FHA 4000.1 Guidelines

CMG FHA 4000.1 Guidelines

All CMG Financial Guidelines will follow FHA/Ginnie

Mae Guidelines (the HUD Handbook) in addition to

CMG Financial overlays, when applicable.

Handbook 4000.1 is the Mortgage Credit Analysis Handbook for 1-4 Family Mortgage Loans. This is

the handbook that will be followed for 203(b) and 234(b) programs.

CMG Financial, a Division of CMG Mortgage Inc.

NMLS #1820

Corporate Headquarters:

3160 Crow Canyon Rd. Ste. 400

San Ramon, CA 94583

CMG FHA Guidelines

Updated 06/11/2024

CMG FHA 4000.1 Guidelines

0

Part A ¨C Borrower Eligibility

4

A-1 ¨C Citizenship or Residency Status

4

A-2 ¨C Eligible Borrowers

5

A-3 ¨C Ineligible Borrowers

5

A-4 ¨C Power of Attorney

6

A-5 ¨C Living Trust (Inter vivos Revocable Trust)

7

Part B ¨C Property Ownership Restrictions

8

B-1 ¨C Multiple Loans to One Borrower

8

B-2 ¨C Multiple Financed Properties

8

Part C ¨C Occupancy

C-1 ¨C Primary Residence

Part D ¨C Underwriting Documentation

8

8

9

D-1 ¨C Age of Documents

9

D-2 ¨C Acceptable Documents

9

D-3 ¨C Electronic Signatures

10

D-4 ¨C Fraud Detection Tools

10

Part E ¨C Application

12

E-1 ¨C Application

12

Part F ¨C Credit Analysis

13

F-1 ¨C Credit Report

13

F-2 ¨C Credit Score

13

F-3 ¨C Credit History

13

F-4 ¨C Credit Bureau Analysis

14

F-5 ¨C Credit Inquiries/Attestation

14

F-6 ¨C Non-Traditional Credit

14

F-7 ¨C Manual Downgrades/Manual Underwriting

14

Part G ¨C Evaluating Income

17

G-1 ¨C Evaluating Income

17

G-2 ¨C Verbal Verification of Employment

17

G-3 ¨C Tax Transcript Policy

19

G-4 ¨C Stable Monthly Income

19

G-5 ¨C Non-Taxable Income

21



Information in these guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies.

Information is accurate as of the date of publishing and is subject to change without notice. The Guidelines outlined apply to Agency loans submitted to

TOTAL Scorecard. In addition to applying these CMG-specific overlays, all loans submitted to TOTAL Scorecard must comply with the AUS Findings

and FHA/Ginnie Mae requirements. To verify our state licenses, please log onto the following website: and



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CMG FHA Guidelines

Updated 06/11/2024

G-6 ¨C Expected/Projected Income

21

G-7 ¨C Salary, Commission, and Bonus

21

G-8 ¨C Part Time, Second Job, and Seasonal Income

22

G-9 ¨C Military Income

23

G-10 ¨C Rental Income

23

G-11 ¨C Other Sources of Income

23

G-12 ¨C Self-Employment Income

28

G-13 ¨C Unacceptable Income Sources

31

Part H ¨C Asset Assessment

32

H-1 ¨C Asset Assessment & Required Reserves

32

H-2 ¨C Depository Accounts

33

H-3 ¨C Gift Funds

33

H-4 ¨C Retirement Accounts

34

H-5 ¨C Stocks, Bonds, and Mutual Funds

35

H-6 ¨C Employer Assistance

35

H-7 ¨CSale of Real Property

35

H-8 ¨C Sale of Personal Assets

36

H-9 ¨C Rent Credit (Lease Purchase or Option to Purchase)

36

H-10 ¨C Business Accounts

36

H-11 ¨C Cash on Hand

36

Debt & Liability Assessment

37

I-2 ¨C Monthly Debt

37

J-1 ¨C Eligible Collateral

42

J-2 ¨C Ineligible Collateral

43

J-3 ¨C Manufactured Homes

43

J-4 ¨C Appraisal Documentation

43

J-5 ¨C Appraisal Forms and Exhibits

44

J-6 ¨C Appraisal Transfers

45

J-7 ¨C Appraisal Assessment

45

J-8 ¨C Appraisal Repairs

45

J-9 ¨C Properties Subject to Age Restrictions

46

Part K ¨C Geographic Restrictions

46



Information in these guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies.

Information is accurate as of the date of publishing and is subject to change without notice. The Guidelines outlined apply to Agency loans submitted to

TOTAL Scorecard. In addition to applying these CMG-specific overlays, all loans submitted to TOTAL Scorecard must comply with the AUS Findings

and FHA/Ginnie Mae requirements. To verify our state licenses, please log onto the following website: and



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CMG FHA Guidelines

Updated 06/11/2024

K-1 ¨C Geographic Restrictions

Part L ¨C Disaster Policy

46

46

L-1 ¨C General Information

47

Part M ¨C Escrow Holdbacks

48

M-1 ¨C General Information

48

Part N ¨C Property Insurance

48

N-1 ¨C Escrows for Taxes and Insurance

48

N-2 ¨C Hazard Insurance

48

N-3 ¨C Flood Insurance

53

Part O ¨C Title Insurance

55

O-1 ¨C General Requirements

55

O-2 ¨C Title Company Requirements

55

O-3 ¨C Closing Agent Requirements

55

O-4 ¨C Closing Attorney Requirements

55

Part P ¨C Temporary Buydowns

57

Part Z - Recent Updates / 90 Day Lookback

58



Information in these guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies.

Information is accurate as of the date of publishing and is subject to change without notice. The Guidelines outlined apply to Agency loans submitted to

TOTAL Scorecard. In addition to applying these CMG-specific overlays, all loans submitted to TOTAL Scorecard must comply with the AUS Findings

and FHA/Ginnie Mae requirements. To verify our state licenses, please log onto the following website: and



Page |3

CMG FHA Guidelines

Updated 06/11/2024

Part A ¨C Borrower Eligibility

A-1 ¨C Citizenship or Residency Status

Borrowers must be US Citizens or document their non-US Citizen status using the following guidelines:

Required Identification

All borrowers are required to have a valid driver¡¯s license, state issued identification or passport on all transactions.

Permanent Resident Alien

Individuals granted permanent residence status in the U.S. also includes refugees and others seeking political asylum.

Documentation is commonly referred to as a ¡®Green Card'. Permanent Resident Aliens must provide any of the following

documents to validate acceptable status:

? Permanent Resident Card (USCIC form I-551)

o May be issued as a conditional right to reside for individuals seeking residency through marriage to a US

Citizen/ Permanent Resident Alien or based on a financial investment in a US business.

o These cards have an expiration date and are valid for two years

o At the end of two years the individual must apply for an unconditional right to reside or risk losing their

permanent resident status.

o Cards due to expire within 90 days must be accompanied by a copy of the USCIS form I-751 (Petition to

Remove Conditions on Residence) or USCIS form I-829 (Petition by Entrepreneur to Remove Conditions)

filing receipt.

o Cards may be issued without conditions and are valid for 10 years.

o Cards that are due to expire within six months must be accompanied with a copy of the USCIS form I-90

(Application to Replace Permanent Resident Card) filing receipt.

? Unexpired Foreign Passport

o Must contain an unexpired stamp reading ¡°Processed for I-551 Temporary Evidence of Lawful Admission

for Permanent Residence. Valid until mm-dd-yy.

All Non- U.S. Citizen Borrowers

Non US Citizens must have current acceptable documentation from the Bureau of Citizenship and Immigration Services

(BCIS) (formerly the Immigration and Naturalization Service or INS) within the Department of Homeland Security,

evidencing the person's legal residency status in the United States.

Non-Permanent Resident Alien

Non-permanent resident aliens are individuals seeking temporary entry to the U.S. for a specific purpose, either business

or pleasure. This group may include intra-company transferees, temporary workers/trainees, visitors for business or

pleasure, students, etc. Various types of visa classification documentation will apply. Refer to the BCIS/INS for specifics at



A Borrower who is a non-permanent resident alien may be eligible for FHA-insured financing provided:

? the Property will be the Borrower¡¯s Principal Residence;

? the borrower has valid Social Security Number;

? the Borrower is eligible to work in the United States, as evidenced by the Employment Authorization Document

issued by the USCIS;

? the Borrower satisfies the same requirements, terms and conditions as those for U.S. citizens; and

? All non-permanent resident aliens must provide evidence of an acceptable visa. Acceptable visas include but are

not limited to E-1, H-1B, H-2B, H-3, L-1, G-series and O-1. (Borrowers without an acceptable visa will be

considered on a case by case basis only. )

? Borrowers with diplomatic immunity are not eligible.



Information in these guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies.

Information is accurate as of the date of publishing and is subject to change without notice. The Guidelines outlined apply to Agency loans submitted to

TOTAL Scorecard. In addition to applying these CMG-specific overlays, all loans submitted to TOTAL Scorecard must comply with the AUS Findings

and FHA/Ginnie Mae requirements. To verify our state licenses, please log onto the following website: and



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