Seller and Property Information
- Name of owners according to the deeds
- Identification (government issued and expiration date)
- Telephone numbers, e-mail, postal address
- Deeds (send complete deed to the bank)
- Legal capacity (request court documents)
- Out of PR…power…
- Non-resident (withholding tax at closing, capital gain – 10% unless prepaid)
- Capital Gain
- Divorced
- Assessed for tax purposes?
- Exemption…taxpayer
- Exemption…to the veteran
- Calculate possible retention
- Unreported improvements
- Possible retention
- New projects
- Tract
- Access control/maintenance fee or restrictive condition (Google)
- Flood insurance (fema flood maps)
- Condominium (HUD approved)
- HUD Approval (FHA, RD)
- VA approval (VA loans)
- MGIC Approval (Conventional)
- Fidelity Bond (FHA, VA, RD, Conforming)
- Crime (15%)
- Insurance (100% cost)
- Derramas
- Personal or Corporate Bankruptcy
- Garnishments or executions
- Have any of the owners passed away?
- Minors or disabled
- Rent (Request agreement copy)
- Mortgages
- First
- Second
- Uncancelled balances
- Promissory notes, bearer, lost, overdue
- Promissory notes, bearer, lost, overdue
- Built before 1978 (Lead – retain documents for 50 years)
- Home Quality Inspection (HUD says it recommends inspections especially with 208k loan repairs)
Financing
P (property)
I (income)
C (credit)
E (stability-employment)
Type of financing by # of units
FHA – up to 4 units: (buyers 2 months savings. 25% commercial space)
- More than two units require three or more reserve units, NO GIFT.
- NO CO-DEUDORSES.
- Net rental income – equal to or greater than the mortgage payment.
Rural development – 1 unit only (417k)
- Eye – properties in columns
Veterans – up to 4 units (417k) (one of them main)
Commercials – more than 4 units (10M)
Conventional non-conforming
Traditional – up to 4 units (417k)
- Law 87 – a single unit (150k)
- FHA Boricua – single unit (300k)
- Pecv – up to 4 units (600k)
- My mortgage insurance – up to two units (300k)
Maximum funding per USO
First residence:
Guaranteed by the Federal Government:
- FHA – 97.75% (combined with Pecv (second mortgage contribution)
- VA – 100%
- RD – 100%
First residence:
Conventional:
- Conforming – 95% (w/PMI) (credit score penalties by loan type. Most expensive commercial)
- Non-conforming (traditional) 90% (non-PMI) – 97% (w/PMI)
- Law 87 – up to 105% LTV
Property of enjoyment, not urbanization
- Conforming – 90% (w/PMI)
- NO Conforming – 90% (w/PMI)
- PECV – 90% (w/o PMI)
No VA – RD – FHA
INVESTMENT
Conv. Conforming – 75% – 80% (w/o PMI)
NO Compliant – 80% (w/o PMI)
- VA – Not Accepted
- RD – Not Accepted
- FHA – Not Accepted
Repairs
- Conventional – Not Accepted
- VA – Not Accepted
- RD – Not Accepted
- FHA – If Accepted (203Ks) or (203k Major rehabilitation)
- LTV up to 110% (up to 6 months can be financed up to 6 months into the loan)
Construction
- Conventional – Complying with all the requirements of documentation and expertise. Up to 80% of projected appraisal, or up to 97% (w/PMI)
- VA – Not Accepted
- RD – Not Accepted
- FHA – Not Accepted
Other property factors
Parking lots
- Assigned
- Deeds
- Cadastre
Legal Description
- Capacity
Location
- Zoning
Income Verification
FHA, RD, VA, Conv-Compliant
- W-2 form (gross income)
- Checkbooks
- Direct deposits
- Federal pensions
- State pensions
- Retirement pensions
- 401k
- Ira
- Dividends
- Rental income
Non-Compliant
- 480b
- Financial statements
- Financial statements (6mos)
- Professional services contracts (gross income)
- Rental income (depositing)
- Canceled checks
Credit
Credit scores (no less than 600 score)
- Medium
- Minimum
Non-traditional
- Three (3) accounts
Explanatory Letters
- Bankruptcy – Chap.7 (2 years) // Chap.13 (consent)
- Voluntary deliveries. 3 years
- Re-score
- Inquiries
