Cascade Loan Program Underwriting Guidelines

Comprehensive vocabulary flashcards covering underwriting credit, income, QM thresholds, collateral sufficiency, and VOE rules across Portfolio, FHA, VA, and Freddie Mac loan programs.

Community Park Waiver

A waiver document that is required for Chattel Community loans but marked as NA for Chattel Private Property loans.

Portfolio Chattel Minimum FICO

A minimum credit score of $575$; borrowers with a score $\\ge 575$ but $< 600$ must maintain a DTI of $\\le 43\\%$ and meet $1.5$ VA Residual Income requirements.

8% PTI to DTI Spread

A portfolio underwriting condition triggered when a borrower's credit score is $< 620$ and their down payment is $< 11\\%$.

Portfolio Chattel Triplewide Maximum Loan Amount

A maximum loan amount limit of \\$120{,}000 for triplewide manufactured homes.

Portfolio Chattel Maximum Housing Expense Ratio

A standard maximum of $31\\%$ and a maximum stretch ratio of $37\\%$ (permitted if total housing expense does not exceed the current payment by $25\\%$ with a $12$-month clean payment history).

Portfolio Chattel Serious Delinquencies

An ineligibility rule triggered if ALL three conditions exist: a past foreclosure/bankruptcy/judgment/tax lien/auto repo; non-medical collections or charge-offs exceeding \\$5{,}000; and a low decision credit score below $600$.

Oil & Gas Industry Instability Policy

A portfolio underwriting guideline mandating a decline for applicants working in the oil and gas industry unless they are employed as a truck driver.

Short Term, Closed-End Debt Exclusion (Portfolio)

The exclusion of closed-end debt from liabilities if $10$ months or fewer remain and total payments of short-termed debts are $< 5\\%$ of total income (excluding auto leases and recurring loans).

Portfolio LandSmart Maximum Loan Amount

A loan cap of \\$524{,}225 under Portfolio LandSmart Purchase guidelines.

Land in Lieu (Portfolio LandSmart QM)

Financing where the borrower owns or is gifted land; no USPAP appraisal is required, and land value is set at $100\\%$ of the free and clear tax assessed value or $80\\%$ of the free and clear BPO market value.

Realistic Residency Test

A portfolio loan requirement where the period of realistic residency must be $> 15$ years; if the probability of mortality $p(\\text{Mortality}) > 25\\%$, the loan must conform to specific down payment and term overlays.

Realistic Occupancy Age Limit (Portfolio)

A rule requiring realistic occupancy review for borrowers aged $60+$ and mandating a loan decline if the borrower's age is $79+$ (where $p(\\text{Mortality}) > 83\\%$).

FHA Programs Minimum FICO

A qualifying credit score requirement of at least $600$ across FHA purchase, refi, 1x close, and backend programs.

FHA Maximum Financing Ratios

A maximum housing expense ratio of $47\\%$ and a maximum total debt-to-income ratio of $57\\%$, both subject to LP Accept.

FHA Collections Guideline

A rule stating that if cumulative collection balances are \\ge \\$2{,}000, $5\\%$ of the balance must be added to monthly liabilities (excluding medical, charge-offs, mortgages, and bankruptcy accounts).

FHA Disputed Derogatory Credit Accounts

A requirement to decline the loan if cumulative disputed derogatory balances exceed \\$1{,}000, excluding medical accounts.

VA Programs Minimum FICO

A Cascade overlay requirement of $620$, even though the VA agency guidelines do not have an official minimum credit score requirement.

VA Job Gap Definition

An employment gap defined by the VA as $60+$ days, requiring $12$ months in the same line of work and a $2$-year consecutive total work history.

VA Bonus Entitlement Base Loan Amount

A threshold specifying that if VA bonus entitlement is utilized, the base loan amount must be \\$144{,}001 or greater.

VA Student Loan Payment Calculation

A liability calculation taking the greater of the existing payment or $5\\%$ of the outstanding balance divided by $12$ (payment omitted if deferred at least $12$ months from closing).

Freddie Mac (CONV) Mortgage Insurance Threshold

A conventional requirement where private mortgage insurance (MI) is mandatory whenever the LTV is $> 80\\%$.

Freddie Mac (CONV) Maximum Number of Borrowers

A maximum allowance of $5$ borrowers on a file; files with more than $5$ borrowers require a manual underwrite.

Freddie Mac Foreclosure Seasoning

A waiting period requiring $36$ months from the completion date reported on the credit report before a borrower is eligible for a Freddie Mac conventional loan.

Freddie Mac QM Threshold (Manufactured Home < $130,461)

A General QM APR-to-APOR threshold limit of $6.5\\%$ for manufactured home loans under \\$130{,}461.

VOE Requirement: W2 Truck Driver (< 1 Year on Current Job)

A Verification of Employment standard requiring a Written VOE to confirm start and end dates at previous employers and verify payment was also per mile or load.

VOE Requirement: Traveling Nurse

An employment verification rule requiring W-2 forms or a written VOE regardless of tenure.