The Delmar Mortgage
Product Guide
TABLE OF CONTENTS
Fannie Mae
Fannie Mae Standard 97
FNMA HomeReady
FNMA HomeStyle/HomeReady Renovation
Non-Employment Related assets for income FNMA
Freddie Mac
Freddie Mac HomePossible and HomeOn
Freddie Mac Borrow Smart
Freddie Mac – Choice renovation
Assets as a basis for repayment Freddie Mac
Conforming ARMs
Extended Rate Lock Features
FHA
Delmar 100
FHA 203K Standard
Limited 203K
VA
Spring EQ – HELOC and HELOAN
USDA
Affordable Lending
Down Payment Assistance
Jumbo Lending Highlights
Reverse Mortgage
DSCR -Non QM
Bank statement program – Non-QM
ITIN
Foreign National – Non-QM
Fix and Flip
Recreational/Lot Loans
Condotel – Non-QM
Interest Only – Non QM
Advantage – 40 Year Loan – Broker
Advantage – Bank Statement Loan -Broker
Expanded Prime
Non Prime
Quorum – HELOC and Bridge Loans
TABLE OF CONTENTS
FANNIE MAE
- 97% LTV (95.01-97% first time homebuyer)
- Conforming loan limits ($766,550)
- 620 minimum FICO
- Manufactured Homes (max 95% LTV)
- DTI per DU Findings
- Non-occupant co-borrowers with blended ratios
- 10 Financed Properties on 2nd home/investment transactions
- Mortgage Insurance Options
- Future employment offers & contracts for salaried employees
FANNIE MAE STANDARD 97
97% LTV
Combined LTV up to 105% with eligible community second.
Conforming loan limits ($766,550)
620 minimum FICO
First time homebuyer program
Property Types: 1 unit principal residence, eligible condos, co-ops, PUDs and
Manufactured Home Advantage
Fixed rate mortgages with a maximum 30 year term eligible
Reserves (if required) may be gifted
Homebuyer education required when all occupying borrowers are first time
home buyers and LTV >95%.
FNMA HOMEREADY
97% LTV (1 unit, purchase only)
Conforming loan amounts ($766,550)
620 minimum FICO
Purchase or Rate/Term Refinance
Income limits 80% AMI
Gifts allowed
25% MI Coverage
Flexible income sources include ADU and boarder income
Non-occupant borrower permitted up to 95% LTV
At least one borrower must complete homeownership education if all
borrowers are FTHB.
Max financed properties – 2
FNMA HOMESTYLE/
HOMEREADY RENOVATION
- Conforming loan amounts ($766,550)
- Purchase or limited cash-out refinance
- Per AUS Findings – Approve/Eligible
- Primary residence, second home, or investment properties
- Purchase – LTV is based on the lesser of the “as completed” appraisedvalue or the sum of the purchase price plus rehabilitation costs
- Repairs can be for structural, nonstructural, and cosmetic repairs includingbut not limited to:
- Major structural alterations/additions Major landscaping and siteimprovements Total rehab, contractor, and fees cannot exceed 75% of total loan amount.
NON-EMPLOYMENT RELATED ASSETS FOR INCOME
FNMA
LTV 80% purchase and rate/term and 70% cash-out
Credit score: 680 < = 70% and 720 > 70%
Principal and Second homes only
1-2 unit primary, 1 unit second home, manufactured not eligible
Asset seasoning:
12 months with minimum credit score of 720
24 months with credit less than 720
24 months for cash-out
Minimum asset amount:
Purchase or Rate/Term, the lesser of one and one half times the original
UPB or $500K.
Cash-out – $500K
Eligible assets:
Checking/Savings
Investment in stocks, bonds, mutual funds, CDs, money market and trust
accounts.
Cash value of a vested life insurance policy
Funds from the sale of an investment property.
Asset requirements:
Owned individually by the borrower, or the co-owner of the asset must also
be the co-borrower.
Assets must be liquid and available without penalty.
Income Calculation: Divide “Net documented assets” by the mortgage term.
Percentage of funds allowed:
100% for depository accounts (checking/savings/CD)
70% for stocks, bonds, mutual funds
FREDDIE MAC
LTV up to 97%
Conforming loan limits ($766,550)
620 minimum FICO
DTI per LPA Accept
Non-occupant co-borrowers with blended ratios
85% Cash Out*
*Investor specific restrictions apply
Manufactured homes (max 95% LTV)
Financed Properties – 10
Mortgage Insurance Options
Future employment offers & contracts for salaried employees.
FREDDIE MAC HOMEPOSSIBLE
& HOMEONE
- LTV up to 97%
- 660 minimum FICO
- Purchase & No cash-out refi
- Qualifying income limited to 80% of AMI.
- LPA Accept; no manual UW
- Manufactured Homes
- Home buyer education required from flexible sources*
- At least one borrower must complete homeownership education if all borrowers are FTHB
- LTV up to 97%
- 620 minimum FICO
- Purchase & no cash-out refi*
- No specific income or geographic restrictions
- LPA Accept; no manual UW
- 1 borrower must be a First Time Homebuyer
- 1 unit primary residence
- No manufactured homes
- Home buyer education required from flexible sources*
*with restrictions
*may be waived if 1 borrower is a previous home buyer
FREDDIE MAC BORROW SMART
Total assistance $3000 ($1500 from both Freddie and lender)
Qualifying income up to 140% of AMI
Purchase only – 1-2 unit properties in specific metropolitan area (MSA)
Can use with HomeOne or Conventional
Must have LP of “Accept”
At least one borrower MUST be a first time homebuyer
Homeownership Counseling through HPF required
Minimum borrower contribution not required
Gift funds allowed
Can be used in conjunction with other DPA programs that meet Freddie guides
FOCUS AREAS:
Atlanta – Sandy Springs – Alpharetta (GA)
Chicago – Naperville – Elgin (IL)
Detroit – Warren – Dearborn (MI)
El Paso – Houston (TX)
The Woodlands – Sugar Land (TX)
McAllen – Edinburg – Mission (TX)
Memphis (TN-MS-AR)
Miami – Fort Lauderdale – Pompano Beach (FL)
Philadelphia – Camden – Wilmington (PA, NJ, DE, MD)
St. Louis (MO, IL)
FREDDIE MAC – CHOICE RENOVATION
- Purchase and Rate/Term Refinance
- Occupancy
- Primary residence
- 1 Unit 2nd Home
- Single Family Investor
- Property Type
- Primary residence
- 1 unit 2nd home
- 1 unit investment property
- Manufactured Homes (doublewide only)
- SFR, PUD and warrantable condos
- Credit score – Per LP findings
- LTV – Purchase
- Up to 95% 1 unit owner occupied (different for multi-unit)
- 90% 1 unit second home
- 95% manufactured Home
- 85% 1 unit investor
- LTV – Refinance
- 95% 1 unit owner occupied (different for multi-unit)
- 90% 1 unit second home
- 95% manufactured home
- 85% manufactured home
- No minimum repair amount
- Maximum repair amount – 75% of as improved value.
- Manufactured home: lesser of $50K or 50% of the “as-completed” appraised value
- Eligible products: Standard conforming and Home Possible.
- Loan term (fixed): 15,20,25,30 and Super conforming 15,20,30
- Draw period from closing: 9 months
- Swimming pool construction allowed
ASSETS AS A BASIS FOR REPAYMENT
FREDDIE MAC
Max LTV 80%
Purchase and Rate/Term only.
Primary and second home only
1-2 unit primary, 1 unit second home
Divide “Net documented assets” by 240
Ineligible assets:
Virtual currency/Cryptocurrency
Any funds required to complete the transaction (Down payment, closing
costs and reserves)
Any gift or borrowed funds
Any portion of assets pledged as collateral for a loan or otherwise
encumbered
Eligible assets:
Retirement account recognized by IRS (401K, IRA)
Borrower must be sole owner
Borrower has rights to the funds in account and fully vested
Cannot be currently used as a source of income
Lump sum distribution in eligible retirement account
Depository accounts and securities
Assets from the sale of a business
CONFORMING ARMS
95% LTV/CLTV
620 minimum FICO
All occupancy types
LPA Accept or DU Accept/Eligible
EXTENDED RATE LOCK FEATURES
Lock periods for 90, 120, 180, 240, 270 days
Available on Fixed Rate or Adjustable Rate
Acceptable for Convention and Government loans
Upfront lock-in fee is required at the time of lock, but then applied towards
closing cost at the time of funding
Float down options available
Investor specific overlays may apply
FHA
-
- Max LTV 95.5% – Borrowers 3.5% investment can come from flexible sources
-
- Credit below 580 requires 10% down payment
-
- Single family, condos, PUDs, 2-4 unit, and manufactured homes
-
- Mandatory Annual MI
-
- Must be owner occupied
-
-
- Non-Occupied may be available for a streamline refinance
-
-
- Restrictions on property flipping
-
- Lifetime MI unless 10% down
-
- Upfront MI can be financed or paid in full at closing
- Loan limit link: https://entp.hud.gov/idapp/html/hicostlook.cfm
DELMAR 100
Max LTV/CLTV is 100%
600 minimum FICO
Owner occupied only
No First Time Homebuyer requirements
DTI per AUS findings
1 – 2 unit properties (includes Condos/PUDs)
0% borrower contribution from own funds
FHA Max loan amounts apply
Homebuyer education required with FICO scores under 640
Rehabilitation Loan for primary residence 30 year fixed rate
Credit score – Per total scorecard findings (DU or LP)
Primary residence only
Minimum loan amount $40,000
Minimum repair amount $5,000
Purchase and rate/term refinance
Borrower financed payments available during construction
Loan based on As-Improved Value
30 year fixed rate only
Maximum Draws – 5
LIMITED 203K
No minimum repair amount
Max repair amount: $35K including all renovation cost
Minor remodeling and non-structural repairs.
Foundation work not allowed
Maximum Draws 2
VA
-
540 minimum FICO
-
Single family, condos, PUDs, 2-4 units, and manufactured homes
-
IRRRL (streamline refinance)
-
DTI per AUS approval
-
Owner occupied
-
No Annual MI
-
Funding fee may be waived with service related disability, see certificate of eligibility for details
USDA
- 100% LTV plus Guarantee Fee
- 580 minimum FICO
- Single family, condos, PUDs, and manufactured homes
- Purchase
- Refinance
- Lifetime MI
- Property must be in an eligible area
AFFORDABLE LENDING
- Max loan amount up to conforming limits depending on program
- Competitive interest rates
- Minimal funds needed for closing
- Minimum credit score 620. (580 for FHA)
- Maximum LTV 97% (97.5% for FHA)
- Reduced MI options
- Primary Residence Only
- No investor LLPA’s
- Conventional and FHA options
- Credit/Benefit – different depending on program
DOWN PAYMENT ASSISTANCE
Bond loans, grants, second liens
Assistance for First Time Homebuyers and Subsequent Homebuyers
Mortgage Credit Certificate Program (MCC)
Colorado: Grand County Housing Authority
Florida: FHFC – Florida Housing Finance Corp
Illinois: IHDA, Madison County Homebuyer Program and St Clair County Grant
Kansas: Kansas housing Assistance Program (KHAP)
Michigan – Michigan State House Development Authority
Mississippi: MRB7 – MS Home Corp (MHC)
Missouri: MHDC – Missouri Housing Development Committee
Nebraska: NIFA – Nebraska Investment Finance Authority
North Carolina: NCHFA – North Carolina Housing Finance Agency
Ohio: OHFA – Ohio Housing Finance Agency
South Carolina: Community Works
Tennessee: THDA – Tennessee Housing Development Authority
Texas: Texas State Affordable Housing Corp (FSAHC)
JUMBO LENDING HIGHLIGHTS
LTV as high as 90% (Limited options available to 95%)
Loan Amounts up to $3,000,000.00*
660 minimum FICO**
DTI limit is 45%
Required reserves as little as 3 months PITIA
Accommodate all types of borrowers; First Time Homebuyers, Non-Permanent
Residents, etc.
Investors, Non-Occupant Co-Borrowers
No MI options for loans with less than 20% down
Ability to include income from Annuitization of Assets
*Credit qualifications must be met to achieve maximum loan amount.
**Restrictions may apply. See full guidelines for limitations.
REVERSE MORTGAGE
Unlock your homes equity.
FICO based on program.
LTV based on age, rate and program.
Minimum age is 62 in most states.
Broker and Loan Officer need licensed in the state.
No minimum FICO on most products
Max loan proceeds up to $4M
Property must be borrowers’ primary residence.
Property type: SFR, Condo, 2-4 unit (Manufactured home available on some
products).
Financial counseling required.
DSCR - NON QM
Properties may be in LLC name
Loan amounts to $2M (Minimum $75K)
680 minimum FICO
Investment properties only
No limit on financed properties
1-4 family properties
Non-Warrantable Condos allowed
Purchase, Cash-Out & Rate/Term
Foreign Nationals Allowed
100% gift funds allowed, LTV restrictions may apply
BANK STATEMENT PROGRAM –
NON-QM
For self-employed borrowers
UP to 85% LTV
Credit score: 660 primary and 680 investment/2nd home
Max cash out – $500K
Vesting options: Individual, Trust and LLC
Additional feature: 1099 income option
ITIN
LTV
Full doc 1-2 years 80% purchase/rate term or 70% cash-out
Bank stmt 12-24 months 80% purchase/rate term or 70% cash-out
1099 1-2 years 80% purchase/rate term or 70 % cash-out
Minimum loan amount $100K
Minimum FICO 660
Loan Term: 15-30 year fixed or 30-40 year interest only
Asset depletion allowed and can be combined with other income sources
Reserves required (based on loan amount)
Max DTI 50%, may go up to 55% with 680 FICO and compensating factors
Gifts allowed for primary residence after borrower 5% contribution
No more than 20 acres allowed
Rural properties allowed, LTV reduced by 5%
FOREIGN NATIONAL – NON-QM
Max LTV 75% on purchase and 65% cash-out
700 minimum FICO
2nd home and Investment property only
Identification – Passport with photo OR 1-797 AND I-94
Borrowers from OFAC sanctioned countries or diplomatic immunity are
ineligible
ACH debit for payment required
Gift funds are not allowed
Allowable Visa types: B-1,B-2, H-2, H-3, I, J-1, J-2, P-1, P-2, TN, NAFTA
(Canadian or Mexican Professional/Business), Laser Visa (Exclusions for those
participating in States Dept Visa Waiver Program – VWP)
DSCR available with 1:1 ratios or greater. Min FICO 700, Max LTV 75%
(Purchase/RT) 65% (Cash out), Max loan amount $2M – Reserves required
FIX & FLIP
LTV varies based on customer experience as an investor
620 minimum FICO
Loan Term: 12-18 months
Minimum loan amount $50K
Maximum loan amount $7.5M
Property types: SFR, Condo, Multi Family, Townhomes
NOO multi family and 5+ unit apartments programs available
No cash out allowed on heavy rehab
RECREATIONAL/LOT LOANS
Available in KY, TN, IN, OH
- Recreational Land loans: Hunting/Fishing/ATV, etc
- Min. 10 acres with 5 cleared or 15+ timber
- Max loan amount $1M
- May have non primary home up to 49.9% of overall value
- Lot loan – Must have intent on building primary dwelling
- 5+ acres minimum of open ground
- Value caps and other property qualifiers – Must provide to Rylee Alcorn (Rep) if purchase price is $392K for 0-30 acres.
- Rural Primary and Construction loans: Bardominium and Log Homes
- 5+ acres of open land or 15+ acres of timber
- If under 5 acres – Value cap – must submit to Rylee Alcorn (Rep) for value
- Barndominium – 85% financing, 50% overall space being gross living
- No PMI
- Dwelling only requires 20% of loan value
- Max appraised value with attached garage – $2M
- No single wides, Manufacture home product not very competitive
CONDOTEL – NON-QM
LTV – Purchase 75%, Refinance 65%
Max Loan amount $1.5M
Owner Occupied, 2nd Home and Non-owner available
Full Doc, Alt Doc or DSCR
Short term rental income allowed
Must be at least 500 sq ft.
Property must include a bedroom and fully functioning kitchen
INTEREST ONLY – NON QM
Max LTV – 85%
Max loan amount $3M
Minimum loan amount $75K
680 minimum FICO
Loan Term – 40 years (10 years I/O then 30 year amortization)
Full Doc, Bank Statement and Property Cash Flow available
ADVANTAGE -
40 YEAR LOAN - BROKER
Interest only
Max loan amount – $3M Minimum loan amount $100K
600 minimum FICO
MI not required
Max DTI – Up to 55% with credit score >680 (full doc)
Bankruptcy seasoning – 12 months
Asset depletion for income allowed
1099 income treated as self-employed
Gift funds allowed. Borrower must contribute 3% regardless of LTV
Non-Occ Co-Borrower not allowed for qualifying
Reserves required
ADVANTAGE -
BANK STATEMENT LOAN - BROKER
-
- 7/6 ARM and 7/6 ARM I/O available
- Max loan amount – $3M Minimum loan amount $150K
- 660 minimum FICO
- MI not required
- Max DTI : LTV >85% – 45 DTI and LTV<= 85% – 50% DTI
- Bankruptcy seasoning – 4 years
- Asset depletion for income NOT allowed
- 1099 income allowed with single payer with no expenses
- Gift funds allowed – Restrictions apply
- Non-Occ Co-Borrower not allowed for qualifying
- Reserves required
EXPANDED PRIME
LTV up to 90%
Max loan amount $3M
660 minimum FICO
DTI 50%
Max cash out – $500K
Cash out over $500K requires 720 FICO
Cash out can be used towards reserve requirement
Products – 30 year fixed, 40 year I/O and ARM loans
Occupancy – Primary, 2nd home and Investment
Documentation requirements:
Standard Full Doc
1 year P/L and self employed business bank statement (12 and 24 month)
Ineligible states – AK, MA, MO, NY, WV and HI
NON PRIME
LTV up to 80%
Max loan amount $1.5M
620 minimum FICO
DTI up to 50%
Products – 30 year fixed, 40 year I/O and ARM loans
Occupancy – Primary, 2nd home and Investment
Max cash out $500K – can be used towards reserve requirement
Ineligible states: AK, MA, MO, NY, WV, HI
QUORUM – HELOC AND BRIDGE LOANS
Quorum in a credit union – Membership required – Quorum takes care of the cost and completion of the membership application.
Interest Only HELOC
- FICO: 660
- Max CLTV: 90%
- Minimum Loan Amount: $25K
- Maximum Loan Amount: $350K
- Max Housing Ratio: 38%
- Max Debt Ratio: 43% (45% permitted with CLTV < 80% and FICO > 720)
- Occupancy Types: Primary and Second Home
- Property Type: 1-2 Unit
- Draw Period – 10 years
- Repayment Period – 20 years
- Index – Prime Rate
- Margin – Risk Based
- Interest Rate: Index + Margin
- Annual Rate Caps 2% Increase or Decrease
- Qualifying Payment: P/I payments amortized over 20 years. Borrower payment is interest only during draw period (first 10 years)
- Eligible borrowers: US Citizens and Permanent Resident Aliens
- Self Employed Borrowers Permitted
- Annual Service Fee: N/A
- Quorum Origination Fee: $495
- Quorum Processing Fee: $100
- FICO: 680
- Max CLTV: 90%
- Minimum Loan Amount: $25K
- Maximum Loan Amount: $250K
- Max Housing Ratio: 38%
- Max Debt Ratio: 43% (45% permitted with CLTV < 80% and FICO > 720)
- Occupancy Types: Primary and Second Home
- Property Type: 1-2 Unit
- Draw Period – 10 years
- Repayment Period – 20 years
- Index – Prime Rate
- Margin – Risk Based
- Interest Rate: Index + Margin
- Annual Rate Caps 2% Increase or Decrease
- Qualifying Payment: P/I payments amortized over 20 years. Borrower payment is interest only during draw period (first 10 years)
- Eligible borrowers: US Citizens and Permanent Resident Aliens
- Self Employed Borrowers not Permitted
- Annual Service Fee: N/A
- Quorum Origination Fee: $495
- Quorum Processing Fee: $100
- FICO: 680
- Max CLTV: 80%
- Minimum Loan Amount: $50K
- Maximum Loan Amount: $250K
- Max Housing Ratio: 38%
- Max Debt Ratio: 43% (45% permitted with CLTV < 80% and FICO > 720)
- Occupancy Types: Investment
- Property Type: 1 Unit
- Draw Period – 5 years
- Repayment Period – 10 years
- Index – Prime Rate
- Margin – Risk Based
- Interest Rate: Index + Margin
- Annual Rate Caps 2% Increase or Decrease
- Qualifying Payment: P/I payments amortized over 10 years. Borrower payment is interest only during draw period (first 10 years)
- Eligible borrowers: US Citizens and Permanent Resident Aliens
- Self Employed Borrowers Permitted
- Annual Service Fee: $100
- Quorum Origination Fee: $695
- Quorum Processing Fee: $100
- FICO: 680
- Max CLTV: 80%
- Minimum Loan Amount: $50K
- Maximum Loan Amount: $1M
- Max Housing Ratio: 38%
- Max Debt Ratio: 43%
- Occupancy Types: Primary only
- Property Type: 1 Unit
- Draw Period – 10 years
- Repayment Period – 20 years
- Index – Prime Rate
- Margin – Risk Based
- Interest Rate: Index + Margin
- Annual Rate Caps 2% Increase or Decrease
- Qualifying Payment: P/I payments amortized over 20 years. Borrower payment is interest only during draw period (first 10 years)
- Eligible borrowers: US Citizens and Permanent Resident Aliens
- Self Employed Borrowers Permitted
- Annual Service Fee: N/A
- Quorum Origination Fee: $995
- Quorum Processing Fee: $100
- Loan Amount < $50K: .50%
- Second Home: .50%
- Simultaneous Purchase Transaction: -.50%
- New Checking account with Quorum. Must be established prior to closing with minimum balance of $5,000. Margin Reduction -.25
- New CD with Quorum with minimum $50K – Must be established prior to closing. Margin Reduction -.50
SPRING EQ – HELOC and HELOAN
- Minimum FICO: 660 – Primary residence. 680 second home/investment property. Nontraditional credit not allowed.
- LTV: Up to 95% on primary residence, 80% second home and 70% investment. LTV varies based on credit score.
- Loan Term:
- 30-year HELOC with 3-year draw period.
- 30-year variable term (Index plus a margin)
- 3-year draw period. 10-year interest only payment with a 20 year fully amortizing repayment
- Initial Draw: The greater of $50K or 50% of the total line amount.
- Additional Draw: Not allowed during the first 90 days after closing. Minimum $1000 not to exceed credit limit.
- Line Amount: Minimum $50K, Maximum $500K. (LTV/DTI restrictions with line amounts over $250K).
- Ownership seasoning: Primary/second home – None. Investment/Inherited property – 6 months.
- Property Type: SFR, PUD, Modular as defined by FNMA, Condos and 1–4-unit properties.
- Tradelines: Minimum of three tradelines regardless of the timeline with at least one of the tradelines being open with a date of the last activity within 6 months from the current date and reporting for at least the past 12 months; OR A current mortgage paid as agreed for past 36 months.
- Ineligible Borrowers: Non-Occupying borrowers, Cosigners and Foreign Nationals.
HELOAN
- Minimum FICO: 640 – Primary residence. 680 second home/investment property. Nontraditional credit not allowed. LTV varies based on credit score.
- LTV: Up to 95% on primary residence, 80% second home and investment properties. LTV varies based on credit score.
- Loan Term: Stand-Alone 2nd liens and piggybacks. Fixed rate terms 5/10/15/20/25/30.
- Loan Amount: Minimum $25K, Maximum $500K. (LTV/DTI restrictions with line amounts over $250K).
- Lien Position: Second lien only. Third liens or any subordinate lien following a SpringEQ lien are not permitted.
- Ownership seasoning: Primary/second home – None. Investment/Inherited property – 6 months.
- Property Type: SFR, PUD, Modular as defined by FNMA, Condos and 1–4-unit properties.
- Tradelines: Minimum of three tradelines regardless of the timeline with at least one of the tradelines being open with a date of the last activity within 6 months from the current date and reporting for at least the past 12 months; OR A current mortgage paid as agreed for past 36 months.
- Ineligible Borrowers: Non-Occupying borrowers, Cosigners and Foreign Nationals.
