(SUBJECT TO CHANGE) KristineKennedy.com for updates
The minimum loan amount for is $60,000, and all loans must have 2 credit scores.
VA |
Yes you can have more than VA loans using VA BONUS entitlement |
| Down: | 100% financing with zero loan limits using FULL entitlement PARTIAL entitlement is eligible for a loan with a down payment |
| Credit Score: | 600 with approve / eligible through desktop UNDERWRITING 620 with manual underwrite (no manufactured homes) |
| Costs: | CANNOT roll into the loan, but the seller can pay for closing costs Buyer cannot pay for the seller's costs, realtor fees, nor transaction fees |
| Appraisal: | Good for (6) months (stays with the borrower and not the property) |
| Septic: | Only needs an inspection if the appraiser notes it on the appraisal If the local municipality requires hook up, it must be connected regardless of the cost. |
| Well: | A water test is always required for bacteriological and 5 metal testing (Lead, Nitrate, Nitrite, E. Coli and Coliform) |
| Survey: | If the title company will issue a clear title with an existing survey; then ok. |
| Roof: | Remaining life expectance must be 5 years |
| Termite: | Clear WDO is always required - good for 60 days |
| We pull the certificate of eligibility, and we can help if there becomes a problem. | |
FHA
| Down: | 3.5% down up to $432,400 in Duval, St Johns, and Clay County |
| Credit Score: | 580 credit score with approve / eligible desktop underwriting 620 for manual underwrite (no manufactured homes) |
| Mortgage Ins: | .85% monthly for the LIFE of the loan |
| Debt Ratio: | Usually up to 55% with an approve / eligible |
| Costs: | Buyer cannot pay for the seller's closing costs |
| Appraisal: | Good for (4) months and stays with property for (4) months |
| Septic: | Only need inspection if the appraiser notes it on the appraisal If public water or sewage is available; it must be connected (if feasible) at a cost of 3% or less of value. |
| Well: | If appraiser notes it on the appraisal, a water test is required for bacteriological and 5 metal testing (Lead, Nitrate, Nitrite, E. Coli and Coliform) |
| Survey: | If the title company will issue a clear title with an existing survey; then ok. |
| Roof: | Life expectancy must be 2 years |
| Termite: | Only need if the appraiser notes it on the appraisal - good for 90 days |
MANUAL UNDERWRITING FOR VA, FHA, AND USDA
| FHA: | 600 |
| VA/USDA: | 620 (USDA follows debt ratio of 29 /41%) |
| Reserves: | Required for all loans = 1-month PITI |
| Housing: | Zero late payments in last 12 months No more than 2 (30) day lates in the last 24 months |
| Installment: | Zero late payments in last 12 months No more than 2 (30) day lates in the last 24 months If living rent free; must verify |
| Revolving: | Zero late payments made (90) day lates in the last 12 months No more than 2 (60) day lates in the last 12 months |
| Factors: | 31% / 43% No compensating factors required 37% / 47% Must provide 1 HUD approved compensating factor 40% / 40% No discretionary debt allowed 40% / 50% Must provide 2 HUD approved compensating factors (Examples: 3 additional months reserves, minimal increase in housing payment, significant additional income not reflected in effective income, or high residual income) |
| Not eligible: | Cash out refinances Manufactured homes Non warrantable condos Non-occupying co-borrowers DPA assistance |
CONVENTIONAL
Loan Amount: 5% down up to $647,200 (1 unit) 2-unit is old numbers| Credit Score: | 620 with approve / eligible desktop underwriting |
| Mortgage Ins: | Based on credit score and down payment, but MI goes away at 80% LTV |
| Debt Ratio: | Up to 50% with an approve / eligible desktop underwriting |
| Costs: | Buyer CAN pay for the sellers closing costs |
| Appraisal: | Good for (4) months |
| Septic: | Only required if the appraiser notes it on the appraisal |
| Well: | Only required if the appraiser notes it on the appraisal |
| Survey: | If the title company will issue a clear title with an existing survey; then ok |
| Roof: | Life expectancy must be 3-5 years. |
| Termite: | Only required if the appraiser notes it on the appraisal - good for 90 days. |
3% DOWN CONVENTIONAL
| First Time: | At least 1 borrower must be a first-time homebuyer Must take a specific homebuyer education online class No income limits Standard mortgage insurance rates can be removed when LTV hits 80% |
| Any Buyer: | Does NOT have to be a first-time homebuyer Income limits of $59,840 for Duval, St Johns, and Clay Lower mortgage insurance rates ? that goes away when LTV hits 80% No additional hits for lower credit scores ? Must take a specific homebuyer education online class Primary residence only and all the borrowers must occupy the property |
| CLTV: | Up to 105% with a community second loan Property: 1 unit including condos Manufactured homes 2-4 units are not permitted |
NON-OCCUPYING CO-BORROWER
| FHA: | 3.5% down |
| Home Ready: | 5% down with max 43% DTI for occupying borrower (non-occupying borrower counts toward income limits) |
| CONV: | 5% down |
PARENT OR CHILD THAT IS BUYING FOR THE OTHER
A child or parent can purchase a loan for other as their primary residence who cannot financially qualify for the loan with their own income because their debt ratio is above 45%.
GIFT OF EQUITY
A gift of equity is when the home is being sold to a family member below the current market value. The difference between the market value and the actual sales price is the gift of equity. This is not really a gift of dollars, and there is no real money exchanged (only equity is transferred to the buyers as a credit). The gift may be used for ALL the funds needed to complete the transaction such as to pay the down payment, the buyers closing costs, and the funds can be used to pay the loan down 20% to remove the mortgage insurance.
JUMBO
| Loan Amount: | $647,200 and above |
| Credit Score: | 680 with 20% down 700 with 15% down |
| Debt Ratio: | Max 43% |
Property Types
SECOND HOME
10% down.
INVESTMENT PROPERTY
| Credit Score: | 620 minimum credit score 15% down is limit for 1 unit 25% down is limit for 2-4 units |
CONDO
Requires approval on a below list for the type of financing of new loan
| FHA: | https://entp.hud.gov/idapp/html/condlook.cfm |
| VA: | https://vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch I can get condos added to the VA list in as quick as 10 days ? |
TO GET CONDO APPROVED See KristineKennedy.com for full details
| CONV: | Get condo questionnaire which is on my website Get the budget (want it to show the budget has 10% reserves) Get the master insurance policy for the condo Get 6 months of the most recent meeting minutes for the association |
MANUFACTURED HOME See KristineKennedy.com for full details
| FHA: | 620 score with approve / eligible (No manual underwrites) |
| CONV: | 620 score with approve / eligible (No manual underwrites) VA/ USDA 640 score with approve / eligible (No manual underwrites) |
| Credit: | Must have 2 credit scores (No credit score is ineligible) |
| Residency: | Primary and second home residences Investment properties are not allowed |
| Year: | Constructed after 6/15/1976 |
| Land: | On its own land (not in a park) Multi-wide unit such as a double wide or triple wide Only has been set once directly from manufacturer or dealership *The only exception is that a VA loan can have been relocated* The title must be retired which is usually done at closing The homes must be permanently attached to the foundation |
| Engineering: | All loan types (except VA) require an engineering report certification |
| Septic: | Only required if the appraiser notes it on the appraisal |
| Well: | A water test is required for bacteriological and 5 metal testing: (Lead, Nitrate, Nitrite, E. Coli and Coliform) |
| Termite: | Only required if the appraiser calls for on the appraisal |
DEROGATORY CREDIT EVENTS
BANKRUPTCY
CHAP 13CHAP 7| VA | 0 years after discharge |
| FHA | 2 years (If 2 years have not elapsed between the discharge date and the FHA case number assignment date; then the loan must be manually underwritten.) Need most recent 12-month payment history of the Chapter 13 BK plan to show that there were no late payments |
| CONV | 2 years from the discharge date (If credit says a certain month; then must wait until the next month or will get a refer with desktop underwriting.) 4 years from the dismissal date |
| FHA or VA | 2 years after discharge date |
| CONV or USDA | 4 years after discharge date |
SHORT SALE OR A DEED IN LIEU
| VA | 0 years because short sales do not matter to the VA For both a short sale and a foreclosure, the loss is a piece of the entitlement that they will lose for their new VA loan. (EX: If the original loan amount was 100k, then they will probably lose 100k on their new entitlement) You can always payback the loss to restore entitlement. |
| FHA or USDA | 3 years |
| CONV | 4 years |
FORECLOSURE
| VA | 2 years (If discharges in bankruptcy; then 2 year starts at the time of discharge, if they vacated the property at discharge) |
| FHA | 3 years (at the time new case number is assigned) and USDA |
| CONV | 7 years |
