Retail only - Residential Bancorp

CALHFA
CalPLUS ZIP Conventional Loan Program
(Retail only)
PURCHASE TRANSACTIONS ONLY
Max Loan
Minimum Cash
Amount
Investments
Occupancy
OWNER
OCCUPIED
1 Unit - Fixed Rate
$417,000
The ZIP Second is a
3.00% of the first
mortgage loan
amount used for down
payment.
Mortgage/ Rental
History
Reserves
Evaluated by DU
Evaluated by DU
The CalPLUS Conventional program is a Fannie Mae HFA Preferred fully amortized thirty (30) year fixed interest rate first mortgage. This loan is combined with the CalHFA Conventional Zero Interest Program (ZIP) for down payment and/or closing
cost assistance. The Conventional ZIP second loan is only availalbe with CalPLUS and is a silent second loan for up to 3.00% of the first mortgage loan amount. The interest rate is zero percent (0.00%) and the payment(s) are deferred for the life of
the first mortgage or until the property is transferred or the first mortgage loan is refinanced. For eligible first-time homebuyers, the ZIP will be increased by an additional $6,500 (ZIP Extra). The CalPlus loan is not subject to Recapture Tax.
Age of Documents
Must be < 120 days old at time of closing, including the appraisal.
AUS Recommendation Allowed
Fannie Mae Desktop Underwriter (DU) with an Approve/Eligible recommendation. HFA Preferred must be selected in the Community Lender Product Field. CalHFA subordinate loans
must be entered as Community Seconds. Freddie Mac Loan Prospector (LP) are not acceptable. Manual underwriting is not allowed.
Borrower Eligibility
Permanent and Non-Permanent Resident Aliens Allowed with supporting documentation. Foreign Nationals not permitted. All borrowers must have valid social security numbers.
Buydowns
Not Allowed.
Co-Borrowers
Non-occupant co-borrowers are not allowed. Non-occupant co-signers are not allowed.
Contributions (seller)
Sales Cocessions/Contributions are permitted per Fannie Mae guidelines except for the following:
1) Personal property.
2) Down payment assistance.
3) Payment of condominium fees Note: Per RB policy, condominiums are not allowed.
Current Homeownership
Requirement
At the time of loan closing, no borrower may have an ownership interest in any residential dwelling per Fannie Mae Guidelines (a manufactured home, regardless of the type of property
ownership, is considered a residential dwelling for this purpose). In other words, borrower cannot own any additional residential properties.
Down Payment Assistance - ZIP
and ZIP Extra
The CalHFA Conventional Zero Interest Program (ZIP) can only be used with the CalPLUS Conventional loan for down payment and/or closing cost assistance. Cash back to the
borrower from this loan is prohibited.
1) Interest rate: 0.00%
2) The maximum Conventional ZIP loan amount is:
--ZIP for non-first-time homebuyers: 3:00% of the CalPLUS Conventional first mortgage loan amount.
--Example: $200,000 loan amount = $6,000 ZIP
3) The maximum Conventional ZIP Extra loan amount is:
-- ZIP Extra for first-time homebuyers: 3% of the CalPLUS Conventional first mortgage loan amount plus $6,500.
-- Example: $200,000 loan amount = $12,500 ZIP (3%) + $6,500)
First-Time Homebuyers
Program is available for both first-time and non-first time homebuyers.
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1/7/2015
* No Exceptions Allowed
CALHFA
CalPLUS ZIP Conventional Loan Program
(Retail only)
Forms
The following forms will be needed when submitting a CalPLUS Conventional Loan to CalHFA:
1) Loan Submission Checklist (located in FAST under InfoCenter).
2) CalHFA Borrower Affidavit (09/09/14).
3) Authorization to Release. (CalHFA form)
3) Tax Return Affidavit (07/10/13)
Homebuyer Education
Homebuyer Education is required for one occupying first-time homebuyer. Homebuyer Education is not required for non-first-time homebuyer(s). 1) Online Homebuyer Education
through ehome. 2) Face-to-Face Homebuyer Education through NeighborWorks America or through one of the HUD approved Housing Counseling Agencies.
Insurance (Mandatory Home
Warranty Coverage)
CalHFA requries that all first-time hmebuyer(s) obtain a one-year home warranty protection policy.
1) Non first-time homebuyers are not required to obtain a home warranty protection.
2) The insurance must cover the following items at a minimum:
--Water Heater(s)
-- Air Conditioning
-- Heating
-- Refrigerator
-- Oven/Stove/Range
3) Home Warranty to be paid through close of escrow.
4) Home Warranty must be disclosed on Final HUD-1 or copy of insurance declaration page will be required.
LTV/CLTV
Loan-to-Value 95.01-97.00%. LTV's greater than 97.00% are not allowed and LTV's 95.00 and below are not allowed.
Loan Terms Available
30-year fixed rate.
Manual Underwriting
Manual underwriting is not allowed.
Maximum Loan Amount
The maximum first mortgage loan amount cannot exceed $417,000.
Maximum Number of Properties
At the time of loan closing, no borrower may have an ownership interest in any residential dwelling per Fannie Mae Guidelines (a manufactured home, regardless of the type of property
ownership, is considered a residential dwelling for this purpose). In other words, the borrower cannot own any additional residential properties.
Maximum Sales Price Limits
The Sales Price of the home cannot exceed CalHFA Sales price Limits for the county in which the property is located.
Minimum Loan Size
$70,000
Origination Fee
Origination fee of 2.5%.
Ratios
Cannot exceed 45.00% regardless of automated decision or compensating factors.
Registration and Lock
Loan must be registered prior to submission to CalHFA for review. Loan must be registered and locked prior to submission to US Bank for underwriting. CalFHA ZIP or ZIP Extra loans
will be reserves and locked concurrently with the CalPLUS first mortgage. The ZIP or ZIP Extra will receive the same reservation, lock and purchase periods as the first mortgage. The
first mortgage loan must be funded, delivered and purchased by U.S. Bank prior to the rate lock expiration. All CalHFA subordinate loans must be funded, delivered and purchased by
CalHFA concurently with the first mortgage. Rate will be locked for sixty (60) days. Loan will be registered and locked prior to submission to U.S. Bank for credit underwriting and to
CalHFA.
Repayment of the principal on both the Conventional ZIP and ZIP Extra shall be due and payable at the earliest of the following events:
Repayment of the principal on both 1) Transfer of title
the Conventional ZIP and ZIP Extra. 2) Payoff or refinance of the CalPLUS Conventional first mortgage.
3) Formal filing and recording of a Notice of Default (unless rescinded).
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* No Exceptions Allowed
CALHFA
CalPLUS ZIP Conventional Loan Program
(Retail only)
Subordinate Financing
No other additional subordinate financing including the CHDAP is allowed. Only the ZIP and ZIP Extra for first-time homebuyers is allowed.
Underwriting
Loans require a Fannie Mae Desktop Underwriter (DU) with an Approve/Eligible recommendation. HFA Preferred must be selected in the Community Lender Product Field. CalHFA
subordinate loans must be entered as Community Seconds. Freddie Mac Loan Prospector (LP) and other customized automated underwriting systems are not acceptable. All loans
require prior credit underwriting and Mortgage Insurance approval by U.S. Bank. U.S. Bank will order the MI. Manual underwriting is not allowed. The Account Manager
simultaneously submits the Compliance Package to CalHFA at time of submission to U.S. Bank. U.S. Bank Home Mortgage, Attention: Underwriting Department, 17500 Rockside Road,
Bedford, OH 44146, Mail Code: CN-OH-R2F2. CalHFA: Single Family Lending - MS 910, 500 Capital Mall, Suite 400, Sacramento, CA 95814. After validation review, CalHFA will issue
a Conditional Approval, Loan Suspension, or a Denial. Once the loan is conditionally approved, the loan may be funded, closed and delivered for purchase. All closed first mortgages
must meet Fannie Mae standards. We will receive two approvals, one from U.S. Bank and one from CalHFA.
CREDIT
Bankruptcy, Chapter 7 or 11
Follow DU Findings: Four (4) years from discharge date or dismissal date. Less than four (4) years regardless if due to extenuating circumstances will receive “Refer with Caution”
therefore will require manual underwrite. Manual underwrite not allowed at this time per RB’s policy. Loan subject to AUS Approval.
Bankruptcy, Chapter 13
Follow DU Findings: Two (2) years from discharge date. Four years from the dismissal date. Less than four years for dismissal, regardless if due to extenuating circumstance will receive
“Refer with Caution”, therefore will require manual underwrite. Manual underwrite not allowed at this time per RB’s policy. Loan subject to AUS Approval.
Extenuating Circumstance
For applications taken on or after 08/16/14: Examples of documentation that can be used to support extenuating circumstances include documentation that confirm the event such as a
copy of a divorce decree (i.e., significant loss of income due to divorce), medical reports or bills, notice of job layoff, job severance papers, dealth of major wage earner, etc., and
documentaiton that illustrate factors that contributed to the borrower's inability to resolve the problems that resulted fromt he event such as a copy of insurance papers or claim
settlements, property listing agreements, lease agreements, tax returns (covering the periods prior to, during and after a loss of employment), etc. Borrower must provide a letter of
explanation detailing the extenuating circumstance.
Multiple Bankruptcy Filings
Follow DU Findings: Five (5) years waiting period is required. Less than five (5) years regardless if due to extenuating circumstance may receive “Refer with Caution”, therefore will
require manual underwrite. Manual underwrite not allowed at this time per RB’s policy. Note: Two or more borrowers with individual bankruptcies are not cumulative, and do not
constitute multiple bankruptcies. If DU does not recognize the multiple bankruptcies, the underwriter must evaluate the file to verify meets the five year waiting period. Loan subject to
AUS Approval.
Car Lease Payments
The lease payment must be included in the DTI regardless of the remaining number of payments.
Collections/Charge Offs
Follow DU Findings:
30-Day Charge Accounts
Borrower must have sufficient funds to cover the unpaid balance of all unpaid 30-day charge accounts (e.g., American Express).
Debts/Minimum Payment
The greater of $10 or 5% of balance for revolving/installment accounts if payment not reporting. Include all revolving payments regardless of the number of payments remaining.
Foreclosure
Must be > seven (7) years, unless documentation is provided to prove the foreclosure information is inaccurate, or due to extenuating circumstances. For applications taken on or after
08/16/14: Extenuating circumstance: A three-year (3) waiting period is permitted with documentation supporting the extenuating circumstance: Maximum LTV/CLTV/HCLTV is limited to
the lesser of 90% or the maximum LTV/CLTV/HCLTV allowed per the Eligibility matrix. Purchase, principal residence. Note: If borrower is a First-Time Homebuyer the borrower
cannot own a home in the last three (3) years, therefore, a foreclosure must be greater than three years seasoning.
Inquiries
Credit inquiries within last 120 days require written explanation.
Judgments/Liens
Judgments, garnishments, and liens must be paid off at or prior to closing. Documentation of the satisfaction must be provided.
Minimum FICO Score
680
Min Trades/Auth User Accounts
An authorized user account does not count as a trade line, unless receive 12 months evidence of borrower making the payment.
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* No Exceptions Allowed
CALHFA
CalPLUS ZIP Conventional Loan Program
(Retail only)
Payoff of Revolving Debt &
installment Loans
In order to qualify without the monthly payment on the current balance, a revolving account must be paid off and closed. Revolving account paid through escrow is acceptable, however,
must provide a credit supplement or letter from the creditor to evidence the account is closed prior to funding. If the revolving account is paid off, but not closed, the monthly payment
shown on credit report is used for qualifying and must be included in the DTI. Installments debts may be paid off and cannot be paid down to less than 10 months for qualifying.
Short Sale/ Pre-Foreclosure/
Foreclosure /Deed in Lieu of
At least four (4) years since completion date of short sale, Deed-in-Lieu of Foreclosure/Charge-off and re-established acceptable credit score. For applications taken on or after
08/16/14: Two (2) years is allowed if supporting documentation proves Extenuating Circumstances. No specific input code to DU is required. Refer to Extenuating Circumstance Section
of this matrix for additional requirements. Loan subject to AUS Approval. Note: If borrower is a first-time homebuyer, the borrower cannot own a home in the last three (3) years,
therefore, more than three years seasoning is required.
Student Loans
All efforts should be made to obtain payment of deferred student loans. If unable to obrtain, 2% of balances will be used as payment in determining DTI.
COLLATERAL
Appraisal
Condominiums (Detached or
Attached)
Leashold Property
Full Appraisal Required, interior & exterior inspection. Transferred appraisals require AIR Certification and TIL from previous lender and a Enhanced Desk Review.
Not Allowed.
Not Allowed.
Property Flipping
Follow FNMA requirements. CalHFA requires a copy of all appraisals as required by Fannie Mae. When multiple aprpaisals are requried, CalHFA will base subordinate loan amount(s)
on the lesser of the sales price or lowest appraised value.
Property Requirements
Sales price of the home cannot exceed CalHFA's sales price limits established for the county in which the property is located. Property must be a single-family, one-unit residence,
including PUDs. Condominiums are not allowed.
1) Guest houses, "granny" units, and "in-law" quarters are eligible a) Must be zoned for Single Family Occupancy. b) Cannot be zoned for 2-4 units c) Must meet investor guidelines d)
May not be income-producing; shall be for personal use only.
2) Manufactured housing is not permitted.
3) Leaseholds/Land Trusts and Co-ops are not permitted.
Property Requirements (Additional) 4) Non-permitted additions/alterations must follow Fannie Mae guidelines.
5) Lot size cannot exceed five (5) acres maximum.
6) Properties must meet the requirements of Fannie Mae and the California Health and Safety Code.
7) Defects and/or repair conditions identified by the appraiser on the appraisal report must be corrected prior to purchase by CalHFA's master servicer. a) All units must be complete with
respect to construction or repairs and ready to occupy. b) Escrow Holdbacks must be release prior to purchase.
INCOME/ASSETS
Amended Tax Returns
Original filed returns and the amended return are required. Tax returns must have been amended prior to the application date and execution of the purchase contract. CANNOT BE
AMENDED TO QUALIFY.
Assets / Reserves
Primary Residence 1-unit, no reserves are required. Gift funds are not allowed for reserves.
Bonus, Overtime, and Commission Borrower must have a two-year consecutive history of receiving bonus/overtime/commission, and the income must be likely to continue.
Income
Employed by Family Member
Requires full documentation regardless of AUS. Two (2) years tax returns, W-2’s, one month’s current paystubs with 30 days of earnings, Written VOE, and evidence does not own more
than 25% interest in the company.
Employment Gaps
Follow DU Findings report including income documentation requirements.
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* No Exceptions Allowed
CALHFA
CalPLUS ZIP Conventional Loan Program
(Retail only)
Gifts
A gift letter signed by the donor is required. Gift letter must state the donor's name and that the funds are given by a related person; include the donor's mailing address and telephone
number, identify the Mortgaged Premises; state the amount of the gift; state the gift does not have to be repaid. If the verifications provided in the Mortgage file do not show evidence that
the gift funds have been deposited into the Borrower's account, the Borrower must provide evidence of the transfer of funds from the donor to the Borrower.
Gift Equity
A gift letter signed by the donor is required. Gift letter must state the donor's name and that the funds are given by a related person; include the donor's mailing address and telephone
number, identify the Mortgaged Premises; state the amount of the gift; state the gift does not have to be repaid. The gift of equity must be reflected on he HUD-1.
Lenders are required to calculate income to qualify borrower(s) for loan approval using Fannie Mae guidelines; in addition, CalHFA will review the borrower's income pursuant to program
compliance.
Income Documentation
Income Limits
The income of all borrowers cannot exceed the published CalHFA income limits. The income limits are located in FAST under InfoCenter.
Loan Eligibility
CalHFA will calculate family income for CalPlus Conventional loan eligibility. "Family income" is defined as the annualized gross income of a mortgagor, and other person who is
expected to:
1) Be liable on the mortgage.
2) Be vested on title; and
3) Live in the residence being financed.
Due to federal regulations, CalHFA is required to compile all information regarding borrower's income.
Family income includes:
1) Gross pay, Pensions, Overtme, Veterans Administration (VA);
2) Bonuses, Commissions, Part-time employment;
3) Dividends, Interest, Deferred income, Welfare payments;
4) Annuities, Social security benefits, Child Support payments, Disability payments;
5) Human assistance/services, Alimony, Sick pay;
6) Income received from Trust or Business & Investments from all sources (both taxable and non-taxable and non-taxable) including but not limited to earnings.
7) Unemployment compensation, Any regularly occurring additional income.
Family Income Excludes:
1) Gifts - casual, sporadic or irregular;
2) Lump sum additions to household assets, such as inheritances, insurance settlement, capital gains, student financial assistance, settlements for personal or property losses.
3) Education scholarships paid directly to the student.
4) Foster child care payments, adoption assistance payments if not used to credit qualify for hte loan.
5) Income from employment of minor dependents not on title.
6) Food stamps.
Verification of employment and other supporting documentation regarding income such as paycheck stubs should be no more than sixty (60) days old at the time of submission to the
Agency for loan approval.
Joint Accounts
If an account is held jointly a letter will be required from the joint account holder to verify our borrower has 100% access to those funds. This is required regardless of the relationship.
Large Deposits
Large Deposits are defined as a single deposit that exceeds 50% of the total monthly income for the loan. Note: If the deposits exceed 100% of borrower’s total income, the underwriter
may require an LOE and source of the funds. If bank statements reflect automatic deposits of all income and additional deposits are reflected outside of borrower’s monthly income, the
underwriter may request an LOE and source of substantial deposits outside of borrower’s total income.
Grossing up non-taxable income is allowed for Qualifying income. However, do not gross up non-taxable income for Eligibility income.
Qualifying income is the income used by Residential Bancorp to determine that the borrowers have the ability to meet their monthly obligation. Underwriters are responsible to adhere to
the FNMA first trust deed guidelines, mortgage insurer and CalHFA requirements.
Non-Taxable Income
Qualifying Income VS. Program
Compliance Income:
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1/7/2015
* No Exceptions Allowed
CALHFA
CalPLUS ZIP Conventional Loan Program
(Retail only)
Self-Employed Borrowers
Follow DU Findings.
Tax Returns
First-Time Homebuyers: Three years tax returns dated and signed with live signatures is required. Non-First-Time Homebuyers, one year tax returns are required, signed with live
signatures and dated.
MORTGAGE INSURANCE (MI)
Mortgage Insurance (MI)
Mortgage Insurance coverage is required and is ordered by U.S. Bank. Borrower paid MI only. Refer to table below. Lender Paid MI is not allowed.
LTV Range
Transaction Type
95.01 - 97% LTV
Fixed-rate, term 30 years
18%
For Internal Use Only - Not for consumer distribution. This document is not an advertisement as defined in 12 CFR 1026.2. All products are subject to credit and property approval. Guidelines are subject to change at any time and without prior notice. Residential Bancorp,
Inc. 5686 Dressler Rd NW, One Bancorp Building, North Canton, OH 44720, NMLS # 210853, California BRO CRMLA # 4131217, CFL#603J643, Equal Housing Lender.
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* No Exceptions Allowed

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