Minimum Overlays:

Minimum Credit Scores:

Conforming 620, Conforming 97% LTV 660, USDA 640 with GUS approval, FHA 620 with approval and 640 for streamlines, VA 620 with AUS Approval

Maximum DTI:

USDA 29/41% Max, 29/45% with compensating factors/reserves.
VA 55% with AUS approval
FHA 55% with AUS approval

Minimum Loan Amount:

$70,000 FHA, USDA, VA, Conforming. $100,000 Non-QM.

Minimum Square Footage:

SFR – 800 square feet, Condo – 600 square feet.

Minimum time off market:

1 day for Rate/Term, 30 Days for a Cash Out.

  • Conforming loans must have approved AUS Findings
    A minimum of 2 credit scores per borrower is required.
  • MAI will only finance two properties per borrower and 4 total financed properties per each
    borrower. Spousal loans count as loans for borrower.
  • Power of Attorney permitted on Rate/Term loans and Purchase on an exception basis. One
    borrower must be present to sign.
  • Power of Attorney loans must also include an explanation of the extenuating circumstances.
  • No Hazard Insurance applications or Binders; a Dec page that is in force is required.
  • Deed Restricted Properties are not allowed except for certain Age restricted communities.
  • MAI does not lend on transactions we deem to be bailout situations.
  • Repairs noted on the appraisal must be completed prior to closing, no Escrow Holdbacks are
    allowed. Final inspection is required.
  • Manufactured homes are not eligible.
  • Properties must be held fee‐simple (leasehold properties are not eligible)
  • VOD’s are not permitted. Assets statements with all pages required.
  • MAI must pull the IRS transcripts (including amended returns) from the IRS prior to closing.
  • Short Pay/Interest Credit loans must closed by the 5th of the month.
  • Properties may not have an unexpired Redemption Period prior to closing.
  • Private Transfer Fee Covenants are generally ineligible. Conventional loans will only be
    reviewed if covenants were created prior to 2/08/2011. Clear documentation of the
    creation of the covenants and the permitted uses of the fees will be required.
  • No loans can close outside the United States and no funds can be sent abroad.
  • Non‐Occupant Co‐Borrower Income considered on exception basis only.
  • When rental income is used, a copy of the current lease is required.
  • Rental income on the subject property is not allowed when purchasing an investment property.
  • No loans for borrowers in the residential mortgage/real estate industry (this includes
    builder /construction).
  • MAI loans must close in the name of the borrower, not a trust or LLCs. Exceptions can be
    made on certain Non-QM/Non-QM to close in LLC.
  • 2-4 unit properties must be attached.
  • Max acreage for a property is capped at 20 acres and may not be a working farm or have
    excessive outbuildings. Limited exceptions may be granted on the number of acres we will
    allow, but only up to 5 additional acres.

State specific overlays

State specific overlays

  • FL investment condos are ineligible. Exceptions will be considered for established projects on
    loans with a maximum LTV of 70%, where DU offers a limited review of the project.”
  • Max condo LTV in FL is 80%.
  • All FHA to FHA Refinances must fund the same month they are signed (date of closing)
  • If borrower has a previous short sale/ pre‐foreclosure sale / deed‐in‐
    lieu/mortgage modification,it must be completed at least 36 months and one day prior to the
    current Case File Number Assignment Date based on the date the property was transferred
    out of the borrower’s name, not the bankruptcy discharge date.
  • FHA Financing through MAI is not allowed in deemed Military Impact Areas. Current counties
    are: Bryan, Camden & Liberty in GA. Jefferson, St. Lawrence & Lewis in NY.
  • Spot Condos/DELRAP approvals are not eligible.
  • To be eligible for a new government loan (FHA, VA or USDA) financed through MAI, the
    borrower may not have an outstanding previous government loan. Unless the previous
    government loan is being paid off by a government loan refinance.
  • FHA streamline refinances have a max CLTV of 125%.
  • Max CLTV/HCLTV 85% on Cash Out Transactions.
  • Borrower cannot pay any fees for the seller at closing (i.e. short sale fees, delinquent taxes)
  • Electronic signatures are allowed for any documents in the loan process, but wet signatures ar
    e-required for closing documents.
  • All noncash out FHA refinances (Streamline & Rate/Term), require a NTB form to be
    completed.
  • Manually Underwritten loans require a minimum credit score of 640 and must meet
    FHA compensating factors guidelines.

Overlays that apply to USDA loans

Overlays that apply to USDA loans

  • If borrower has a previous short sale/ pre‐foreclosure sale / deed‐in‐
    lieu / mortgage modification, it must be completed at least 36 months and one day prior to
    the current loan application based on the date the deed transferred out of the borrower’s na
    me.
  • Income must be calculated from current paystub; offer letter / awards letter stating borrower
    will be receiving a raise is not acceptable.
  • A full VOE (FNMA form 1005) and paystub is required for all occupants 18 and older who
    will reside in the subject property, regardless of if they are on the loan. This is for income
    eligibility verification.
  • To be eligible for a new government loan (FHA, VA or USDA) financed through MAI, the
    borrower may not have an outstanding previous government loan. Unless the previous
    government loan is being paid off by a government loan refinance.
  • On USDA loans, a borrower may not own any other housing.
  • Electronic signatures are not allowable for any documents in the loan process (wet signatures
    are required, copies of the forms with wet signatures are still permissible)
  • Minimum of 2 trade lines opened for a minimum of 12 months required (can be opened or
    closed accounts)

Overlays that apply to VA loans

Overlays that apply to VA loans

  • Max LTV/CLTV for Cashout transactions is 90% and must have AUS approval.
  • Manually underwritten loans require a minimum credit score of 640 and have a max DTI of
    50%.
  • If there is known or visible evidence of termite infestation, a clear termite inspection (with
    evidence of repairs, as applicable) must be obtained prior to closing.
  • Borrowers may only have a max of 2 outstanding VA loans, including our transaction,
    regardless of the amount of remaining entitlement.
  • Borrower and co-borrower must be married.
  • All VA full doc refinances require the VA’s Net Tangible Benefit Test (NTB), Refinance Comparison
    Certification, completed no later than the third business day after
    receiving the Veteran’s loan application.
  • Electronic signatures are allowed for any documents in the loan process, but wet signatures are
    required for closing documents.