Heloc Piggybacks

Eligibility Guidelines

Home Equity Line Of Credit: 30 yr amortization terms, 10 yr Interest Only Draw Period, 20 yr Repayment. Eligibility Guidelines

Underwriting

First Lien: Underwrite to current Fannie guidelines. Must be DU Approve/Eligible.
HELOC is manually underwritten.
The HELOC is treated as a separate, second loan file.
Cash-out not permitted
Standalone HELOCs not permitted

Minimum Loan Amount $5,000 - No exceptions

Eligible States

CA, CO

Maximum Loan Amount $500,000 - No exceptions

Caps-Life Floor

18.00% - 5.00%

Appraisal

Full Interior/Exterior is required. BPOs, PIW & Short Form appraisals not allowed.
Maximum CLTV is subject to 5% Distressed Market Reduction. This is based on the appraiser's determination stated on page one of the appraisal and supported by the 1004MC Market Trends Addendum.

Reserves

Minimum Six (6) Months borrower's own post-closing reserves.

Credit Eligibility

Borrower may not have any housing delinquencies (0x60) within the last 12 months.
Disputed accounts: maximum $500 with written explanation and supporting documentation.
Adverse credit: allowed up to $5,000, then must be paid in full.
Closing costs paid with a credit card: combined financing can't exceed 2% of the loan amount.

Assets

Borrower Investment: Primary Residence and Second Home requires 5% of borrower's own funds.
Seller Contributions (basis for the limits below are based on the CLTV ratio):
Primary Residence and Second Home: 3% for CLTV >90%; 6% for CLTV >75% < 90%; 9% for CLTV< 75%
Gift Funds are acceptable for Primary and Second Home provided Borrower Investment is met.
Primary and Second Home: When gift funds reduce the LTV/CLTV < = 80%; borrower's investment requirement is waived.
Asset Verification: Follow DU requirements.