Borrower need not be first time homebuyer. Follow FHA requirements if borrower already owns property.
Borrower can retain current residence as per FHA guidelines. A Letter of Explanation is required to explain the motivation to keep current residence while purchasing new residence.
INTEREST RATE
1st lien: Fixed interest rate
2nd lien:
Repayable: 2% higher than first mortgage
Forgivable: 0% rate
AMORTIZATION TERM
Fixed Rate – 30 year
DPA Terms:
Repayable: 10 years, rate is 2% higher than first mortgage.
Forgivable: 30 years, 0% rate.
Forgiven after 36 consecutive, on-time payments on the first mortgage.
ELIGIBLE PROPERTIES
1-2 Unit Attached/Detached SFR
PUD
FHA Approved Condominiums as per HUD Handbook 4000.1. Both Single Unit Approval are allowed.
Modular Homes
Manufactured Homes (Single Family Unity only, multi-wide). Manufactured homes must meet following requirements:
Built on or after June 15, 1976
Home must have been built to the FMHCSS as evidenced by having a HUD Certification Label/Tag
New construction for manufactured housing is allowed, provided the manufactured home title conversion to real property is initiated prior to CBCMA purchasing the loan.
INELIGIBLE PROPERTIES UNDER MANUFACTURED HOME
Single Wide manufactured Home
2-4 unit propertiies
Proposed or under-construction properties
Cooperative
Manufactured homes in “parks” not held in fee simple ownership, commonly known as “Mobile Home Parks”
Properties with resale restrictions
Site Manufactured Housing Condominiums
Home that has been previously installed or occupied at any other site
NON-OCCUPANT CO-BORROWER/CO-SIGNER/GUARANTORS
Allowed as per FHA guidelines
Not allowed when property is a manufactured home
MINIMUM CREDIT STORE
600
All bowers must have at least one credit score
Options
AUS Approval
DU Approve/LP Accept
Manual Underwriting is also allowed except when property is a manufactured home.
Maximum LTV/CLTV Allowed
LTV
Base loan amount must not exceed 96.5% of the lesser of appraised value or purchase price + FHA UFMIP
Must not go below 90%
CLTV: no limit
Maximum Loan AmountFirst lien:Standard Balance: as per FHA confirming limits
High Balance: Minimum Loan Amount to be $1 more than FHA conforming limits:Repayable: Allowed for 3.5% assistance
DPA:3.5% of lesser of Purchase Price or Appraised Value
Subject property in SC or SK: Minimum assistance amount is $5000. Therefore, for purchase prices below $143,800 with 3.5% assistance, the DPA amount will be $5000 in these states.
Maximum Loan Amount
First lien:
Standard Balance: as per FHA confirming limits
High Balance: Minimum Loan Amount to be $1 more than FHA conforming limits:
Repayable: Allowed for 3.5% assistance
DPA:
3.5% of lesser of Purchase Price or Appraised Value
Subject property in SC or SK: Minimum assistance amount is $5000. Therefore, for purchase prices below $143,800 with 3.5% assistance, the DPA amount will be $5000 in these states.
Area Median Income
Not applicable
Borrowers with income above 135% will be subject to pricing hit
only occupant borrowers’ incomes are considered to check AMI limit
