Exemptions to First Time Veterans or borrowers purchasing in a Federally Homebuyer (FTHB) Designated Targeted Area are exempt from the FTHB Requirement Requirement. For the Government Loan Program, a Veteran is defined as who served in the active “a person military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable." Last 3 tax returns OR tax transcripts for all years’ Documentation Required borrowers AND spouse. This includes non-purchasing to Verify FTHB spouse. Tax returns/transcripts should NOT reflect any Requirement mortgage interest or any credits claimed for homeownership. If they do, further investigation is required by the Lender to determine FTHB eligibility. Tax returns/transcripts are not required for borrower(s) qualifying under the Exception or purchasing in Veteran’s a Federally Designated Targeted Area. Minimum Borrower N/A Contribution Cash Back to Borrower Not permitted. Any potential cash back to borrower should be applied as a principal reduction to the first mortgage. Borrowers are not required to utilize assets for Assets participation. Adhere to Agency guidelines. FICO Score Minimum 640 Requirements Manufactured housing requires a minimum 660 Ratios Maximum debt-to-income ratio = 45% Co-signers Not permitted Citizenship All loans must adhere to Agency (FHA, USDA-RD, and Requirements VA) guidelines. Refer to US maximum deductible requirement. Homeowner’s Insurance Bank’s Deductible
Exemptions to First Time Homebuyer (FTHB) Requirement Veterans or borrowers purchasing in a Federally Designated Targeted Area are exempt from the FTHB Requirement. For the Government Loan Program, a Veteran is defined as “a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable." Documentation Required to Verify FTHB Requirement Last 3 years’ tax returns OR tax transcripts for all borrowers AND spouse. This includes non-purchasing spouse. Tax returns/transcripts should NOT reflect any mortgage interest or any credits claimed for homeownership. If they do, further investigation is required by the Lender to determine FTHB eligibility. Tax returns/transcripts are not required for borrower(s) qualifying under the Veteran’s Exception or purchasing in a Federally Designated Targeted Area. Minimum Borrower Contribution N/A Cash Back to Borrower Not permitted. Any potential cash back to borrower should be applied as a principal reduction to the first mortgage. Assets Borrowers are not required to utilize assets for participation. Adhere to Agency guidelines. FICO Score Requirements Minimum 640 Manufactured housing requires a minimum 660 Ratios Maximum debt-to-income ratio = 45% Co-signers Not permitted Citizenship Requirements All loans must adhere to Agency (FHA, USDA-RD, and VA) guidelines. Homeowner’s Insurance Deductible Refer to US Bank’s maximum deductible requirement.
HHFDPAGOVT070615_Final.docx