FHA Eligible Product Guides - CCMC Correspondent Lending

FHA Eligible Product Guides

Cherry Creek Mortgage Company's FHA Program is Designed for the Purchase or Refinance of Primary Residences Purchase, Rate-Term, Cash Out, Streamline (*See Additional Streamline Parameters) (*No Cash Out Refinances on 3 or 4 unit properties) Owner Occupancy Max Loan Amount (Contiguous States)

Units

$417,000

1

$533,850

2

$645,300

3

$801,950

ATR/QM Rule

Borrower Eligibility

Credit Score

96.50%

620

4 For loans subject to the ATR/QM rule, Cherry Creek Mortgage Company will only purchase loans that comply with the ATR/QM requirements.  Correspondents are responsible for providing evidence of compliance with the ATR/QM rules. 

AUS

LTV,CLTV, HCLTV

Clear itemization of fees and application of all credits that indicate paid by/to is required on all loans.

DU, LP, FHA TOTAL Scorecard U.S. Citizens, Permanent Resident Aliens, with proof of lawful permanent residence, Nonpermanent Resident Alien Immigrants

Credit Scores

Minimum 620 FICO (limits to LTV/CLTV may apply), full tri-merge credit report w/ scores

Condos/PUDs

Must follow FHA published Condo Eligibility Guidelines.

Quick Reference

Assignment of Mortgage

Terms

Minimum Loan Size

www.fha.com/fha_loan_requirements

Loans delivered must be registered by the Sellers with MERS at time of delivery. A MERS transfer of beneficial rights (TOB) and transfer of servicing rights (TOS) must be initiated by the Seller to Cherry Creek Mortgage Company (ORG ID#1000302), within 48 hours of purchase by Cherry Creek Mortgage Company.

FRM: 10 – 30 year terms

$50,000

©2014 Cherry Creek Mortgage NMLS ID 3001. THIS INFORMATION IS SOLELY FOR MORTGAGE PROFESSIONALS AND SHOULD NOT BE PROVIDED TO CONSUMERS OR THIRD-PARTIES. INFORMATION IS ACCURATE AS OF 07/23/2014 AND IS SUBJECT TO CHANGE WITHOUT NOTICE.

Property Eligibility

Ineligible Properties/Features

SFD, 2-4 Units, Modular, Condos, Manufactured (Purchase transactions only)

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Co-ops Temporary Buydown Community Land Trust Recently Listed – Listing must be cancelled at least one day prior to the initial application date

Mortgage Insurance

Standard FHA MI coverage required

Current Employment

Follow AUS Findings & FHA Guidelines

Assets/Reserves

Follow AUS Findings & FHA Guidelines

Rental Income

Rent/Mortgage History

Appraisal Requirements

Age of Documents

Rent loss insurance covering at least 6 months rent is required for 2-4 unit primary properties when rental income from the subject property is used to qualify the borrower 0x30 last 12 months (if applicable)

Full Appraisal required unless lesser inspection requirements noted on AUS

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Credit documents (credit reports, employment, income, and asset verifications) must be no more than 4 months old on the date the Note is signed (180 days for new construction). Expired documents must be updated by the Correspondent

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Appraisals may not be more than one year old; an update is required if more than four months old.

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Preliminary Title Policies must be no more than 180 days old on the date the note is signed.

Qualifying Ratios

Maximum as approved by AUS

Escrow Holdback

Weather-related only. Considered on a case-by case basis.

Financing Concession

Gift Funds

6% of value (Lesser of the sales price or appraised value)

Follow FHA Guidelines for gift funds.

©2014 Cherry Creek Mortgage NMLS ID 3001. THIS INFORMATION IS SOLELY FOR MORTGAGE PROFESSIONALS AND SHOULD NOT BE PROVIDED TO CONSUMERS OR THIRD-PARTIES. INFORMATION IS ACCURATE AS OF 07/23/2014 AND IS SUBJECT TO CHANGE WITHOUT NOTICE.

90-Day Resale Waiver

State Exclusions

This is a temporary FHA waiver of its regulation prohibiting the use of FHA financing to purchase single family properties being resold within 90 days of the previous acquisition, until December 31, 2014. This is the last funding date to receive this waiver.

To be eligible for the waiver, the following conditions must be met:  All transactions must be arms-length, with no identity of interest between the buyer and the seller or other parties participating in the loan transaction  Seller holds title to the property  LLCs, Corporations, or Trusts serving as sellers were established and are operated in accordance with applicable state and federal regulatory requirements  There is no pattern of previous flipping activity for the subject property as evidenced by multiple title transfers within the previous 12-month period.

Alaska, Georgia, Hawaii, Kentucky, Maine, Mississippi, New Hampshire, New York, North Carolina, and West Virginia        

FHA Streamline Parameters

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Underwriting: Manual Underwriting, no AUS Terms: FRM: 10-30 year terms Minimum Loan Size: Follow FHA Guides Maximum Loan Size: Not to exceed allowable county loan limits Maximum LTV: 150%, LTV based on previous appraised value per FHA Connection Maximum CLTV: Follow FHA guidelines, additional liens must subordinate to new first mortgage Occupancy: O/O Eligible Properties: SFD, 2-4 unit, Condo., Modular, Properties that were eligible at origination remain eligible UFMIP: See HUD UFMIP Ratios: Not applicable for FHA Streamline Assets/ Reserves: Only if an amount >$100 is required for closing must asset statements be provided. Reserves are not required Cash to Borrower: Maximum $500 for incidentals Mortgage History: 0x30 within the last 12 months Credit History: Mortgage only evaluation Derogatory Credit: Follow FHA guidelines and all current Mortgagee letters for: Foreclosure, Bankruptcy (7&13), Short Sale and Loan Modifications regarding seasoning/time since event and requirements of mortgage history prior to events.

Judgments and liens must be paid prior to closing Mortgage Seasoning: Minimum of 6 months payments on current loan – follow FHA guidelines Appraisal/Value: No new valuation required Property Listed for Sale: If within the last 6 months, acceptable written explanation from the borrower for maintaining occupancy

©2014 Cherry Creek Mortgage NMLS ID 3001. THIS INFORMATION IS SOLELY FOR MORTGAGE PROFESSIONALS AND SHOULD NOT BE PROVIDED TO CONSUMERS OR THIRD-PARTIES. INFORMATION IS ACCURATE AS OF 07/23/2014 AND IS SUBJECT TO CHANGE WITHOUT NOTICE.