Product Overlay Matrix - SWMC.com - Sun West Mortgage Company ...

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Requirement of HomeInspection203(K) Consultant &Contractors203(K) Self-HelpTypes of Repairs thatare eligible for a203(k) loanRepairs that areineligible on a 203(k)loanExclusions on a203(k) loanSupplementalOrigination FeeAdditional Forms andWork ExhibitsRequirementsAdditional GuidelinesThe Inspector must be approved by The American Society of Home Inspectors (www.ashi.org)or National Association of Home Inspectors, Inc. (www.nahi.org).A complete home inspection is required for all REO and vacant properties and for propertieswith repair amounts exceeding $15,000. REO and vacant properties are eligible understreamline 203(k); however, underwriter may advise about requirement of consultantdepending on the scope of work.Home inspections are not required for transactions using the services of RenovationReady(http://www.renovationready.com/)Home inspectors may not be an interested party, including the 203(K) consultant.SWMC must approve the use of all parties involved, including the consultant and contractor asapplicable.Not allowed.Non-Streamline 203(k):Roof replacement, health and safety hazard mitigation, landscaping required to mitigatedrainage or erosion issues, aesthetic landscaping when appraiser verifies that the valueincreases the dollar-for-dollar cost, sidewalk/driveway repair necessary for home access, majorrepair of termite damage, drywall/insulation replacement, most repairs which require permits,finishing basements. Egress window wells for basements will be admissible. Additions andutility replacement/reconditioning will be permissible borrower(s) decision credit score is 740 orabove. Structural and Foundation work will be permitted as long as the Contractors insurancecoverage is sufficient (normally general liability insurance coverage of 1,000,000/eachoccurrence will be acceptable).Streamline 203(k):Cosmetic Repairs such as financing purchase/installation of new appliances; patching holes;replacing doors; painting; lead paint abatement; new counters, cabinets, windows, carpet(subfloor repair requires Non-Streamline 203k); repair/installation of HVAC; weatherization;minor repair of termite damage. The property should be inhabitable at the time of loan closing.Houses never completed or where the certificate of occupancy was issued less than one yearago. SWMC reserves the right to determine if repairs are deemed unacceptable.Streamline 203(k):Upfront draws are only available for documented material costs (with receipts or invoices). Ifthe contractor is bonded, documenting material cost is not required to obtain an upfrontmaterial draw. Draws may not exceed 50% of the entire loan amount. If no draw is required,contractor must provide certification that no initial draw is necessary and that he/she hasavailable funds to complete the cost of rehabilitation.Geographic Restrictions: Sun West currently does not offer FHA 203(k) in the state of TX.1.5% of Rehabilitation Amount or $350, whichever is greater, must be charged.Consultant, if applicable• Specification of Repairs and Work Write-up exhibits must itemize material and laborcosts.• Consultant’s Identity of Interest• Master Draw Request (HUD-9746a)Contractor• Work Write-up exhibits must itemize material and labor costs.• Completed IRS-W9• License, E&O and/or Liability Insurance valid until rehabilitation is completed• Contractor Profile Form• Information for Contractors form• Homeowner and Contractor Agreement• Evidence of Assets or Sufficient Lines of Credit (VOD, Bank Statements, Credit linesetc.) to reasonably cover cost of material for rehabilitation. Draw request time line istaken into consideration. Not required when initial draw is provided on 203(K)streamline, see ‘Exclusion on 203(k) loan’ section above.Borrower• Borrower Identity of Interest Certification must be signed and dated by borrower(s),Consul• 203(K) Borrower Acknowledgement must be signed, dated and completed byborrower(s).• Conference call with borrower to be completed by SWMC.LandSafe Title is not acceptable as the title company4
Express FHA Property Flip Waiver - XP11O00F00Loan Purpose • PurchaseAmortization Term • Fixed Rate: 30 YearsOccupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• HUD-approved Condos• 2-4 Units• Manufactured HomesMinimum Credit Score 630If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records,then the minimum FICO required is 680AutomatedUnderwritingDU Approve/Eligible or LP Accept/Eligible only.Maximum DTI Ratios 45/55LTV / CLTVLoan Purpose LTV CLTVPurchase 96.5% 100% 1•1 CLTV allowed is 105% for purchases, if using a Govt. Down Payment Assistance Program.• Maximum LTV for 2-4 unit properties, with non-occupying co-borrower, is 75%.Maximum LoanAmountNon-occupying CoborrowerSubordinate FinancingEscrow Holdback forMinor RepairsDown PaymentAssistance (DPA)Listing and SellingAgentSellerIf Sales Price exceeds20% of SellerAcquisition Cost• 1 Unit: Lesser of $417,000 or maximum county limit• 2 Units: Lesser of $533,850 or maximum county limit• 3 Units: Lesser of $645,300 or maximum county limit• 4 Units: Lesser of $801,950 or maximum county limitClick Here for County limitsAllowedAllowedAllowed only if repair is completed within 5 Days.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 bondprogram; and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold toSWMC. In addition, it may not require prior notification or approval from the sponsoringauthority in the event of the transfer of the first mortgage’s servicing rights.• Cannot be the same or related.• There must NOT be an identity of interest or a potential borrower situation.Seller must be an individual; cannot be an LLC or corporation.Exception for LLC Seller 3 may be granted provided following documents are provided in theloan package:1. Articles of incorporation2. List of officers, directors, and shareholders3. Certificate of Good standing3 The underwriter carefully reviews all of the docs to determine that there is NO relationbetween the LLC and either the mortgage broker, selling agent, or the borrower.• A second appraisal is required with appraiser documenting the reasons for the increase invalue.• Property inspection ordered by Mortgagee is required.• The second appraisal will be ordered by Sun West Mortgage Company, Inc.Transfer of Property • No intermediate transfer is allowed.Transfer of Title • No recent transfers to the Seller are allowed.Program ExpirationDate• The program is set to expire December 31, 2012 and the expiration date applies to thedate of Purchase Contract.5
Page 1 and 2: Product Overlay MatrixSun West Mort
Page 3 and 4: EXPRESS FHA LOAN PROGRAMSEXPRESS St
Page 5: EXPRESS FHA 203(K) - XP11S00O00Loan
Page 9 and 10: PRIME FHA LOAN PROGRAMSPrime Standa
Page 11 and 12: PRIME FHA Manufactured Housing - AA
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

Product Overlay Matrix - SWMC.com - Sun West Mortgage Company ...

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