Portfolio ARMS

Eligibility Guidelines

First-Lien Adjustable Rate Loans: 30 yr amortization terms, initial fixed rate periods of 3, 5, & 7 yrs.; 40 yr amortization term available for 3/1 and 5/1 only.

Eligible States

CA, CO

Underwriting

Underwrite to current Fannie guidelines. DU Approved/Ineligible approval required.
DU Ineligible acceptable due to loan amount, may be approved due to compensating factors.
Qualifying Rate : 3/1 and 5/1: Use the greater of the fully indexed, fully amortizing rate or Note Rate + 2%; 7/1:
Qualify at Note Rate.
40 year amortization term: 3/1 and 5/1 only, LTV less of 70% or maximum qualifying LTV.
Second /Vacation Home: the 2nd unit is not eligible as a rental unit.
Maximum cash back is $250,000, exceptions to this will follow the normal exception requests.

Subordinate Financing; Using an outside HELOC: Re-subordinate any HELOC, subject to current LTV/CLTV limits.

Trinity HELOC, new or existing:
Maximum is 80% CLTV.

Credit Eligibility

Borrower Must have a credit score.
Housing payment history (PITIA) is inclusive of all liens regardless of position.
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.
This applies also to HELOCs.
Follow DU findings and requirements.

Reserves

Combined Loan Amount ‹$1 mil and DTI ‹35: 6 months
Combined Loan Amount ‹$1 mil and DTI = 35: 12 months
Combined Loan Amount = $1 mil: 12 months

Assets

DU indicates the minimum verification requirements necessary.
Borrower Investment: Primary and Second Home requires 5% of borrower's own funds.
Gift Funds are acceptable.

Appraisal Requirements

Full Interior/exterior is required. BPOs, PIW & Short form appraisals not allowed. Fannie 1004/ Freddie 70, Regardless of DU recommendation.
Maximum LTV / CLTV is subject to 5% Distressed Market Reduction by state. This is based on the appraiser's determination stated on page one of the appraisal and supported by the 1004MC Market Trends Addendum.

Income

Income Verification - DU findings for documentation requirements.
Additional documentation may be required on a case-by-case basis.
Two full 4506-T sets are required:
The borrower must sign this form at application and closing.
The box(es) must be checked to give Trinity the permission to collect the prior two years full tax returns.
The subject property address must be correct on each 4506-T.

Assumable

3/1 are assumable anytime.
5/1 and 7/1 are due on sale during the initial fixed period then assumable afterwards.

Buydowns

Not Permitted.

Credit Score

DU Approved/Ineligible required, FICO ‹700 ineligible regardless of DU finding.

DTI

45-50%

Escrow Holdbacks

Not allowed

First Time Homebuyer

Yes

Geographic Restrictions

None

Non-Occupant Co-Borrower

If income is used, co-borrower must provide written VOE, paystub, and W2 for validation.

Non-U.S. Citizen

Allowed. Follow Fannie Mae requirements.

No. of Financed Properties

Max 10 Financed Properties, including the subject property.

Private Mortgage Insurance

Not applicable

Pre Payment Penalty

No pre-payment penalty.