champion prime (maxx series) · 2021. 7. 15. · champion prime (maxx series) appraisal appraisal...
TRANSCRIPT
CU Score Loan Amount
≤ 2.5 ≤ $1.5M
> 2.5 ≤ $1.5M
N/A > $1.5M
CHAMPION PRIME (MAXX SERIES)
Appraisal
Appraisal Review
Requirement
Nothing additional needed
ARR, CDA or VRR required under 10% variance
Second appraisal required
Assets• Assets must be seasoned at least 60 days
• Gift funds are allowed as long as min 5% down payment is from the borrower(s) own seasoned funds
Cash‐Out Refinance
• Max $350,000 cash back:
⸰ Loan amount ≤ $1,000,000
⸰ SFR, all Condo and 2‐4 Unit properties
• Max $500,000 cash back:
⸰ Loan amount > $1,000,000
⸰ 1‐2 Unit property
• Second Home:
⸰ Full Doc: ‐ Max 75% LTV for 740+ FICO
‐ Max 70% LTV for 680 ‐ 739 FICO
‐ Max 65% LTV for 620 ‐ 679 FICO
⸰ Bank Statement:
‐ Max 70% LTV for 740+ FICO
‐ Max 65% LTV for 680 ‐ 739 FICO
‐ Max 60% LTV for 620 ‐ 679 FICO
• Min 12 month seasoning required
• Grade A+ Investment Property: Cash‐Out Refinance not eligible
• Debt Consolidation Refinance not eligible for Grade A+
• Can be used for reserve requirement after 2 months' verified from borrower(s) own funds
• Cash‐Out Refinance available in Texas: Min loan amount $250,000; max 65% LTV (Home Equity A6 Rules apply)
• Asset Utilization not eligible on cash‐out transactions
Compliance Requirements
• Escrows are generally required for taxes and insurance; escrow waivers may be permitted, see guideline for requirements
• Must qualify for Ability‐to‐Repay rules
• Must comply with all State & Federal regulations
• Federal and state high‐cost transactions are not eligible for origination/purchase
• Borrower‐paid points, fees and costs must not exceed 5% of the total loan amount
Condominiums• Warrantable condo allowed up to 90% LTV
• Grade A+: Non‐Warrantable condo not eligible
Credit
• Min 620 FICO
• Min three tradelines with 12+ months or two tradelines with 24+ months
• No 60 day late payments in last 12 months
• No collections/charge offs/judgements in last 24 months (medical collections are excluded)
• Account must have activity over the most recent 12 months
• Qualifying Credit Score = Lower median credit score of all borrowers
Debt Ratios
Grade A+:
• Full Doc ≤ 50% DTI
° No restrictions
• Full Doc: Max >50 ≤ 55% DTI
⸰ Primary Residence Only
⸰ Max 85% LTV
⸰ 6 months reserves (in addition to other reserve requirements)
⸰ Purchase or Rate‐Term Refi
• Alt Doc: Max 50% DTI
Grade A:
• Full Doc ≤ 50% DTI
° No restrictions
• Full Doc >50 ≤ 55% DTI
⸰ Primary Residence Only
⸰ 6 Mos Reserves (in addition to other reserve requirements)
⸰ Purchase, Rate‐Term Refinance or Debt‐Consolidation Refinance
⸰ Max 75% LTV
• Alt Doc: Max 50% DTI
Exceptions • Not allowed
First Time Home Buyer
• Primary residence only
• 1‐2 unit properties only (including condominiums)
• Maximum 90% LTV
• Maximum loan amount = $1,000,000
• Minimum 680 FICO
• Maximum 200% payment shock
• If borrower can verify ownership within the past three years, borrower is not considered a FTHB
CHAMPION PRIME (MAXX SERIES)
Financed Properties • Max 20 financed properties including subject property
Income / Employment
• 12 or 24 month full doc wage earner / self‐employed
• 24 month Personal and Business Bank Statements; Min 2 years of self‐employment required
• Year over year activity must be consistent
• CPA letter confirming percentage ownership required
• Max 2 employment sources
• W2 income is considered one employment source, regardless if borrower has multiple W2 jobs
• Asset Utilization: Can only be used to augment other sources of income and may not be used in conjunction with other asset related income
derived from the same source
Ineligible States• Reference Product Guides for Ineligible States & Territories
• NY Subprime loans are not eligible
Loan Amount
• Minimum loan amount:
⸰ Primary and Second Home: $50,000
⸰ Investment Property: $58,300
Interest Only
• Reserves based on IO payment
• Investment property: Max 75% LTV
• Not eligible in TX
• Not eligible for Second Homes
Non‐Sufficient Funds
Non‐Sufficient Funds (NSF) on Bank Statement Program:
• Up to 5 occurrences in the most recent 12 months, with 0 occurrences in the most recent 3 months
• Up to 3 occurrences in the most recent 12 months, with no more than 1 occurrence in the most recent 2 months
• LOE from the borrower required for tolerance deviations, outlining the reason(s) for the occurrences & how issue was rectified
Occupancy
• Owner Occupied
• Second Home
• Investment (Non‐Owner Occupied)
Prepayment Penalty
• Investment (Non‐Owner Occupied) property only
• Not allowed in AK, IA, IL, KS, MD, MI, MN, ND, NJ, NM, PA, RI & VT
• OH: May not be imposed on a refinance loan of less than $93,119
• The assessed penalty is 1% of the unpaid principal balance
Product Types• 30 Year
• 30 Year Interest Only (IO)
Property Types
• Single Family Residence
• 2‐4 Unit
• Townhome
• Condo
• Non‐Warrantable Condo
• Reference Product Guides for Ineligible Property Types
Reserves
• Grade A+ requires 6 months reserves
• Grade A requires 3 months reserves
• Each financed property owned (excluding subject property) requires 2 months additional reserves
• Loan amount ≥ $1.5M requires 9 months additional reserves
• LTV > 70% requires two additional months of reserves
• Investment property requires 3 months additional reserves
• Max 12 months reserves
• Cash out can be used for reserve requirements after 2 months' verified from borrower(s) own funds
Residual Income• Min $2,500 or
• $3,000 (if > 2 children in household)
Seller Concessions • 4% max towards closing costs for LTV ≤ 65%, otherwise 3% max
Subordinate Financing • Not allowed
Total Loan Exposure • Max exposure for one borrower: Max 6 properties or $5M