1. EQUAL HOUSING
LENDER
WAITING PERIODS FOR SIGNIFICANT DEROGATORY CREDIT EVENTS
Note: Extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, signicant, and prolonged reduction in income or a catastrophic increase in nancial obligations
Short Sale/Deed-In-Lieu DU Loans Submitted on or after 8/16/2014
• 4 years have elapsed since completion
2 years if extenuating circumstance
LP Loans:
• Short Sale: 4 years from completion date
• Deed-in-Lieu: 4 years from execution date
Foreclosure • 7 years if due to financial mismanagement
• 3 years if due to extenuating circumstance (Owner occupied only and max 90% purchase, 95% rate/term)
Mortgage Charge-Off • 4 year waiting period after charge off date to disbursement date of the new loan
o If extenuating circumstance
Refinance of previously modified/restructured loans
• Non-subject property: follow AUS findings
• Subject Property: Rate-term only and 0x30 for 24 consecutive months on the restructured loan before closing on the
new loan
Bankruptcy: 7 or 11 • 4 years from Discharge/Dismissal Date (DU and LP Loans)
Bankruptcy: 13 • 2 years from Discharge Date (DU and LP Loans)
• 4 years from Dismissal Date (DU and LP Loans)
Multiple Bankruptcy Filings within the last 7 years • 5 years from the most recent Discharge/Dismissal Date
Multiple Financed Property Program • 7 years for BK or FC and 0 X 30 mortgage history in past 12 months
DU Refi Plus LP Open Access • Per AUS Findings
Foreclosure
•
•
3 years have elapsed since completion
High Balance Cashout:
o Standard FHA Product: 7 years have elapsed since completion
o Bay Direct FHA Product: 3 years has elapsed since completion
Short Sale, Deed-In-Lieu of Foreclosure, Foreclosure
•
•
•
3 years have elapsed since completion
If no delinquencies in past 12 months prior to event then no seasoning is required
High Balance Cashout:
o Standard FHA Product: 7 years have elapsed since completion
o Bay Direct FHA Product: 3 years has elapsed since completion
Refinance of previously modified/restructured loans
•
•
A rate/term refinance of a modified or restructured loan is eligible if the following is met
o No current delinquencies and no late payment within past 12 months
Not allowed if cash out transaction
Bankruptcy: 7 or 11 • 2 years from Discharge or Dismissal
Bankruptcy: 13
• 12 month pay history completed
o All payment have been paid as agreed
o Approval from the court
o Loan will require manual UW if the BK has not been discharged 2 years
Bay Direct FHA – Back toWork
• Allows 12 months seasoning on FC, SS and DIL if “Back toWork” Guidelines are met
o 20% decrease in income
o No delinquencies prior to income decrease
o Refer to Mortgagee Letter 13-26 for complete details
Short Sale, Deed-In-Lieu of Foreclosure
•
•
•
Standard VA Product: 2 years have elapsed since completion
High Balance Product: 7 years have elapsed since completion
Bay Direct Product:
o Conforming Loan Amount:
• If no delinquencies 12 months prior to event AND overall credit is satisfactory
o High Balance Loan Amount:
• 2 years have elapsed since completion
Foreclosure
•
•
2 years have elapsed since completion
High Balance
o Standard VA Product: 7 years have elapsed since completion
o Bay Direct VA Product: 2 years has elapsed since completion
Bankruptcy: 7 or 11
•
•
2 years from Discharge Date
High Balance
o Standard VA Product: 7 years have elapsed since completion
o Bay Direct VA Product: 2 years has elapsed since completion
Bankruptcy: 13
•
•
12 month pay history completed
o All payment have been paid as agreed
o Approval from the court
High Balance
o Standard VA Product: 7 years have elapsed since completion
o Bay Direct VA product: follow the above
VA FHA CONVENTIONAL
Contact
me for more
information
BEHL-140415-1.1
David Baum
Loan Officer
NMLS#1037224
5080 Shoreham Place Suite 105
San Diego, CA 92122
Direct: 858-200-3859
dbaum@bayeq.com
Equal Housing Lender. This is not a commitment to lend or extend credit. Restrictions may apply. Rates may not be available at time of application. Information and/or data are subject to
change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. Bay Equity LLC, 100 California Street Suite 1100, San Francisco, CA
94111-4561; NMLS ID#76988. Loans will be made or arranged pursuant to Department of Business Oversight California Finance Lenders Law License #605-3919; Licensed by the
Department of Business Oversight under the California Residential Mortgage Lending Act- #4150077; NMLS consumer access: www.nmlsconsumeraccess.org