Closed End 2nds

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Borrower Eligibility and Requirements

Section 5.0 Borrower Eligibility and Requirements

Refer to Fannie Mae guidelines for all definitions of eligibility status.

5.1 Fraud Report and Background Check

All loans must include a third-party fraud detection report for all borrowers. Report findings must cover standard areas of quality control including, but not limited to: borrower validation, social security number verification, criminal records, and property information (subject property and other real estate owned). All high-level alerts on the report must be addressed by the seller. If the seller cannot electronically access the fraud report to clear high-level alerts within the fraud provider’s system, an Underwriter’s Certification from the seller is acceptable. The Certification must address each individual high alert and explain what actions were taken to satisfy the issues. It must be signed and dated by a member of the seller’s underwriting staff or operations management personnel.

5.2 Non‐Occupant Co‐Borrowers

Non-Occupant co-borrowers are ineligible.

5.3 First Time Homebuyers

Amres defines a First Time Home Buyer as a borrower who has no ownership interest (sole or joint) in a residential property during the three-year period preceding the date of the purchase of the subject property.
A First Time Home Buyer is required to have a documented 0x30x12 month housing history. Private party housing histories are ineligible.

5.4 Residency

5.4.1 U.S. Citizen

Eligible without guideline restrictions.
See AMRES full Loan Eligibility Guidelines for specifics on:
Permanent Resident Alien
Non-Permanent Resident Aliens

5.4.2 Ineligible Borrowers

The following borrowers are ineligible:
Irrevocable Trust
Land Trust
Individual possessing diplomatic immunity or otherwise excluded from US jurisdiction
Any material parties (company or individual) to transaction listed on HUD’s Limited Denial of Participation (LDP) list, the federal General Services Administrative (GSA) Excluded Party list or any other exclusionary list.
Foreign Nationals.
Borrowers without a valid Social Security Number.
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