Maximum DTI RatiosLoan ScenarioMax. FrontRatioMax. BackRatio1-2 unit properties 43 473-4 unit properties 31 43Note: When a non-occupying co-applicant is used to qualify the borrower:• DTI Back Ratio calculated without using non-occupying applicant's in<strong>com</strong>e must not exceed60.• Proposed rents cannot be used as in<strong>com</strong>e to qualify.• Does not apply to VA IRRRL with appraisal if borrower is not credit qualified.Flip WaiverCash Out on ShortPay-OffEscrow Holdback forMinor RepairsPermitting under following conditions:• A property inspection report ordered by <strong>SWMC</strong> is must. If the borrower chooses to obtain one,<strong>SWMC</strong> can utilize such borrower-ordered inspection report.• Prior transfers will be carefully reviewed to ensure the values of the transfers represent abenefit to the borrower. The transfers should be arm’s length and not flipped to set false valuetrends.• A second (conventional) appraisal may be required and ordered by <strong>SWMC</strong>, if the sale price ofthe property is 20% or more than the seller’s acquisition cost.• Not allowed• Not allowed24
PRIME VA Mega Jumbo Loan Program - SO32O00O00Locks are allowed on this program only upon underwriting approvalLoan Purpose • PurchaseAmortization Term • Fixed Rate: 25 Years and 30 Years• Adjustable Rate: 5/1Occupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDsCredit ScoresLoan PurposeLoan ScenarioMinimumFICOPurchasesLess than or equal to $1.5 Million 740Greater than $1.5 Million but Less than or equal to $3.0 Million 780Note:• Non-traditional credit is not allowed.• If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report, then theborrower is ineligible.AppraisalApproval TypeSelf Employed<strong>Mortgage</strong> Lates• Less than or equal to $1.5 Million: 1 Full appraisal ordered by <strong>Sun</strong> <strong>West</strong> <strong>Mortgage</strong>.• Greater than $1.5 Million but Less than or equal to $3.0 Million 2 Full appraisals ordered by<strong>Sun</strong> <strong>West</strong> <strong>Mortgage</strong>.DU Approve/Eligible or LP Accept/Eligible only. Manual underwriting is not acceptable.AllowedNone in last 36 months on any mortgageCollection Accounts • Housing-expense related collection accounts within 24 months are not allowed.• Other collections (including medical) are subject to UW discretion on the file.Housing PaymentShockSubordinate FinancingLTV / CLTVSubject to <strong>SWMC</strong> approval.Not AllowedLoan Amount LTV CLTVLess than or equal to $1.0 Million(85% / 85% for all areas except those in Market Recovery Area List)Greater than $1.0 Million but Less than or equal to $1.5 Million(80% / 80% for all areas except those in Market Recovery Area List)Greater than $1.5 Million but Less than or equal to $2.0 Million(75% / 75% for all areas except those in Market Recovery Area List)Greater than $2.0 Million but Less than or equal to $3.0 Million(70% / 70% for all areas except those in Market Recovery Area List)90% NA85% NA80% NA75% NAMaximum LoanAmountMinimum EntitlementGuarantee$3,000,000Veteran must have full entitlement available or additional down payment may be required.Minimum Reserves • Less than or equal to $1.5 Million: 6 months PITIA• Greater than $1.5 Million but Less than or equal to $3.0 Million: 12 months PITIA• Additional 3 months PITI reserves for every investment propertyMaximum DTI Ratios 32%/40%Flip WaiverEscrow Holdback forMinor RepairsMarket Recovery AreaListPermitted, please see flip guidelines in the VA product guidelines.Not allowedCA Counties: Contra Costa, Los Angeles, San Benito, San Francisco, San Mateo, Santa Clara,Alameda, Marin, OrangeHI Counties: Hawaii, Honolulu, Kalawao, Kauai, MauiMD Counties: Prince George's, Calvert, Charles, Frederick, MontgomeryNJ Counties: Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic,Somerset, Sussex, UnionNY Counties: New York, Bronx, Kings, Nassau, Putnam, Queens, Richmond, Rockland, Suffolk,<strong>West</strong>chester25
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