Mortgage Online at 425.com
1 Year T-Bill ARM 1-866-449-7263
TERM: Thirty Year
LOCK AVAILABLE: 15 or 50 days
SUMMARY: One Year Adjustable Rate Mortgage, non-convertible.
TEMPORARY BUYDOWNS: Not Allowed
LOAN AMOUNT: MAXIMUM Maximum conforming 1-4 family loan limit
MINIMUM $20,000
LTV LIMITATIONS:
Primary Residences
PURCHASE
1 unit 95% 1,2
1-2 unit 90%
3-4 unit 80% (FNMA only)
RATE/TERM REFINANCE
1-2 unit 90%
3-4 unit 80% (FNMA only)
CASH OUT REFINANCE
1-2 unit 70% (FHLMC only)
1-4 unit 70% (FNMA only)
Second Homes
PURCHASE
1 unit 95% 1 (FHLMC only)
1 unit 80%
RATE/TERM REFINANCE
1 unit 70%
CASH OUT REFINANCE
not eligible
1. FHLMC: Primary residences with LTVs in excess of 90% and second homes with LTVs in
excess of 80% must receive an "Accept" or "Accept Plus" response with
no minimum credit
score, or a "Refer" response with minimum 700 credit score from Loan Prospector.
2. FNMA: Must receive "Approve/Eligible" or "Refer/Eligible" response
from Dedktop
Underwriter.
INVESTMENT PROPERTIES: Not Eligible
CAPS: 2% Annual 6% Lifetime
INDEX: Weekly average yield on U.S. Treasury Securities adjusted to a constant maturity of
one
year.
CHANGE DATE: The first Change Date is the 12th payment due date. There is a new Change
Date every 12 months thereafter.
RATIOS: Qualifying ratios may not exceed 28%/36% based on the start rate for loans with
loan to
values up to 75%. For loans with loan to values of 75.01% to 95.00%, qualifying ratios of
28%/36%
based on the start rate plus 2%.
UNDERWRITING: All loans will be underwritten to FNMA/FHLMC and Mortgage Online at 425.com
Mortgage's current
applicable guidelines, unless otherwise stated.
MORTGAGE INSURANCE: Up to and Including:
30-yr:
90.01 - 95.00% Fixed Rate Coverage 35%
90.01 - 95.00% Fixed Rate Coverage 30%
85.01 - 90.00% Fixed Rate Coverage 25%
80.01 - 85.00% Fixed Rate Coverage 12%
NOTE: ARMS ARE THE SAME AS THE 30 YEAR COVERAGE
Advantage Guidelines
Advantage Guidelines are being offered to enhance standard agency guidelines. Advantage
guidelines are offered individually and may not be combined. Borrowers must meet all
standard program criteria and are also subject to a minimum credit score of 660. Credit
score will be determined by FHLMC’s Loan Prospector system or FNMA’s Desktop
UnderwriterTM system. California condominiums may require earthquake insurance
Second Home Advantage
Purchase or rate/term refinance for 1 unit second homes up to the conforming loan limit.
Three(3) months PITI in liquid reserves. Only "Accept" responses from
FHLMC’s Loan
Prospector system or "approve" from FNMA’s Desktop UnderwriterTM system.
LTV MI Coverage
85.01-90% 25%
80.01-85% 20%
80.00% and below N/A
Streamlined Refinance Advantage
Rate/term refinance on single family primary residences up to the conforming loan limit.
Only one paystub with year-to-date earnings required for salaried borrowers. Only one
year’s most recent tax returns required for self-employed and commissioned borrowers.
No verification of assets. No need to explain past derogatory credit, large deposits or
employment gaps. Maximum cash back to borrower of 1.00% or $1,000, whichever is less.
All liens to be paid off must be seasoned twelve(12) months. No mortgage lates in last
twelve(12) months. Only "Accept" responses from FHLMC’s Loan Prospector
system or
"approve" from FNMA’s Desktop UnderwriterTM system.
LTV MI Coverage
85.01-90% 25%
80.01-85% 12%
80.00% and below N/A
80% NIV Advantage
No Income Verification/No IRS Forms option for self-employed and commission borrowers
only. (Income must be stated on the application). Must have three years employment in
same profession. Single family primary residences up to the conforming loan limit. No
condos. Minimum loan amount $75,000.
Minimum credit score of 660. Minimum six months reserves in liquid accounts. Must meet
all other FNMA/FHLMC guidelines and receive an "Accept" response from
FHLMC’s Loan
Prospector or "Approve" from FNMA’s Desktop UnderwriterTM system.
Pricing Adjustment - 1% to discount.
80% Cash-out Advantage
Cash-out refinances of single family primary residences will be allowed up to an 80% loan-
to-value with no mortgage insurance requirement.
Pricing Adjustment - .50% to discount.
Condominium Pre-sale Advantage
Condominium pre-sale requirements relaxed to 40% for primary residence purchase
money transactions on phases currently under construction or completed within the past
12 months. Minimum of 60% owner occupancy based on percentage of pre-sold units. A
Condominium Owners Association must be in existence, however control of phase need
not be turned over. All other FNMA/FHLMC guidelines apply. Not available in the
following states: (areas listed in parentheses are the only restricted locales in that
state)
California, Connecticut, District of Columbia, Hawaii, Maine, Maryland (Baltimore only),
Massachusetts, Mississippi, New Hampshire, New Jersey, New York, Pennsylvania, Rhode
Island (Providence only), Texas (South Padre Island only).
10% Down No MI (80-10-10) Advantage
Only 10% down with no mortgage insurance requirement (90% CLTV) up to the
conforming loan limit for single family purchase and rate/term refinance transactions.
Must obtain 10% subordinate financing from an outside source. Subordinate financing
must have a fixed rate of interest. Home equity Lines of Credit are not eligible.
Investment Advantage
Investment properties for borrowers with not more than twenty financed properties
(Mortgage Online at 425.com Mortgage will only lend against
four(4) properties to any one individual).
Purchases and rate/term refinances will be allowed up to 70% LTV on 1-2 family properties.
Cash-out and subordinate financing are not allowed with this option.
Pricing Adjustment - standard investment property fee.
High Ratio Advantage
Higher ratio borrowers up to a maximum single back ratio of 50% for LTVs of 80% or less
on single family primary residence purchase and rate/term refinance transactions.
Housing payment may not increase by more than 25%; paying off debt to qualify is not
allowed; minimum of 3 months reserves is required.
