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    Thursday, July 1, 2010

    HomePath Mortgage Details

    This is such a cool program….

    Agents,

    This loan product applies to more of you than I thought so I wanted to get this information out to you quickly.  For specific scenarios let’s get the buyers pre-approved with all information verified before you put them in your car.  Let’s make it happen!  Call me or email me with any questions.  Have a happy and safe 4th of July weekend!

    HOMEPATH Mortgage – FANNIE MAE FORECLOSURE PROPERTIES ONLY!

    Loan Score

    •

    660 required for LTV greater than 80%

    •

    620 required for LTV less than or equal to 80%

    Documentation

    Full documentation is required.

    Documenting Rental Income from Subject Property

    Because no appraisal will be obtained by Wells Fargo Funding on HomePath Loans, a fully executed lease agreement is required in order to use rental income to qualify. If no lease is available, the borrower is to provide an estimated rental income for Loan delivery purposes only.

    Interested Party Contributions

    The maximum allowable contributions from interested parties based upon the contract sales price are:

    Property Type  

    CLTV  

    Limit  

    Primary Residence and Second Home  

    > 75%  

    6%  

    < 75%  

    9%  

    Investment Property  

    All CLTVs  

    2%  

    Minimum Down Payment Requirements

    Minimum down payment requirements apply as detailed in Section 820.08, with the following requirements:

    •

    For loans with LTV/CLTV from 80.01-95%, the occupant borrower must provide 5% of purchase price as a down payment.

    •

    For loans with LTV/CLTV > 95% there is no minimum contribution requirement from the borrower’s own funds.

    Eligible Source of Down Payment for Loans with LTV/CLTV Greater Than 95%

    In addition to the eligible sources of down payment as detailed in Section 820.08, the following sources are also eligible when LTV/CLTV exceeds 95%:

    •

    Gift funds from acceptable donors.

    •

    Grants from a borrower’s employer, public agency, or nonprofit organization, provided no repayment is required or expected.

    In all circumstances described above, evidence of the transfer of the funds to the borrower is required.

    Appraisal

    No appraisal is required.

    If the borrower, at their option, chooses to obtain an appraisal, then:

    •

    The borrower must order the appraisal from an appraiser selected by the borrower (and not one recommended by Seller and/or originating lender), and the appraisal must be paid for by the borrower outside of the loan transaction.

    •

    Seller and/or originating lender must not request a copy of the appraisal. If one is provided by the borrower then the loan cannot use the HomePath program.

    Condominium Transactions*** This is HUGE!!!

    Condominium projects do not need to be reviewed for project eligibility; however standard insurance validation for adequate hazard, flood, disability, and fidelity coverage must be completed.

    Max LTV  

    Max
    TLTV      

    Max
    CLTV      

    Max
    LTV      

    Max
    TLTV      

    Max
    CLTV      

    Primary Residence1  

    Fully Amortizing  

    Interest-Only5 

    Fixed rate 15 and 30 year  

    Fixed rate 15 and 30 year  

    1 Unit  

    90%  

    90%  

    90%  

    N/A  

    N/A  

    N/A  

    2 Unit  

    75%  

    75%  

    75%  

    N/A  

    N/A  

    N/A  

    3-4 Unit  

    75%  

    75%  

    75%  

    N/A  

    N/A  

    N/A  

    Co-op3.4  

    85%  

    N/A  

    N/A  

    N/A  

    N/A  

    N/A 

    5/1, 7/1, 10/1 ARM  

    1 Unit  

    75%  

    75%  

    75%  

    70%  

    N/A  

    N/A  

    2 Unit  

    75%  

    75%  

    75%  

    N/A  

    N/A  

    N/A  

    3-4 Unit  

    75%  

    75%  

    75%  

    N/A  

    N/A  

    N/A  

    Co-op3.4  

    75%  

    N/A  

    N/A  

    N/A  

    N/A  

    N/A  

    Second Home2 

    1 Unit  

    65%  

    65%  

    65%  

    65%  

    N/A  

    N/A  

    Co-op3,4  

    65%  

    N/A  

    N/A  

    N/A  

    N/A  

    N/A  

    Investment Property2 

    1 Unit  

    65%  

    65%  

    65%  

    N/A  

    N/A  

    N/A  

    2 Unit  

    65%  

    65%  

    65%  

    N/A  

    N/A  

    N/A  

    3-4 Unit  

    65%  

    65%  

    65%  

    N/A  

    N/A  

    N/A  

    1.

    Minimum credit score Requirements: If LTV, TLTV or CLTV require different credit score, apply the most restrictive credit score:

    •

    660 when LTV/TLTV/CLTV less than or equal to 75% for Fixed Rate products

    •

    680 when LTV/TLTV/CLTV less than or equal to 75% for ARM products

    •

    700 when LTV/TLTV/CLTV greater than 75%

    •

    740 for 2-4 unit regardless of LTV/TLTV/CLTV

    2.

    All second homes and investment properties require a minimum credit score of 740.

    5.

    Interest-Only is not allowed with fixed rate products.

     

    Non-Occupant Co-Borrowers

    Non-occupant co-borrowers are allowed.

    •

    For loans with CLTV greater than 95%, all borrowers must occupy the property as their primary residence.

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