The document details a foreclosure program in Arizona targeting owner-occupied single-family residential properties, requiring borrowers to meet specific credit and income qualifications, including a minimum FICO score of 620. The loan terms include a 30-year amortization with a balloon payment due in 10 years, fixed interest rate of 12%, and maximum loan amount of $175,000. Borrowers must provide extensive documentation including tax returns and bank statements, and comply with strict debt ratio limits.

1. ONE DAY OUT OF FORECLOSURE PROGRAM - AZ
Owner Occupied only, must not have ownership interest in any other residential
Occupancy
dwelling.
Residential Single Family houses only. No Condos, multi-unit, mobile home or land
Property Type
only properties.
Loan Purpose Purchase or Refinance
Product Type Note and Deed of Trust
Loan Term/Amortization 30 year amortization, with balloon due in full at 10 years
Property Location 50 mile radius of downtown Phoenix, AZ (Central & Washington)
Minimum: $ 60,000.00
Loan Limits
Maximum $175,000.00
Eligible Borrower(s) Lawful US Residents, at or over age of legal contract
Co-Borrower will be qualified the same as primary borrower. Co-borrower may not
Eligible Occupying Co-Borrower
be a third party to the transaction: seller, realtor, builder, appraiser
Non Occupying Co-borrower Permitted with no additional debt ratio limitations
Interest Rate 12.00% fixed with no rate buydown available
3% Origination
Fees
$1430.00 (UW & Doc Prep)
The seller and/or other third party may contribute up to 6% of the lesser of the
Third Party Contributions property’s sale price or value toward the borrower’s closing costs and prepaid
expenses
Maximum Loan to Value 75.00%
Qualifications must meet ONE of the following (1A, 1B OR 1C):
Minimum FICO Score of 620. If “Thin FICO”, then move to criteria below.
1A FICO Score
Definition of “Thin FICO” is only one FICO score or less than 4 tradelines.
Minimum credit history of four tradelines active at least 24 months; no more than
nine open tradelines; no collection accounts or judgments within 24 months of
application.
1B Alternative to credit score No housing or payment delinquency within 24 months (not including delinquency on
(traditional method) foreclosed property); no delinquency on revolving or installment debt within 12
months of application.
No more than one revolving or installment account reflecting 30 day delinquency
during the 13-24 months preceding application.
Minimum four sources of non-traditional credit active at least 12 months.
Sources must include housing payment and utility companies. No delinquent
1C Alternative to credit (non-traditional
housing payments within 24 months of application (not including delinquency on
credit)
foreclosed property); maximum of one 30 day delinquency on remaining accounts;
no judgments.
Bankruptcies will be reviewed on a case by case basis. Loans will NOT be made to
borrowers who file bankruptcy due to financial mismanagement.
Bankruptcy
Borrower must provide complete bankruptcy papers and documented explanation
to support a one-time event beyond the borrower’s control.
Must disclose reason for foreclosure in detail.
If foreclosure is only derogatory credit and causes FICO to fall below minimum
Foreclosure
standard, there will be UW discretion on adjustment to FICO and second signature
will be required.
Tax Liens Must be paid prior to closing – no exceptions

2. Judgments All judgments must be paid prior to closing – no exceptions
First apply Credit guidelines from 1A/1B/1C as appropriate. If Credit guide is met
Collection Accounts collection(s) may remain unpaid if aged over 2 years, aggregate of $5000.00 or less
and 5% payment must be included in qualifying ratios.
If currently renting, the new PITI payment must be less than 150% of the prior rental
Payment Shock payment (including rental insurance). If not renting, must show average savings
equal to or greater than 100% of the new PITI over the past 12 months.
Residual Income Minimum $1,500.00 (monthly income less PITI)
Property Valuation Borrower will pay for independent appraisal
Property Ownership Fee simple with no encumbrances. Title Insured. No leased land.
Loan must be in first lien position encumbering the total property.
Property Insurance in joint names of beneficiary and borrower to cover the
Security Required replacement value of the property. The policy is to be index-linked if available.
Recorded Deed of Trust and Note signed by the borrower, with originals held at the
servicing agent’s office.
Supporting documents: 2 years tax returns, 2 months’ pay stubs, 2 months’ bank
Verification
statements, signed employment verification from employer.
Maximum Debt Ratios 31.00/43.00 No Exceptions
3 months PITI in a deposit account. Additional reserves may be used as a
Reserves
compensating factor.
The amount of cash on hand must be commensurate with the borrower’s
Cash on Hand
employment income and expenses. (Follow FHA on cash accumulation)
Borrowers may obtain a gift from individuals who are related to the borrower by
blood, marriage, adoption, legal guardianship or persons with a documentable,
established relationship with the borrower.
Must obtain fully executed gift letter which includes:
Donors Name(s)
Borrower(s)’ Name(s)
Relationship of Donor to Borrower
Gift Funds
Amount of gift
Statement that no repayment is expected
AND
Document transfer of funds with one of the following:
Copy of Donor’s check and borrower deposit slip
Copy of Donor’s withdrawal slip and borrower’s deposit slip
Copy of donor’s cashier check presented to the closing agent
Borrower will be provided HUD’s Settlement Cost Booklet with the GFE and will
Borrower Education & Counseling
acknowledge receipt of Booklet at closing.
All loans are serviced by Amerifirst Financial, Inc.
All loans must be impounded:
th
Property Insurance will be pre-paid for one year at the time of closing and 1/12 of
Servicing
the annual premium will be impounded per month.
th
Taxes will be paid current at closing and 1/12 of the yearly taxes will be impounded
per month.