April 21, 2017 Mortgage 101 Skyline

Quick Overview Mortgage Terms Debt-To-Income: Monthly income divided by monthly obligations (Loan payments, Credit card payments, excludes) Loan To Value: Amount of mortgage on property based on current market value; For Example: Mortgage $80,000 Current market value of property $100,000 LTV of 80% = 20% equity. PITI: Principal Interest Taxes Insurance Skyline

Basic Mortgage Categories Quick Overview Basic Mortgage Categories Conventional Loan: Is one that is not insured by FHA VA USDA V.S. Non-Conventional loans Under the Conventional, there are 2 types of loan Conforming (Under the loan amount $417K) and Non-Conforming (Over the loan amount $417) Also Has qualification Credit Score, LTV, Asset reserve. Non-Conventional: Government loans, anything out of Conventional loan realm Skyline

Conventional, FHA, VA, Jumbo Mortgage Programs *Please keep in mind loan programs and scenarios are too broad to cover, thus, most popular will be discussed on today’s agenda* Conventional, FHA, VA, Jumbo Skyline

Conventional LTV: 95% max requires Mortgage Insurance, but 20% Down payment preferred to avoid Mortgage Insurance Credit: 620 minimum Loan amount: $417K for Conforming, if over $417K Non-Conforming Derogatory: No Bankruptcy, Foreclosure, and Short Sale in 7 years within the application DTI: 45% Skyline

Jumbo Loan LTV: 80% max Credit: 740 minimum Loan amount: $417K and over Interest Only Option available Derogatory: No Bankruptcy, Foreclosure, and Short Sale in 7 years within the application DTI: 45%, 50% for Interest Only Skyline

FHA LTV: 96.5% Minimum down payment of 3.5% Credit: 600 Loan Amount: Limit to $ 375K (OR) Derogatory: No BK in 2 years No Foreclosure or Short Sale in 3 years DTI: 50% Max (Compensating factor) *Mortgage Insurance Mandatory* Skyline

VA Loan LTV: 100% Financeable Credit: 600 Loan Amount: $417K Derogatory: 2 years from the BK 5 years from the Foreclosure or Short Sale DTI: 50% Max (Compensating factor) Skyline

Process Flow Chart  Pull Credit Report/Review income documents  Pay for the credit report and Appraisal money ***** Non-Refundable***** Disclosures get mailed or emailed to the client within 3 days of applications need to be accurately sign and date return to within 10 calendar days or loan cancels prefer to send it back ASAP usually 5days  Initial Underwriter reviews/appraisal, if everything goes well 3 days Pull title and UW reviews title and appraisal report usually 3 day process  Final UW review 3 days  Closing documents starting Oct.1 under TRID closing has to wait 3 days after the client receives . If failed to close on designated date, clients get penalized for lock extension. ***** Average closing 22 days***** Skyline

Documents List For employees: For Self-employed: 2 months bank statements showing down payment and 2 months reserves (Asset verification based on UW guideline discretion) Most recent 2 year W-2 Most recent 30 days paystubs Photo copies of ID front and back For Self-employed: Most recent 2 years of Full Tax returns including every schedule. Asset statements Most recent Profit and Loss statement and balance sheet Skyline

Title Skyline

Title Skyline

Title Skyline

Title Skyline

Thank you! Skyline