Portfolio Edge Affordable Lending

Affordable Lending

Affordable Lending Program


  • 100% gift funds allowed in some instances
  • Pair with down payment and closing cost assistance up to 105% CLTV with 2nd Lien
  • Reduced mortgage insurance requirements = lower monthly payments
  • Up to 97% LTV on 1-unit primary with 3% down payment = less cash at closing
  • Opportunities for community first responders program
  • Learn more: National MI Educational Links For Homebuyers
  • Learn more: National MI Affordable Lending

NON-AUS AFFORDABLE LENDING

 
NON AUS GUIDELINE SUMMARY – CONFORMING AFFORDABLE LENDING LOANS

Affordable Lending loans that are not originated in accordance with National MI’s “AUS Plus Overlays” Affordable Lending program must meet the eligibility requirements established for GSE HomeReady®, HFA PreferredTM, Home Possible® or HFA Advantage®; and also meet the underwriting rules and be originated in accordance with National MI’s Section 3.0 Standard Underwriting Guidelines including the Affordable Lending requirements described in Section 3.4.7:
  • - DU® Approve/Ineligible or LPA® Accept/Ineligible loans which meet the requirements in this matrix and are otherwise eligible in accordance with Section 3.0 guidelines may follow the AUS documentation requirements for income, assets, and employment1.
  • - Minimum reserves (unless indicated differently in Section 3.5.3.5):
 
# UNITS LOAN PURPOSE # MONTHS RESERVES
1-unit Rate/Term Refinance with lower payments 0
Purchase, Construction-to-Perm, Renovation Loan & all other eligible refinances 2
2-unit Rate/Term Refinance with lower payments 2
Purchase, Construction-to-Perm & all other eligible refinances 6
3-4 unit All Eligible 6
# UNITS 1-unit
LOAN PURPOSE Rate/Term Refinance with lower payments | Purchase, Construction-to-Perm, Renovation Loan & all other eligible refinances
# MONTHS RESERVES 0 | 2
# UNITS 2-unit
LOAN PURPOSE Rate/Term Refinance with lower payments | Purchase, Construction-to-Perm, & all other eligible refinances
# MONTHS RESERVES 2 | 6
# UNITS 3-4 unit
LOAN PURPOSE All Eligible
# MONTHS RESERVES 6
 
  • - ARM minimum initial fixed term and maximum LTVs: 95% (initial fixed term 7+ years), 90% (3-<7 years) or ineligible (<3 years).
  • - Exterior only appraisals or evaluations, appraisal waivers, AVMs or BPOs are not permitted.
  • - Non-traditional credit is permitted (see matrix below for “Non-Traditional Credit Loan”) only for loans that meet the eligibility requirements for the GSE programs described above and also satisfy the requirements in Section 3.4.7 and in this matrix.
  • - Minimum contribution from occupant borrower’s own funds is 5% for 2-4 units and 3% for 1-unit (except for 1-unit only, gifts/grants apply toward the 3% if primary residence with no secondary financing and either: (i) 3% verified in occupant borrower’s asset accounts, or (ii) occupant borrower has minimum 720 FICO. In addition, if the loan is a GSE eligible affordable loan (per GSE published guidelines) where the GSE is providing the lender with a reimbursement of funds provided to the borrower (currently HomeReady and Home Possible with expansions), the credit can be used to satisfy the minimum contribution for 1-unit properties and applied to the down payment after the 5% contribution for 2-4 units. (see Section 3.5.3.1).
  • - Non-occupant borrowers are not considered when determining qualifying DTI.
  • - For >$1,150,000 loan amounts: Non-Delegated Underwriting MI submission path required.
  •  
    OCCUPANCY LOAN PURPOSE2 PROPERTY TYPE2,3 LOAN AMOUNT4 MAXIMUM LTV/CLTV MINIMUM FICO5 MAXIMUM DTI6
    Primary Residence Purchase or Rate/Term Refinance or Construction to Permanent2 Single Family, Condo
    or Co-op2
    $766,5504 97%/105% 6205 45%6
    95%/105% Non-Traditional Credit5 36%6
    Manufactured hm2,3 $766,5504 90%/105% 6405 45%6
    Non-Traditional Credit5 36%6
    Cash-Out Refinance All All Not Eligible Not Eligible Not Eligible
    Purchase or Rate/Term Refinance or Construction to Permanent2 Two-Unit $981,5004 95%/105% 6805 45%6
    Purchase or Rate/Term Refinance Three-Unit2 $1,186,3504 90%/105% 7205 45%6
    Four-Unit2 $1,474,4004
    Second Home All All All Not Eligible Not Eligible Not Eligible
    Investment Property All All All Not Eligible Not Eligible Not Eligible
    OCCUPANCY Primary Residence
    LOAN PURPOSE2 Purchase or Rate/Term Refinance or Construction to Permanent2
    PROPERTY TYPE2,3 Single Family, Condo or Co-op2
    LOAN AMOUNT4 $766,5504
    MAXIMUM LTV/CLTV 97%/105% | 95%/105%
    MINIMUM FICO5 6205 | Non-Traditional Credit5
    MAXIMUM DTI6 45%6 | 36%6
    OCCUPANCY Primary Residence
    LOAN PURPOSE2 Purchase or Rate/Term Refinance or Construction to Permanent2
    PROPERTY TYPE2,3 Manufactured hm2,3
    LOAN AMOUNT4 $766,5504
    MAXIMUM LTV/CLTV 90%/105%
    MINIMUM FICO5 6405 | Non-Traditional Credit5
    MAXIMUM DTI6 45%6 | 36%6
    OCCUPANCY Primary Residence
    LOAN PURPOSE2 Cash-Out Refinance
    PROPERTY TYPE2,3 All
    LOAN AMOUNT4 All
    MAXIMUM LTV/CLTV Not Eligible
    MINIMUM FICO5 Not Eligible
    MAXIMUM DTI6 Not Eligible
    OCCUPANCY Primary Residence
    LOAN PURPOSE2 Purchase or Rate/Term Refinance or Construction to Permanent2
    PROPERTY TYPE2,3 Two-Unit
    LOAN AMOUNT4 $981,5004
    MAXIMUM LTV/CLTV 95%/105%
    MINIMUM FICO5 6805
    MAXIMUM DTI6 45%6
    OCCUPANCY Primary Residence
    LOAN PURPOSE2 Purchase or Rate/Term Refinance
    PROPERTY TYPE2,3 Three-Unit2 | Four-Unit2
    LOAN AMOUNT4 $1,186,3504 | $1,424,4004
    MAXIMUM LTV/CLTV 90%/105%
    MINIMUM FICO5 7205
    MAXIMUM DTI6 45%6
    OCCUPANCY Second Home
    LOAN PURPOSE2 All
    PROPERTY TYPE2,3 All
    LOAN AMOUNT4 All
    MAXIMUM LTV/CLTV Not Eligible
    MINIMUM FICO5 Not Eligible
    MAXIMUM DTI6 Not Eligible
    OCCUPANCY Investment Property
    LOAN PURPOSE2 All
    PROPERTY TYPE2,3 All
    LOAN AMOUNT4 All
    MAXIMUM LTV/CLTV Not Eligible
    MINIMUM FICO5 Not Eligible
    MAXIMUM DTI6 Not Eligible
    1. 1 Refer to Section 3.5.1 of the TrueGuide® for details on documentation for specific types of income.
    2. 2 Construction to Permanent: (a) Excludes attached condos and co-ops; and (b) 3-4 units are ineligible.
    3. 3 Manufactured homes must be multi-wide and meet requirements in Section 3.6.1.7; and for Renovation Loans, Section 3.4.6.
    4. 4 Maximum loan amounts for AK and HI are $1,149,825 (1-unit), $1,472,250 (2-unit), $1,779,525 (3-unit), and $2,211,600 (4-unit).
    5. 5 Representative FICO using middle/lower method is required for underwriting and pricing purposes. A non-traditional credit loan is when one or more borrowers have non-traditional credit. Refer to Section 3.4.7 for additional requirements.
    6. 6 MI premium must be included in DTI for underwriting eligibility purposes and may be excluded from DTI for pricing purposes.