Not permitted

Buyer Contribution

No minimum investment required for loan amounts up to $417,000. For 2-4 Units and loans > $417,000, down payment may be required

Seller Contribution

Seller can pay 100% of discount points and borrowers non-recurring closing costs. Seller can provide an additional amount not to exceed 4% of the estimated reasonable value to assist the borrower's payment of prepaid expenses and funding fee. Maximum seller concession is 4%. Refer to VA

Underwriting Guidelines.

GENERAL

Superior VA Lien

VA regulations require that every VA loan be secured by a first lien on the property except under circumstances. (38 CFR 36.4351 and 38 CFR 36.4352)

Underwriting

Underwritten by a VA Automatic & LAPP approved underwriter. AUS approval may follow documentation requirements. Manually underwritten loans follow standard VA documentation requirements. If loan requires VA prior approval, additional underwriting turnaround time is required.

VA Prior Approval Required for:

* Veterans in receipt of VA non-service related pension.

* Veterans rated incompetent by VA.

* Joint loans involving co-borrower who is not the veterans spouse.

* Joint loans with two or more Veterans who intend to use their entitlement and take title jointly.

Borrower Eligibility

Must be a veteran who served the minimum duty with other than a dishonorable discharge. Active duty with at least 181 days of duty. DD Form 214 is required. Un-remarried surviving spouse of eligible veteran (COE). Reservists/National Guard. Certificate of Eligibility must have sufficient entitlement to meet minimum 25% guaranty. All borrowers must occupy the subject property.

Guaranty/Entitlement

Veteran must have sufficient entitlement and provide evidence of available entitlement.

Manual Underwrite

Loans receiving an AUS Refer and borrowers with no established traditional credit or insufficient credit may be eligible for a manual underwrite. Loans with a manual underwrite require a second level review by CMS. All manual underwrites require an AUS to be run and “refer eligible” findings uploaded into the LOS. The AUS findings must be uploaded even when the Underwriter knows the loan will be manually underwritten upfront or the loan will be downgraded to a manual underwrite.

Loan Terms Available

30, 25, 20, and 15 Year Fixed

Qualifying Fixed Products

Qualify at Note Rate

Co-Borrowers

Must be the spouse of the veteran and all borrowers must occupy the subject property

Assumptions

Permitted

Escrow waivers

Not permitted

Prepayment Penalty

Not permitted

Buydowns

Not permitted

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CREDIT REQUIREMENTS

FHA MORTGAGE

550 MIN FICO

PORTFOLIO MORTGAGE

NO MINIMUM

VA MORTGAGE

550 MIN FICO SCORE 

USDA LOANS

580 MIN FICO SCORE 

FANNIE MAE.

620 MIN FICO SCORE 

FREDDIE MAC

620 MIN FICO SCORE 

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954-667-9110

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