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PITI Reserves • 3 months’ reserves, excluding Gift Funds, required for First Time Home Buyer if Housing PaymentShock > 20% and FICO < 680 and DTI Back Ratio is > 43• 3 months’ reserves, excluding Gift Funds, required for 3-4 unit properties;• 3 months’ reserves on 2-unit properties if DTI Back Ratio without rental income exceeds 60• 6 months’ reserves if LTV/CLTV > 80% and proposed rents are used to qualify and DTI Back Ratiowithout rental income exceeds 60Gift Funds • FICO greater than or equal to 680: Allowed, no additional reserve requirements.• FICO less than 680: Allowed only when borrower has 3 months reserves, excluding gift funds.LTV / CLTVLoan Purpose LTV CLTVPurchase 96.5% 100% 1Rate & Term Refinance 97.75% 97.75% 2Cash-Out Refinance 85% 85%Maximum DTIRatios•1 CLTV allowed is 105% for purchases, if using a Govt. Down Payment Assistance Program.•2 CLTV allowed for R/T refinances is 115% for loans qualifying under HUD ML 10-23 with FICO morethan 720.• Maximum LTV for 2-4 unit properties, with non-occupying co-borrower, is 75%.Loan ScenarioMax. FrontRatioMax. BackRatio620 20% 45 553-4 unit properties 31 43Down PaymentAssistance(DPA)Cash Out onShort Pay-OffEscrow Holdbackfor MinorRepairsFHA Refinanceconsolidating 1 stand 2 nd liensNote: When a non-occupying co-applicant is used to qualify the borrower:• DTI Back Ratio calculated without using non-occupying applicant's income must not exceed 60.• Proposed rents cannot be used as income to qualify.*If the borrower has at least 3 months’ PITI reserves excluding gift funds, the maximum ratios allowedare 45% (Front) and 55% (Back).Allowed in conjunction with first mortgage loans with following overlays:• The DPA meets all published requirements of FHA; and• The first Mortgage sold to SWMC is not subject to any terms or conditions of a bond program; and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold to SWMC. Inaddition, it may not require prior notification or approval from the sponsoring authority in the eventof the transfer of the first mortgage’s servicing rights.• The FICO requirement for borrowers using DPA program is 680 and borrower must have 3 months’reserves.Not allowedAllowed only if repair is completed within 5 Days.An FHA Refinance involving the refinance of both 1st and 2nd liens into a single FHA loan, in which the2nd lien was a HELOC more than 12 months old, is permissible as a Rate and Term refinance. TheHELOC loan balance eligible to be added to the new loan amount would be:• The current loan balance, if there were no draws in the last 12 months or if the draws were for thepurposes of repairs and rehabilitation.• If there were draws in the last 12 months which were for the purposes other than repair andrehabilitation, only the draws of up to $1,000 may be added to the refinance loan amount.• If the balance or any portion of an equity line of credit in excess of $1,000 was advanced within thepast 12 months and was for purposes other than repairs and rehabilitation of the property, thatportion above and beyond $1,000 of the line of credit is NOT eligible for inclusion in the newmortgage. These amounts must be paid from the Borrower's funds at closing or the transactionmust be treated as a Cash-Out Refinance and must meet the Cash-Out refinance guidelines (85%LTV, etc).8
PRIME FHA Manufactured Housing - AA12S01F00Loan Purpose • Purchase• Rate & Term Refinance• Streamline Refinance (Sun West offers Streamline Refinance as a separate product. Please ClickHere to view FHA Streamline Refinance guidelines.)AmortizationTerm• Fixed Rate: 30 YearsOccupancy • Owner-occupied properties onlyEligibleProperties• 1-Unit Manufactured Home• HUD-approved Manufactured Condos• Leasehold Manufactured Home PropertiesNote: Single-wide Manufactured Homes are not allowed.Credit ScoresLoan PurposeLoan ScenarioMinimumFICOPurchasesRate & TermRefinancesHousing Payment Shock 20% 680All Rate and Term Refinances 660All Loan Purposes Leasehold Properties 700Note:• Non-traditional credit is not allowed.• The FICO requirement for borrowers using Down Payment Assistance (DPA) program is 680 andborrower must have 3 months’ reserves.• If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records,then the minimum FICO required is 680, or as per the above matrix, whichever is higherApproval TypeSelf EmployedDU Approve/Eligible or LP Accept/Eligible only.AllowedMortgage Lates • None in last 24 months on any mortgage• None allowed ever for leasehold propertiesCollectionAccountsHousingPayment Shock• Housing-expense related collection accounts within 24 months are not allowed.• Other collections (including medical) are subject to UW discretion on the file.• No collection accounts or charge offs allowed ever for leasehold properties.This guideline is applicable to Purchase transactions only. Housing Payment Shock is calculated as thedifference between the new housing payment and existing housing payment divided by existing housingpayment times 100. Existing housing payment must be documented.Loan ScenarioMaximum HousingPayment Shock660 680N/ANon-occupyingCo-borrowerSubordinateFinancingLTV / CLTVNot allowed for credit qualificationNot allowedLoan Purpose LTV CLTVPurchase 96.5% NARate & Term Refinance 97.75% NANote: HUD Repo is not allowed with LTV > 96.5%. At least 3.5% down payment is must.Maximum LoanAmountMaximumNumber ofPropertiesFinanced byborrowerPITI ReservesGift FundsFlip Waiver• 1 Unit: Lesser of $417,000 or maximum county limitClick Here for County limits• 1 (inclusive of subject)• Limitation does not apply if loan purpose is streamline refinance3 months’ reserves requiredNot allowedSun West offers Property Flip Waiver as a separate product. Please Click Here to view FHA Property FlipWaiver guidelines.9
Page 1 and 2: Product Overlay MatrixSun West Mort
Page 3 and 4: EXPRESS FHA LOAN PROGRAMSEXPRESS St
Page 5 and 6: EXPRESS FHA 203(K) - XP11S00O00Loan
Page 7 and 8: Express FHA Property Flip Waiver -
Page 9: PRIME FHA LOAN PROGRAMSPrime Standa
Page 13 and 14: PRIME FHA Jumbo - SO41S00F00Loan Pu
Page 15 and 16: PRIME FHA Streamline RefinanceLoan
Page 17 and 18: PRIME FHA 203(K) - AA11S00O00 & FHA
Page 19 and 20: 203(K) Self-HelpTypes of Repairstha
Page 21 and 22: Gift Funds • FICO greater than or
Page 23 and 24: PITI Reserves • 3 months’ reser
Page 25 and 26: PRIME VA (Jumbo) Loan Program - SO3
Page 27 and 28: PRIME VA Mega Jumbo Loan Program -
Page 29: Flip WaiverPermitting under followi

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