KEY PRODUCT PARAMETERS
HeritageBank Financial Power
Jumbo Fixed and ARM Product Matrices
Eligible Products:
Product Description
30 Year Fixed Jumbo
15 Year Fixed Jumbo
5/1 ARM 30 Year Jumbo
7/1 ARM 30 Year Jumbo
10/1 ARM 30 Year Jumbo
Owner Occupied:
ARM Products:
5/1 (2-2-5), 7/1 & 10/1 (5-2-5)
Index: LIBOR / Margin 2.25%
Loan Purpose1
Property Type
Minimum Credit Score
720
1-Unit, PUD, Warrantable
Condo, Co-op
Purchase and
Rate/Term
Refinance5
700
700
720
2 Unit
700
1 Unit, PUD, Warrantable
Condo
Cash Out Refinance678
720
LTV/CLTV23
80 / 80
75 / 75
70 / 70
65 / 65
60 / 60
70 / 70
65 / 65
60 / 60
65 / 65
60 / 60
55 / 55
45 / 45
35 / 35
Maximum Loan
Amount4
$1,500,000
$1,750,000
$2,250,000
$2,750,000
$3,000,000
$1,500,000
$1,000,000
$1,500,000
$1,500,000
$1,750,000
$2,000,000
$2,500,000
$3,000,000
Second Home:
Loan Purpose
Property Type
Purchase and
Rate/Term Refinance23
Minimum Credit Score
LTV/CLTV23
Maximum Loan Amount
720
80 / 80
75 / 75
70 / 70
65 / 65
50 / 50
40 / 40
$1,000,000
$1,500,000
$1,750,000
$2,250,000
$2,500,000
$3,000,000
1 Unit, PUD, Warrantable
Condo, Co-op
Qualifying Rate (ARMs):
Product(s)9
Index Type
Margin
All
1 Year LIBOR
2.25
Look Back Period
Index Established Date = 45 Days Prior to
the Change Date
1
Conversion Feature
No
Non Arms-Length transactions are not eligible.
LTV/CLTV is reduced by 5% on properties in declining markets as indicated by the appraiser.
3 New subordinate financing allowed only up to maximum LTV/CLTV.
4 Frist Time Home Buyer Maximum Loan Amount is $1,200,000.
5 The refinancing of non-purchase money closed end and HELOC 2nd liens will be considered a rate/term refinance if they are seasoned ≥ 12 months and the draw on the HELOC is not greater
than $2,000 within the last 12 months.
6 For Cash Out transactions, maximum cash out amount permitted is $350,000 to 65% LTV/CLTV
7 For Cash Out transactions, maximum cash out amount permitted is $500,000 to 60% LTV/CLTV
8 To be eligible for a Cash Out refinance transaction, the loan being paid off must be seasoned for at least six months.
9 Unless other requirements are set forth by applicable law: 5/1 ARM must be qualified at Note Rate + 2% never less than the full indexed rate based on a fully amortizing principal and
interest payment; 7/1 and 10/1 ARM must be qualified at Note Rate based on a fully amortizing principal and interest payment.
2
Anne Davis, Account Executive at HeritageBank Financial
Phone | 404.812.9496
Email | ardavis@eheritagebank.com
KEY PRODUCT PARAMETERS
KEY UNDERWRITING PARAMETERS
Reserves/Funds to Close
Reserve
Requirements
Reserves – Primary Residence
Loan amounts up to $1,000,000; 6 months verified PITI (12 months for First Time Homebuyers)
Loan amounts $1,000,001 up to $1,500,000; 9 months verified PITI (18 months FTHB)
Reserves – Second Home
Loan amounts up to $1,000,000; 12 months verified PITI
Loan amounts $1,000,001 up to $1,500,000; 18 months verified PITI
For loan amounts above $1,500,000, contact your Account Executive for details.
If Borrower has more than 2 financed properties, an additional 6 months PITI is needed for each addition property.
Gifts from relatives are allowed (min 5% Borrower contribution required).
Not allowed: Gifts of Equity, Grant Funds, Pooled Funds, Builder Profits, Employer Assistance.
Business accounts are not eligible to help meet reserve requirements.
Income/Employment
DTI Ratio
Document Type
IRS Form 4506-T
43% DTI. FTHB Payment Shock not to exceed 250%.
Full documentation.
Required prior to closing.
Credit Report
General Underwriting
Mortgage History
Credit Report
Min Trade Lines
Qualifying Credit Score
Manual underwriting only.
0x30 – previous 24 months; Rental history evidenced by Institutional VOR or 24 months proof payment (12 months
for FTHB)
Tri-merged credit report. Alternative credit not permitted. Credit report good for 90 days.
Each Borrower’s credit profile must include a minimum of 3 open trade lines and meets the following requirements:
One must be open and active for 24 months, at least one of the 3 trade lines must be an installment or mortgage
account, and the remaining trade line must be rated for 12 months. For exceptions, contact Account Executive.
700 minimum (see product matrix) on page 1.
Other Criteria
Eligible Borrowers
U.S citizens, First Time home Buyer, Permanent Resident Aliens, Inter-Vivos Revocable Trust. For Non-Permanent
Resident Aliens, contact your Account Executive for details.
Appraisal
Purchase – two(2) appraisals needed for loans over $1,500,000; Refinance – two(2) appraisals needed for loans
over $1,000,000
Derogatory/Adverse Credit
Prior Bankruptcy (any type) not allowed; Prior Foreclosure, Short-Sale, or Deed-in-Lieu not allowed; Loan
Modifications are not permitted unless the modification is lender initiated and documented proof that it was not a
distressed situation is provided; All judgements or liens affecting title must be paid; non-title charge-offs and
collections exceeding $1,000 (either individually or in aggregate) must be paid; All past due accounts must be
brought current prior to closing; Cash out may not be used to pay down debt to qualify for the loan.
Seasoning
Refinance of property listed
for sale
Rate & Term/Cash Out
Definition
Cash-out refinance transactions with less than six (6) months seasoning since the most recent first mortgage
transaction (either the original purchase or most recent refinance) are ineligible. Rate & term refinance transactions
done less than six (6) months after purchase must use the lower of the sales price or appraised value.
Properties that have been listed for sale in the last six (6) months are ineligible.
For Rate & Term refinance transactions, the loan amount is limited to the sum of the following: 1) Existing first
mortgage payoff, 2) Any closing costs, fees, and prepaid items, 3) Any subordinate financing which was not used
to acquire the subject property, 4) Any subordinate financing that was not used to acquire property provided, a) or
for closed end subordinate liens, the loan is at least one year seasoned, b) for HELOCs and other open ended
lines of credit, the loan is at least one year seasoned and there have been less than $2,000 in total draws over the
past 12 months, and 5) Cash to the Borrower is no greater than $5,000. Limited cash out – less of 1% or $10,000.
This information has been prepared solely for Real Estate Professionals and is not intended for distribution to the general public.
**Program guidelines subject to change without notice. Please contact your HeritageBank Financial Account Executive with questions**
Anne Davis, Account Executive at HeritageBank Financial
Phone | 404.812.9496
Email | ardavis@eheritagebank.com