Primary Residence Financing With Derogatory Events.

When Life makes a wrong turn, PrimeLending will help steer you back in the right direction.

Transaction Types

• Purchase, Rate term Refinance/Delayed Financing, Cash out Refinance, Texas 50(a)(6) rate term, and cash out refinance Debt Consolidation

For Purchases:

1-4 units,

Max LTV of 85%

Max Loan Amount of $1,000,000

Minimum Loan Amount of $100,000

Minimum Credit Score - 640

Reserve Requirements - 6 months

Max DTI - 50%

Max 85% LTV with no MI

Amortization Type

• 5/1 Adjustable/not eligible on a Texas Cash-out
• 30 Year Fixed Rate

ARM Qualification

• 5/1 ARM must be qualified at the higher of the fully indexed rate or note rate.

AUS (Automated Underwriting System)

• Manual Underwriting is required, however, an AUS is required to demonstrate the borrower is not

eligible for agency product, including high balance loan amounts.

Borrower Contribution

• 100% gifts funds are permitted if the gift is received from a family member.

Otherwise 5% borrower contribution required.

Derogatory Event Seasoning

• No seasoning required for a derogatory event but Derogatory Event must be completed

prior to application date (or in case of Ch. 13BK, case be filed)

• A Derogatory Event is defined as a short-sale (SS),deed-in-lieu (DIL), mortgage loan charge-off (MCO),

foreclosure (FCL) or Chapter 7 or Chapter 13 Bankruptcy (BK)

• Multiple Event Scenario (as defined in the Manual Underwriting Guidelines) is allowed within the most recent 4 years.

Documentation

• All loans must meet ATR (Ability to Repay) requirements to be eligible. Full Income and Asset documentation

is required in compliance with Appendix Q

Declining Markets

• If appraiser denotes market as declining, reduce maximum LTV by 5% from maximum financing limits.

Escrow Waivers

• Not allowed.

Maximum Loan Amount

• $1,000,000 (Maximum loan amount may be lower depending on loan parameters. Please see matrix for details.)

Minimum Loan Amount

• $100,000

# of Financed Properties

• Primary Residence: No limit, Second Home: Max 10 financed properties.

Occupancy

• 1–4 unit Primary Residence and 1 unit Second Home

Payment History

• No prior mortgage or rental payment history required

Property Types

• Single Family (Detached, Semi Detached, Attached), 2-4 units, PUD, Warrantable Condominium.

Non-Warrantable Condominiums AND Condo-Tels are not allowed.

Ratios

• Max 50% DTI.

Secondary Financing

• Subordinate financing is not allowed.

Seller Contributions

• 6% Primary Residence or Second Home

State Restrictions

• Loans on properties in New York and Maine are eligible for Second home only.
• Loans on properties in Massachusetts are not permitted.