CMG FHA Guidelines - cmgfi.com

1 CMG Financial, a Division of CMG Mortgage Inc. NMLS #1820. Corporate Headquarters: 3160 Crow Canyon Rd. Ste. 400, San Ramon, CA 94583. CMG USDA Loan matrix & Guidelines Wholesale Only Loan matrix LTV/CLTV & Minimum Credit Program Details, Highlights and Overlays ..3. Part A Borrower Eligibility ..6. Part B Property Ownership Restrictions ..10. Part C Occupancy ..11. Part D Underwriting Documentation .. 12. Part E Part F Credit Analysis ..17. Part G Evaluating Income ..23. Part H Asset Part I Liability Analysis ..45. Part J Property Eligibility ..49. Part K Geographic Restrictions .. 56. Part L Disaster Policy ..57. Part M Guarantee Fee (Upfront & Annual), Escrow Part N Property Insurance ..59. Part O Title Insurance ..65. Part Q Transaction Types (Purchase, Refinance) .. 67. Part R Secondary Financing ..71. Part S Interested Party Contributions (IPCs) / Financing Concessions / Sales Concessions.

2 72. Part X - Links to CMG Policies, USDA Resources, Etc.. 73. Part Y Product Codes / Terms .. 74. Part Z - Recent Updates / 90 Day Lookback ..75. CMG Wholesale - USDA Loan matrix & Guidelines Updated March 19, 2019. Click Here for Quicklink back to Table of Contents Loan matrix LTV/CLTV & Minimum Credit Score Purchase & Rate/Term Refinance 4 Transactions Property Type Maximum LTV Maximum CLTV Maximum Loan Amount Minimum Credit Score Primary Residence 2, 6 5. 100% 1, 3 105% $453,100 640. (1-Unit Only). NOTES: 1. Loans may exceed 100% LTV only to the extent that the excess represents the guarantee fee. When the guarantee fee is not being financed, the maximum loan is 100% of the appraised value. 2. All closing costs may be financed. Discount points are eligible to be financed to buy-down the interest rate. In such cases, discount points financed will not exceed two percentage points of the loan amount and must represent a reduction to the interest rate.

3 3. Rate/term refinances may include closing costs up to 100% of appraised value and the up-front guarantee fee. 4. Texas Section 50(a)(6) transactions are not permitted. 5. Generally, governed by maximum allowable income limit; however, can never exceed $453,100, excluding the Guaranty Fee. Refer to Part G-1: Evaluating Income & Income Limits . 6. Secondary/Subordinate Financing: Only eligible if DPA/Secondary financing is from a government entity or HUD approved non profit and all USDA. requirements are met. Information in these Guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies. Information is accurate as of the date of publishing and is subject to change without notice. The Guidelines outlined apply to USDA loans submitted to GUS. In addition to applying these CMG-specific overlays, all loans submitted to GUS must comply with the AUS Findings and USDA/Ginnie Mae requirements.

4 To verify our state licenses, please log onto the following website: and Page |2. CMG Wholesale - USDA Loan matrix & Guidelines Updated March 19, 2019. Click Here for Quicklink back to Table of Contents Program Details, Highlights and Overlays Category Program Details, Highlights & Overlays The following requirements and overlays apply to USDA's requirements. Effective with Loan Commitments on and after Base Guidelines December 1, 2014 Rural Development requirements are per 3555 Regulation and Handbook. All loans must adhere to RD. Policies and Procedures in addition to the CMG overlays. A complete Uniform Residential Appraisal Report (URAR) (I1) by an FHA Roster appraiser is required. Additionally, the Market Conditions Addendum is required. All utilities must be turned on and the appraiser must note that they are fully operable at the time of inspections.

5 The cost approach may be completed at the appraiser or lender's request. Collateral Well and septic must meet FHA minimum requirements. Under no circumstance is a C5 or C6 condition rating acceptable unless the issues have been repaired/cured.. All repairs affecting safety, livability, or habitability must be completed prior to delivery. Refer to Part J Property Eligibility Follow USDA Requirements for Adverse Credit, including Bankruptcy and Foreclosure. All loans must be GUS approved. Credit - Adverse Refer to Part F: Credit Analysis. Minimum score requirements 640 and GUS approval required. All borrowers must meet minimum credit score. Credit - Score / History Non-traditional credit is not permitted. Refer to Part F Credit Analysis. Debt to Income Ratio Per GUS approval. Refer to Part D: Underwriting Documentation Documentation - Written VOE (WVOE): Written VOE's require a year-to-date paystub.

6 Income & Asset Verification of Deposit (VOD): Acceptable when accompanied by a bank statement. Borrowers must be natural persons and title to the property must be in the name of the individual borrower(s). A mortgage is not Eligible Borrowers eligible if the borrower is another type of legal entity such as a corporation, general partnership, limited partnership, or real estate syndication. Refer to Part A-2: Eligible Borrowers. Purchase and Non-Streamline Refinance. 1 unit owner occupied transactions only. 30 Yr. Fixed Rate Only. Eligible Transactions Refer to Part Q: Transaction Types. Escrows Tax and Insurance escrows are required on all USDA loans. Refer to Part N: Property Insurance. Information in these Guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies. Information is accurate as of the date of publishing and is subject to change without notice.

7 The Guidelines outlined apply to USDA loans submitted to GUS. In addition to applying these CMG-specific overlays, all loans submitted to GUS must comply with the AUS Findings and USDA/Ginnie Mae requirements. To verify our state licenses, please log onto the following website: and Page |3. CMG Wholesale - USDA Loan matrix & Guidelines Updated March 19, 2019. Click Here for Quicklink back to Table of Contents Property must be eligible for USDA financing. Refer to Geographic Restrictions and USDA Handbook for additional details. New York CEMA Transactions not permitted. Texas: Texas transactions when converting a home equity loan (A6) to a non-home equity loan are not eligible Florida Condos/PUDs must be USDA/Agency eligible in addition to the following restrictions: Geographic At least 90% of the units in the entire project must be sold and the homeowners' association must have had control for 12.

8 Restrictions months. Limited to 70% LTV/CLTV with 740 minimum credit score. If <740 credit score, LTV/CLTV limited to 60%. LTV/CLTV. calculated prior to adding UFMIP. Borrower must have own funds. Gifts, grants, down payment assistance and loans from family members are not a llowed. Newly constructed attached PUDS must have met 50% pre-sale in order to be eligible for CMG financing. The following are ineligible: USDA's Streamline Refinance USDA "Rural Refi Pilot" Program Rural Energy Loans Ineligible Transactions Texas 50(a)(6) loans Mortgage Credit Certificates (MCCs) are not eligible. Select Partner transactions not permitted. Also, Refer to Part Q: Transaction Types Seller or other interested party contributions towards closing costs in excess of six percentage points are prohibited. Closing costs and/or prepaid items paid by the lender by premium pricing are not included in the seller contribution limitation.

9 Fee s Interested Party towards the applicant's cost to close such as real estate commission or other typical fees paid by the seller or other interested Contributions party under local, state law, or local custom are not considered in the maximum contribution calculation. Refer to Part S Interested Party Contributions. Minimum Loan Amount: $50,000. Loan Amount Maximum Loan Amount: $453,100. In addition, max loan amount is governed by USDA's maximum allowable income limit. Refer to Part G Evaluating Income & Income Limits. Refer to Loan matrix . Max LTV is 100%, exclusive of the financed Upfront Guarantee Fee. LTV is based on appraised value. When the guarantee fee is not being financed, the maximum loan is 100% of the appraised value. LTV / CLTV All closing costs may be financed. Discount points are eligible to be financed to buy-down the interest rate.

10 In such Purchase and cases, discount points financed will not exceed two percentage points of the loan amount and must represent a reduction Refinance to the interest rate. (Non-Streamline) Rate/term refinances may include closing costs up to 100% of appraised value and the up-front guarantee fee. For loans obligated on or AFTER October 1, 2015, the up-front guarantee fee will be Secondary/Subordinate Financing: Only eligible if DPA/Secondary financing is from a government entity or HUD. approved non profit and all USDA requirements are met. Maximum CLTV 105%. Occupancy Owner Occupied 1 unit Primary Residence only. Refer to Part C: Occupancy. Information in these Guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies. Information is accurate as of the date of publishing and is subject to change without notice.