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  • Jumbo Underwriting

    Guidelines

  • Jumbo Underwriting Guidelines | Table of Contents

    07.02.2018 2

    Table of Contents Jumbo Choice QM ____________________________________________________________________________ 7

    Eligibility Requirements ____________________________________________________________________________ 7

    Available Products ______________________________________________________________________________________ 7 Qualifying Rate ________________________________________________________________________________________ 7 ARM Specifics _________________________________________________________________________________________ 7

    Interest Rate Adjustment Caps __________________________________________________________________________ 7 Margin ____________________________________________________________________________________________ 7 Index ______________________________________________________________________________________________ 7 Interest Rate Floor ___________________________________________________________________________________ 7 Change Dates _______________________________________________________________________________________ 7 Conversion Option ___________________________________________________________________________________ 8 Assumption Feature __________________________________________________________________________________ 8

    Documentation Requirements ____________________________________________________________________________ 8 Occupancy ____________________________________________________________________________________________ 8 Maximum DTI _________________________________________________________________________________________ 8 LTV/CLTV/HCLTV _______________________________________________________________________________________ 9 Borrowers ___________________________________________________________________________________________ 11

    Eligible ___________________________________________________________________________________________ 11 Ineligible __________________________________________________________________________________________ 12

    Multiple Properties Financed/Owned ______________________________________________________________________ 12 Properties Listed for Sale _______________________________________________________________________________ 13 Rate/Term Refinance Restrictions _________________________________________________________________________ 13 Cash Out Refinance Restrictions __________________________________________________________________________ 14

    Texas 50(a)(6) Refinances _____________________________________________________________________________ 14 Continuity of Obligation ________________________________________________________________________________ 16 Delayed Purchase Refinances ____________________________________________________________________________ 17 LTV/CLTV/HCLTV Calculation_____________________________________________________________________________ 17 Construction to Permanent Refinance Restrictions ___________________________________________________________ 17 Non-Arms Length Transactions __________________________________________________________________________ 18 Secondary / Subordinate Financing________________________________________________________________________ 19

    Credit Requirements _____________________________________________________________________________ 20

    Derogatory Credit _____________________________________________________________________________________ 20 Exceptions for Derogatory Credit _______________________________________________________________________ 20

    Outstanding Judgments/ Tax Liens/Charge-Offs/Past-Due Accounts ______________________________________________ 20 Housing Payment History _______________________________________________________________________________ 21

    Mortgage History Requirements _______________________________________________________________________ 21 Rental History Requirements __________________________________________________________________________ 21

    Inquiries _____________________________________________________________________________________________ 21 Credit Report _________________________________________________________________________________________ 21

    Age of Credit Report _________________________________________________________________________________ 21 Frozen Credit Reports ______________________________________________________________________________ 21 Tradeline Requirements ______________________________________________________________________________ 22 Credit Score Requirements ____________________________________________________________________________ 22 Disputed Tradelines _________________________________________________________________________________ 22 Student Loans ______________________________________________________________________________________ 22 Additional Liability Requirements_______________________________________________________________________ 23

    Departure Residence ___________________________________________________________________________________ 23 Departure Residence Pending Sale ______________________________________________________________________ 23 Departure Residence Subject to Guaranteed Buy-out with Corporation Relocation ________________________________ 23

    Co-Signed Loans ______________________________________________________________________________________ 23 Court Order __________________________________________________________________________________________ 24 Assumption with No Release of Liability ____________________________________________________________________ 24 Tax Liability __________________________________________________________________________________________ 24

  • Jumbo Underwriting Guidelines | Table of Contents

    07.02.2018 3

    Loans Secured by Financial Assets ________________________________________________________________________ 24 Income/Employment Requirements ________________________________________________________________ 24

    Declining Income ______________________________________________________________________________________ 25 Gaps in Employment ___________________________________________________________________________________ 25 Residual Income ______________________________________________________________________________________ 25 Paystub Requirements _________________________________________________________________________________ 25 W2 Requirements _____________________________________________________________________________________ 25 Verification of Employment Requirements __________________________________________________________________ 26 Tax Return Requirements _______________________________________________________________________________ 26

    Unfiled Tax Returns _________________________________________________________________________________ 27 Specific Income Documentation Requirements ______________________________________________________________ 28

    Salaried Income ____________________________________________________________________________________ 28 Hourly and Part-Time Income__________________________________________________________________________ 28 Commission Income _________________________________________________________________________________ 28 Overtime and Bonus Income __________________________________________________________________________ 28 2106 Expenses _____________________________________________________________________________________ 28 Alimony/Child Support/Separate Maintenance ____________________________________________________________ 28 Borrowers Employed by Family ________________________________________________________________________ 29 Capital Gains _______________________________________________________________________________________ 29 Disability Income (Long-Term) _________________________________________________________________________ 29 Dividends and Interest Income _________________________________________________________________________ 29 Foreign Income _____________________________________________________________________________________ 29 K1 Income/Loss on Schedule E _________________________________________________________________________ 29 Non-Taxable Income _________________________________________________________________________________ 30 Note Income _______________________________________________________________________________________ 30 Rental Income ______________________________________________________________________________________ 30 Restricted Stock and Stock Options _____________________________________________________________________ 31 Retirement Income Sources ___________________________________________________________________________ 31 Trust Income _______________________________________________________________________________________ 32

    Self-Employed Income Sources ___________________________________________________________________________ 32 Sole Proprietorship __________________________________________________________________________________ 33 Partnership/S-Corporation ____________________________________________________________________________ 33 Corporation________________________________________________________________________________________ 33

    Unacceptable Income Sources ________________________________

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