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Malibu Guidelines Update

The following changes were made to the guidelines:

Purchase

  • Amended > 80% LTV to allow fixed rate only

Purchase and R/T

  • Added a maximum 90% CLTV for maximum 80% LTV rate & term refinances
  • Added a maximum 90% CLTV for loan amounts to $2,000,000 with a 740 minimum FICO

Second Homes
•  Maximum LTV increased from 55% to 65% at maximum loan limit

Non-Owner Occupied
•  2-4 unit properties are now eligible
•  Maximum loan amount increased to $2,000,000
•  Minimum FICO lowered to 700

Interest Only
•  Maximum loan amount reduced from $3,000,000 to $1,500,000
•  Second homes are now allowed
•  2-4 units are now allowed
•  Reserves are increased to 18 months for all LTV/loan amounts
•  Minimum FICO 740

Cash-Out Refinance

  • Lowered minimum FICO from 720 to 700 for owner occupied 1 unit
  • Increased cash-out limit from $350,000 to $500,000 for owner occupied 1 unit

First Time Homebuyers

  • Maximum loan amount increased to $1,500,000

Condo Restrictions

  • Maximum LTV increased to 90%
  • Requirement for minimum 740 FICO removed
  • Maximum $2,000,000 loan amount limit removed

Reserves

  • Lowered reserves from 12 months to 9 months for LTV/CLTV <=80% with loan amount > $1,000,000 to <= $2,000,000
  • Amended N/O/O reserves to 12 months for all loan amounts
  • Added reserve requirements for second homes with loan amounts > $1,000,000 to <= $2,000,000, 12 months

Additionally:

  • Amended eligibility to allow certain non-arm’s length transactions, page 10
  • Clarified rental income, page 12
  • Added guidelines for IRS payment, trust income, co-signed debt, job gaps, page 13
  • Added Income Documentation requirements guidelines, page 14-16
  • Removed the credit requirements since we now accept all broker’s credit vendors, page 17