Updates are being made to align with the investor’s requirements, effective immediately.
Non-permanent resident aliens
Loans made to non-permanent residents are now eligible provided the legal residency is documented and all the following criteria are met:
- H1B and L1 Visas are eligible.• Loans must meet current guideline requirements.
- Maximum 75% LTV/HCLTV
- Maximum 38% DTI.
- Primary residence only.
- Social Security Number required.
- Two full uninterrupted years of employment required.
A new section has been added clarifying that all mortgages, Notes and bonds due within the tax year must be deducted from the borrower’s business income, unless evidence can be provided to show the account has since been paid in full and closed.
Reserve requirements have mainly decreased, with a break out for 1-unit by loan amount.
- Loan amount < $1,000,000: 6 months’ PITIA
- Loan amount >$1,000,000: 12 months’ PITIA
- 2-to 4-units: 12 months’ PITIA
- Second Home or Investment: 18 months’ PITIA
Added clarification that documentation notarized via an e-notary service is ineligible as a replacement for traditional notary documents.