LOAN TYPES-Owner Occupied and Second Homes -Purchase and Rate and Term only, not available for cash out unless the transaction is a delayed funding. A delayed funding is defined as the borrower looking to recoup their initial cash investment in a property. In the event the borrower purchased the property in the past 60 days, 1st Florida Lending will allow the borrower to recoup their costs to a maximum of 65% LTV based off the purchase price and 55% LTV on refinancing . A HUD-1 evidencing the purchase price as well as documentation of the funds used to acquire the property is required.GEOGRAPHIC RESTRICTIONS-Available in major metropolitan areas.MORTGAGE PAYMENT AUTO DRAFT-All loans must establish an ACH debit for mortgage payments from a U.S. bank. The ACH debit form must be signed prior to scheduling a closing.-A complete copy of a voided blank check with the borrowers name and address pre-printed is required. In the even the account is newly established and does not have the pre-printed information, NPF will accept that voided check along with the following:-A complete copy of the borrowers bank statement (all pages) that is associated with the check must be provided.-The bank statements must show the borrowers full name, address, account number (the account number should be the same as listed on the voided check) and the routing number will be verified for accuracy.CITIZENSHIP-Foreign Nationals Only (a non-US Citizen with a valid passport and valid visa)-All applicants should be checked against the GLOBAL PEP list -Borrowers who are politically exposed (PEP) are ineligible. -All involved entities must be cleared through OFAC SND list (borrowers, sellers, employers, banks, etc). Access at the below link and under “Complete Specially Designated Nationals List” in PDF format.http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspxhttp://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx -All applicants should be checked using World Check.www.world-check.com -Borrowers from an OFAC sanctioned country are ineligible. Access the link below for a list of sanctioned countries.http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx -MERS search to be ordered to verify no undisclosed properties in the United States.-Evidence that the borrower is in the U.S. legally is required, however, no defined length of stay is required.ELIGIBLE VESTING-Individual -JointPOWER OF ATTORNEY-Loans closing with the use of a Power Of Attorney are not permitted in the Foreign National Program. CLOSINGS-Documents signed by Borrowers outside of the United States must meet the following requirements: -The documents must be notarized by a U.S. embassy or consular official. The certificate of acknowledgment must meet the standard notarial requirements and must include the embassy or consular seal.CREDIT REPORTS-A domestic tri-merge credit report is required on all Foreign National loans. If the borrower does not have a Social Security Number, the report should be generated with their Tax Identification Number. In the absence of both a Social Security Number and a Tax Identification Number, the report should be generated with the borrower’s name, birth date and 9s entered in lieu of the Social Security Number. In the event the borrower has a US credit file and the report generates a credit score, a minimum 680 score is required.-International credit reports are required-For borrowers residing in a country listed on the International Credit Report list, international credit reports are required. See list in Section 10 FORMS. -International Credit Reports are to be ordered through International Reporting & Co., via secured email at firstname.lastname@example.org -Copy of 1003 (all pages), applicant’s passport and U.S. Visa are to be included in the email to International Reporting Co.-If International Credit Reports are ordered through International Reporting & Co. via the secured email, then the International Tradeline Summary Report is acceptable.-Foreign Nationals from countries other than those listed on the International Credit Report list may provide either an International Credit Report or letters of reference on company letterhead from a financial and/or banking institution. The letters must state the type of relationship, the length of the relationship and how the accounts are held. All contact information must be provided for the person signing the letter. Any translation must be completed and attached to the reference letter, signed and dated by a certified translator.-No thin credit files will be allowed. All borrowers should have significant established credit. Letters of references are only allowed from verifiable institutions.CONTINUITY OF OBLIGATION-For a refinance transaction to be eligible for sale to Fannie Mae, there must be a continuity of obligation if there is currently an outstanding lien that will be satisfied through the refinance transaction.-Continuity of obligation is met when any one of the following exists:-At least one borrower is obligated on the new loan who was also a borrower obligated on the existing loan being refinanced. -The borrower has been on title and residing in the property for at least 12 months and has either paid the mortgage for the last 12 months or can demonstrate a relationship (relative, domestic partner, etc.) with the current obligor.-The loan being refinanced and the title to the property are in the name of a natural person or a limited liability company (LLC) as long as the borrower was a member of the LLC prior to transfer. Transfer of ownership from a corporation to an individual does not meet the continuity of obligation requirement.-The borrower has recently inherited, or was legally awarded, the property (divorce, separation, or dissolution of a domestic partnership).-Loans with an acceptable continuity of obligation may be underwritten, priced, and delivered as either cash-out or limited cash-out refinance transactions based on the requirements for each type of transaction.UNACCEPTABLE CONTINUITY OF OBLIGATION:-If the borrower is currently on title but is unable to demonstrate an acceptable continuity of obligation, or if there is no outstanding lien against the property, the loan is still eligible for delivery but with the additional restrictions described in the following table. -The loans must be underwritten, priced, and delivered as a cash-out refinance transaction.BANKRUPTCY-No previous bankruptcies permitted-FORECLOSURE-No prior foreclosures permittedDEBT RATIO-Standard ratios are 35/45SELF EMPLOYED BORROWERS-Self Employed borrowers are permitted-Must be self-employed a minimum of 4 years -Self-employed business is to be verified using LexisNexis, D&B International Business Search, Google, or other means of verification.-A letter from a licensed accountant/CPA is required verifying income figures for the last two years and must provide year to date income figures. -Accountant/CPA’s business is to be verified using LexisNexis, D&B International Business Search, Google, or other means of verification.SALARIED EMPLOYED-Letter from employer stating current monthly salary and 3 months valid paystubs required.-Letter from employer must be on company letterhead, include address and company web address. -Verify employer using LexisNexis, D&B International Business Search, Google, or other means of verification.-All documents must be translated by a CPA or certified translator.-If the borrower is employed within the U.S., evidence of the borrower’s employment along with pay stubs is required.TAX RETURNS-Tax returns filed in foreign countries will no longer be required. -If the borrower is not required to file US Tax Returns, executed 4506T results (showing no record) are no longer required.UNACCEPTABLE INCOME-Rental incomeRESERVES-A minimum of 24 months PITIA liquid reserves is required with a minimum of 12 months held in a US Bank.-Assets held in a Foreign Account are to be calculated to the current exchange rate with verification of the exchanged rate provided in the loan.-A letter of reference on company letterhead from a financial or banking institution is required. The letter must state: -The type of relationship,-The length of the relationship,-How accounts are held, AND-Current balance-All contact information must be provided by the person signing the letter.GIFT FUNDS-Gift funds are not allowed for the Foreign National Program.-NON-OCCUPANT CO-BORROWERS-Non-occupant co-borrowers are not permitted on the Foreign National Product. Helpful HintsInternational Credit Reporting Co:Keith GiordanoInternational Reporting & Co., Inc.9838 Old Baymeadows Rd., #383,Jacksonville, FL 32256-8101TEL: 904.823.8745FAX: 309.408.9622 www.intlreporting.comemail: email@example.comTranslators have to be certified. I found this link on line which may help you.http://www.atanet.org/certification/eligibility_approved.phpAll CPA license’s have to be verified. Website to convert foreign dollars to US dollarshttp://finance.yahoo.com/currency-converter/#from=USD;to=EUR;amt=1Minimum loan amount 100K; 65% LTV on new purchases and 55% on rate and term for refinances; or 2nd homesNo First Time HomebuyersDoc Checklist-Completed 1003-Make sure to ask borrower if they have SS# or Tax ID # (neither required, but if they have them we need them)-All disclosures-Credit – International Credit Report (see prior page for company referral). Also please run a US credit report using borrower’s social security number, tax ID number or 9s for the social and the subject property address. If there is US credit it has to be good and a 680 score (although not required).Income:-Self-employed – letter from licensed CPA or whatever they may be called in their country of origin with last 2 years earnings and YTD; obtain copy of license of CPA-Salaried – letter from employer on letterhead with last 2 years earnings and YTD and 3 mos worth of paystubsAssets – all assets seasoned and verified 90 days -3 months worth of bank statements; sourcing >25% of qualifying income in deposits-24 months reserves required (PITIA)-Out of the 24 mos, 12 mos has to be transferred to a US bank acct prior to closing. Proof of transfer from seasoned account must be provided. Borrower has to sign an ACH Debit form for this account. This is where the payments for our loan will be coming from every month.-Letter of reference from banking institution also required-All bank statements must be translated if not in EnglishAll docs not in English must be translated by a certified translator (translator referral on prior page). Docs cannot be translated by broker, borrower, Realtors or anyone associated with the transaction. It must be a certified translator.
Carlos MatosI Chairman & Co-Founder I NMLS #323206