ZUMA Prime
Simplified the LTV/Loan matrix by removing the separate 12-month income documentation columns, the max LTV for 12-month now displayed under Program Restrictions.
WVOE – max 80% LTV Purchase & Rate/Term, max 70% LTV cash out, use 24-month LTV/Loan matrix.
Under the 95% LTV restrictions, increased the max DTI to 43%.
ZUMA Credit Flex
Simplified the LTV/Loan matrix by removing the separate 12-month income documentation columns, the max LTV for 12-month now displayed under Program Restrictions.
WVOE – max 80% LTV Purchase & Rate/Term, max 70% LTV cash out, use 24-month LTV/Loan matrix.
ZUMA Prime and Credit Flex
Interested Party Contributions – increased LTV tier from 75% to 80%.
Appraisal Review - Added the ARA product from Computershare as an eligible review option.
Ineligible Property Types – Added properties involved with the sale of banned federal substance.
Property Flipping – Decreased the time period for defining a flip transaction from 12-months to 6-months.
Non-Warrantable Condos
Increased max single owner concentration to 25%.
Increased max allowable commercial space to 50%.
Cash-Out
Defined cash-out to include any transaction on a property owned free and clear.
Clarified the payoff of delinquent real estate taxes is considered cash out.
A letter of explanation required for cash out exceeding $250,000.
Cash-out proceeds eligible for reserve requirements.
Additional changes:
Changed of Fico from 580 to 620 on Credit Flex and Investor Solutions;
Cut off to close out current loans in pipeline is by November 30th.
Non-Occupant Co-borrower – increased max DTI for occupying borrower to 60%.
Housing History – borrower living rent free, expanded eligible income documentation types and removed additional reserve requirements.
Consumer Credit – clarified the treatment of charge-offed 2nd lien.
Reserves
Clarified for an ARM loan, reserves are based on the initial PITIA.
Cash-out proceeds eligible for reserve requirements.
Full Income Documentation – Self-employed borrowers, removed the requirement for business tax transcripts and a balance sheet.
Written Verification of Employment – added an income documentation option utilizing a WVOE.
Self-Employed Solutions
Business bank statements now eligible for 12-month bank statement option.
Combined the 24-month and 12-month business bank statement qualifying options.
Personal Bank Accounts – reduced the minimum ownership percentage to 20% for eligibility.
Business Bank Accounts – reduced the minimum ownership percentage to 50% for eligibility.
Added clarification on how to document ownership percentage.
Asset Utilization – Added an option to determination loan qualification based upon total assets (No DTI calculation).
Investor Solutions
For Business Purpose transactions:
ARM qualifying based upon note rate.
Loans with an interest only feature qualified using interest only payment.