BancMac Lending Officers - Products and Programs

Products and Programs

Declining Market Policy and Private Mortgage Insurance Eligility
Pricing & Loan Level Price Adjustments
Credit Score Minimum
Fixed Rate Mortgage
Adjustable Rate Mortgage
Guaranteed Rural Housing
My Community Mortgage
40 Year Mortgage

Declining Market Policy and Private Mortgage Insurance Eligibilty:

	If the subject property is identified to be within a declining market, the loan will be subject to Eligibility requirements as set in the Declining Market Policy established by the private mortgage insurance companies, and may be ineligible to obtain private mortgage insurance. If the loan is ineligible to obtain PMI, the maximum LTV will be 80%.
	The Eligibility criteria set forth in the Declining Market policy supersedes any qualifying and eligibility criteria further described in the Mortgage Loan Products descriptions below. Lender Tools

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Pricing & Loan Level Price Adjustments:

	Adverse Market Delivery Charge: .25% is applicable to ALL mortgages delivered to Fannie Mae, including FHA, VA, Guaranteed Rural Housing.
	Representative Credit Score LLPA: is applicable for all mortgages with greater than 15 year terms and LTV’s greater than 60.00%, excluding the Affordable Housing Programs.
	Product LLPA’s: additional LLPA’s may apply to specific products, programs or property types.
	Cash-out LLPA: an additional Cash-out LLPA may apply on all loans and will be determined based on LTV and the representative credit score. Lender Tools

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Credit Score Minimum:

Minimum requirements are for loans underwritten WITH DU.

Loan meeting the minimum credit score requirements below may still be denied based on an overall credit underwriting decision.

Minimum credit scores and eligibility are determined by Investor and indvidual PMI Company guidelines; Eligibility based on market, property type, credit scores, LTV, DTI Ratios, and Reserves.

Investor (Fannie Mae/Freddie Mac) minimum credit score

620

And for loans above 80% LTV:
Private Mortgage Insurance minimum credit score

Conforming	660
Condominium 95% LTV	700
Const-Perm	700
My Community Mortgage	700
Declining Market-Moderately or Standard	700
Declining Market-Severely	720

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Fixed rate Mortgage:

	These loans feature principal and interest payments that remain the same throughout the life of the loan.

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Adjustable Rate Mortgage:

ARM’s are mortgages in which the interest rate and payment adjust periodically based on pre-determined intervals, index and margin.

5/1 LIBOR ARM: Index 1 yr WJ Libor; caps 5/2/5

Benefits to borrowers

Ideal for borrowers who intend to remain in their homes for a short period of time, with Added security of NO balloon payment if their plans change.

Lower initial rate and monthly payments compared to fixed-rate product.

Benefits to lenders

ARM’s feature a variety of short- and long-term choices, allowing lenders to offer maximum flexibility to their borrowers.

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Guaranteed Rural Housing:

	100% LTV with Guaranteed Rural Housing commitment compared to the Maximum 97% LTV MyCommunityMortgage with Mortgage insurance
	Low and Moderate income Borrowers in rural areas now have easier access to affordable housing finance options.
	No LLPA for credit score rate adjustments or LTV caps (especially in declining markets)!

Criteria:

	Borrowers income must be at or below 115% of area median income. RHS makes available local income information, adjusted for family size. www.rurdev.usda.gov/il/grh.htm

	A credit waiver will be required if BK discharged within 36 months. The underwriter will review the file and determine if a credit waiver would be acceptable.

Eligible properties:

	single family, nonfarm, owner-occupied principal residences, including units in approved PUDs and condominiums

	limited to rural areas. Generally, “Rural Areas” include settled places having a population not in excess of 10,000 or not in excess of 20,000 if outside any Metropolitan Statistical Area (MSA)

Benefits to borrowers

	Up to 102 percent financing!

	No Monthly Mortgage Insurance! – Guarantee Rural Housing have a one time 2.00% guarantee fee, which may be included in the loan!

	No maximum Purchase Price

Benefits to lenders

Additional lending products are provided to help you assist low- and moderate-income applicants

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My Community Mortgage:

My Community Mortgage program assists 1st Time homebuyers with low and moderate income levels.

Loan purpose, type, and term -- Purchase only; 30 years or less fixed-rate.

Occupancy and property type -- Owner-occupied, 1 unit properties.

Maximum loan-to-value ratio -- 97 percent; 90 percent for co-ops.

Low Mortgage Insurance Premiums

Borrower Benefits

Borrowers with minimum credit score of 700 is eligible for Up to 97% financing!

Lender Benefits

	The ability to say "yes" to more borrowers with limited funds for down payment and closing costs

	Special features and flexibilities to help lenders serve low- and moderate-income borrowers and communities they have not previously reached

	Competitive pricing

Eligible borrowers:

	Borrower’s income must be at or below 100% of area median income

	First time homebuyer (not have owned a home in past 3 years)

	Minimum 3% borrower contribution is required

	Homebuyer counseling is required on 95.01-97% LTV loans

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40 Year Mortgage:

	The 40 year mortgage offers borrowers the ability to qualify for a larger home, while keeping a low payment. Having a longer term, the 40 year mortgage offers a longer tax benefit

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