CALIFORNIA BAD CREDIT MORTGAGE LENDERS LOAN PROGRAMS

Bad Credit California Mortgage Borrowers With Recent Credit Issues
• Up to 90% LTV (purchase, R/T, and, debt consolidation)
• Credit scores as low as 500 (including jumbo loans)
• 1 day out of FC, SS, BK, or DIL
• Up to 85% LTV (cash-out)
• Loans up to $1 million (minimum loan $75,000)
• Cash out for reserves OK
• 30 + 60 + 90 Day California Mortgage late payments are OK!
• DTI up to 50% considered
• Limited or no tradelines OK to max 75% LTV
• Bad Credit cash-out to $500,000

CALIFORNIA BAD CREDIT CASH OUT MORTGAGE REFINANCE PROGRAMS

CALIFORNIA CASH OUT MORTGAGE REFINANCE PROGRAMS

Conventional cash-out refinance loans
FHA- cash-out refinance mortgage lenders
VA – cash-out refinance mortgage lenders
Private cash-out refinance mortgage lenders
Hard money- cash-out refinance mortgage lenders
Portfolio – cash-out refinance mortgage lenders

CALIFORNIA LOAN TO VALUE – CALIFORNIA CASH-OUT MORTGAGE LENDERS

500+ Fico Rate and term California Bad credit Cashout down to 65% of Appraisal
540+ Fico Rate and term California Bad credit Cashout down to 70% of Appraisal
600+ Fico Rate and term California Bad credit Cashout down to 75% of Appraisal
640+ Fico Rate and term California Bad credit Cashout down to 80% of Appraisal
680+ Fico Rate and term California Bad credit Cashout down to 80% of Appraisal
$1,500,000 = California Bad credit Cash-out = Max Loan Amount

CALIFORNIA CALIFORNIA BAD CREDIT CASHOUT – GENERAL INFORMATION

Loan Terms:
5 year ARM, 7 year ARM or 30 Year Fixed Options
No Prepayment penalty ● Floor = Start rate
Caps are 2/2/5 (2% initial change cap/ 2% annual cap/ 5% lifetime cap)
All California Bad credit loans require to impound for tax and insurance California home Types:
SFRs, condos, townhouses, 2-4 units (no rural properties < $200,000)
The California home must be clean and in better than average cond
The California home must show “pride of ownership” Debt to Income Ratio:
55% Max back end ratio

GENERAL BAD CREDIT California JUMBO MORTGAGE REQUIREMENTS
Product Type – Jumbo Bad Credit California Mortgage Lenders
• 5/1 ARM – 30 YR Amortization • 30 – YR Fixed
Loan Amounts – Jumbo Bad Credit California Mortgage Lenders
• Maximum $10MM (exceptions case by case basis) • Minimum $150,000
Prepayment Penalty – Jumbo Bad Credit California Mortgage Lenders
Primary California homes = NO Prepayment penalty
Property Types- Jumbo Bad Credit California Mortgage Lenders
• All California Single Family; townhouses; condominiums; 2-4 units (rural Califonria homes properties are ineligible for investment)
Cash-Out –Jumbo Bad Credit California Mortgage Lenders
Cash in hand or Amounts used to pay non-liens
• Up to $1,000,000
• Investment Properties Max LTV 75%
• $100,001 – $500,000 w/5% LTV reduction • $300,001 – $500,000 w/10% LTV reduction
• Califonia Investment Properties: Max $500,000 cash-out (additional 5% LTV reduction for loans > $200,000)
• Borrowers with recent mortgage lates, refer to guidelines • TX 50 (a) (6) loans allowed – Max 80% LTV
Debt Consolidation-Jumbo Bad Credit California Mortgage Lenders
• Payoff of non-mortgage & mortgage debts with <$2,000 or 2% of the loan amount back to the borrower will follow rate/term LTV’s
Appraisals–Jumbo Bad Credit California Mortgage Lenders
• Loan amounts ≥$1MM a borrower paid second appraisal must be obtained
Seller Concessions
• Up to 6% for Owner-Occupied & Second Homes • Up to 2% for Investment properties LOAN TO VALUE REQUIREMENTS–Jumbo Bad Credit California Mortgage Lenders
• Min credit score 600 • Residential pay history 1x30x12 • Primary Residence Only • Purchase only
• Foreclosure, Deed-In-Lieu & Short Sale – >12 months • Bankruptcy Seasoning (Chapter 7) – >12 months • Maximum loan amount $750k
DOCUMENTATION REQUIRMENTS–Jumbo Bad Credit California Mortgage Lenders
Assets
• Assets must be sourced or seasoned for 30 days • Gift funds allowed without secondary financing
Income
• Full Doc: Wage Earner: W-2, Paystubs, 2 years tax returns • Self-Employed: 2 years personal & 2 years business tax returns
COMPLIANCE
• Escrows required for taxes and insurance • No Section 32 or State high cost • Total points & fees must be < 5%
• Fully documented ability to repay • All loans must be in compliance with applicable Federal and State regulations
UNDERWRITING REQUIREMENTS–Jumbo Bad Credit California Mortgage Lenders
Credit Score• Use middle FICO score of primary wage earner Housing History
• 30’s and 1 x 60 in the past 12 months allowed (No add-on to rate) • 1 or more 90 day late in the past 12 months allowed
Min Credit Score
• Owner Occupied: 500 • Non-Owner Occupied: 580 • Non-Perm Resident Aliens: 580
• Second Home: 580 • First Time Homebuyer: 540
Tradeline requirements for Jumbo bad credit mortgage lenders.
Requirements
• Standard: 3 trade lines reporting for ≥ 12 month; or 2 trade lines reporting for ≥ 24 months with activity in the past 12 months
• 12 to 24 months canceled rent checks can be used as a trade line Limited Tradelines.
• Max LTV 75% • No minimum trade line requirements • Not allowed on Investment properties
DTI Requirements
• Max 40/50% • Investment properties max 50%
Seasoning
Requirements
• Foreclosure, Deed-In-Lieu & Short Sale – None
• Bankruptcy 7 – 12 months
from discharge date
• Bankruptcy 7: None when property excluded from
BK and a 0 x 30 x 12 residential pay history
• Bankruptcy 13: None if filed >24
months ago and paid as agreed
• All BK’s must be discharged (case by case exceptions)
Reserves–Jumbo Bad Credit California Mortgage Lenders
• 3 months minimum • Investment properties – 6 months
• Loan amounts ≥ $453,100 – 6 months • Loans ≥ $750,000 – 9 months
• Second Home – 6 months • First Time Homebuyer – 6 months
• Limited trade lines – 6 months • Non-Perm Resident Aliens – 6 months
• Non-Perm Resident Alien with non-US credit – 12 months
Residual Income
• Primary Residence $1,500
First-Time Homebuyer
• Residential pay history 0x30
California Bad Credit Mortgage Lenders – are structured to guide it’s towards making common sense California Bad credit mortgage lending decisions on California Bad credit mortgage applicants who may have limited access to credit. These California Bad credit mortgages refinance applicants’ situations generally require the underwriter to consider alternative forms of documenting income and/or compensating factors which offset risk indicated by a recent credit event or elevated debt-to-income ratio. The California Bad credit mortgage refinance applicants’ ability to repay must be proven in all instances. California Bad Credit Mortgage Lenders requires an AUS finding reflecting “Approve/ineligible” or “Refer with Caution” to qualify for this product. California Bad credit Mortgage lenders has a zero-tolerance policy as it relates to fraud. California Bad credit Mortgage lenders follow the current established fraud and identity procedures on every loan in an effort to prevent and detect fraud(including, but not limited to, Social Security number verification, verbal verifications of employment, processing of 4506-T, etc.) Loans containing fraudulent documentation or information will immediately be declined and forwarded for further review. If there is any determination of originator involvement, the originator will be made inactive and the appropriate agencies notified. California Bad credit Mortgage lenders Mortgage will also pursue California Bad credit mortgage refinance applicants fraud to the fullest extent of the law.

CALIFORNIA BAD CREDIT MORTGAGE LENDERS LOAN PROGRAMS

Fully Amortizing California Bad credit mortgage lenders

o Qualifying Ratios are based on PITIA payment with the principal and interest payments amortized over the loan term

o 5/1 LIBOR: (2/2/5 Cap Structure) Qualifying Rate (All Doc Types): Qualify California Bad credit mortgage refinance applicants (s) at the greater of the Fully-Indexed Rate or Note Rate.

o 7/1 LIBOR: (5/2/5 Cap Structure) Qualifying rate (All Doc Types): qualify California Bad credit mortgage refinance applicants (s) at the greater of the Fully-Indexed Rate or Note Rate.

o 15 Year Fixed

o 30 Year Fixed

ABILITY TO REPAY/CALIFORNIA BAD CREDIT MORTGAGE LENDERS QUALIFYING RULES
California Bad credit Mortgage Lenders will only allow loans under the Just Missed Agency or Expanded Owner-Occupied and Second Homes Programs that meet the CFPB’s requirements under its Ability-to-Repay (mortgage applicants ability to repay) / Qualified California Bad credit Mortgage Lenders Rules, including loans that meet the general mortgage applicants ability to repay requirements and certain higher-priced qualified mortgage loans with rebuttable presumption liability protection, as prescribed by the applicable regulation. Each loan delivered for purchase must include a completed mortgage applicants ability to repay California Bad credit mortgage refinance applicants Confirmation form, available in the forms section of the system. See EXHIBIT C: Ability-To-Repay California Bad credit mortgage refinance applicants Confirmation for an example in the exhibits section of this guide.

CALIFORNIA BAD CREDIT MORTGAGE LENDERS UNDERWRITING – The Underwriter is required to perform a manual underwrite of the credit file and document the file based upon the criteria contained in this manual. Unless otherwise stated, Fannie Mae definitions, documentation and underwriting guidelines prevail and should be followed.

LOAN AMOUNTS FOR CALIFORNIA BAD CREDIT –

Expanded Owner-Occupied and Second Homes

Minimum: $100,000 Maximum: $10,000,000 (2 appraisals required, and LTV reductions apply for loan amounts above$1.5MM)

Just Missed Agency Minimum: $150,000 Maximum: $10,000,000 (2 appraisals required, and LTV reductions apply for loan amounts above $1.5MM)

MINIMUM FICO CREDIT SCORE FOR CALIFORNIA BAD CREDIT MORTGAGE APPLICANTS

EXPANDED OWNER-OCCUPIED AND SECOND HOMES – 500 California Bad credit mortgage lenders.

JUST MISSED AGENCY – 500 California Bad credit mortgage lenders.

MAXIMUM LTV/CLTV FOR CALIFORNIA BAD CREDIT MORTGAGE APPLICANTS-

95 / 90

See California Bad credit Mortgage Lenders Programs for LTV/CLTV maximum by documentation type.

(SELLER CONCESSIONS)INTERESTED PARTY CONTRIBUTIONS- CALIFORNIA BAD CREDIT MORTGAGE LENDERS
LTV equal to or greater than 85%: max 4%

LTV less than 75%: max 6%
All Interested Party Contributions must be properly disclosed in the sales contract, appraisal, loan estimate and

closing disclosure and be compliant with applicable federal, state and local law. Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses (Financing Concessions) and may never be applied to any portion of the down payment or contributed to the California Bad credit mortgage refinance applicants’ financial reserve requirements. If an Interested Party Contribution is present, both the appraised value and sales price must be reduced by the concession amount that exceeds the limits referenced above.

ESCROWS – CALIFORNIA BAD CREDIT MORTGAGE LENDERS IMPOUND ACCOUNTS

Escrow funds/impound accounts are required to be established for all loans. Escrows may be established for funds

collected by the lender, originator or servicer as required to be paid under the security instrument. Escrow funds

include, but are not limited to, taxes, insurance (hazard, flood, and mortgage) premiums, special assessments, ground

rents, water, sewer, etc. Impounds may be waived for any loans that do not exceed HPML threshold, below or equal

to 80% LTV/CLTV.

SECONDARY CALIFORNIA BAD CREDIT MORTGAGE LENDERS
Secondary financing must be institutional. Underwriters must employ reasonable underwriting decision to determine

whether the California Bad credit mortgage refinance applicants has applied for another credit transaction secured by the same dwelling. Existing secondary

financing must be subordinated and recorded or refinanced. HELOC CLTV must be calculated at the maximum

available line amount unless the California Bad credit mortgage refinance applicants can provide documentation the line of credit is past its draw period.

ALLOWABLE AGE FOR CALIFORNIA BAD CREDIT MORTGAGE LENDERS CREDIT DOCUMENTS
Underwriting and California Bad credit mortgage refinance applicants credit documents may not be more than 90 days seasoned at the Note Date.

The Appraisal should be dated no more than 180 days prior to the Note Date.

CALIFORNIA BAD CREDIT MORTGAGE APPLICANTS STATEMENT OF OCCUPANCY
California Bad credit mortgage refinance applicants must acknowledge the intended purpose of the subject property (“Primary Residence” or “Second Home”) by completing and signing the appropriate sections of the “Occupancy Certification” found in EXHIBIT A of this guide.

AUTOMATIC PAYMENT AUTHORIZATION (ACH)

It is recommended that the California Bad credit mortgage refinance applicants execute an assignable Automatic Debit Payment Agreement (ACH) Form. The ACH form should include the bank routing number, account number, and type of account, similar to Exhibit B.An executed Automatic Debit Payment Agreement (ACH), from a U.S. Bank, is required for transactions involving a Foreign National.

ASSUMABILITY FOR CALIFORNIA BAD CREDIT MORTGAGES

Fixed Rate Notes – Are not assumable.

Adjustable Rate Notes – May be assumably based upon the note, in general, Fannie Mae Notes contain an assumable

clause. In any case, the verbiage in the Note and Closing Disclosure must match.