Mountain West Financial

MWF

Fannie Mae Conforming Fixed Rate

10 to 30 Year

CF10, CF20, CF30

As of 06/25/2012

Product Matrices

PRIMARY RESIDENCE PURCHASE

Property Type / LTV without
Secondary Financing2 / LTV with
Secondary Financing / CLTV with
Secondary Financing / Max HCLTV / FICO SCORE
1 Unit / 97% / 97% / 97% / 97% / 680
1 Unit / 95% / 95% / 95% / 95% / 620
2 Units / 80% / 80% / 80% / 80% / 620
3 – 4 Units / 75% / 75% / 75% / 75% / 620

Primary residence RATE AND TERM

Property Type / LTV without
Secondary Financing2 / LTV with
Secondary Financing / CLTV with
Secondary Financing / Max HCLTV / Fico Score
1 Unit / 97% / 97% / 97% / 97% / 680
1 Unit / 95% / 95% / 95% / 95% / 620
2 Units / 80% / 80% / 80% / 80% / 620
3 – 4 Units / 75% / 75% / 75% / 75% / 620

PRIMARY RESIDENCE EQUITY REFINANCE1

Property Type / LTV without
Secondary Financing2 / LTV with
Secondary Financing / CLTV with
Secondary Financing / Max HCLTV / Fico Score
1 Unit / 85%4 / 85% / 85% / 85% / 620
2 – 4 Units / 75%4 / 75% / 75% / 75% / 620

SECOND HOME PURCHASE/RATE AND TERM3

Property Type / LTV without
Secondary Financing2 / LTV with
Secondary Financing / CLTV with
Secondary Financing / Max HCLTV / Fico Score
1 Unit / 90% / 90% / 90% / 90% / 620

SeCOND HOME EQUITY REFINANCE 1, 3

Property Type / LTV without Secondary Financing / LTV with
Secondary Financing / CLTV with
Secondary Financing / Max HCLTV / Max HCLTV
1 Unit / 75%4 / 75% / 75% / 75% / 620

INVESTMENT PROPERTY PURCHASE3

Property Type / LTV without Secondary Financing / LTV with Secondary Financing / CLTV with Secondary Financing / Max HCLTV / Fico Score
1 Unit / 80% / 80% / 80% / 80% / 620
2 - 4 Units / 75% / 75% / 75% / 75% / 620

INVESTMENT PROPERTY RATE AND TERM3

Property Type / LTV without Secondary Financing / LTV with Secondary Financing / CLTV with Secondary Financing / Max HCLTV / Fico Score
1 – 4 Units / 75% / 75% / 75% / 75% / 620

INVESTMENT PROPERTY EQUITY REFINANCe 1, 3

Property Type / LTV without Secondary Financing / LTV with Secondary Financing / CLTV with Secondary Financing / Max HCLTV / Fico Score
1 Unit / 75%4 / 75% / 75% / 75% / 620
2-4 Units / 70%4 / 70% / 70% / 70% / 620

1 If the property was purchased within the prior six months, borrower is ineligible for a cash out transaction unless the loan meets the Delayed Financing Exception. Refer to the Delayed Financing Exception guides. If the property was listed for sale in the past six months, the LTV ratios for a cash-out transaction are limited to 70%. If the borrower is unable to demonstrate an acceptable continuity of obligation, the maximum LTV ratio may be limited.

2 LTV’s 80.01% or greater require Mortgage Insurance (see Mortgage Insurance Section)

3 Borrowers who own five to ten financed properties are subject to the following additional eligibility requirements. These must be manually applied to DU loan casefiles:

Second Home: Purchase – 75/75/75% LTV/CLTV/HCLTV and limited cash out refinance – 70/70/70% LTV/CLTV/HCLTV

Investment Property: Purchase – 1 unit 75/75/75%, 2 – 4 units 70/70/70%; limited cash out refinance- 1 – 4 units 70/70/70% LTV/CLTV/HCLTV

Cash out refinance transactions are permitted under limited circumstances. Refer to the Delayed Financing Exception guides.

720 Fico Score required.

4 Property listed for sale:

70% maximum LTV with the property off the market for at least one day prior to the execution of the initial loan application.
Maximum LTV’s allowed with the property off the market for 180 days prior to the execution of the initial loan application.

DELAYED FINANCING EXCEPTION

Cash Out Refinances will be allowed within (6) months of a purchase transaction when no financing was obtained for the purchase transaction under the following parameters:

Product Code CF30D
The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV, CLTV, and HCLTV ratios for the transaction).
The purchase transaction was an arms-length transaction.
The purchase transaction is documented by the “final” HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any personal loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.
All other cash out refinance eligibility requirements must be met.

Product Information

ELIGIBLE TERMS

10 to 30 year terms in annual increments.
Fully Amortizing.

MINIMUM LOAN AMOUNT

Minimum loan amount $35,000.00

MAXIMUM LOAN AMOUNT

Number of Units / Continental U.S. / Alaska & Hawaii
1 Unit / $417,000 / $625,500
2 Units / $533,850 / $800,775
3 Units / $645,300 / $967,950
4 Units / $801,950 / $1,202,925

TOTAL EXPENSE RATIO REQUIREMENT FOR ALL LOANS

Maximum allowable total expense ratio (DTI) is 45%, with flexibilities offered up to 50% maximum for certain loan casefiles with strong compensating factors. Must receive Approve/Eligible from DU.

QUALIFYING INFORMATION

Ratios

DU Approve: Ratios evaluated by DU
With Temporary Buydown: Qualify at Note Rate

Qualifying Rate

Qualify at note rate.

AUS REQUIREMENTS

All loans must be submitted to DU.
May follow DU decision and documentation requirements for Approve/Eligible.

TEMPORARY BUYDOWN

Annual buydowns allowed as follows:

Primary Residence and Second Homes
Purchases and Rate/Term Refinances
Maximum 1% per year.
Maximum 3% below Note Rate.
Qualify at Note Rate

SECONDARY FINANCING

If utilizing an OUTSIDE second mortgage, the FNMA Home Equity product guidelines must be reviewed for guidelines and acceptability of said product.
Not all guidelines will be compatible.
The more restrictive guidelines will apply.

MORTGAGE INSURANCE Requirements

Required for all loans exceeding 80% LTV.
If mortgage insurance is required, use the lesser of the sales price or appraised value to determine the appropriate coverage.

Coverage

LTV / Coverage for20 Years / Coverage for >20 Years
80.01% - 85.00% / 6% / 12%
85.01% - 90.00% / 12% / 25%
90.01% - 95.00% / 25% / 30%
95.01% - 97% / 35% / 35%

Acceptable MI Companies

MGIC

Radian

Genworth

BORROWER PAID:

General Guidelines

AUS approval

Maximum 45% DTI

2 months reserves required (6 months reserves required on departing primary residences)

3% contribution from borrowers own funds (excludes gift funds). Use the more restrictive guide when it comes to borrower’s own funds required.

SFR, PUD (detached/attached), Fannie Mae approved Condos and 2 units

3 – 4 units and Condos in Clark County, NV not eligible

IMPOUND ACCOUNTS

Refer to MWF Guidelines for requirements.

ASSUMABILITY

Not Allowed

PREPAYMENT PENALTY

None

GWUG

GMAC RFC

NOTES:

Allowable States

Borrower Eligibility

RESIDENCY

Loans financed to non-United States citizens are subject to restrictions based on the level of residence.

Permanent Resident Aliens

A Permanent Resident Alien is a non-United States citizen who has been approved for lawful permanent residency in the United States.
Permanent Resident Aliens can be approved for loans under the same terms available to United States citizens.
Permanent Resident Aliens must provide a copy of their Resident Alien Registration card.
A valid Social Security number is required.
(2) Year Employment in the United States
Borrower must meet all other program requirements.

Non Permanent Resident Alien

Must be a legal resident of the U.S. as evidenced by social security number.
Borrower must be employed in the U.S. for (2) Years
Tax Identification Number (TIN) is not acceptable.
Refer to the specific product summary for additional restrictions.
Borrower must meet all other program requirements.

INELIGIBLE BORROWERS

Foreign Nationals
Borrowers with Diplomatic Immunity
Legal entities such as:
Corporations
General Partnerships
Limited Partnerships
Real Estate Syndications
Trusts
Life Estates

TITLE REQUIREMENTS

An eligible borrower is a natural person that is obligated to repay the indebtedness secured by the mortgaged premises.
An eligible borrower must be one of the following:
An Individual or Individuals.

MULTIPLE PROPERTY OWNERSHIP

Multiple Loans to One Borrower

PRIMARY RESIDENCE TRANSACTION -

A borrower may own up to ten (financed properties (including the subject property).
A maximum concentration of 20% is allowed in any one project or subdivision.
All loans in process for the same borrower must be underwritten simultaneously as the impact of each transaction upon the other needs to be evaluated prior to issuing a credit decision.
Joint ownership in residential real estate is to be considered the same as total ownership of an individual property for this limitation. Ownership in commercial or multi-family (five or more units) real estate is not included in this limitation.

SECOND HOME OR INVESTMENT TRANSACTION –

A borrower may own 5 – 10 financed properties including subject property; and primary residence
A maximum concentration of 20% is allowed in any one project or subdivision.
All loans in process for the same borrower must be underwritten simultaneously as the impact of each transaction upon the other needs to be evaluated prior to issuing a credit decision.
Joint ownership in residential real estate is to be considered the same as total ownership of an individual property for this limitation. Ownership in commercial or multi-family (five or more units) real estate is not included in this limitation.

NON-OCCUPANT CO-BORROWERS

Co-Borrowers/Grantors/Co-Signers

This section lists guidelines for processing loans involving Co-borrowers.

Such loans are subject to title restrictions.
Non Occupant borrower must be on separate application.
Occupant borrower must verify 5% investment from own funds (waived if LTV/CLTV 80%).
Occupant borrower must be able to cover new PITI payment on their own.
Co-borrowers, guarantors or co-signers are generally not required to take title to the subject property.
Non occupant co-borrower's income will not be accepted for qualifying purposes.
A party who had an interest in the property sales transaction, such as, the seller, builder, real estate broker, is not an eligible co borrower.
All individuals who hold title to the subject property are required to sign the security instruments (i.e., mortgage, deed of trust).
Refer to the Individual Product Summaries for specific restrictions when a non-occupant co-borrower is on the loan transaction.

NON-ARMS LENGTH TRANSACTION

ARM/Non-ARMs Length Transactions

An arms length transaction is a transaction in which the parties involved are entirely independent of each other and have no reason for collusion.

Non-Arms Length Transaction

If a direct relationship exists between any of the parties to the transaction including, but not limited to, borrower, lender, broker, appraiser or builder, the transaction is considered Non-Arms Length.
Non-ARMs Length Transactions are permitted subject to compliance with the following:
The borrower's minimum investment requirement is satisfied using his or her own funds;
A landlord sells a home utilizing a Lease with Option to Purchase Agreement;
A transaction between individuals with an Established Relationship, defined as follows:
Immediate Family:
Parents
Siblings
Children
Spouse
Grandparents
Aunts
Uncles
Domestic Partner;
Fiancée or Fiancé.
A Non-Arms Length Transaction is not intended to bail out a family member or current owner from an existing delinquent mortgage. Borrowers who wish to purchase or refinance property, currently or recently owned by an individual with whom an Established Relationship exists, are subject to compliance with the following requirement
Purchase: Title Commitment may not evidence foreclosure proceedings or Notice of Default.
Refinance: If borrower has been on title less than six months from the date of application, payoff demand from the purchase transaction must reflect the mortgage was current at the time the borrower purchased the property.
In purchase transactions where the seller is a Corporation, Partnership or any other business entity, satisfactory verification must ensure the borrower is not an owner of the business entity selling the subject property.

OCCUPANCY

If a loan is granted as a primary residence or second home transaction, it is imperative that the borrower occupies the property within 60 days of closing.
The borrower must certify that owner occupancy will continue for at least one (1) year, unless allowed otherwise.
In addition, the loan may be declared in default if the borrower makes misrepresentations for any provision of the application, including occupancy.
However, there are instances in which consideration can be given to exceeding this timeframe:
A short-term leaseback of the subject to the seller.
Relocation delayed move.
These exceptions must be considered on a case-by-case basis to determine their acceptability.

Primary Residence

A principal residence is a property that the borrower occupies as his or her primary residence.
Parents who want to provide housing for their physically handicapped or developmentally disabled adult children who are unable to work or who have income that is not sufficient for them to qualify for a mortgage may be considered for financing.
A home that the parents purchase or refinance for such children will be considered a primary residence even though the parents-borrowers will not be the occupant borrowers of the property.
This same flexibility will apply for children who want to provide housing for elderly parents who are unable to work or who have insufficient income to qualify for a mortgage on their own.

Second Home

A second home is generally a one-unit property that a borrower occupies in addition to his or her primary residence. Second homes are eligible for conforming and non-conforming loans.

Suitable for Year-Round Occupancy

The following restrictions apply:

The property must be in such a location as to function reasonably as a second home.
Typically, the property is located within a reasonable distance from the borrower's primary residence.
Must be suitable for year-round occupancy.
Second Homes in resort areas that attract people for seasonal or vacation use are acceptable if they are suitable for year-round occupancy.
Second Homes not suitable for year-round occupancy may be considered within certain parameters. Refer to Not Suitable for Year-Round Occupancy for requirements.
The borrower must have exclusive control over the property.
Cannot be subject to any kind of timesharing agreement.
Cannot be subject to any rental pools or agreements that require the borrower to either rent the property or give management firm control over occupancy.
Rental income cannot be used to qualify the borrower. However, occasional rental for short terms is allowed. Reporting this rental income on tax returns does not contradict second home status.

Not Suitable For Year-Round Occupancy

In additionto the above listed requirements, the following restrictions apply:

Fannie Mae 15 and 30 year Conforming Fixed Rate product.
Purchase and Rate & Term Refinances.
Property type must be a 1 unit, PUD or Detached Condo. All other property types are not eligible.
Appraisal must state that non-suitability does not affect the property's marketability; that it is common to the area; and supported by three comps.
The property is accessible year-round, and fire and police protection are available year-round.
Borrower owns no other property other than their principal residence.

Investment Property

An investment property is a property owned by the borrower but is not occupied by the borrower.
This is true whether the property generates revenue or not.
The property must be suitable for year round rental and occupancy.
Refer to the Income Requirements for qualification purposes on investment properties.

Credit Requirements

CREDIT SCORE

Minimum Credit Score of 620

CREDIT HISTORY

DU Approve

Credit evaluated by DU.

BANKRUPTCY

Loan casefiles where DU identifies a Chapter 13 bankruptcy that was discharged within the last 24 months; dismissed within the last 48 months; or filed but neither discharged nor dismissed within the last 48 months will receive a Referwith Caution/IV recommendation.

Loan casefiles where DU indentifies a non-Chapter 13 bankruptcy that was filed, discharged, or dismissed within the last 48 months will receive a Refer with Caution/IVrecommendation.

DU is not able to determine if multiple bankruptcy filings have occurred, due to the manner in which bankruptcies are reported in the credit report. As a result, DU will issue a message when it appears that there may have been multiple bankruptcy filings. This message will list each of the bankruptcies seen on the credit report, and will instruct customers to ensure the loan casefile meets the criteria for underwriting loan casefile with multiple bankruptcies.

FORECLOSURES

For borrowers with foreclosure completion dates of more than 5 years, but within 7 years from the credit report date the following is required:

The purchase of a principal residence will be permitted with a minimum down payment of 10% and minimum representative credit score of 680

The purchase of a second home or investment property will not be permitted

Cash Out refinances will not be permitted for any occupancy type.

Loans that do not comply with the guidelines above will receive an Ineligible recommendation.

DEED IN LIEU OF FORECLOSURE

For borrowers with prior deed in lieu of foreclosure actions more than 4 years, but within 7 years from the credit report date the following will be required:

Principal residence, purchase transactions submitted to DU with an LTV or CLTV greater than 90% where a borrower on the loan casefile has a deed in lieu of foreclosure action that was completed more than 4 years, but within 7 years from the credit report date will receive an Ineligible recommendation.

If a deed in lieu of foreclosure is reported within 4 years of the credit report date, the loan casefile will receive a Refer with Caution/IV recommendation. DU will determine if a mortgage tradeline is a deed in lieu of foreclosure by using specific Remark Codes that would be present in the credit report data and associated to the tradeline.

PAYing OFF DEBT TO QUALIFY

For all loans if debts are being paid off or paid down to qualify, the pay off must be documented and the source of funds verified.

Revolving Debt

Pay off or pay down of revolving debts is allowed,however, the monthly payment must be included in the monthly debt obligation.
Use the payment on the credit report, account statement provided by the borrower or 5% of the monthly payment, if no monthly payment is reported on the credit report.

Installment Debt

The pay off or pay down of installment debts is allowed.
Installment debts paid down to qualify will be included in the debt-to-income ratio if the monthly payment remaining significantly affects the borrower's ability to make the mortgage payment after closing (i.e., large monthly payment remaining, minimal reserves, change in housing over 1.5 times).

Income Requirements