10% Down Low Downpayment – Florida Condo Lenders
Florida Condo mortgage lenders second lien loan program offers a closed-end simultaneous second mortgage originated in conjunction with a new Fannie Mae eligible first lien.  The information contained within may not highlight all requirements of these programs and does not reduce or eliminate any requirements set forth in our Guidelines. All Information Guidelines are subject to change without notice.

Benefits of a 2nd Home Equity Line of Credit.

Maximum HCLTV – 89.99% = 10% Down

• Maximum Debt To Income Rate – 45% (No Front End Debt to Income Ratio)
• Income Documentation – Standard agency guidelines apply
• Qualifying HELOC Payment – Assuming fully drawn and amortizing at start rate + 2% over the current rate
• Minimum FICO Score – 680; which is based on the Primary Wage Earners Middle Score from the Low Down payment – Florida Condo Lenders  Tri-Merge Credit Bureau
• Foreclosure, Deed in Lieu, Short-Sale, Bankruptcy – Standard agency guidelines apply
• Title – Low Down payment – Florida Condo Lenders will utilize 1st mortgage title work on HELOC up to $250,000. Separate title work will be obtained for HELOCs exceeding $250,000
• Appraisal -Low Down payment – Florida Condo Lenders will utilize 1st mortgage appraisal provided it’s approved by a 3rd party review
• Maximum age of appraisal: received by Low Downpayment – Florida Condo Lenders = 120 days; loan signing = 150 days
• Annual loan maintenance fee – $99
•  Florida Condo Lenders Closing Costs – Appraisal Review Fee $150, Credit Report $22.90,
• Flood Cert. $7.50, Doc Prep Fee $37, plus third-party fees
• Value Added  Florida Condo Lenders Benefits of Choosing
• Florida Condo Lenders
• Simultaneous Piggyback HELOC
• Primary Residence
• 89.99% Max CLTV
• $25,000 min line amount/ $500,000 max line amount
• $1,500,000 max total exposure
• Min FICO Score 680 for the primary wage  earner
• 2nd Home
• 89.99% Max CLTV
• $25,000 min line amount/$250,000 max line amount
• $1,500,000 max total exposure
• Min FICO Score 700 for primary wage earner  Stand Alone HELOC
• No 1 smortgage Transaction Involved
• Primary Residence only
• 89.99% Max CLTV
• $25,000 min line amount/$250,000 max line  amount
• Min FICO Score 700 for primary wage earner Qualifying ratio 45% for primary residence and 43% for  2nd home
• No front-end DTI ratio  Qualifying payment is a 30 year P&I payment  at 2% over the HELOC Start Rate, on full line amount  Value Added Benefits of Choosing Florida Condo Lenders (cont’d)
• Low Downpayment – Florida Condo Lenders will follow standard agency guidelines for income calculation.
• Income from Non-Occupant Co-Borrowers allowed
• No Reserve Requirements.
• No documentation needed for the source of down payment and closing costs.
• Gifts allowed for down payment. No minimum Borrower contribution required.
• Low Downpayment – Florida Condo Lenders will follow Agency Guidelines for Condos.
• Upload your 3.2 file to our portal for fast and efficient file flow.  
• We’ll meet your critical deadlines.

Florida Condo Lenders Follows Agency Guidelines with Limited Overlays

• 45% Max DTI (43% on 2Nd home)
• Low Downpayment – Florida Condo Lenders will set the margin over Prime for the HELOC based on the higher Mid Score from the Primary Wage Earner of either the Low Down payment – Florida Condo Lenders  Tri-Merge CB or the Tri-Merge CB provide from the mortgage company.
• 1 St mortgage on the collateral property cannot be an IO or a negatively amortizing loan

• Low Downpayment Condo Mortgage Lenders Ineligible property types:
• Properties with greater than 10 acres
• Agricultural Zoned Properties
• Commercial Zoned Properties
• Mobile Homes, Dome Homes, Earth/Berm Homes
• Properties that are not typical to market
• Alimony/Child Support payments will be included in as liabilities.
• All VISA types OK with the exception of F-1 VISAs.
• Borrowers will sign an initial disclosure acknowledging that they will become a member of the Credit Union in order to fund the loan.  The Credit Union Membership form will be signed with the loan closing package.Collateral Properties with PIW

• Florida Condo Lenders will need verification from your AUS that the collateral has been approved with a PIW

• Florida Condo Lenders will provide the option to complete an interior inspection BPO

• Please coordinate with your Florida Condo LendersLoan Coordinator on how to proceed

Why Add a HELOC to Your Origination Toolkit

• Create Jumbo financing by adding a HELOC to your conforming loan
• Avoid Jumbo Investor Guidelines
• Avoid Mortgage Insurance
• Refinance Borrowers to eliminate MI or FHA MIPs
• HELOCs can be used for debt consolidation, home improvement or any cash out event your borrower may need

• HELOC can provide flexible payments to your borrowers
• Interest-only payments for the first 10 years
• Paydown and re-use the line at any time during first 10 years
• No TRID Requirements, Standard HELOC disclosures and timeframes will be followed

Low Downpayment Condo Mortgage Lenders Product Parameters
Appraisal One full appraisal is required. The appraisal used for the first lien will also be used for the second lien.
If the first lien does not require a full appraisal then a full appraisal must be ordered for the second
lien.

Cash-out refinances of properties owned < 12 months use the lesser of the purchase price or the
appraised value to determine LTV.

Low Downpayment Condo Mortgage Lenders Transferred appraisals are not allowed.
Underwriting Method All loans must be processed through Desktop Underwriter (DU) and receive an Approve/Eligible finding.
The underwriter will utilize the DU findings from the first lien which will include the CLTV and terms of
the second lien. The more restrictive of the DU findings and the Second Lien Program Guidelines
applies.
Credit Trade Lines For  Low Downpayment Florida Condo Lenders– Each borrower must have:
 3 open and active trade lines:
o 1 trade line reported for a minimum of 24 months
o All trade lines must have activity within the last 12 months
o At least one trade line must have a minimum $2,500 high credit limit
 Borrowers failing to meet the 3 trade line criteria but have a minimum of 1 open and active trade
line with 12 months or more reporting are eligible if the following requirements are met:
o 8 or more trade lines reported
o 7 years of established credit history

Low Downpayment Florida Condo Lenders Housing Payment History:
 0x30 mortgage/rental delinquency in the past 24 months.
o This applies to all mortgages and all borrowers on the loan.
o Mortgages must be rated up to and including the month of the new loan closing.
 Borrowers must have a fully documented, recent, consecutive, 24 month primary housing history.

Low Downpayment Florida Condo Lenders Refer to the Program Guidelines for additional requirements.
Down Payment / Gifts /
Assets
Borrower’s own funds are required for down payment and reserves. A minimum of 5% of borrower’s
own funds is required.

Low Downpayment Florida Condo Lenders Ineligible Assets:
 Gift funds
 Business funds
 Foreign Assets
Eligible Borrowers  U.S. citizens
 Permanent resident aliens
 Inter Vivos Revocable Trusts
 First-time homebuyers (primary residences only)
Eligible First Liens The second lien must close simultaneously with a concurrent conventional Fannie Mae eligible Plaza
first lien.

Low Downpayment Florida Condo LendersIneligible First Liens:
 Any first lien that is not Fannie Mae eligible (first lien must receive DU Approve/Eligible findings.
 Fannie Mae HomeReady
 Fannie Mae HomeStyle
 Fannie Mae DU Refi Plus Retained
Eligible Properties  Attached/detached SFRs
 Attached/detached PUDs
 Condos (Fannie Mae Warrantable)
 2-4 Units
Geographic Restrictions Hawaii: Properties in Lava Flow Zones 1, 2 or 3 are not allowed.

Low Downpayment Florida Condo Lenders Cash out refinance transactions are not eligible.
Income & Employment Per DU
Mortgage Insurance Not required.
Reserves must come from the borrower’s own funds. Reserves must be adequate to cover the first and
second lien PITIA.
 CLTV <= 90%: 3 Months PITIA
 CLTV > 90%: 6 Months PITIA
Transactions Purchase, Rate/Term Refinance and Cash-Out Refinance

Cash-Out Refinance:
 If any first or second lien proceeds are used for debt consolidation, debt payoff or cash-out then the
second lien transaction will be treated as cash-out.
 Cash-out > 80%: CLTV is only eligible when the first lien is a rate/term refinance and any cash-out
is obtained from the second lien.
 CLTV <= 90%: Minimum 6 months ownership seasoning is required.
 CLTV > 90%: Minimum 12 months ownership seasoning is required.
 Properties owned < 12 months use the lesser of the purchase price or the appraised value to
determine the CLTV.