Eligible Mortgage Borrowers For Residential Mortgage Loans

All borrowers must have a valid social security number as evidenced by one of the following: 1.  Pay stub 2.  W2 3. Valid tax returns Mortgage borrowers must be a natural person. Title may not be in the name of the following: 1.  Partnership 2.  Corporation 3.  Real estate syndication 4.  Trust 5.  Shared Equity transaction

Non Permanent Resident Aliens As Mortgage Borrowers

1.  Primary Residence only 2.  Borrower must be eligible to work in the U.S. 3.  Evidence of valid Social Security number required Evidence of residency and work status to be obtained through documentation from US Bureau of Citizenship and Immigration Services (BCIS), formerly INS. Documentation requirement(s): 1.  Copy of the Employment Authorization Card, I-688B. This card carries an expiration date. A social security card is not acceptable as evidence of work status. 2.  If the card expires in less than one year, a legible copy of the previously expired card(s) is required to evidence a history of regular renewals.

Permanent Resident Aliens As Mortgage Borrowers

Same terms as US Citizens 1.  Evidence of lawful, permanent residency issued by the Bureau of Citizenship and Immigration Services (BCIS), formerly INS. Documentation requirement(s): 2.  Copy of the valid Alien Registration Receipt Card (Resident Alien card), I-551

Non Occupying Co-Borrowers As Mortgage Borrowers

Non-occupying co-borrowers may not be added on cash-out refinance transactions. Maximum 75% LTV except as stated below. 1.  For one unit properties only, maximum financing is allowed if: Non-occupying co-borrower is related to the borrower by blood, marriage, or law, or 2.  Non-occupying co-borrower can document a family-type, long-standing relationship with the borrower unrelated to the loan transaction. 3.  Occupying borrower must meet FHA minimum credit requirements. 4.  If a parent is selling to a child, the parent may be a non-occupying co-borrower only if LTV is ≤5%. 5.  All borrowers, including non-occupying co-borrowers must sign the note and security instrument.

Non-Borrowing Spouse

In community property states, a credit report is required and the debts of the non-borrowing spouse must be included when determining qualifying ratios. Community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. The non-borrowing spouse’s credit history is not taken into consideration.

Identity Of Interest Transactions For Mortgage Borrowers

Identity of Interest Transactions are transactions between family members, business partners or other business affiliates. Identity-of-interest transactions are restricted to a maximum LTV of 85%. However, maximum financing above 85% is permissible under the following circumstances: 1.   Family member purchasing another family member’s principal residence. “Family member” is defined as a child, parent, grandparent, (biological, foster or step), sister, step-sister, brother, step-brother, legally adopted son or daughter, a child who is a member of the borrower’s household due to placement by an authorized agency for legal adoption, aunt, and uncle. 2.  Employee of builder purchasing home from builder. 3.  Current tenant purchasing home he/she has rented for at least six (6) months predating the sales contract (with lease or other written evidence). 4.  Sales by corporations purchasing an employee’s home and reselling to another employee.

Note To Mortgage Borrowers

A CAIVRS screening must be performed on all loan obligors. Screening is not required on a non-borrowing spouse or on a streamline refinance.

Gustan Cho NMLS ID # 873293
The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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