Loan Product Placement Matrix©

Loan Product Placement Matrix©

Pre qualify to complete the online loan application

Do not use this for the Freedom 70 Loan

Please print this form and fill out by hand

Name:_________________________

Address:__________________________________

INCOME:

Monthly Gross Income $______________(A)

Monthly Debt $____________(B) (All required monthly payments including estimated house payment, do not include utilities, insurance, groceries, clothing)

Debt Ratio:________% (Debt Divided By Income, B divided by A)

(45% or Less = 0 points) (45% and Above = 4 points)

1. Score:______

Credit Rating:

Late Pays In Last 12 Months:

______30 days Late _______60 days late ______90 days late (3 or less 30 days late only = 0 points or a credit score greater than 620 = 0 points) (3-5x30 days late only = 4 points) (30 day late plus 1x 60 day = 8 points) (30 days & 60 days & 90 days late = 12 points)

2. Score: _______

Have you file bankruptcy in past 12 months (yes = 20 points, no = 0 points) Have you file bankruptcy in past 48 months (yes = 10 points, no = 0 points)

3. Score: _______

Down Payment & Closing Costs:

Source of down payment and closing cost monies?

(Your own money i.e. sale of home, home equity, savings, checking, investments or VA eligible = 0 points) (gift, seller carry back, or second Purchase mortgage = 3 points)

Down payment is the difference between the purchase price and the loan amount.

Refinance home loans do not require a down payment.

Closing costs (not for second mortgages or mobile homes) may be estimated by the following:

For a purchase add the total point(s) for the rate you have selected form the rate sheet and 2.5% of the loan amount.

For a refinance add the total point(s) for the rate you have selected form the rate sheet and 1.5% of the loan amount.

Note: The above is only a very rough method to estimate closing costs and that closing costs will very per your specific closing along with federal, state and local requirements.

4. Score: _______

Grading Scale:

Total Score: _______ (Add Scores 1+2+3+4)

0-2 points = conforming Fannie Mae/Freddie Mac/Jumbo or VA/ Unit Only (manufactured/mobile home)

3-11 points = A to A- credit paper (subprime mortgage loan, includes manufactured homes)

12-15 points = B to B- credit paper (subprime mortgage loan, no manufactured homes)

16 - 20 points = C to C- credit paper (subprime mortgage loan, no unit only manufacture home)

20 points & above = D to D- credit paper (Subprime mortgage loan, no manufactured home)

Please review the Loan Category Definitions© for a better understanding of how to utilize the final score. Note: This is not for use in calculating Second Mortgage Loans . For more specific information and a list of possible closing costs please see the Closing and Closing Costs.

As with any grading system, exceptions can and will be made for different circumstances. This work sheet is intended to help prospective borrowers have an idea of what they may encounter when requesting financing. This is strictly an estimate and gives no guarantee that this grade will be given to the borrower or their loan will be approved.

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