Jumbo Fixed Rates

Eligibility Guidelines

Appraisal

Loan amounts <= $1,000,000 -- One full URAR appraisal required.
Loan amounts greater than $1,000,000 -- Two full URAR appraisals required.

Assets

All verification of funds will require 2 months statements or Verification of Deposit with 2 months average balance. Self-employed borrower may use Business Accounts to fulfill asset requirements, provided the health of the business will not be jeopardized by using business funds. A letter from an accountant, which verifies the soundness of the business and the above requirement, must be included in the credit file.

Assumability

Not Assumable

Borrower Eligibility

Eligible Borrower types:

U.S. Citizens

Permanent Resident Aliens
Non-Occupant Co-Borrowers are allowed when the following criteria are met:
Owner Occupied Primary Residences only.
Occupying borrower must contribute 5% of their own funds for purchase transactions.
Required ratios for the occupying borrower: 33/40.
Non-Occupant co-borrower cannot be an "Interested Party" to the transaction (i.e. Lender, Seller, Builder, or Real Estate Agent).

Non-permanent Resident Aliens are ineligible.

Credit Requirements

Borrower(s) that do not have a credit score are ineligible. Non-traditional credit is ineligible.
All mortgages must be current at the time of application.
No Mortgage Lates: 0 x 30, 60, 90 or more in the last 12 months.
No short sales or deed-in-lieu of foreclosures in the last 4 years and no foreclosures or bankruptcies in the past 7 years. Construction to Permanent financing ineligible.

Employment History

Verification of Employment (VOE) required:
Employment Income (hourly, salary, or commission): 10 calendar days prior to the note date.
Self-Employment Income: within 30 calendar days prior to the note date for self-employment income.
Income from Employment that can not be verified is ineligible.

Gifts/Grants

Eligible, entire down payment may be from a gift. Eligible sources of Gift/Grant funds:
Gift funds, that are non-repayable from family, Municipality or Non-Profit Organization. Disaster Grants. Employer's Assistance Grant. Grants funded by an interested party, such as builder or property seller, are ineligible.

Interest-Only

Not Available

Loan Amount Limits

Minimum Loan amount: Standard Conforming and High Balance (Permanent and Temporary) Conforming loan amounts are ineligible for this product. The minimum loan amount must exceed the Standard and High Balance conforming loan limit.

Maximum Loan amounts: $2,000,000

Maximum Cash-Out Limits
Maximum $325,000
Borrower(s) must have owned property for at least six (6) months to be eligible for Cash-Out Refinance Transaction.

Number of Properties

Owner Occupied (Primary Residence): No limit on properties financed.
Second Home and Investment: One to Four (1-4) properties financed (including the borrower's primary residence) eligible with no additional restrictions. Over 4 properties ineligible.
Borrower may not be affiliated with the builder, developer, or seller of the subject property.
For all loans, the borrower's primary residence, subject property and any other properties owned separately by a co-borrower must be included in the total number of properties requirement. Jointly held properties only count once for the limitation.

Occupancy Standards

Owner-occupied primary residences, 1-2 units.
Documentation to confirm the borrower's intent to occupy the property as their principal residence is required. If the loan is a refinance transaction, the documentation must be as follows: Credit report and income documentation must show the subject property as the borrower's address, the homeowners policy must show the subject property and mailing address are the same, appraisal must indicate the borrower occupies the property and the title policy must show a homeowner's exemption.
2 unit properties -- Borrower(s) may not own any other residential property of equal or greater value in the same area in which the units are located. The mailing address and property address must be verified as the same. If the verification cannot be made, the property will be ineligible.
Second homes (1-unit only) -- Must be suitable for year round occupancy.

Pricing

Pricing add-ons may apply.

Property Type

1-2 unit family residences Owner Occupied
1 unit Second Home
Warrantable Condos
Established Condo projects only; new projects are ineligible.
Attached condo eligible with CPM approval only. Limited review is ineligible.
Hotel or motel conversion projects ineligible.
Florida: Attached and detached condos ineligible.
California: All condos must meet the following eligibility criteria:
New projects must have the Home Owner's Association turned over for a minimum of 12 months.
New Condo Gut Rehabilitation Conversions ineligible.
Warrantable PUDs
Rural properties are eligible with the following guidelines:
Maximum of 10 acres.
Zoning must allow for residential use.
Properties with any commercial/agricultural attributes are not eligible.

Ineligible Properties:

Leasehold properties.
Cash-out Refinance transactions and Texas Section 50(a)(6) for properties located in the State of Texas.
Properties in less than average condition.
Properties sold at auction by the builder, developer or construction lender.
Factory built housing.

Ratios

40% maximum.

Reserves

Loan Amount <= $1,000,000: minimum nine (9) months PITI reserves.
Loan Amount > $1,000,000: minimum twelve (12) months PITI reserves.
When multiple loans are concurrently closed for the same borrower, each loan must individually meet the respective cash-reserve requirement in relation to the loan amount.

Secondary Financing

Purchase: New simultaneous closing secondary financing is ineligible.
Refinance: New simultaneous closing secondary financing is ineligible. Re-subordination of existing seconds is ineligible. Eligible refinancing of a first and second mortgage with a new Jumbo loan is eligible in accordance with the loan eligibility guidelines.

Seller (Interested Party) Contribution
Seller (Interested Party) contributions may be used toward prepaids and/or closing costs.
Interest Rate buydowns and Advanced payment of Homeowner's Association dues are not eligible.

Term(s)

15 and 30 year only.

Underwriting

Escrow waivers ineligible: all loans require escrow accounts unless prohibited or limited by state law.

Refinance Requirements:

If a subordinate mortgage that was used in whole to acquire the subject property (purchase money) is being paid-off, a copy of the HUD-1 Settlement Statement from the purchase is required.
Payoff Demand for a Refinance Transaction is required with the following guidelines for the loan to be eligible for a refinance:
Existing loan is not more than 30 day delinquent.
Existing loan does not contain charges associated with default/forbearance.
Does not indicate a curtailment of principal/interest (short payoff).
IRS Transcripts are required for loan approval.
VOE Required in 10 CALENDAR days.