College Housing Program
Mortgage Information
Qualifications and Requirements
| Employment | Provide most recent YTD paystub and most recent 2 year’s W-2’s (for non LC employment) Self-Employment ”“ 2 years signed tax returns | |
| Credit Score | 680 | Minimum ”“ will check for late payments and type of debt. Concerned if large portion of Credit Card debt. Full Credit Report will be required. |
| Credit Issues |
Possible Denial: Previous Mortgage Foreclosure within 3 years Bankruptcy discharge plus 2 years Late Mortgage payments in last 12 months: 3 or more > 30 days 1 > 60 days and 1 >30 days 1 > 90 days late |
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| Debt to Income Ratio | 32% / 38% | 32% of Gross Monthly income for max PITI (Principle, Interest, Taxes and Insurance) 38% for all bills including PITI |
| Liabilities | Verify | Debt on Credit Report Alimony, Child Support Mortgage debt on other properties owned Installment Debt (autos, student loans) Significant debt (>$100/mo) not on Credit report |
| Assets | Verify |
Depository Accounts Cash Reserves Gift funds Retirement accts Proceeds from Sale of home / assets Earnest Money |
| Earnest Money | $5,000 | Refundable |
| Down Payment | 10% Min. | |
| Reserves Required | 2 mo. PITI | Retirement funds can be counted towards reserves but will be valued at 70% because of penalty and taxes. (PITI = Principal, interest, taxes, insurance) |
| Interest Rate | Interest rates will be based on an average 30-yr fixed rate for Chase, Wells Fargo and US Bank with comparable down payments within 15 business days prior to signing the final documents. | |
| No Escrow for Taxes and Insurance | Property Taxes and Insurance to be paid directly by homeowner. Proof of insurance and payment of taxes are required annually. | |
| ACH Payments | All mortgage payments will be required to be made via ACH directly to the College | |
| Interest Reporting | Form 1098 Mortgage Interest - will be sent to mortgagee prior to January 31 each year for the previous year | |
| Required Paperwork |