TERM: 30 Year
LOCK AVAILABLE: 30 day lock upon loan approval (15AWC)
SUMMARY: 30 year fixed rate or one year adjustable rate fully amortizing mortgage loan
program requiring a 10% down payment with 25% mortgage insurance.
Additional 1 point to discount for 2-4 unit properties
PROGRAM RESTRICTIONS:
• Purchase loans only
• Borrower can only have 5 properties (financed and/or free & clear)
• 70.01-80.0%=12% MI
80.01-85.0%=17% MI
85.01-90.0%=25% MI
• Lender must submit an additional copy package for mortgage insurance
• Mortgage Online at 425.com Mortgage will not finance more than 2 loans for
one borrower or a maximum
of $250,000 to one borrower
ARM HIGHLIGHTS: One year T-Bill ARM, 2/6 caps. No conversion option. Floor rate is equal
to the start rate.
LOAN AMOUNTS: Minimum: $36,000
Maximum: $200,000
UNDERWRITING GUIDELINES:
• Fully documented income only
• 4 months reserves required
• PORT PLUS CREDIT ONLY
• Little or no credit is not acceptable
• No gift funds allowed for down payment
• Maximum debt ratio is 42%
• 75% of gross rental will be used if lease is provided
• No escrow waivers allowed
• Seller contributions limited to 2%
• Signed Indemnity Agreement (Fax-on-Demand Document # 3213)
• Limited to two borrowers per loan application
ELIGIBLE PROPERTIES:
• Residential properties with no major deferred maintenance or
significant internal or external obsolescence
• No working farms
• Only available for FNMA/FHLMC approved condominiums
• No high-rise condominiums
• Not available for rural properties
