|
Freddie Mac
|
Fannie Mae
|
Available Loan Types
|
15, 20 and 30-year fixed-rate
5/1, 7/1 and 10/1 LIBOR ARM
Cannot refinance from a fixed-rate to an ARM product
|
15, 20, 30 and 40-year fixed-rate
5/1, 7/1 and 10/1 LIBOR ARM
Cannot refinance from a fixed-rate to an ARM product
|
Amortization Type
|
Fully amortized
Interest-only not allowed
|
Fully amortized
Interest-only not allowed
|
Minimum Credit Score
|
No minimum loan score, except;
620 minimum loan score when new principal and interest (P&I) payment is more than 20% greater than the existing
P&I payment
Standard policies for adverse credit do not apply.
You cannot currently be involved in a bankruptcy or foreclosure
|
No minimum loan score
Note: DU applies requirements and checks eligibility
|
Loan Eligibility
|
No restriction
|
Loan must receive an Approve/Eligible response from DU
|
Loan Purpose
|
Rate/term refinance
|
Rate/term refinance
|
Occupancy
|
Primary and Investment Properties (1-4 unit)
Second home (1-unit)
Limit on number of financed properties does apply
Must be the same occupancy type as when Wells Fargo sold the original mortgage to Freddie Mac, except that change in occupancy from second home or investment to primary is allowed
|
Primary and Investment Properties (1-4 unit)
Second home (1-unit)
No limit on number of financed properties
|
Eligible Property Types
|
Single family residence
2-4 Units
Condominium
Co-op
PUD
Resort condos and condotels not allowed
|
Single family residence
2-4 Units
Condominium
Co-op
PUD
Resort condos and condotels not allowed
|
LTV/CLTV Limits
|
105% LTV
Unlimited CLTV (existing 2nd mortgage may be any amount)
You may pay down your mortgage with your own funds in order to qualify for the mortgage in the event the LTV exceeds 105%
|
105% LTV
Unlimited CLTV (existing 2nd mortgage may be any amount)
You may pay down your mortgage with your own funds in order to qualify for the mortgage in the event the LTV exceeds 105%
|
Income Ratios
|
Determined by automated underwriting system when you apply
|
Determined by automated underwriting system when you apply
|
Income and Assets Documentation Requirements
|
None - (Stated Income Stated Asset)
When new principal and interest (P&I) payment is more than 20% greater than the existing P&I payment made most frequently in the last 12 months, income documentation is required.
Asset documentation is required if funds are needed to pay down first mortgage, pay off/down subordinate financing or pay off other debts, including judgments.
|
Salaried: One paystub and verbal VOE required
Self-employed/Commission: one-year federal tax return
Assets may be verified if requested by underwriter
|
IRS 4506T Form
|
IRS 4506T signed and dated at application and closing on all loans.
IRS 4506T will only be processed on loans with income documentation required (P&I increasing more than 20%)
|
IRS 4506T to be signed and dated at application and closing on all loans.
IRS 4506T must be processed prior to closing on all loans.
|
Verification of Employmet
|
Verbal VOE required on all loans (unless retired)
|
Verbal VOE required on all loans (unless retired)
|
Loan Amounts
|
Limit on closing costs, financing costs, pre-paids and escrows of $2,500
Examples:
Payoff amount: $229,545
Actual closing costs, etc: $2496
Maximum loan amount: $232,041
----------------------
Payoff amount: $352,006
Actual closing costs, etc: $3672
Maximum loan amount: $354,506
Required cash to close: $1172
Excess funds due to the actual payoff being lower than the estimated payoff or actual closing costs being lower than estimated closing costs must be applied as a principal curtailment, not to exceed $2000
|
- No limit on closing costs, financing costs, pre-paids and escrows
Payoff amount: $352,006
Actual closing costs, etc: $3672
Maximum loan amount: $355,678
Excess funds due to the actual payoff being lower than the estimated payoff or actual closing costs being lower than estimated closing costs must be applied as a principal curtailment, not to exceed $2000
|
Assets
|
No minimum bank account balance required
|
No minimum bank account balance required
|
Second Loan
|
Any amount (existing 2nd mortgage holder must agree to new first mortgage - a.k.a. subordination agreement)
|
Any amount (existing 2nd mortgage holder must agree to new first mortgage - a.k.a. subordination agreement)
|
Mortgage Insurance Options
|
Original loan does not have MI coverage, then no MI required for the new loan
Note: If original loan currently has MI, loan is not eligible for this program at this time.
|
Original loan does not have MI coverage, then no MI required for the new loan
Note: If original loan currently has MI, loan is not eligible for this program at this time.
|
Seasoning Requirements
|
3 Months
The Note Date of the Original Mortgage must be at least 3 months prior to the Note Date of the new mortgage
|
None
|
Mortgage History
|
No late mortgage payments in last 12 months
|
No late mortgage payments in last 12 months
|
Appraisal
|
Either original appraisal or new appraisal will be required as determined by underwriter
Condos, Cooperative units, 2-4 unit and leasehold properties must have a new appraisal
Condos and co-ops are not allowed if in a project that is ineligible, unless the reason for ineligibility is pre-sale or owner occupancy
If existing loan was a renovation, a new appraisal or final inspection will be required to confirm that the renovation is complete
|
Either no appraisal, original appraisal, or new appraisal will be required as determined by underwriter
When no appraisal is obtained, a signed affidavit is required from you indicating how long they have owned the property and that the property is currently not for sale
Condos and co-ops are not allowed if in a resort condominium or condotel project
|
Maximum Payment Increase
|
No maximum
When new principal and interest payment is more than 20% greater than the existing P&I payment made most frequently in the last 12 months, income documentation is required, loan score must be at least 620, and the DTI cannot exceed 45%.
|
Determined by underwriter
|
Ineligible Mortgages
|
Determined by underwriter
|
Determined by underwriter
|
Refinance Limit
|
You may refinance only one time under the program
|
You may refinance only one time under the program
|
Other Restrictions
|
Can not add a new borrower
Change in borrower are permitted due to death or divorce only
Policy for multiple financed properties does apply
Policy for loans seasoned less than 12-months or less than 6-months does not apply
Rent loss insurance is required on investment properties per standard guidelines
|
- Rent loss insurance is not required on investment properties
|