The VIP – Rent & Own Guidelines Summary
The Rent-&-Own Mortgage Assiatance Program is available exclusively through Bill Drevyanko, PLLC and Ngoc (Trina) Huynh – licensed Arizona Realtors in partnership with Pinnacle Capital Mortgage Corporation. This program provides an opportunity for the non-prime customer to get on the path to home ownership. The ideal customer has a deposit, and ability to make payments but can’t get a mortgage due to credit or underwriting issues.
Rent & Own was designed for customers who have recently had a foreclosure, short-sale, or bankruptcy or who are self employed and have difficulty documenting their income, but have at least a 5% – 8% deposit and an interest in purchasing a SFR home to personally occupy.
The Rent-&-Own program focuses on three key criteria along with traditional guidelines. Specifically customers who:
v Have at least 5% – 8% to put down. (depends on property, price and location)
v Can demonstrate the ability to make a monthly payment.
v Are on track to repairing their credit issues and qualifying for a traditional mortgage within the next six years.
Minimum Property Value And Maximum Purchase Price – $150,000 minimum value and $2,000,000 max price. 5% deposit NOT allowed on purchase amounts above jumbo guidelines.
Property Type – SFR/PUD/Townhome No rural, no acreage.
Property Condition – Average or better Minimal deferred maintenance.
Occupancy – Owner occupied only
Income Documentation Types – W-2, bank statements. OK for self-employed (w/ previous tax returns). Wage earner: most recent 30-days paystubs and 2 yr W-2s; SE: Last 24mos bank stmts. & 2 years personal & business tax returns. (5)Required Monies To Be Deposited To Escrow Account
Total Required Monies To Be Deposited To Escrow Account – 5%-10%* deposit account plus 3%* transaction fees *based on purchase price of home. Sourced: If less than 2 months seasoning subject to further review and approval.
Reserves – 3 months. Calculated using YR 1 payment.
Debt-Ratio – Max 50%. Calculated using YR 6 investor payment.
VOR/VOM – 12 month history. No late payments without explanation, subject to further review.
FICO – Minimum of 550. Middle of 3, lower of 2.
Number of open trade lines – 3
Open Installment / Revolving – Must be current. See below (1)
Outstanding Charge-Offs – Up to $5000. See below. (1), (3)
Outstanding Collection Accounts – Up to $5000. See below (1), (3)
Outstanding Judgements / Liens – Up to $5000. See below (3)
Prior Bankruptcy – No seasoning required. Must be satisfied / discharged . (2), (3)
Short Sale, Deed in Lieu, Foreclosure – No seasoning required. Current short sale okay, subject to the terms of short sale. (4)
Disposable Income – $1000 + $500 per dependent.
Monthly Housing Payment Increase – Up to 25%
Residency -U.S., permanent resident aliens
• Any exception to above subject to prior review and approval.
(1) Any lates in the past 12 mos. needs an explanation, subject to further review.
(2) Current Chapter 13 okay with BK Trustee approval of transaction. Subject to review.
(3) Any open amount subject to further review, may include establishing satisfactory payment plan prior to approval, OR if established plan then paid current per terms.
(4) Verify: no deficiency balance financing that could exceed the debt ratio limitations.
(5) Both personal & business bank statements required if self-employed using bank statements for income documentation. Subject to further review. Bankruptcy Short Sale, Deed in Lieu, Foreclosure
- ALL applicants must provide 12 mos. personal bank statements.
- Any exception to above subject to prior review and approval.