Primary Residence Only
10% Down with a 720 middle credit score
20% Down with a 700 middle credit score
25% Down with a 660 middle credit score
The borrower will need a few months of the new payment amount as “reserves” to be in their bank account at close of escrow. i.e. your new house payment is $2000 per month, so you will need 4 to 6 months ($8000 to $12,000) in the bank after the down payment is made. Think of this as a “rainy day” fund. It’s your money and it stays in your account but the lender wants to make sure that you have some savings in case of a loss of income.
The 10% Down product only applies to “full documentation” loans, meaning that you need 2 years of employment and documentation, including W2s or 1099s and federal tax returns.
if you are self-employed you may be able to qualify using 12-months of bank statements instead of tax returns. 20% down is needed for a “bank statement loan”.
A gift of part of the down payment from a close relative may be acceptable however the borrower must have 10% of their own funds.
A gift can be provided by: a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship; or a fiancé, fiancée, or domestic partner.
A 12-month satisfactory housing history is required meaning that the landlord must verify that you made the last 12 rent payment without any 30-day late payments. If the landlord is a private party then 12-months of cancelled rent checks may also be required.
Borrowers who live rent-free or without a complete 12-month housing history are required to put 25% down.
Non-Traditional Credit may be accepted if you credit report does not show enough open accounts : The credit history must include three (3) credit references, including: rental housing payments. utilities, such as electricity, gas, water, telephone service, television, and internet service providers. Other credit references may be accepted, including: insurance coverage, auto, life or renter’s insurance; payment to child care providers; school tuition; retail stores — department, furniture, appliance stores or specialty stores; rent-to-own; payment of medical bills not covered by insurance; Internet/cell phone services; a documented 12-month history of saving by regular deposits, resulting in an increasing balance to the account; automobile leases, or a personal loan from an individual with repayment terms in writing and supported by canceled checks.
The following are required on all loans:
Unexpired government photo ID (i.e. driver’s license)
Unexpired Passport from country of origin
Supplemental documentation: ITIN card or letter from IRS
Must have a Valid ITIN
DACA eligible with ITIN / SSN
Asylum applicants eligible with ITIN / SSN and evidence of application