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
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  
  1. Loan Application    
  2. Contract of Sale  
  3. Ground Lease   
  4. Authorization for Credit Check
  5. ACH Payment Authorization