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					                                                                              FHA Loans
                                                                    FHA 30 & 15 Year Fixed Rates                                         FHA 1 Year & 3/1 ARM
                 Property                                                                           1-4 Units, PUD, Condo
                                                                                                    1-4 Units, PUD, Condo
                Buy Downs                                                     30 Year Only                                                       N/A
               Special Notes                                                                          No second homes.

              Minimum FICO                                                    ≤ $417,000                                                          640
                                                                              ≥ $417,000                                                          660




                                                                 Purchases & Rate/Term & Cash-out Refinances                        Streamline Refinances
                                     LTV/Loan Amount                           (Non-streamline)
                                                                     UFMIP                      Monthly                          UFMIP                   Monthly
                                  LTV > 95%                          1.75%                       .55%                             1.5%                    .55%
                                  Term > 15 years
Mortgage Insurance
Premiums                          LTV ≤ 95%                           1.75%                         .50%                          1.5%                     .50%
                                  Term > 15 years

                                  LTV > 90%                           1.75%                         .25%                          1.5%                     .25%
                                  Term ≤ 15 years
                                  LTV ≤ 90%                           1.75%                         None                          1.5%                    None
                                  Term ≤ 15 years



                               Unless otherwise specifically restricted or not permitted by the applicable loan parameters, the following property types are eligible:
Eligible Property Types             1-4 Unit Properties
                                    Condominiums (must be FHA approved)
                                    Townhomes/PUDs

Occupancy                               Owner Occupied Primary Residences Only




                          PacificBanc Mortgage  2600 Michelson Dr. # 930  Irvine, CA 92612  Tel 949.419.0505  www.pacificbanc.com
                                  Purchase Transactions
                                  Rate & Term or Limited Cash Out Refinance
                                        Mortgage Amount: The mortgage amount is limited to:
                                        o The sum of the unpaid balance of the existing mortgage, closing costs, points, pre-paid items, and, if applicable, the
                                             amount required to satisfy certain subordinate loans used for the original purchase of the property.
                                                       Any “cash back” to the borrower may NOT exceed $500.00
                                        o Subordinated Second Liens: One year seasoning from funding on all junior liens unless lien was a part of acquisition or
Transaction Types                            for home improvements on the subject property.
                                                       FHA to FHA Refinances may subordinate existing junior liens with no CLTV restrictions.
                                  Cash Out Refinance
                                      Mortgage Amount:
                                    The mortgage amount must be used to pay the current unpaid principal balance of the existing first mortgage; it may be used
                                        to pay closing costs, points, pre-paid items, subordinate mortgage liens and additional cash to the borrower.
                                    Subordinate Liens: No seasoning requirement.


Assumptions                       Not permitted


Prepayment Penalties              None


Temporary Buy downs               Temporary Buy downs are not allowed


                                  The borrower may receive secondary financing to cover the entire cash investment requirement from the following sources:
Secondary Financing                     o Federal, State, and Local Government Agencies.
                                        o FHA Approved Non-Profit agencies that are considered instrumentalities of Government.

                                       o    FHA Approved Non-Profit agencies not considered instrumentalities provided the borrower makes a cash down payment
                                            of at least 3.5% of the sales price.
Secondary Financing                    o    Family member (parent, grandparent, sibling or child)


AUS Decisions                     DU Approve/Eligible only.
                                  Manual Underwriting limited to DU Approve/Eligible downgrades and streamline refinances only.




                       PacificBanc Mortgage  2600 Michelson Dr. # 930  Irvine, CA 92612  Tel 949.419.0505  www.pacificbanc.com
                                U.S. Citizens
Eligible Borrowers              Permanent Resident Aliens
                                Non-Permanent Resident Aliens


Multiple Mortgages              One FHA financed loan per borrower


                                A Non-ARMS length is limited to a maximum LTV of 85% Maximum financing above 75% is permissible under the following
                                 circumstances:

                                     o    A family member purchases another family member’s home as a principle residence.
Non-Arms length                      o    An employee of a builder purchases one of the builder’s homes as a principle residence.
                                     o    A current tenant purchases the property he or she has rented for at least 6 months immediately predating the sales
                                          contract.
                                     o    A corporation transfers an employee to another location, purchases that employee’s home, then sells the home to
                                          another employee.


                                One unit property if the LTV exceeds 75%
                                Maximum 75% LTV if co-borrower is unrelated.
                                If a parent is selling to a child, the parent cannot also be the co-borrower unless the new mortgage LTV is 75% or less.
Non-Occupant                    Income, assets and debts from all borrowers are used in qualifying.
Co-Borrowers                    Co-borrower must have a principal residence in the U.S.
                                Co-borrower must take title to the property and sign the Note and Mortgage.
                                Non-occupant co-borrower may not be an interested party to the sales transaction, such as the property seller, builder, and real
                                 estate broker.


Interested Party                Maximum contributions limit is 6% (also known as Seller Contribution)
Contributions


                                Gifts must be from relatives, borrower’s employer, charitable organization, government agency, or close friend with a clearly
                                 established relationship to the borrower.
Gifts                           No portion of the down payment may be donated by interested parties to the transaction including sellers, realtors, brokers, or
                                 sales associates.
                                A fully executed gift letter is required with supporting documentation.



                     PacificBanc Mortgage  2600 Michelson Dr. # 930  Irvine, CA 92612  Tel 949.419.0505  www.pacificbanc.com
Appraisal                         Licensed appraisers must be FHA approved and certified.
Requirement                       A second appraisal is required if property has been transferred within the past 180 days.


                                  Minimum credit score is 640 for all FHA loans.
Credit                            For FHA streamlined refinances, no 30 day or greater mortgage lates allowed in most recent 12 months.
                                  Non-traditional credit history not permitted.


                                          Type                                                        Requirements
                                  Re-established credit             Require a minimum of 2 year period of re-established credit from the bankruptcy discharge
                                  – chapter7                         date.
                                  Extenuating                       Require a minimum of 12 months from the bankruptcy discharge date.
                                  circumstances –                   Require supporting documentation to verify the extenuating circumstances.
Bankruptcy/                       chapter 7                         Require supporting documentation that all debts have been paid
Foreclosure                       Re-established credit             Require a minimum of 12 months of the payout period has elapsed under the bankruptcy
                                  –                                  and the payout performance has been satisfactory with required payments made on time.
                                  chapter 13                        Borrowers must receive written permission from the counseling agency to enter into the
                                                                     mortgage transaction.
                                  Foreclosure or Deed-              Require a minimum of 3 years since the date of the foreclosure completion.
                                  in-Lieu

                                   Note: Please contact your AE for PacificBanc’s overlays on Bankruptcy/Foreclosure Borrowers.


                                  Credit documentation – must not be older than 90 days
Age of Documentation              Income documentation – must not be older than 30 days
                                  Asset documentation – must not be older than 30 days
                                  Appraisals – must not be older than 120 days
                                  All Short-Sale approval letters must be included in initial submission


                                  Income:
Income/Asset                           o     Most recent paystubs covering a period of 1 month
documentation                          o     W-2’s for prior 2 years
                                       o     Self employed borrowers must provide 2 years of signed tax returns
                                       o     Verbal VOE completed by PacificBanc prior to funding
                                       o     Signed 4506T to be executed by Underwriting



                       PacificBanc Mortgage  2600 Michelson Dr. # 930  Irvine, CA 92612  Tel 949.419.0505  www.pacificbanc.com
Income/Asset                         o      Additional signed 4506T to be executed at closing
documentation                   Assets:
                                     o      Original bank statements for the most recent 2 months


                                31/43%
                                Or as approved by AUS
                                If AUS “refers” and debt ratios exceed 31/43% file will need a manual underwrite and borrower must have at least one of the
                                 following compensating factors:
Debt Ratios                           o 3 months seasoned PITI (cannot be gift funds)
                                      o Current housing is equal to or > than proposed housing expense
                                             nd
                                      o 2 or part time job or other income with less than 2 year history that is not being factored into debt ratios
                                      o 10% down payment or more


Impounds                        Required


Income from Rental              For 1-4 units not occupied by owner, use 24 months average from schedule “E” on Tax Returns. (add back any depreciation)
Property                        If borrower has not owned the rental property for at least two years or does not have at least 2 year history of managing rental
                                 property(s), no rental income for rentals can be used to qualify.


                                 Guidelines are subject to change without notice. Please contact your AE for any questions.




                     PacificBanc Mortgage  2600 Michelson Dr. # 930  Irvine, CA 92612  Tel 949.419.0505  www.pacificbanc.com

				
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