• 1-4 family
• Planned unit developments (PUDs)
• Condominiums - 1-4 stories (FNMA Type A or FHLMC Class III)
• Modular homes (panelized/pre-cut; constructed off-site, assembled on-
site; must assume the characteristics of site built housing)

All properties must have appraised values less than or equal to $650,000.

INELIGIBLE PROPERTIES: • Mobile homes (single- or double-wides) • Leasehold estates
• Co-operative share properties • Time-share units
• Agricultural or rural properties • Properties over ten(10) acres
• Properties currently under construction
• Unique or unusual properties (dome homes, A-frames, etc.)

ELIGIBLE BORROWERS: Borrowers must have a minimum of two
(2) year employment history in the same line of work.
A credit score must be obtained from each of the
three(3) major credit reporting agencies for all borrowers. All borrowers
must have a minimum credit score of 660, as determined by the standard
agency method. First time home buyers will be considered on a case-by-
case basis.

No loans to:

• Non-occupant co-borrowers
• Non-permanent resident aliens
• Trusts, partnerships or corporations

OCCUPANCY: 1-2 Family Primary Residences up to 125% CLTV
3-4 Family Primary Residences and Second Homes up to 80% CLTV


LOAN AMOUNTS: Minimum: $10,000

CASH-IN-HAND GUIDELINES:
Maximum cash-in-hand limits apply to cash taken by the borrower at closing
for an undisclosed purpose. Borrowers may exceed cash-in-hand limits on a
case-by-case basis by providing acceptable documentation of home
improvement, major asset acquisition (e.g. automobile, boat, etc.) or
education expenses. Also, funds used to pay-off debt at closing will not be
counted towards cash-in-hand limits. Determination of the acceptability of
documentation will be at the underwriter’s discretion. Mortgage Online at 425.com reserves the right to require escrow hold backs on a case-by-case basis necessary to complete purchase or home improvement.

All cash taken in excess of the cash-in-hand limits, with the exception
of funds used to pay-off debts at closing, will require the execution of
the Loan Purpose Affidavit (document 3229). Items paid directly out
of proceeds and reflected on the HUD-1 are not considered cash-in-
hand.


1 Debts to be paid off at closing will not be considered in qualifying ratios. Must be paid off by closing agent out of proceeds. HUD-1 must show the debt being satisfied with the payment being made directly to the creditor.

2 All debts not to be paid off at closing, regardless of number of months left to pay, will be considered in ratios.

3 Minimum disposable income is determined by subtracting total debt (after debt consolidation) from Gross Income.

PREPAYMENT PENALTY:
All loans with CLTVs 95.01% and above ONLY: A prepayment penalty
will be in place for three(3) years from the date of the Note and is equal to
six(6) month’s interest on the amount of principal prepaid in any
twelve(12) month period which exceed 20% of the original principal
balance.

A buyout of the prepayment penalty is available; refer to rate sheet.

There is no prepayment penalty for loans with CLTVs 95% and below.

LIEN POSITION: Second; or, First lien position if property is owned free and clear

INELIGIBLE FIRST LIENS: • Privately-held mortgages
• Land Contracts or Contracts for Deed • Interest-only payment mortgages
• Mortgages with negative amortization • Reverse mortgages
• Graduated payment mortgages (GPMs) • Growing equity mortgages (GEMs)
• Guaranteed Rural Housing mortgages • Balloon mortgages
• State- or locally-sponsored housing programs (e.g. MSHDA, Cal-Vet, IHFA, etc.)

FIRST LIEN SEASONING: If Mortgage Online at 425.com  holds first lien:
Purchases & rate/term refinances: No seasoning requirement up to
90% CLTV; four (4) months seasoning for all loans over 90%
IMPORTANT CHANGE CLTV, except 80-15-5 transactions
(in conjunction with 3/1, 5/1 & 7/1
ARMs or jumbo JF programs only)

Cash-out refinances: Four (4) months seasoning required

If first lien is held by another lender: No seasoning requirement

TITLE INSURANCE: Limited Coverage Title Policy Commitment covering face amount of second
lien will be a "Prior to Close" condition for ALL loans over 95% CLTV. All
other loans require Title Search as a "Prior to Close" condition along with
Borrower Affidavit as to Other Liens (document 3230) to be signed at
closing which states that no new liens have been placed on the property
between the date of the last title search and the closing date. In the event any
additional encumbrances are revealed by the Title Search, they must be
satisfied at closing and a Limited Coverage Title Policy Commitment will be
required as an "At Closing" condition.

ASSUMPTION: Not assumable

STATE ELIGIBILITY: This program is not available in Alabama, Alaska, Hawaii or Texas