Expanded High-Balance Loan Eligibility (Conforming Fixed and Standard ARM)
Effective for loans registered on or after 12.13.15
Non-occupant co-borrowers income to qualify on 1 – 4 families!! New: 95% LTV high balance 5% doesn’t have to be your own funds!!
The High-Balance eligibility grids have been aligned with the standard eligibility grids up to 95% LTV/CLTV/HCLTV. All High-Balance transactions must be underwritten using Gemstone AU and other product enhancements and updates are listed below:
- A 5% minimum borrower contribution no longer applies. This allows borrowers eligible to use gifts, grants and Community Seconds to fund all required down payment and closing costs on 1 unit, owner occupied residences with LTVs greater than 80%;
- Field review requirement for loan amounts greater than $625,500, with an LTV/CLTV/HCLTV greater than 80% has been removed;
- Appraisals no longer need to include two comparable sales from outside of the subject property when the loan is secured by a condominium;
- LTV, CLTV, and HCLTV requirements for borrowers with 5-10 financed properties align with the requirements for loans subject to general loan limits.
Note: The following requirements continue to apply to High-Balance loan amounts:
– A field review is required for properties valued at $1,000,000 or more with an LTV, CLTV or HCLTV greater than 75%; and
– All borrowers must have traditional credit.