Pete Phillippe from Indymac Bank was so kind to send an extensive overview with updates in underwriting as of June 1, 2008 Industry wide General Loan guidelines by the Secondary market (some variance with specific Lenders).
- With Foreclosures , reestablished credit history now 3 yrs after event before a new loan given
- No 60 plus mortgage lates within the last 12 months
- Authorized users of credit trade lines will no longer be considered in credit decisions. Can’t piggyback on someone’s good history. FICO now is “not using” card holders good scores for the authorized user to improve their own scores
- On interest only loans, borrowers have to be qualified on the full principal and interest payment
- Min. credit scores 640 for 1 to 2 unit properties, 680for three to four units . . .620 if LTV less than 75% of property value
- Stated income loans max. 80% ltv for w-2 wage earners and self employed or commissioned borrowers, or combinations of salaried and commissioned. Usually 700 middle ficos required. Cash out? 75% ltv’s
- With FHA loans 580 and above FICOs still ok with alternative credit documentation and “good” credit explanations
Dont’ forget, these are general guidelines, exeptions are possible with every lender. For more info, you can also contact Pete Phillipe @ Indymac bank 707-535-1263. He will give all his client free credit reports.
More to come in the coming days.
Mirjam (mirjam@c21alliance.com)
