1. Reserves – 6 Months PITI
2. Seller Contribution – Up to 6% of purchase Price on Primary Residence, 3% if above list
3. Escrows/Impounds required on all loans
4. Credit Requirements:

Traditional Credit. A retail credit report will be obtained for each applicant. If this is not possible, then a minimum of 3 credit references should be obtained for the applicant (nontraditional credit). A verification of rental or mortgage payments must be provided. Since may ITIN borrowers have limited credit that reports on their credit report, underwriting is not credit score based. That said, the minimum credit score for all ITIN loams is 640 (LTVs at or below 85%).

• Middle of three scored or lower of 2 scores for the primary wage earner
• Additional borrowers must have a minimum score of 640
• In the case of multiple borrowers, an average of all borrower’s middle score is used to qualify
• Must have a minimum of two open and active trades reporting for 24 months or three open and active trades reporting for 12 months.

Non-Traditional Credit. A loan may be fully underwritten using alternative credit if there is insufficient traditional credit to evaluate. If alternative credit sources are used, the minimum requirement is a 12-month history, generally verified with lender-written verification, canceled checks, or bills marked paid.

• The credit history must include three (3) credit references, from the list below covering the most recent 12 months’ activity from date application.
• A 12-month housing history is required to be one of the 3 credit references
• If a borrower’s mortgage or rental history is not reported on the credit report alternative documentation showing the most recent 12-month history (canceled checks, mortgage/rental statements including payment history, management company VOR, etc.) must be provided.
• Private landlord VORs may be considered on a case-by-case basis.
• LOE or rent-free letter is required when a 12-month housing history is not applicable maximum.
• The other two tradelines may be documented using a combination of credit reports, alternative credits, or through utilities, such as electricity, gas, water, telephone service, television, and internet service providers.If utilities are included in the rental housing payment, they cannot be considered a separate source of nontraditional credit.

If any late payments are indicated, the payment history must be stated in the «number of past dues» format: 30-, 60-, and 90-day late payments. Proof of monthly or quarterly payment is required.

Allowable alternative credit references include:

• Housing payments
• Installment loan payments (such as an auto loan)
• Utility payments
• Telephone and cable service payments
• Insurance payments (excluding payroll deductions)
• Lease payments related to durable goods (including leases)
• Local store payments (department, furniture, appliance)
• School tuition payments or ongoing child care payments
• Payments on a loan obtained from an individual (repayment terms must be documented in a written agreement).

5.  Payment History. Acceptable Number of Late Payments:

 

Obligation *	Last 12 Months	Last 24 Months
Housing (rent)	0x30	1 x 30, 0 x 60 or beyond
Installment, Nontraditional or Revolving	0x30	2×30 or 1×60 and beyond
Collections (excluding medical) **, Charge offs, or Repossessions	None	None

If any late payments are indicated, the payment history must be stated in the «number of past dues» format: 30-, 60-, and 90-day late payments.

 

Adverse Credit History. If any adverse credit exists, the following apply:

 

Adverse Credit Issue	Requirement
Judgments and Tax Liens	all outstanding balnces must be paind in full prior to closing.
medical Collections	Up to $2,000 aggregate may remain open after closing. Amounts greater than $2,000 must be paid in full prior to closing or approved on a case-by-case basis
Bankruptcies	Ineligible
Foreclosures, Deeds-in-lieu, Short Sales	Ineligible
Consumer Credit Counseling / Debt Management Plan	Must be discharged/complete 3 years prior to loan application

*All income tax obligations must be paid prior to closing.

**Collections may not be the result of a traditional or nontraditional tradeline that exceeds the number of lates allowed in the most recent 24 months. Documentation must be provided.

Co-Applicant Credit. Co-applicants must meet the same minimum credit requirements as primary applicants unless the co-applicant is a spouse, in which case no additional credit is required. The spouse is not required to be guarantor on the note but, pursuant to state community property laws pertaining to primary and secondary residences, may be required to sign the Deed of Trust (and other pertinent documents).

• The co-applicant(s) has/have been living with the primary applicant for 12 months, in which case references are required and the housing reference is waived.

Non-Purchasing Spouse

If the bank accounts used for the application are joint accounts, then both spouses must be on the note, an account access letter may be accepted in lieu of having both account holders on the Non-occupying co-borrowers

• Max LTV of 85%
• Must sign the note and mortgage
• Non-occupant cannot have an interest in the subject property sales transaction to include, but no limited to, seller, real estate broker or builder
• Non-occupying borrower must be a relative
• DTI on Occupying borrower max 43%
• Occupying borrower must have a minimum score of 640
• Maximum loan amount of $850,000. Will consider Up to $1,000,000.00 case by case with an LTV under 85%

Qualifyning DTI Ratio. Overall expense ratio, which is the total monthly cost of owning the property plus any monthly installment debts which will continue longer than 10 months, revolving debts, alimony, maintenance, and child support, all divided by stable gross monthly income. The maximum allowed overall expense ratio is 41%.