Eligibility Matrix/Overlays

The following additional restrictions apply to all Conventional loans:

All loans must have Approve/Eligible findings. Expanded Approval and Refer findings are ineligible.

Manufactured Homes ineligible.

Unless permitted by AUS/DU findings, PMI is required on all loans exceeding 80% LTV. See "PMI - Private Mortgage Insurance" section for additional details.

Escrows may not be waived when PMI is required.

All appraisals must contain interior and exterior photos of the subject property.

A total of 4 existing borrower properties may be financed...more than 4 is ineligible for a new loan or refinance.

Reserve Requirements for Second Homes, Investment Properties, and Multiple Financed Properties

Effective April 6, 2009, Gateway will implement the following new reserve requirements on conventional refinance programs that apply to second home or investment property transactions and borrowers who own or have an interest in multiple financed properties:

•	two months reserves on the subject property that is a second home,

•	six months reserves on the subject property that is an investment property, and

•	two months reserves for each additional financed second home or investment property.

As a reminder, regardless of DU findings, borrowers are limited to a maximum number of four financed properties on all Conventional refinance programs and occupancy status. This guideline applies to properties currently financed by Gateway or another lender.

Definition of Liquid Financial Reserves

Effective immediately, the definition of liquid financial reserves on conventional (conforming and non-conforming) programs has been clarified to include all components of the monthly housing expense:

•	principal and interest,

•	hazard, flood, and mortgage insurance premiums (as applicable),

•	real estate taxes,

•	ground rents,

•	special assessments,

•	owners’ association dues (excluding individual unit utility charges),

•	monthly cooperative corporation fees (less the pro rata share of the master utility charges for servicing individual units attributable to the borrower’s unit), and

•	subordinate finance payments on mortgages secured by the subject property. (Refer to product guidelines for specific qualifying information on subordinate financing