SS80
SunTrust Mortgage
Combo Second Mortgage Option #6
Combo 100 Mortgage to 100% TLTV
30 Year Fixed
|
Property Type |
Max 1st Loan Amount |
Max 2nd Loan Amount |
Max Combined Loan Amount |
Maximum TLTV |
Minimum Credit Score |
|
1 Unit |
$322,700 |
$150,000 |
$472,700 |
100% |
700 |
There is no minimum LTV for the First Mortgage.
The following table shows the maximum loan-to-value for specific mortgage types:
|
First Mortgage |
Terms - Primary Residence1 |
|
DU Flexible 100 Agency Fixed |
80-20-0 |
|
DU Flexible 100 Agency 7/1 Convertible ARM |
80-20-0 |
(1) The 1st ratio is the max LTV of the 1st mortgage, the 2nd ratio is the LTV of the 2nd mortgage, and the 3rd ratio is the borrower's minimum down payment. Other combinations within these requirements are acceptable provided the first mortgage LTV never exceeds 80% and the TLTV never exceeds 100%.
The Combo 100 mortgage (80% LTV/100% TLTV) is available only if the first mortgage is a purchase Flexible 100 DU Agency fixed rate or a purchase Flexible 100 DU Agency 7/1 Convertible ARM transaction with a fixed rate 30 year Combo 100 second.
The Combo 100 is AUS DU eligible only.
The Combo Mortgage is a term that is ONLY applicable when the mortgage transaction involves an Investor first mortgage and an Investor second mortgage
The actual term Combo Mortgage applies to the Investor second mortgage, which is always closed simultaneously with a Investor first mortgage (it is not a standalone product).
The guidelines contained in this product description are those of the Combo second mortgage and may be more restrictive than the guidelines of the first mortgage product.
Note: In all cases, the second mortgage will be underwritten to the more restrictive of the first mortgage guidelines or the Combo second mortgage guidelines. Under the Combo Mortgage, the first and second mortgages will be processed and closed simultaneously; however, they are handled as two (2) separate and distinct transactions. In addition, the loans are serviced individually with separate payments and statements.
30 years.
The minimum loan amount is $7,500.
Note: Refer to Geographic Restrictions for state specific minimum.
First Mortgage - $300,700
Second Mortgage – $150,000
Combined First and Second – $450,700
There are no maximum housing or debt ratios except as accepted and allowed by DU.
This product is AUS (DU) eligible ONLY.
The Combo 100 is not eligible for any buydowns on the second mortgage or on the first mortgage product.
Not Applicable
Not Applicable
Not required
Not required
None
The Combo mortgage is not assumable.
Not Allowed
Information below is product specific, click HERE for full underwriting guidelines
The borrower must meet the eligibility criteria of the first mortgage as applicable to primary residences.
A maximum of two (2) owner-occupant borrowers are allowed on the loan.
Not eligible
Available for Owner Occupied only
Not Allowed
Not Allowed
Information below is product specific, click HERE for full underwriting guidelines
The first mortgage may be underwritten through traditional underwriting if the transaction is not AUS-eligible.
If underwritten through DU, the recommendation must be “Approve/Eligible.”
The borrower must meet the more restrictive credit requirements of the first mortgage, the general guidelines of the Combo or the guidelines of specific program.
There can be no mortgage delinquencies in the 24-month period prior to loan application, regardless of the DU recommendation. This applies to ANY MORTGAGE, not just the existing mortgage.
A minimum of two (2) credit scores is required for each borrower.
The lower score is used in all cases when two (2) scores are provided. When three (3) scores are provided, the middle score is used.
Each individual borrower must have a minimum credit score of 700.
There are no exceptions to credit scores.
The FIRST mortgage must be an eligible Automated Underwriting System (AUS) product that has been submitted through DU or LP with appropriate information to identify the Combo second mortgage as a subordinate lien to ensure that the TLTV and other risk factors are considered in the final AUS recommendation.
The Combo SECOND mortgage is NOT submitted separately through DU or LP, but is entered as part of information on the first mortgage.
When the first mortgage is underwritten by an automated system and receives either an DU Approve/Eligible (or acceptable “Approve/Ineligible”) or an LP “Accept/Eligible” (or acceptable "Accept/Ineligible") rating, the Combo second mortgage does not have any additional underwriting guidelines if the following conditions are met:
if the first mortgage program requires more conservative AUS guidelines, those guidelines must be followed,
the property must meet eligible property guidelines of the applicable Combo second mortgage option that has been selected,
for all borrowers on the Note, a minimum 700 credit score is required,
Borrowers with prior bankruptcies are not eligible regardless of the DU recommendation.
Borrowers with prior foreclosures are not eligible regardless of the DU recommendation.
If a borrower is modifying from a construction permanent loan into a first mortgage
with a Combo second and the credit documents are over 180 days old they must be
updated and the borrower must be qualified for the Combo..
Information below is product specific, click HERE for full underwriting guidelines
Allowed
Reduced DU documentation is acceptable for 1st and 2nd except for income
verification which requires the following minimum documentation, unless the DU
Findings Report requires a higher level of documentation:
Salaried Borrowers: a verbal VOE and a pay stub supporting current income for salaried borrowers.
Self-Employed Borrowers: one (1) year current signed 1040 Federal Tax Return supporting current income for self employed borrowers.
A separate Truth-in-Lending must be provided to the borrower for all Combo second mortgages at loan application.
A separate Good Faith Estimate must be provided to the borrower for all Combo second mortgages at loan application and must reflect the following fees:
origination fee and discount point(s), if applicable,
recording costs for the Combo second mortgage,
additional attorney fees and title fees, and
per diem interest for the Combo second mortgage.
Information below is product specific, click HERE for full underwriting guidelines
No down payment is required since TLTV is 100%; however, the borrower must contribute at least 3% towards the transaction following the DU Flexible 100 first mortgage guidelines.
Typically, funds for the borrower’s required down payment may come from a loan secured by an asset (i.e., life insurance policies, certificates of deposit, stocks, bonds, automobiles, other real estate, etc.)
Gift funds may be used for the remaining down payment IF allowed under the guidelines of the first mortgage.
If the loan is submitted through DU or LP, the DU Findings Report or the LP Feedback Certificate for the first mortgage will identify the amount of the assets required to be verified. This will include cash reserves.
For all other loan products, refer to the applicable first mortgage product description for cash reserve requirements.
Borrower’s contribution must be at least 3% following the DU Flexible 100 first mortgage guidelines.
Information below is product specific, click HERE for full underwriting guidelines
Allowed
Not allowed
Not allowed
Information below is product specific, click HERE for full underwriting guidelines
One (1) Unit Primary Residences (Attached or Detached)
Units in a PUD, and
Condos
2 to 4 Unit Primary Residences
Manufactured and Modular Housing
Generally, full appraisals are required for all Combo second mortgages; however, reduced appraisals (i.e., form 2055 - exterior inspection only, form 2055 - interior and exterior inspections, form 2075, etc.) are acceptable for AUS approved loans in which the first mortgage guidelines allow for this.
The Fannie Mae PIW or Freddie Mac No Appraisal Option is not allowed.
If DU findings allow limited condo or PUD warranty for Agency, it is also acceptable for the second.
Units in condominium projects are eligible for the Combo second mortgage;however, the project must be Fannie Mae approved or warrantable to acceptable Fannie Mae/Freddie Mac guidelines.
Loans on condo properties must meet the more restrictive guidelines of either the first mortgage product or the Combo second mortgage product (i.e., loan amount limits, maximum LTV requirements, and underwriting guidelines).
The following warranty forms must be completed, as applicable to the product and transaction:
If the first mortgage is a non-Agency loan, the Certification of Project Compliance: Condo Lender Warranties for Non-Agency Loan Products must be completed for all warrantable condominium projects.
If the first mortgage is an Agency loan, the Certification of Project Compliance: Condo Lender Warranties for Agency Loan Products must be completed for all warrantable condominium projects.
If the first mortgage is an Agency loan that was submitted through DU and the DU Findings allow for a limited review, the Certification of Project Compliance: PUD/Condo Lender Warranties – Fannie Mae DO/DU Limited Project Review must be completed. The following conditions must be met:
the property must be a primary residence
the recommendation must be an “Approve/Eligible,”
if the TLTV is greater than 75%, the project must be 100% complete, and
if the TLTV is less than or equal to 75%, the subject legal phase (at a minimum) must be complete.
if the property must be a second home:
the recommendation must be an “Approve/Eligible,”
the TLTV must be 70% or less, and
the subject legal phase (at a minimum) must be complete.
Note: For second homes, if the TLTV is greater than 70%, a standard full warranty is required.
Units in PUD projects are eligible for the Combo second mortgage. However, the PUD project must be warrantable to acceptable Fannie Mae/Freddie Mac guidelines. The following warranty forms must be completed for all attached PUD's, as applicable to the product and transaction:
If the first mortgage is a non-Agency loan, the Certification of Project Compliance: PUD Lender Warranties for Non-Agency Loan Products must be completed for all warrantable PUD projects.
If the first mortgage is an Agency loan, the Certification of Project Compliance: PUD Lender Warranties for Agency Loan Products must be completed for all warrantable PUD projects.
If the first mortgage is an Agency loan that was submitted through DU and the DU Findings allow for a limited review, the Underwriter’s Certification of Project Compliance: PUD/Condo Lender Warranties – Fannie Mae DO/DU Limited Project Review must be completed. The following conditions must be met:
the property must be a primary residence,
the recommendation must be an “Approve/Eligible,”
if the TLTV is greater than 80%, the project must be 100% complete, and
if the TLTV is less than or equal to 80%, the subject legal phase (at a minimum) must be complete.
if the property must be a second home:
• the recommendation must be an “Approve/Eligible,”
• the TLTV must be 70% or less, and
• the subject legal phase (at a minimum) must be complete.
Note: For second homes, if the TLTV is greater than 70%, a standard full
warranty is required.