LOAN TERMS:

Conforming: First Lien Note Rate – 8.00% Floor or (350 BP over FNMA 60 day Mandatory)

Second Lien Note Rate – 8.00% Floor or (700 BP over FNMA 60 day Mandatory)

First Lien –Fixed - 30/5 – 30 Year Amortized Due in Five

Second Lien – Fixed – 25 Year Amortized (Contains an Interest Rate Escalation Clause if 30 days late)

No Prepay – No Prepay on 1st or on the 2nd Lien

ARM or Interest Only Options- Not Available

nexLoan reserves the right to change program, guidelines, ratios, credit and loan amounts at any time.

LOAN AMOUNTS:                                                                                                                                                                                                              

  • FHA Loan Limits Apply: $350,000 Minimum; $625,000 Maximum, dependent on County Limits

UNDERWRITING GUIDELINES:                                                                                                                                                                         

Qualifying Ratios

  •  The Recast 100 Loan program will consider; Credit, Asset, Location, Borrower, Income, Reserves, Overall Debt and Stability of Employment.
  •  This is a (30 Due in 5 ) program meant to give a Borrower ample time to Refinance into a future Conforming or FHA loan program.
  •  FHA Guidelines will be used to judge the probability of Borrower being able to refinance, once credit and debt issues have been repaired or eliminated.
  •  Poor Credit due to missed mortgage payments will be allowed if other revolving credit liabilities have been paid on time.

 MAXIMUM PROPERTIES OWNED / MULTIPLE LOANS:

• Maximum 20% concentration in any one project or subdivision

• A borrower may own a maximum of 4 properties (including commercial properties, vacant lots, multi-family properties and properties owned free and clear)

ELIGIBLE PROPERTY TYPES:                                                                                                                                                                                         

  • Owner Occupied    – SFR
  • 2-4 Units
  • Condo’s
  • PUD

- Unacceptable property types

  • Properties with more than 10 acres
  • Properties with Litigation
  • Non Owner or majority of Non Owner in any Development

 QUALIFYING DTI RATIOS:                                                                                                                                                                                 

Qualifying Ratios             29% / 41% (Max Ratios dependent on compensating factors)

- All eligible mortgage products qualified at Note rate using the fully amortized payment of principal, interest, taxes, and insurance (PITI).

CREDIT REQUIREMENTS:                                                                                                                                                                                            

Qualifying Credit Requirement

-Qualifying Credit               – 630 Minimum  FICO Score Required

-Two Years of steady employment, preferably with same employer.

-Last two years Income should be the same or increasing.

-Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 630 or higher.

-Mortgage Late’s are allowed (with acceptable hardship letter).

-Bankruptcy’s must be at least two years old, with perfect credit since discharge.

-Foreclosure’s must be at least three years old, with perfect credit since.

-New mortgage payment should be approximately 30% of gross (before taxes) income.

IMPOUNDS:                                                                                                                                                                        

- Taxes and Insurance            Required

 RESERVES:                                                                                                                                                                                          

- 3 Months Escrowed Mortgage Payments are required and to be fully assigned to Investor upon funding.