5103.1 Mortgages including a non-occupying Borrower (07/06/17)

When a Mortgage includes a non-occupying Borrower the following apply:

For Manually Underwritten Mortgages and A-minus Mortgages, the loan-to-value ratio must not exceed 90%
For Accept Mortgages and A-minus Mortgages, the Seller is not required to calculate or evaluate the occupant Borrower's monthly housing expense-to-income ratio or the occupant Borrower's monthly debt payment-to-income ratio
For Manually Underwritten Mortgages, the occupant Borrower's monthly housing expense-to-income ratio should not exceed 35% of the occupant Borrower's stable monthly income and the occupant Borrower's monthly debt payment-to-income ratio must not exceed 43% of the occupant Borrower's stable monthly income
For Manually Underwritten Mortgages, Loan Product Advisor® A-Minus Mortgages and Loan Product Advisor Accept Mortgages, the funds used to qualify for the Mortgage may come from the occupant and/or the nonoccupant Borrower