Bank of America’s correspondent clients should know that due to Fannie Mae and Freddie Mac changing their IO program and ARM qualification rates, BofA will do so as well. “Interest-only transactions no longer eligible for cash-out refinances, flexible mortgages, MyCommunityMortgage, investment properties, and two- to four-unit properties.”So now IO loans can only be made on 1-unit purchase and rate/term transactions, primary residences or second homes with a maximum loan-to-value (LTV) and CLTV of 70% and minimum credit score of 720, the borrower must have minimum reserves of 24 months.
-Rob Chrisman
