• Traditional credit
• In addition to the LP “Accept”, all stated income loan borrowers must meet the minimum credit scores associated with each property type and LTV
• Borrowers must have a 12-month housing payment history, either mortgage or rental. Borrowers without a 12-month history are ineligible
• Housing payment: No mortgage/rental delinquency in last twelve (12) months
• Bankruptcy/Foreclosure/Deed in Lien of Foreclosure:
• Borrowers must have re-established an acceptable credit reputation for at least 4 years after the discharge or completion
• For Chapter 13 bankruptcies, two years after discharge is acceptable, regardless of the circumstances
• For Chapter 7 or 11 bankruptcies, a foreclosure or deed-in-lieu of foreclosure, a 2-year re-establishment of credit may be acceptable if the result of extenuating circumstances. These circumstances must be documented in the file
• Re-established credit must evidence the following:
• All credit must be current.
• The credit report must evidence a minimum of 4 payment references. At least one reference must be an installment/revolving debt tradeline and one must be a housing-related tradeline
• Three of the four references must have been active in the last 24 months
• No more than two installment or revolving debts were past due in the last 24 months
• No installment or revolving debt payments were 60 days or more past due since the discharge of the bankruptcy of completion of the foreclosure or deed-in-lieu of foreclosure
• No housing payments were past due since the discharge of the bankruptcy of completion of the foreclosure or deed-in-lieu of foreclosure
• No new public records for bankruptcy, foreclosure, deed-in-lieu of foreclosure, unpaid judgements, collections, garnishments, liens, etc. are present

• Borrowers may be employed, self-employed or receiving non-employment income
• All stated income used to qualify must be stated on the loan application
• For employed Borrowers, a verbal verification of employment is required and must verify either:
• two continuous years of employment with the same employer, or
• two continuous years of employment is a position in the same line of work
• For self-employed borrowers, the existence of the business must be documented for at least two years by obtaining:
• A copy of a business license, or
• An alternative confirmation of the existence of the business, such as a business directory listing or a signed letter from an attorney or CPA
• Non-employed income, such as Social Security, pension, trust, investments, etc. must be verified with a two-year history of receipt. The history and source of the stated income must be documented with a letter from the appropriate pension provider, public agency or a letter from the borrower’s accountant.
• Alimony, child support and separate maintenance are permitted as long as a two-year history of receipt is verified
• Rental income is permitted as long as the borrower has a two-year history of managing rental properties and a two-year history of receipt of the income is verified. Verification may include a letter from the borrower’s accountant or a two-year history of timely payments for rental properties on the credit report
• All employed and self-employed borrowers must sign an IRS Form 4506-T

• Gifts.
• Grants from an agency.
• Cash on hand
• Sweat Equity.

• Primary residences and Second Homes require 6 months’ PITI payments as reserves
• Investment property requires 12 months’ PITI payments as reserves
• The following are unacceptable sources of reserves:
• Cash proceeds from the subject property refinance transaction
• Funds from 401(k), KEOGH, 403(b) and other IRS-qualified employer plans that are not vested. A fund that cannot be withdrawn under circumstances other than the account owner’s death, retirement or employment termination
• Stock held in an unlisted corporation
• Interested party contributions

• Uniform Residential Appraisal Report (URAR Form 70)
• Small Residential Income Property Appraisal Report (Form 72)
• Individual Condominium Unit Appraisal Report (Form 465)
• Summary Quantitative Analysis Report (Form 2055) with interior inspection and exterior inspection
• The appraisal must be completed by a state-licensed and/or state-certified appraiser
• Any appraisals made “subject to repairs” will require a final inspection

Fannie Mae Stated Income

LOAN TYPE
Conventional fixed rate mortgage underwritten through Desktop Underwriter.

PROGRAM FOCUS
A Fannie Mae saleable program, designed for the self-employed or salaried Borrower(s) who demonstrates an excellent traditional credit history with established employment. The Borrower must report his or her income on the loan application. No tax returns or other written verifications of income of any kind are required. Assets are required to be verified. Borrowers are not required to sign an IRS 4506-T. All loans must receive an “Approve” through Desktop Underwriter.

LOAN TERM
10 - 30 years only.

Maximum LTV purchase and no cash out refinance transaction percentages can be explained in detail by your mortgage broker.(with updated percentages)

MAXIMUM LTV CASH OUT REFINANCE TRANSACTIONS

• (1) There is no limit to the maximum LTV when subordinate financing exists.
• (2) Refer to your mortgage broker for HCLTV definitions. Refer to Daily Rate Sheet for pricing overlays.
• (3) Loans with inaccurate or insufficient credit are not eligible.
• (4) Second Homes may not be co-op properties.

• 1 and 2 unit detached and attached, primary residences
• 1 unit detached and attached Second Homes.
• Condominiums must be Fannie Mae-approved or meet Fannie Mae guidelines.
• PUDs must meet Fannie Mae guidelines.
• Cooperatives in NYC are eligible for the NYC Pilot program guidelines and are restricted to the 5 Boroughs and Nassau, Suffolk, Westchester and Rockland counties. NYC co-ops not meeting the NYC Pilot program parameters can be eligible if warranted to Fannie Type I guidelines. Cooperatives in NJ are eligible for the NJ Pilot program guidelines and are restricted to Bergen, Essex, Hudson, Morris and Union counties. NJ co-ops not meeting the NJ Pilot program parameters can be eligible if warranted to Fannie Type I guidelines. Cooperatives are also available in other areas of NY, NJ, DC and MD and must also conform to the Type I guidelines.

• 3 and 4 unit property.
• Investment properties.
• Manufactured Homes

• All loans must receive an “Approve” through Desktop Underwriter (DU). “Expanded Approval” responses are not permitted
• DU appraisal and doc waivers are not permitted
• Traditional/Standard underwriting is not permitted
• MI Contract Underwriting is permitted
• Delegated Underwriting is permitted

• All borrowers must reside within the US.
• U.S. Citizens
• Permanent Resident Aliens
• Non-Permanent Resident Aliens

• Traditional credit only
• The minimum credit score is 680
• All borrowers must exhibit a 12–month mortgage or rental history. Borrower’s unable to provide a complete 12 month mortgage rental history are limited to owner occupied primary residences

• Self-employed Borrowers must have a minimum of two (2) years of continuous self-employment in the same business as stated on the loan application
• A verbal verification of the source of the Borrower’s income is required. For all Borrowers, the verbal verification must:
• Identify the individual who contacted the employer;
• Verify the name of the employer;
• Verify the name and title of the individual contacted at the employer;
• State the date of the contact.
• Verification of the source for self-employed borrowers must include the above information and may be obtained from the Borrower’s accountant, attorney or other third party with whom the Borrower has a professional relationship. CPA certification or copy of business license is acceptable.
• Unearned income needs only to be stated and includes, but is not limited to:
• dividend/interest, trust income, child support, alimony or separate maintenance, social security, retirement income, rental income, and any other income that is not readily verifiable.
• Borrowers whose income is classified as “wage earners” (salaried) must have been employed in the same line of business for a minimum of two years. Any employment change must be deemed a career advancement as stated on the home loan application.
• IRS Form 4506-T is NOT required.
• Income must be deemed reasonable.

• All loans require 2 months of PITI reserves
• The source of reserves must be verified and seasoned for no less than 60 days. Maximum Number of Financed Properties

• The appraisal must be completed by a state-licensed and/or state-certified appraiser.
• Any appraisals made “subject to repairs” will require a final inspection.

• Reduced, Lower Cost, Lender-Paid and Financed MI are not permitted.
• Genworth:
• GE will insure a maximum of 4 properties per borrower (1 primary residence, 1 second home and up to 2 investment properties for full/alt doc and 1 Alt A loan).
• Loans will receive Limited Doc pricing.
• MGIC:
• Loans are subject to MGIC Alt A Reduced Doc Pricing (700 and greater, 680 to 699 pricing buckets).
• RMIC:
• Loans will receive Limited Doc pricing.
• UGRIC:
• Maximum of two loans insured for the same borrower (only one primary residence or investor property).
• Loans will receive Limited Doc pricing.

For any questions, you can contact us here.

1.347.294.4200