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  • Welcome to the Homium Underwriting Bible
  • 📄Loan Application
    • Documenting the Loan Application Package
      • Requirements for Loan Application Package
  • 📋Eligibility
    • Mortgage Eligibility
      • Principal Residence Properties
      • Calculation of the LTV Ratio
      • Calculation of the CLTV Ratio
      • Transaction Types
      • Loan Limits
      • Loan Eligibility
      • Eligible First Liens
      • Subordinate Financing
      • Legal Requirements
    • Borrower Eligibility
      • Non US Citizen Eligibility
      • Multiple Financed Properties
      • Guarantors, Cosigners, and Non Occupying Co-borrowers
      • Inter Vivos Revocable Trust
        • Inter Vivos Revocable Trust as Eligible Mortgagor
        • Originator Requirements
        • Trust and Trustee Requirements
        • Loan Eligibility
        • Underwriting Considerations
        • Title and Title Insurance Requirements
    • Property Eligibility
      • Number of Units
      • Property Location
      • Property Requirements
      • Ineligible Properties
      • Leasehold Estates
        • Lease Requirements
        • Additional Eligibility Requirements
        • Option to Purchase Fee Interest
      • Accessory Dwelling Units
        • Construction of an ADU
        • Zoning for an ADU
      • Multiple Parcels
      • Mixed-Use Properties
      • Properties with Solar Panels
        • Leased or PPA Solar Panels
      • Properties affected by Natural Disasters
  • 🧑‍🤝‍🧑Underwriting Borrowers
    • Manual Underwriting
    • Income Assessment
      • Stable and Predictable Income
        • Determining the Need for Federal Income Tax Returns
        • Verification of Income for Non-U.S. Citizen Borrowers
        • Income Paid in Virtual Currency
      • Standards for Employment Documentation
        • Employment Documentation Provided by the Borrower
        • Employment Documentation Provided by the Borrower’s Employer
        • Employment Documentation Provided by a Third-Party Employment Verification Vendor
      • Sources of Income and Documentation
        • Base Income Calculation Guidelines
        • Military Income
        • Other Sources of Income and Documentation
          • Verification of Commission Income
          • Seasonal or Secondary Employment
            • Verification of Secondary Employment Income
            • Verification of Seasonal Income
          • Documentation Requirements for Current Receipt of Income
          • Alimony, Child Support, or Separate Maintenance
          • Automobile Allowance
          • Boarder Income
          • Capital Gains Income
          • Disability Income — Long-Term
          • Employment Offers or Contracts
          • Employment-Related Assets as Qualifying Income
          • Foreign Income
          • Foster-Care Income
          • Housing or Parsonage Allowance
          • Interest and Dividends Income
          • Notes Receivable Income
          • Public Assistance Income
          • Retirement, Government Annuity, and Pension Income
          • Royalty Payment Income
          • Schedule K-1 Income
          • Social Security Income
          • Temporary Leave Income
          • Tip Income
          • Trust Income
          • VA Benefits Income
        • Self Employed/Rental Income Documentation
          • Factors to Consider for a Self-Employed Borrower
          • Length of Self-Employment
          • Verification of Income
        • Reserve and Asset Requirements
    • Credit Assessment
      • General Requirements for Credit Scores
        • Minimum Credit Score Requirements
        • Exceptions to the Minimum Credit Score Requirement
      • Determining the Credit Score to Use
        • Foreign Credit Reports and Credit Scores
      • Requirements for Credit Reports
        • General Requirements
        • Public Records Information
        • Acceptable and Unacceptable Changes
        • Required Creditor Information
        • Format for Reporting Payment History
        • Inquiries/ Unreported Debts
        • Assessing Borrower Credit Management Skills
        • Credit Score Requirements
      • Types of Credit Reports
        • In-File Credit Reports
        • Automated Merged Credit Reports
        • Residential Mortgage Credit Reports
      • Accuracy of Credit Information in a Credit Report
        • Disputed Tradelines
      • Number and Age of Accounts
      • Payment History
      • Mortgage Payment History
        • Standard Mortgage Verifications from Servicers
        • Existing Mortgage Payment Requirements
        • Excessive Mortgage Delinquency
      • Authorized User Accounts
        • Consideration of Authorized User Accounts
      • Significant Derogatory Events and Applicable Waiting Periods
        • Identification of Significant Derogatory Credit Events in the Credit Report
        • Bankruptcy
        • Foreclosure
        • Foreclosure and Bankruptcy on the Same Mortgage
        • Deed-in-Lieu of Foreclosure, Pre-foreclosure Sale, and Charge-Off of a Mortgage Account
        • Requirements for Re-establishing Credit
      • Extenuating Circumstances and Applicable Waiting Periods
      • Non Traditional Credit Report
        • Unacceptable Uses
        • Homium Underwriting: At Least One Borrower Has No Credit Score
        • Homeownership Education
        • Number of Nontraditional Credit References Required
        • Eligible Types of Nontraditional Credit References
        • General Documentation Requirements
        • Rental Payment History
        • Standards for Individual Credit References Obtained Directly from a Creditor
        • Standards for Documenting a Nontraditional Payment History Obtained From the Borrower
        • Verification of Bank Accounts and Wire Remittance Statements
        • Borrowers with Disabilities
        • Assessment of the Payment History for Nontraditional Credit References
    • Liability Assessment
      • Monthly Obligations Not Included in Liabilities
      • Liability Qualifying Impact
        • ATR Assesment
      • Qualifying Impact from Other Real Estate Owned
        • Mortgage Assumption
        • Property Settlement Buyout
  • 🏘️Underwriting Property
    • Appraisal Requirements
      • Definition of Market Value
      • Originator/Underwriter/AMC Responsibilities
        • Confirmation and Documentation of the Current Owner
        • Objective and Unbiased Appraisals
        • Reporting Unfavorable Conditions
      • Appraiser Selection Criteria
        • Appraiser License and Certification
        • Appraiser Trainees
        • Knowledge and Experience
        • Selection of the Appraiser
        • Supervisory Appraiser
      • Unacceptable Appraisal Practices
      • Appraisal Age and Use Requirements
        • Multiple Appraisals of the Subject Property
      • Appraisal Report Forms and Exhibits
        • List of Appraisal Report Forms
        • Exhibits for Appraisals
        • Appraiser Certifications and Limiting Conditions
      • Hybrid Appraisals
        • Completing the Form 1004 Hybrid
        • Eligible/ Ineligible Transactions
      • Improvements, Alterations and Repairs
        • Form 1004D
      • Review of the Appraisal Report
        • Appraisal Report Analysis
      • Subject Section of the Appraisal Report
        • Contract Section
      • Neighborhood Section of the Appraisal Report
        • Neighborhood Analysis
      • Site Section of the Appraisal Report
        • Site Analysis
        • Subject Property Zoning
        • Highest and Best Use
        • Adjoining Properties
        • Site Utilities
        • Off-Site Improvements
        • Community-Owned or Privately Maintained Streets
        • Special Flood Hazard Areas
      • Improvements Section of the Appraisal Report
        • Conformity of Improvements to Neighborhood
        • Unique Housing Types
        • Actual and Effective Ages
        • Remaining Economic Life
        • Energy Efficient Improvements
        • Layout and Floor Plans
        • Gross Living Area
        • Gross Building Area
        • Accessory Dwelling Units
        • Additions without Permits
        • Properties with Outbuildings
      • Property Condition and Quality of Construction
        • Property Condition
        • Property Condition Ratings
        • Identifying Property Condition
        • Definitions of Not Updated, Updated, and Remodeled
        • Appraisals Completed “As Is”
        • Quality of Construction Rating
        • Identifying Quality of Construction
        • Physical Deficiencies That Affect Safety, Soundness, or Structural Integrity of the Subject Property
        • Infestation, Dampness, or Settlement
      • Sales Comparison Approach Section of the Appraisal
        • Data and Verification Sources of Comparable Sales
        • Prior Sales History of the Subject and Comparable Sales
      • Comparable Sales
        • Minimum Number of Comparable Sales
        • Age of the Comparable Sales
        • Additional Requirements for New (or Recently Converted) Condos, Subdivisions, or PUDS
        • Rural Properties
        • Use of Foreclosures and Short Sales
      • Adjustments to Comparable Sales
        • Sales or Financing Concessions
        • Date of Sale and Time Adjustments
        • Appraiser’s Comments and Indicated Value in the Sales Comparison Approach
      • Cost and Income Approach to Value
        • Income Approach to Value
      • Valuation Analysis and Reconciliation
        • Reconciliation
      • Condo Appraisal Requirements
      • Leasehold Appraisal Requirements
        • Appraisal Requirements for Leasehold Interests
        • Comparable Selection Requirements for Leasehold Interests
      • Mixed Use Appraisal Requirements
        • Appraisal Requirements for Mixed-Use Properties
      • Environmental Hazards Appraisal Requirements
        • Appraisal Requirements
        • Underwriter Requirements
    • Project Standards
      • General Information on Project Standards
        • Project Documentation
        • Condominium Project Questionnaire
        • Project Types
        • Project Review Methods
        • Waiver of Project Review
        • Requirements Applicable to All Properties in a Condo or PUD Project
        • Delivery Requirements
        • Expiration for Project Reviews
      • Ineligible Projects
        • List of Ineligible Project Characteristics
        • Projects that Operate as Hotels or Motels
        • Projects Subject to Split Ownership Arrangements
        • Projects that Contain Multi-Dwelling Unit Condos
        • Projects with Property that is not Real Estate
        • Projects that Operate as a Continuing Care Community or Facility
        • Non-Incidental Business Arrangements
        • Commercial Space and Mixed-Use Allocation
        • Recreational Leases and Mandatory Memberships
        • Live-Work Projects
        • Litigation or Pre-litigation Activity
        • Single-Entity Ownership
      • Environmental Hazard Assessment
        • Types of Environmental Hazard Assessments
        • Phase I Environmental Hazard Assessment
        • Phase II Environmental Hazard Assessment Description
          • Who Should Complete the Phase II Environmental Hazard Assessment
          • Phase II Environmental Hazard Assessment Report Forms and Requirements
          • Kinds of Testing or Sampling Under Phase II Environmental Hazard Assessments
        • Results of an Environmental Hazard Assessment
      • Limited Review
        • Transactions Eligible for a Limited Review
        • Limited Review Eligibility Requirements
      • Full Review
        • Unit and Project Types Eligible for Full Review
        • Full Review Eligibility Requirements
        • Replacement Reserve Studies
      • Additional Requirements for New or Newly Converted Projects
        • Condo Project Legal Document Review Requirements for Units in New or Newly Converted Projects
      • Other Project Review Approvals
        • Project Requirements
      • Projects with Special Considerations
      • Eligibility Requirements for Properties in a PUD
        • Eligibility Requirements for Units in PUD Projects
  • 🌠Unique Eligibility and Underwriting Considerations
    • Property Specific Considerations
  • 👨‍🏫Insurance
    • Title Insurance
      • Title Insurer Requirements
        • Insurer Covered by Reinsurance
        • General Title Insurance Requirements
          • Terms of Coverage
          • Effective Date of Coverage
          • Amount of Coverage
          • Other Requirements
        • Title Exceptions and Impediments
          • Minor Impediments to Title for Homium Loans
          • Title Impediment
    • Property and Flood Insurance
      • General Property Insurance Requirements for all Property Types
        • Property Insurer Rating Requirements
        • Exceptions to Insurer Rating Requirements
        • Other Exceptions to Property Insurance Requirements
      • Property Insurance Requirements for 1-4 Family Properties
        • Determining the Required Coverage Amount
        • Deductible Requirements
      • Master Insurance Requirements for Properties in a Project
        • Determining if a Master Property Insurance Policy is Required
        • Coverage Requirements
        • Determining the Required Coverage Amount
        • Deductible Requirements
        • Special Coverage Requirements for Project Developments
        • Special Coverage Requirements for Condo Projects
        • Builder/Developer Property Insurance Policies
        • Policies Covering Multiple Projects
      • Individual Insurance Requirements for Properties in a Project
        • Determining if an Individual Property Insurance Policy on a Unit in a Project Development is Require
        • Coverage Requirements
        • Determining the Required Coverage Amount
        • Deductible Requirements
      • Additional Insurance Requirements
        • Optional Credit Life or Mortgage Loan Insurance
      • Flood Insurance Requirements for all Property Types
        • Determining if Flood Insurance is Required on Specific Structures
        • Community Eligibility
        • Acceptable Flood Insurance Policies
        • Requirements for One-to Four-Unit Properties
        • Requirements for Project Developments
        • Deductible Requirements
      • Evidence of Property Insurance
        • Certificates of Property Insurance
        • Master Property Insurance Policies for Project Developments
      • Mortgagee Clause, Named Insured and Notice of Cancellation Requirements
        • Named Insured for Property and Flood Insurance
        • Notice of Cancellation for Property Insurance
    • Liability and Fidelity/Crime Insurance Requirements for Properties in a Project
      • General Liability Insurance Requirements for Properties in a Project
        • Coverage Requirements
        • Determining the Required Coverage Amount
        • Named Insured
      • Fidelity/Crime Insurance Requirements for Properties in a Project
        • Coverage Requirements
        • Determining the Required Coverage Amount
        • Named Insured
  • 🧑‍⚖️Closing/Legal Document
    • General Information on Legal Documents
    • Notes
      • Notes for Shared Appreciation
      • Signature Requirements for Notes
        • Signature Requirements: Powers of Attorney and Guardianship
    • Riders and Addenda
      • Uniform Riders and Fannie Mae-Specific Riders to Security Instruments
    • Special Purpose Legal Documents
      • Inter Vivos Revocable Trust Documentation and Signature Requirements
        • Signature Requirements When the Borrower is Individual and Inter Vivos Revocable Trust is Mortgagor
        • Trustee Exclusion from Personal Liability
        • Defining the Responsible Borrower in an Inter Vivos Revocable Trust
        • Requirements for Revocable Trust Riders
      • Requirements for Use of Power of Attorney
        • General Exception to Power of Attorney Requirements
        • Eligibility Requirements for Using a Power of Attorney
      • MERS Requirements
        • Requirements for the Use of MERS in Specified Geographic Areas
        • Use of the MIN
    • Security Instruments
      • Security Instruments for Shared Appreciation
        • Standard Homium Shared Appreciation Mortgage Security Instruments
      • Signature Requirements for Security Instruments
        • Signature Requirements: Powers of Attorney and Guardianship
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  1. Underwriting Borrowers
  2. Credit Assessment
  3. Non Traditional Credit Report

Homium Underwriting: At Least One Borrower Has No Credit Score

If one or more borrowers on the loan does not have a credit score and is relying on nontraditional credit to qualify, the following requirements apply:

  • At least one borrower must document a rental payment history as one nontraditional credit reference.

  • A nontraditional credit history must be documented for each borrower without a credit score. See Documentation and Assessment of a Nontraditional Credit History, for additional information.

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Last updated 1 year ago

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