Pennsylvania Conforming 100% Combo Full Documentation Mortgage.  PA NO PMI & No Downpayment Fixed Rate Loan Guidelines.

PROGRAM DESCRIPTION:
The Pennsylvania 100% Combo Loan allows a PA residential first and second mortgage to be closed simultaneously to 100% CLTV for both purchase and rate/term transactions. This Loan can be structured with an 80% maximum first mortgage and a 20% second mortgage. Both first and second mortgage Loans must be with the same lender.  There is NO PMI and no downpayment. 
(Request Program "BJC" if you call our loan consultants.)

Second Homes & Investment Property: Not Allowed

No minimum credit score requirement.  Must have generally excellent credit.

REFINANCE:  
Properties listed for sale in last six months are ineligible for refinancing.

REFINANCE – LIMITED Cash Out:     Follows standard FNMA/FHLMC guidelines.
REFINANCE – CASH-OUT:                Not allowed.

SPECIAL PROPERTY TYPES:

• Eligible:   Modular, Pre-Cut and Panelized Housing: Follow standard FNMA requirements.
• Leasehold Estates: Follow standard FNMA requirements.
• Rural Properties – follow standard FNMA guidelines. The following restrictions apply:
  • Maximum lot size is 10 acres.
  • The area must have a minimum development of 25%
  • Appraisal must indicate a marketing time of 6 months or less.
  • All comparables must be located within five miles of the subject property.
• Not Eligible:  Manufactured Housing

PREPAYMENT PENALTY:      No                                   
LOAN TERMS:                       15-Years, 30-Years          
AMORTIZATION:                     Loan is fully self-amortizing.
BUYDOWN, TEMPORARY:     Not permitted                  

SPECIAL FEATURES AND SPECIFICATIONS:

• Construction to Permanent Financing:     Follows standard FNMA/FHLMC guidelines.
• Non-Arm’s Length Transactions:             Allowed  (i.e. when a parent sells a house to a child).
• ESCROW WAIVER:                              Allowed up to an 80% LTV.
• ASSUMABILITY:                  No
• APPRAISAL:                       One full appraisal report is required.
• CONTRIBUTIONS TO CLOSING COSTS: Maximum 3% seller contributions allowed.
• RESERVES:                        2 months PITI liquid reserves is recommended.
• D/P ASSIST. PROGRAMS Not allowed.
• NON-OCCUPYING COBORROWER: Not allowed
• FOREIGN BORROWER Permanent resident aliens are eligible for financing under the same terms as U.S. citizens.
  Non-permanent resident aliens, borrowers with diplomatic immunity and Foreign Nationals are not permitted.
• MULTIPLE PROPERTIES: No restrictions.

CLOSING COSTS:
Interested party (Seller/Lender) contributions are permitted up to 3% of the lesser of the sales price or appraised
value. The combination of LTV and interested party contributions cannot exceed 103% of the lesser of the
sales price or appraised value.

Contributions may be applied to closing costs and prepaid items that exceed the borrower’s required
contribution into the transaction, but should never exceed actual closing costs and prepaid expenses. Borrowers
must meet minimum contribution requirements before using interested party funds.

• DOWN PAYMENT, CLOSING COSTS, AND GIFT FUNDS
  Down Payment:
  There is no minimum down payment required.
  Borrower must contribute at least $500 of their own funds*, or 3% from acceptable source of funds (see
  below) towards closing costs and prepaid expenses.
  *Interested party contributions and premium pricing, subject to standard contribution limits, can be applied
  to any amount above the borrower’s initial $500. Also, funds from acceptable sources can be applied to
  any amount above the borrower’s initial $500 contribution.
  Source of Funds:
  In addition to the borrower’s own funds and eligible subordinate financing, the following are acceptable sources for
  the 3% borrower contribution towards closing costs and prepaid expenses, and any optional down payment:
  • Gift or unsecured loan from relative**, domestic partner, or fiancé/fiancée.
  • Grants from non-profit agencies that do not require repayment.
  • Unsecured loans from a non-profit organization, government agency, or borrower’s employer. (If an
    unsecured loan is from the borrower’s employer, it cannot be due and payable in the event that the
    employment relationship is terminated; the borrower must retain the right to continue making payments on
    the loan.)
    
    **Relative is defined as: Borrower’s spouse, child or dependent, or any other individual related to the borrowers by
    blood, marriage, adoption, or legal guardianship.

DOCUMENTATION REQUIREMENTS:    Full/Alt documentation is required.
MORTGAGE INSURANCE (PMI):  N/A
 

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