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Amres ITIN Secure Guidelines

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ITIN Secure Mortgage Program

Chapter 1 - General Loan File Delivery Requirements


Loans closed within the first seven (7) days of the month may reflect an interest credit to the borrower.


The maximum amount of the curtailment cannot exceed the lesser of $2,500 or 2% of the original loan amount.


Fixed Rate loans are not assumable. ARM loans with assumability language are acceptable if the assumption is at the originator/lender’s discretion. In any case, the wording in the Note and Closing Disclosure must match.


Property insurance for loans must protect against loss or damage from fire and other hazards covered by the standard extended coverage endorsement. The coverage must provide for claims to be settled on a replacement cost basis. Extended coverage must include, at a minimum: wind, civil commotion (including riots), smoke, hail, and damage caused by aircraft, vehicle, or explosion.
Policies that limit or exclude from coverage (in whole or in part) windstorm, hurricane, hail damage, or any other perils that normally are included under an extended coverage endorsement are not acceptable. Borrowers may not obtain property insurance policies that include such limitations or exclusions unless they are able to obtain a separate policy or endorsement from another commercial insurer that provides adequate coverage for the limited or excluded peril, or from an insurance pool that the state has established to cover the limitations or exclusions.
The hazard insurance coverage should be equal to the lesser of:
Replacement Cost Estimator from the property insurer or a 3rd party source (i.e., CoreLogic), if provided
Estimated cost to replace the dwelling from a recent appraisal, if provided
The unpaid principal balance of the mortgage


Not currently eligible on the ITIN product


The Originator/Seller must ensure that the property securing the mortgage loan is adequately protected by flood insurance when required. Flood insurance coverage is required when a mortgage loan is secured by a property located in
a Special Flood Hazard Area (SFHA), or
a Coastal Barrier Resources System (CBRS) or Otherwise Protected Area (OPA). (See below for additional information.)
The Originator/Seller/servicer must determine whether or not the property is located in an SFHA by using the Standard Flood Hazard Determination form endorsed by FEMA. All flood zones beginning with the letter “A” or “V” are considered SFHAs.
The following table describes how to evaluate a property to determine if flood insurance is required. For the purpose of these requirements, the “principal structure” is the primary residential structure on the property securing the mortgage loan.
The minimum amount of flood insurance required for first-lien mortgages is the lowest of:
100% of the replacement cost of the insurable value of the improvements,
The maximum insurance available through the NFIP, or
The unpaid principal balance (UPB) of the loan (or loan amount at the time of origination).
Minimum coverage must be equal to the dwelling coverage for hazard insurance, subject to the following:
1-4 Unit Properties: If dwelling coverage for hazard insurance is greater than $250,000 then flood coverage must be $250,000 as this is the maximum allowed per FEMA - ACCEPTABLE FLOOD INSURANCE POLICIES

The flood insurance policy must be one of the following:
a standard policy issued under the NFIP; or
a policy issued by a private insurer as long as the terms and amount of coverage are at least equal to that provided under an NFIP policy based on a review of the full policy issued by a private insurer.


Each loan delivered to Amres must include a title insurance policy. If the file contains the Commitment for Title Insurance, it must indicate the policy will be issued upon payment of the premium. By delivering a mortgage loan to Amres, the Originator/Seller represents and warrants that the loan is covered by the required title policy, issued by a licensed insurer, and includes any required endorsements. The title insurer and policy must conform to Fannie Mae® requirements. - TERMS OF COVERAGE

The title insurance policy must ensure the title is acceptable and that the mortgage represents a first lien on a fee simple estate in the property. The title policy must also list all other liens and reflect they are subordinate. When the borrower is an Entity, the title insurance policy must provide protection regarding whether the signatories had the authority to validly execute the mortgage document. The policy must be written on one of the following forms:
The 2006 American Land Title Association (ALTA) standard form.
An ALTA short form if it provides coverage equivalent to the 2006 ALTA standard form.
In states in which standard ALTA forms of coverage are, by law or regulation, not used, the state-promulgated standard or short form which provides the same coverage as the equivalent ALTA form.
For Adjustable-Rate Mortgages, the policy must include ALTA Endorsement 6-06. - EFFECTIVE DATE OF COVERAGE

The effective date of the title insurance coverage written on forms that do not provide the gap coverage included in the 2006 ALTA policies may be no earlier than the later of the date of the final disbursement of loan proceeds or the date the mortgage was recorded. Because the 2006 ALTA forms provide protection for the time between loan closing and recordation of the mortgage, policies written on those forms may be effective as of loan closing. - AMOUNT OF COVERAGE

The amount of title insurance coverage must at least equal the original principal amount of the mortgage. - MORTGAGE ELECTRONIC REGISTRATION SYSTEM (MERS)

If a mortgage is registered with MERS and is originated naming MERS as the original mortgagee of record, solely as nominee for the Originator/Seller named in the security instrument and the Originator/Seller's successors and assigns, then the "insured mortgage" covered by the title insurance policy must be identified in the title insurance policy as the security instrument given to MERS, solely as nominee for the Originator/Seller and Originator/Seller's successors and assigns. However, under no circumstances may MERS be named as the insured of a title policy. - OTHER REQUIREMENTS

The title insurance coverage must include an environmental protection lien endorsement (ALTA Endorsement 8.1-06 or equivalent state form providing the required coverage).
References are to the ALTA 2006 form of endorsement, but state forms may be used in states in which standard ALTA forms of coverage are, by law or regulation, not used, provided that those endorsements do not materially impair the protection to Amres. As an alternative to endorsements, the requisite protections may be incorporated into the policy. Title policies may not include the creditors’ rights exclusion language that ALTA adopted in 1990. - CHAIN OF TITLE

All files must contain a 24-month title history. Transfer date, price, and buyer and Originator/Seller names should be provided for any transfers that occurred within the past 24 months. - CONDOMINIUM OR PLANNED UNIT DEVELOPMENTS (PUD)

The title insurance policy for a condominium or PUD unit mortgage must describe all components of the unit estate.
For condominium unit mortgages, an ALTA 4-06 or 4.1-06 endorsement or its equivalent is required. For PUD unit mortgages, an ALTA 5-06 or 5.1-06 endorsement or its equivalent is required. These endorsements must be attached to each policy or incorporated into the text of the policy.
If the unit owners own the common areas of the project as tenants in common, the policy for each unit’s mortgage must reflect that ownership. If the homeowners' association (HOA) owns the common elements, areas, or facilities of the project separately, the title insurance on those areas must insure that ownership.
This title policy must show that title to the common elements, areas, or facilities is free and clear of any objectionable liens and encumbrances, including any statutory or mechanic’s liens for labor or materials related to improvements on the common areas that began before the title policy was issued.
The title policy must protect Amres by insuring:
that the mortgage is superior to any lien for unpaid common expense assessments. (In jurisdictions that give these assessments a limited priority over a first mortgage lien, the policy must provide assurance that those assessments have been paid through the effective date of the policy.)
against any impairment or loss of title of the first lien caused by any past, present, or future violations of any covenants, conditions, or restrictions of the master deed for the project. (It must specifically insure against any loss that results from a violation that existed as of the date of the policy.)
that the unit does not encroach on another unit or on any of the common elements, areas, or facilities. (The policy also must insure that there is no encroachment on the unit by another unit or by any of the common elements, areas, or facilities.)
that the mortgage loan is secured by a unit in a condominium project that has been created in compliance with the applicable enabling statutes.
that real estate taxes are assessable and lienable only against the individual condominium unit and its undivided interest in the common elements, rather than against the project as a whole.
that the owner of a PUD unit is a member of the homeowners' association, and that the membership is transferable if the unit is sold. - TITLE EXCEPTIONS

Amres will not close or purchase a mortgage secured by property that has an unacceptable title impediment, particularly unpaid real estate taxes and survey exceptions.
If surveys are not commonly required in particular jurisdictions, the Originator/Seller must provide an ALTA 9 Endorsement. If it is not customary in a particular area to supply either the survey or an endorsement, the title policy must not have a survey exception. - MINOR IMPEDIMENTS TO TITLE

Title for a property that secures a conventional mortgage is acceptable even though it may be subject to the following conditions, which Amres considers minor impediments:
Customary public utility subsurface easements that were in place and completely covered when the mortgage was originated, as long as they do not extend under any buildings or other improvements.
Above-surface public utility easements that extend along one or more of the property lines for distribution purposes or along the rear property line for drainage purposes, as long as they do not extend more than 12 feet from the property lines and do not interfere with any of the buildings or improvements or with the use of the property itself


The ITIN Program offers loans with features beyond the criteria established for Qualified Mortgages. Features include alternative income documentation for self-employed borrowers, and alternative identification documentation or borrowers otherwise not eligible for traditional agency mortgage loans. ITIN loans submitted to Amres must meet the criteria of the current published Eligibility Guide as of the file submission date for review.


(See attached Loan Matracies Document)

2.1.0 - ELIGIBLE PRODUCTS (12/31/2022)

The following loan products are eligible for purchase by Amres:


The qualifying payment is based upon the principal and interest payment along with 1/12th of the annual real estate taxes, property insurance, any other insurance, and any association dues. The qualifying payment is based on the amortization term.





Properties with Solar Panels The ownership and debt financing structures commonly found with solar panels are key to determining whether the panels are third-party owned, personal property of the homeowner, or a fixture to the real estate. Common ownership or financing structures include:
Borrower-owned panels,
Leasing agreements,
Separately financed solar panels (where the panels serve as collateral for debt distinct from any existing mortgage); or
Power purchase agreements
Properties with solar panels and other energy efficient items financed with a PACE loan are not eligible for delivery if the PACE loan is not paid in full prior to or at closing. Originators/lenders are responsible for determining the ownership and any financing structure of the subject property’s solar panels in order to properly underwrite the loan and maintain first lien position of the mortgage. When financing is involved, Originators/lenders may be able to make this determination by evaluating the borrower’s credit report for solar-related debt and by asking the borrower for a copy of all related documentation for the loan.
The originator/lender must also review the title report to determine if the related debt is reflected in the land records associated with the subject property. If insufficient documentation is available and the ownership status of the panels is unclear, no value for the panels may be attributed to the property value on the appraisal unless the originator/lender obtains a UCC “personal property” search that confirms the solar panels are not claimed as collateral by any non-mortgage originator/lender.
The originator/lender must also review the title report to determine if the related debt is reflected in the land records associated with the subject property. If insufficient documentation is available and the ownership status of the panels is unclear, no value for the panels may be attributed to the property value on the appraisal unless the originator/lender obtains a UCC “personal property” search that confirms the solar panels are not claimed as collateral by any non-mortgage originator/lender.
Note: A Uniform Commercial Code (UCC) financing statement that covers personal property and is not intended as a “fixture filing” must be filed in the office identified in the relevant state’s adopted version of the UCC.
The following sections summarize some of the specific underwriting criteria that must be applied depending on the details of any non-mortgage financing for the solar panels.
Scenario 1 – Solar Panel(s) Affixed to Real Estate
If the solar panels are financed and collateralized – the solar panels are collateral for the separate debt used to purchase the panels, but they are a fixture to the real estate because a UCC fixture filing has been filed for the panels in the real estate records.
The originator/lender must:
Obtain and review the credit report, title report, appraisal, and/or UCC fixture filing, related promissory note and related security agreement that reflects the terms of the secured loan;
Include the debt obligation in the DTI ratio calculation;
Provided that the panels cannot be repossessed for default on the financing terms, instruct the appraiser to consider the solar panels in the value of the property (based on standard appraisal requirements); and
Include the solar panels in other debt secured by the real estate in the CLTV ratio calculation because a UCC fixture filing is of record in the land records.
Note: If a UCC fixture filing is in the land records as a priority senior to the mortgage loan, it must be subordinated.
Scenario 2 – Solar Panel(s) Not Affixed to Real Estate
Financed and collateralized – the solar panels are reported to be collateral for separate (non-mortgage) debt used to purchase the panels, but do not appear on the title report. The originator/lender must:
Obtain and review documentation sufficient to confirm the terms of the secured loan (such as copies of the credit report, title report, and any UCC financing statement, related promissory note or related security agreement);
Include the debt obligation in the DTI ratio calculation;
Instruct the appraiser not to provide contributory value of the solar panels towards the appraised value because the panels are collateral for another debt;
Not include the panels in the LTV ratio calculation; and
Not include the debt in the other debt secured by the real estate in the CLTV ratio calculation since the security agreement of any UCC financing statement treat the panels as personal property not affixed to the home.


Private Mortgage Insurance (PMI) is not required on ITIN Loans.


For consumer loan transactions, the current version of the Uniform Residential Loan Application (URLA) should be used. For business purpose loan transactions (if applicable), the originator/lender may utilize the URLA or similar originator/lender application.
Available Fannie Mae® security instruments, notes, riders/addenda, and special purpose documents can be used for owner-occupied or investment property loan documentation. The Fannie Mae® forms are available at In instances when Fannie Mae® doesn’t offer current documentation, a document vendor, such as Doc Magic or Ellie Mae should be used to obtain forms. For business purpose loans (Investment Property Only/If applicable), Amres offers a business purpose document set consisting of: Note, Loan Agreement, Personal Guaranty, and Prepayment Rider, Confession of Judgment. These documents can be accessed via the Amres operations team upon inquiry - HYBRID CLOSING

Amres is not currently closing or purchasing ITIN loans that are closed with any form or electronic documents for the purpose of closing the loan including Hybrid closings.



The following documents may not be more than 90 days old at closing (the date the Note is signed):
Income verification / pay stubs
Mortgage /rental verification
Asset documents / bank statements
Credit Report
The following documents may not be more than 90 days old at closing (the date the Note is signed):
Title commitment / preliminary report / binder
Any credit review documents exceeding these timeframes must be updated.


Residential Appraisals (1-4 units): The appraisal must be dated within 365 days of the Note date. Recertification of value required if the report would exceed 120 days of the Note Date (recertification requires new comps and new interior photos). See complete appraisal requirements in Section – Appraisal Requirements.
Commercial Appraisals (2-4 mixed use / if applicable): Appraisals dated fewer than 120 days prior to the note date are acceptable. After 120 days, a new appraisal is required.


It may be necessary for the applicant to explain or clarify information provided on the application or for a third-party to clarify information provided on a verification request form. This should be completed in writing and included in the underwriting file.



An individual admitted to the United States as a lawful temporary resident. Lawful non-permanent residents are legally accorded the privilege of residing temporarily in the United States.
Eligibility Requirements:
Must have a valid ITIN/SSN
Tax-Paying Identity - is the identity used to evaluate the mortgage loan. This is the identity that is used for filing federal income tax returns. This may be an Individual Tax Identification Number (ITIN) or Social Security Number (SSN). If this is an SSN, it may also be a Wage-Earning Identity (see Primary Income).
Wage-Earning Identity - is the identity(ies) under which a borrower has earned W-2 income. It is possible that a borrower will have more than one Wage Earning Identity.
DACA eligible with ITIN/SSN
Asylum applicants eligible with ITIN/SSN and evidence of application
If multiple borrowers, one borrower must have ITIN. Other applicant(s) may have SSN.
Ineligible Restrictions:
Irrevocable or Blind Trusts
Inter-Vivos Revocable Trust
Limited partnerships, general partnerships, corporations
Power of Attorney (POA) not allowed
Documentation Requirements:
Unexpired government photo ID (passport, visa, Matricula card, etc.)
The identification number provided must be their Tax-Paying Identity. These borrowers may have other identities, such as a Wage-Earning Identity. Proof of legal residency is not required.
SSN allowed only with proof of prior ITIN documentation
Supplemental documentation: ITIN card or letter from IRS or a valid SSN
IRS form W7 is not acceptable evidence if the ITIN letter is not provided, or the ITIN letter submitted is not legible.
Automatic Payment Authorization (ACH) Form is required for all ITIN borrowers. Funds must be from a U.S. Bank. The executed (ACH) enrollment form must be included in the closed loan submission package. The (ACH) enrollment form must include the bank routing number, account number, and account type. Borrowers may select a date within the grace period stated on the Note.


Non-occupant borrowers are credit applicants on a principal residence transaction who do not occupy the subject property.
Non-occupant borrowers are ONLY permitted if they have legal permanent residency in the US.
When non-occupant income used a reduction of 5% LTV is required with a maximum 75% LTV is permitted.
Occupying borrower is required to have a 660 or better FICO
The Non-occupant borrower’s income is limited to Standard FULL Documentation only.
Borrower(s) and co-borrower(s) must complete and sign a Non-Occupant Co-Borrower Certification.
Occupying borrower(s) must have a DTI ratio of 60% or less. This excludes the income/debts of non-occupant borrower(s), and must supply at least 50% of the qualifying income.
Purchase transactions only unless it’s a rate/term refi due to inheritance.
The non-occupant co-borrower must be included on title of the subject property


An individual is to be considered a first-time home buyer who (1) is purchasing the security property; (2) will reside in the security property as a principal residence; and (3) had no ownership interest (sole or joint) in a residential property during the three-year period preceding the application date of the security property. Note: An individual who is a displaced homemaker or single parent also will be considered a first-time home buyer if he or she had no ownership interest in a principal residence (other than a joint ownership interest with a spouse) during the preceding three-year time period.


Ownership Must be fee simple title. Leasehold title is not permitted. Title must be in the borrower’s name (Owner-occupied property) at the time of application for refinance transactions.
Eligible forms of vesting are:
Joint tenants
Tenants in common
Ineligible forms of vesting are:
Land trusts
Blind trusts
Title vesting in an inter vivos revocable trust is not permitted - POWER OF ATTORNEY

A limited Power of Attorney is currently not acceptable.


Primary Residence – A primary residence is a property that the borrower occupies as his or her principal residence. May also be referred to as owner-occupied.
Second Home – A second home is a property occupied by the borrower for some portion of the year. The following criteria applies:
Restricted to one-unit dwellings
Must be suitable for year-round occupancy
Must be in an area considered to be of vacation characteristics
The borrower must have exclusive control over the property. Cannot be subject to any agreements giving control over occupancy to a management firm, rental pools, or timeshare arrangement.
Only permitted if owns a primary residence
Must be at least an hour minimum from primary residence
Only one second home is permitted
Investment Property – An investment property is owned but not occupied by the borrower.


The borrower must acknowledge the intended purpose of the subject property (“Primary Residence”, “Second Home”, or “Investment”) by completing and signing the appropriate sections of the “Occupancy Certification”.
Underwriters must address any red flags that may indicate the property is not intended exclusively for investment purposes. Common occupancy red flags include:
Subject property value exceeds the value of the borrower’s primary residence.
The borrower is currently renting his/her primary residence.
Subject property could reasonably function as a second home.


All Investor Occupancy transactions require the borrower to acknowledge the loan is a business purpose loan by completing and signing the appropriate sections of the “Borrower Certification of Business Purpose” form. Amres reserves the right to decline any loan that may indicate the property is not intended exclusively for investment purposes.
Common occupancy red flags include, but are not limited to:
Subject property value significantly exceeds the value of the borrower’s primary residence.
The borrower is a first-time homebuyer and currently living rent free or renting his/her primary residence.
Subject property could reasonably function as a second home.
Borrower documents show subject property as current residence



Proceeds from the transaction are used to finance the acquisition of the subject property.
LTV/CLTV is based upon the lesser of the sales price or appraised value.
Assignment of contract or finder’s fees reflected on the purchase contract are not eligible to be included in the sales contract price or associated with the LTV/CLTV calculation.
The loan file must include a fully executed agreement (purchase contract) of sale and counteroffer (if applicable) reflecting the following:
The purchase contract cannot be expired
Borrower as the purchaser of the property
Originator/Seller as the vested owner on title
Correct sales price
Amount of down payment
Closing dates
Concessions and Originator/Seller contributions - RATE/TERM REFINANCE

Proceeds from the transaction are used to:
Pay off an existing first mortgage loan and any subordinate loan used to acquire the property.
Pay off any subordinate loan not used in the acquisition of the subject property, provided one of the following apply:
Closed-end loan, at least 12 months of seasoning has occurred.
HELOC, at least 12 months of seasoning has occurred, and total draws over the past 12 months are less than $2,000. (For business purpose transactions, any draw over the life of the loan may not have been used for personal use. Business purpose transactions will require a draw history schedule, along with an attestation from the borrower, in the credit file, that none of the advances were used for personal/consumer use).
Buy out a co-owner pursuant to either a court executed agreement or a private agreement where both parties have legal representation and a formal binding legal agreement.
Pay off an installment land contract executed more than 12 months from the loan application date.
Other considerations:
Cash back in an amount not to exceed the lesser of 2% of the new loan amount or $2,000 can be included in the transaction.
If the subject property was acquired greater than six (6) months from application date, the appraised value will be used to determine LTV/CLTV. If the property was acquired less than or equal to six (6) months from the application date, the lesser of the current appraisal value or previous purchase price plus documented improvements (if any) will be used to determine LTV/CLTV. The purchase settlement statement and any invoices for materials/labor will be required.
Refinance of a previous loan that provided cash out, as measured from the previous note date to the application date, and is seasoned less than 12 months, will be considered a cash out refinance.
Refinances of Seller-Financed Real Estate Loans:
Contract must be executed prior to the date of the loan application,
Contract must be executed by both parties and a copy of the of contract and notice of payoff(s) are required;
Contract must be notarized for both parties or recorded
Borrower must provide evidence that the sale took place on the date of the contract (i.e. evidence of down payment, settlement statement). Subject to underwriter review.
Primary Residence, Second Home and Investment Properties are eligible collateral property types
LTV based on lesser of appraised value or original purchase price or purchase price plus improvements
Incidental cash back not to exceed $2,000.
Six (6) full months of housing payment history must be verified with 6 months cancelled checks or equivalent financial documentation (bank statements, wire transfers, etc.)
If contract was executed less than 6 months prior to the date of the loan application, the borrower’s previous housing payment history (covering 6 months) must also be verified in addition to all payments made on the loan - CASH-OUT

A refinance that does not meet the definition of a rate/term transaction is considered cash-out.
See Loan/LTV Matrices for maximum cash-out amounts and restrictions.
A mortgage secured by a property currently owned free and clear is considered cash-out.
The payoff of delinquent real estate taxes (60 days or more past due) is considered cash-out.
If the cash-out is for personal, family, or household use, the loan must also meet all applicable federal and state requirements of a consumer loan transaction even if the borrower is a company or the loan was initially intended for business purposes, including but not limited to the requirements of the Truth in Lending Act (15 U.S.C. § 1601 et seq.), Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), Gramm-Leach Bliley Act (15 U.S.C. §§ 6802-6809), Secure and Fair Enforcement Mortgage Licensing Act (12 U.S.C. § 5601 et seq.) and Homeowners Protection Act (12 U.S.C. § 4901 et seq.).
Cash-out eligible to satisfy the reserve requirements.
Loans not eligible for cash-out:
Primary Residence or Second Home properties listed for sale in the past six (6) months.
Investment properties listed for sale in the past six (6) months, unless a three (3) year prepay penalty, per requirements in Section 4.4.7 Prepayment Penalty are met.
There has been a prior cash-out transaction within the past six (6) months
Payoff of a Land Contract/Contract for Deed
Non-Owner Occupied investment property transactions when proceeds from the loan transaction are used for consumer purpose, i.e., payoff personal debt, personal tax lien(s), personal judgments, personal collection, or lines of credit secured by the subject property.
Cash-Out Seasoning is defined as the time difference between application date of the new loan and the property acquisition date.
A minimum borrower seasoning requirement of six (6) months is required for a transaction to be eligible for cash-out with the exception of delayed financing.
For properties owned 12 months or longer, the LTV/CLV is based upon the appraised value.
If the cash-out seasoning is less than 12 months, but greater than 6 months, the transaction property value is limited to the lower of the current appraised value or the property’s purchase price plus documented improvements.
Cash-out seasoning of greater than six (6) months but less than twelve (12) months is allowed to use the appraised value with the following restriction:
The Originator/Seller has documented that the borrower acquired the property through an inheritance, or was legally awarded the property through divorce, separation, or dissolution of a domestic partnership. - DELAYED FINANCING

Delayed purchase financing is eligible when a property was purchased by a borrower for cash within 180 days of the loan application.
The original purchase transaction was an arms-length transaction.
The source of funds for the purchase transaction are documented (such as bank statements, personal loan documents, or a HELOC on another property).
The maximum LTV/CLTV ratio for the transaction is based upon the lower of the current appraised value or the property’s purchase price plus documented improvements.
The preliminary title search or report must confirm that there are no existing liens on the subject property
The transaction is considered rate/term and rate/term pricing adjustors apply
The new loan amount can be no more than the actual documented amount of the borrower’s initial investment subject to the maximum LTV/CLTV for cash-out transactions.
Fannie Mae delayed financing rules apply unless addressed otherwise in this section (ie. Rate/term)


For all cash-out refinances:
Primary/Second Home: Properties previously listed for sale must be seasoned at least six (6) months from the listing contract expiration date to the loan application date.
Investment properties: A listing expiration of less than six (6) months is permitted with a prepayment penalty. If a property is listed for sale, the listing must be cancelled prior to the note date.


A non-arm's length transaction occurs when the borrower has a direct relationship or business affiliation with subject property builder, developer, or seller. Examples of non-arm’s length transactions include family sales, property in an estate, employer/employee sales, and flip transactions.
When the property seller is a corporation, partnership, or any other business entity, it must be ensured that the borrower is not an owner of the business entity selling the property.
A non-arm’s length transaction is not intended to bail out a family member who has had difficulties making their mortgage payment. A thorough review of the title report in these cases is required, as well as the payment history pattern (verification of the seller’s mortgage (VOM)). - ELIGIBLE NON-ARM’S LENGTH TRANSACTIONS

Renter(s) purchasing from landlord.
12 months of cancelled checks to prove timely payments are required along with sourcing and documenting any initial down payment applied at the time of contract.
A verification of rent (VOR) is not acceptable.
Purchase between family members.
Gift of Equity requires a gift letter, and the equity gift credit is to be shown on the CD. Donor may not reside in the subject property currently and the subject property may not be delinquent. Only permitted on 80 LTV or below.
Must provide a 12-month mortgage history on the existing mortgage securing the subject property, confirming the Family Sale is not a foreclosure bailout.
Non-occupant co-borrowers are not permitted
Borrower(s) must source reserve requirements from their own funds - NON-ARM’S-LENGTH RESTRICTIONS

Primary residences only.
Borrower to provide verification of earnest money deposit.
Maximum LTV/CLTV of 80%.
For-Sale-By-Owner (FSBO) transactions must be arm’s-length.
Employer to employee sales or transfers are not allowed.
Property trades between buyer and Originator/Seller are not allowed.
Commission earned by buyer/borrower cannot be used for down payment, closing costs, or monthly PITIA reserves.


Owner Occupied
If property is not listed for sale on open market or if the sale price is greater than the list price, then the maximum assist is 3%
Maximum contribution:
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