Learning how to submit a loan to a new lender should not be difficult. The Account Executives at BCF have personally compiled a quick reference guide to learn what you can expect from BCF Wholesale. Remember, we are a call away and can easily video conference and share screens while we navigate you through these quick steps. If you do not find the topic you our looking check out the “Step-By-Step Tutorials” as we walk you through navigating our Lending Software.
Anti-Steering Form is required to be signed by you & your borrower
You can use this form provided by Best Capital Funding wholesale or you may use your own
You will need to update loan pricing info in the moment of registering the loan
You will need to have your borrower sign these forms and return to you to upload into the loan file
Best Capital Funding does not include this form in the disclosure packet initially signed by your borrower
If you loan has a PIW you will need to have borrower sign and upload this PIW Acknowledgment
You can issue an Initial Closing Disclosure (ICD) once these criteria are met:
Loan is in an Approved Status
No additional COC’s are intended to be submitted
A locked Loan Estimate has been issued and signed by borrower
Title documents have been uploaded
Appraisal has been completed and uploaded
*See your AM for any exceptions
The ICD is initiated from the “Disclosures” tab within the loan file.
Now that you are in the disclosures section, click the “Request Initial Closing Disclosure”
A pop up window will appear and press “Download Request Form”
on this prefilled PDF, you will find the “Current” column is pre-populated with information from the loan, and all of the blue fields are editable in the “Requested Change” column
Edit and save this PDF to a location of your choosing
Go back to that pop up window in the Broker Portal and upload the file you just saved and edited
Now you will be able to see the timestamp and notes for the ICD that you just uploaded in the Disclosure Requests section, as well as logged in the Activity log on the right.
Our Disclosures team will monitor your uploaded requests as they come in and automatically process
Here is a Blank Fillable Form PDF to be used if the automated request feature is not available
Best Capital Funding uses Freddie Mac Pricing and follow their AUS guidelines
LPA needs to be successfully ran on every loan through each milestone
Best Capital Funding representatives will run the loan through LPA
If you need help running LPA please reach your AE or AM directly as they can configure and assist in this running
Your AE of AM will update you on a PIW
Follow the normal process for pricing and registering a streamline FHA
Within the pricing screen there is an “AUS response” drop down menu
Select “None/Not Submitted”
Streamline FHA loans are considered pre-approved loans due to their already following FHA guidelines
Conforming loan allows for a loan 24 months after dismissal or discharge
FHA : The Mortgagee must document the passage of two years since the discharge date of any bankruptcy. If the bankruptcy was discharged within two years from the date of case number assignment, the Mortgage must be downgraded to a Refer and manually underwritten. (Best Capital Funding does perform manual underwrites on FHA loans)
FHA requires 3 months of consecutive payments & Conventional requires 6 months of consecutive payments.
FHA Guidelines: When using a final divorce decree, legal separation agreement or court order, if the Borrower has received consistent Alimony, Child Support and Maintenance Income for the most recent three months, the Mortgagee may use the current payment to calculate Effective Income. When using evidence of voluntary payments, if the Borrower has received consistent Alimony, Child Support and Maintenance Income for the most recent six months, the Mortgagee may use the current payment to calculate Effective Income. If the Alimony, Child Support and Maintenance Income have not been consistently received for the most recent six months, the Mortgagee must use the average of the income received over the previous two years to calculate Effective Income. If Alimony, Child Support and Maintenance Income have been received for less than two years, the Mortgagee must use the average over the time of receipt.
Conventional FHLMC Guidelines: When using alimony, child support, or maintenance – as income, see Section 5305.2. Stable Monthly Income Requirements: History of receipt Continuance - Calculation Most recent six months If the payor has been obligated to make payments for less than six months, if the payments are not for the full amount or are not received on a consistent basis, the income must not be considered for qualifying.
Once you are in a loan file, select the “Disclosures” Section, then press the “REQUEST COC/REDISCLOSE”
You will be presented with a prefilled PDF so you can document your changes, save, then upload
Upload your recently edited COC request file by selecting the “CHOOSE FILE” button.
Any pricing variances resulting from the change of circumstances will be communicated with the broker.
Note, if active Closing Disclosure has been issued, please download COC form from Resource Center and upload to eDocs section of loan and contact AM
Here is a Blank Fillable Form PDF to be used if the automated request feature is not available (COC can not re requested after an ICD has been issued to borrower)
Only use the “E-docs” section within the broker portal to upload and retrieve all documents including submitting documents to clear conditions
Drag your files to the gray box “OR SELECT FILES TO UPLOAD”
Press [ select Doctype ] to label correctly
Select “UNDERWRITING CONDITIONS TO REVIEW” (2 times) within the pop-up window
Next, enter the Condition Number matching the file you are uploading i.e., Condition #3
Press “Upload” and be patient as larger files can take a minute plus to upload
*Confirm every file you intended to upload made it into the file by reviewing the latest list if file under “Document List”
Notify your Account Manager with an email you have uploaded some or all your file to the conditions
Best Capital Funding's eligible condos must be within established condo developments
Project needs to be complete with no additional phases to be built out
Further confirm your project is an "established" condo by searching the property address on the local county tax assessors website. You are looking for the "legal references" to be listed as condominium or CIC.
A completed Condo project also has an HOA that has been turned over to the homeowners (not controlled by developer), and 50% of the units must be occupied as primary/Second homes
"GENERALLY" Projects that are established and consist solely of Detached Condos, 2-4 Unit projects OR a Freddie Mac no cash out refinance are Exempt from a Project Review (Condo Questionnaire)
There must not be any manufactured homes in the condominium project
Examples of Ineligible Condo Projects: excessive commercial space, excessive single investor concentration, Condotel, non-warrantable, timeshare
Brokers, Account Managers, & Underwriters will use a single location to send and receive documents within the “E-docs” section of a loan file
Since these items contain Personal Identifying Information, this secure location is the best place for all items pertaining to each specific loan file.
You can downlead signed copies of your LE & ICD under "Document List" section of "E-docs". Find them by sorting the documents listed by "date" and the signed versions will be named "GENERATEDDOCUMENTS"
How do I know if my borrower e-Signed their documents?
Keep an eye out for emails from email@example.com
You may need to add this contact to your address book. Make sure these notifications are not sent to a bulk or spam folder by your email software.
Processors & LO's are notified by emails from firstname.lastname@example.org on each step & status: LE emailed, LE receipt, & LE signature. These same emails are delivered for all e-signature updates including re-disclosure & CD
Every email will have relative subject line to the notification like: "Signature Request Completed [Loan Number: W12345678]"
You can find copies of these documents in the Edocs folder of the loan file within the broker portal. These documents are not just emailed and need to be viewed and download in a secure manner.
What should I tell my borrower to expect when they are sent eSignature requests?
Feel free to download this graphic and email to your clients.
Keep in Mind borrowers may have to search their email for the word "docMagic" as these e-signature requests can get classified as Bulk or Spam.
FHA's Online Housing Policy Library, which contains: a fully searchable, online version of the SF Handbook; a growing collection of supplemental documents; superseded Mortgagee Letters and other policy documents; and active Mortgagee Letters for policy not yet incorporated into the SF Handbook
4000.1 PDF Handbook 1,009 pages
Employment Gap: must have been fully employed for 6 months before applying. Must also must verify being fully employed for two years prior to when the gap in your employment began.
Have to be employed minimum of 6 months at current employer plus a 2 year work history with no gaps
Self Employed can not have a declining income > 20% from previous year
FHA loans with Best Capital Funding will require impounds for HOI and Taxes
Here is some info from HUD about Mortgage Insurance on FHA homes
Use this to estimate Upfront and Annual MIP and if MI will be required for 11 years of the duration of the mortgage.
Once you are in the "E-docs" section of a loan file you can navigate to "Document List"
Here you can see a list of files stored in the loan file and you can download these by clicking on "view PDF"
If you find you files are not downloading, check your browser as it may be blocking files from being downloaded
Look in the top right corner of the address bar and look for a blocked download icon
Right click on this icon and allow files or duplicate files to be downloaded
Here is a Helpful Article to inform you about these Google Chrome settings
Yes, if borrower made at least three consecutive timely payments, as applicable, the proceeds may be used to pay off the existing mortgage
Yes, if borrower made up all missed payments with a lump sum and sourced and seasoned those funds
In general the max loan amount is $548,250 but this varies by County and State so use the following spreadsheet from FHFA to verify your area's max loan amount
These loan limits apply to both Fannie and Freddie programs
A Hobby Farm is considered a residential property that is "not generating a substantial amount of income". Also an appraiser would also have to notate the property only a hobby farm and validate minimal to no income to be generated.
Best Capital Funding Overlays: We will not service more than 5 properties or an aggregate loan amount total of $4,000,000 per borrower regardless of occupancy
Freddie Mac Guidelines: https://guide.freddiemac.com/app/guide/bulletin/2018-10
Maximum number of financed properties permitted to 10
If number of financed properties is greater than six the mortgage must:
Be a Loan Product Advisor Mortgage with a Risk Class of Accept
Have a minimum Indicator Score of 720
The Seller must verify reserves of eight months of the monthly payment (as described in Section 5501.2(a)) on each additional second home and/or 1- to 4-unit Investment Property that is financed and on which the Borrower is obligated.
10:00 am EST to 6:30 pm EST
9:00 am CST to 5:30 pm CST
8:00 am MST to 4:30 pm MST
7:00 am PST to 3:30 pm PST
Please see our detailed Lock Policies. Here are some highlighted details:
Lock extension must be requested on or before the rate lock is set to expire.
Email your request for an extension or re-lock to email@example.com
Lock Extension Fees: 5 days at .125%, 10 at .25%, 15 days at .375%
Lock will always expire on a “business day.”
Locks that fall on a weekend or holiday will be rolled to the previous business day
If lock expires, file will need a 30-day re-lock at “worse case pricing” & .25% re-lock fee.
Here is a simple worksheet you can use to calculate the costs of extensions.
Mortgagee Clause (for Homeowners & Flood)
Best Capital Funding ISAOA, ATIMA
21540 Plummer Street, Suite A
Chatsworth, CA 91311
Mortgagee Clause (for Title-FHA only)
Best Capital Funding ISAOA, ATIMA
21540 Plummer Street, Suite A
Chatsworth, CA 91311
Mortgagee Clause (for Title)
Best Capital Funding ISAOA, TIMA
21540 Plummer Street, Suite A
Chatsworth, CA 91311
CPL & Subordination Agreements
Best Capital Funding ISAOA, ATIMA
21540 Plummer Street, Suite A
Chatsworth, CA 91311
Manufactured homes can be purchased as a Primary or Secondary residence and are not eligible as investment properties.
Can not refinance with a cash out and only R&T eligible Primary Residence on a manufactured home
LTV Guidelines FHLMC manufactured primary residence is 95% LTV and Second Home is 85% and cash out Primary 65% LTV max
Manufactured purchase Investment property is not allowed nor is a cash out on manufactured investment
Manufactured Home can not share property with another SFR & must be a 1-unit Dwelling
Built on or after June 15, 1976
Can not be converted to a Multi Family Dwelling
Can not be modified having additional building structures attached
Needs to be zoned for residential use only
Land must be owned fee simple
Built on a permanent chassis in compliance with HUD regulations
Anchoring system in compliance with HUD Codes
Legible HUD Certification Label (metal plate) affixed to the exterior of each transportable section
Permanently connected to utilities and not "off grid"
Single-wide – Needs to be located in a PUD or condominium project and project eligibility is determined through a reciprocal review.
If you run into appraisal issues "with the foundation" of a manufactured home you may need to order a foundation certification. These can cost around $400 from https://haymanengineering.com/ If the foundation does not certify they will give you specific next steps achieve this.
Best Capital Funding has a “Monitor Pricing” tool
With to the broker portal you can “Quick Price” a loan scenario and select “Monitor Rates” at the top of a pricing stack (not available within an actual loan file only the “Quick Pricer”)
Name your Scenario as well as the loan terms and you can now watch pricing and receive email alerts
Use these to also quickly refer back to past scenarios and get their up to date pricing
Once the file is ready for first underwritten submission, the Account Manager will reach out to the following 5 mortgage insurance companies and pick the lowest. It is this process that the final mortgage insurance numbers will be solidified in part of the Closing Disclosures.
FHA is a conventional loan option for non-permanent resident aliens
See FHA guidelines ML 2021-12: Eligibility Requirements for Certain Non-Permanent Resident Borrowers updated (05/28/21)
The Mortgagee must determine the residency status of the Borrower based on information provided on the mortgage application and other applicable documentation. In no case is a Social Security card sufficient to prove immigration or work status.
The mortgage file must include evidence of the permanent residency and indicate that the Borrower is a lawful permanent resident alien on the URLA. The U.S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security provides evidence of lawful, permanent residency status.
Under FHA’s longstanding requirements, Non-Permanent Residents are eligible for FHA-insured single-family mortgage financing provided: the Property will be the Borrower’s Principal Residence; the Borrower has a valid Social Security Number (SSN), except for those employed by the World Bank, a foreign embassy, or equivalent employer identified by HUD; the Borrower is eligible to work in the United States, as evidenced by the Employment Authorization Document, Form I-766 (EAD), issued by the U.S. Citizenship and Immigration Services (USCIS); and the Borrower satisfies the same requirements, terms, and conditions as those for U.S. citizens.
FHA requirements also stated that individuals without lawful residency in the United States are ineligible for FHA-insured mortgage financing. This requirement was included in the policy, but FHA recognizes it was not terminology that had clear consistent meaning.
Order appraisal directly through approved Best Capital Funding AMC: [ LIST OF COMPANIES ]
Appraisal will need to be ordered in the name below.
Best Capital Funding; 21540 Plummer Street Suite A; Chatsworth, CA 91311
Broker to provide a pdf copy of the email sent to borrower documenting completed appraisal being delivered to borrower.
Broker is responsible for uploading all appraisal documents in the Best Capital Funding Wholesale portal within the “E-Docs” section of the loan file making sure to press “Select Doctype”
A pop-up window will appear and select “UNDERWRITING CONDITIONS TO REVIEW”
Enter a brief description of the file in the box labeled “Description” i.e. appraisal
Reasons to Buyout Underwriting Fee
Failing Points and Fee Test (Max 3% fee allowed)
Broker Compensation $ amount + $ Underwriting Fee can not > 3% of the Loan
If > 3% then the Underwriting Fee needs to be added to the loan amount and pricing premium will be affected
"No cash-out" refinance Mortgages with Freddie Mac can allow for cask back to borrower more then $2K with loans larger than $200K
Disburse cash out to the Borrower (or any other payee) up to the GREATER of 1% of the new refinance Mortgage OR $2,000
Please find these calculation worksheets from MI company Enact: https://new.mi.genworth.com/self-employed-borrower-calculators
Best Capital Funding CF Follows Freddie Mac Requirements for Self-Employed Borrowers:
It is best if the borrower has been self employed for more than 5 consecutive years with a business being in operation for 5 or more years of operation. Keep in mind the business must be 5 years old.
If self-employed for less than two years, Borrower needs a 2 year history of receipt of income at the same or greater level in the same or similar occupation in order to qualify.
If the business is more than 5 years old the borrower does not have to have a specific income level, but the income does need to make sense. For example is an employee became part owner of a business that was already established.
2 years of personal and business income are required (tax returns) if the business is less than 5 years old.
Require 3 months of months’ personal & business account statements. This is a new requirement as of 12/14/20
YTD P&L (profit & loss) statements must confirm the revenue documented on the business account statements.
If a borrower owns > 25% of a business they must apply for a mortgage as self employed whether they are paid W-2 or not.
Interactive P&L form: https://www.pdfrun.com/editor/form/1635
Question: If a solar panel lien is being subordinated, Does this debt get included in the CLTV?
Answer: It will depend on if the Solar Panels are Financed as Personal Property or Financed as a fixture to Real Estate. If personal property, then you 'would not' include in TLTV. If financed as Real Estate, then you 'would' include in TLTV. Please see the below link for compliance Guide Section 5601.2 (freddiemac.com)
Best Capital Funding "does" accept transferred appraisal
Since the original Lender is the Lender that ordered the appraisal, the appraisal does NOT have to be in the name of Best Capital Funding. The Wholesale Broker must provide the following:
1. a signed appraisal transfer letter*original appraisal XML appraisal file
2. Fannie/Freddie SSRs AMC’s
3. invoice as it was submitted to lender when appraisal was completed by the appraiser
4. Appraiser Independence Certification (AIRS cert)
The transfer letter needs to reflect the following verbiage: Lender operates in compliance with the Home Valuation Code of Conduct (HVCC), Appraiser Independence Requirements (AIR) and FHA Guidelines regarding appraiser independence (ML 09‐28)”. To the best of our knowledge the Appraisal for the above named.
Property meets the requirements outlined in the HVCC, AIR and ML 09‐28. Lender releases all rights, title and interest to the Appraisal on the above named property to: Best Capital Funding”
Basic Characteristics of VA Loans
$0 Down Payment (subject to entitlement)
100% LTV Cash-out Refinances
No minimum credit score
No Maximum Loan Amount
Funding Fee and energy improvements can be financed in most transactions
No Monthly Mortgage Insurance
One DTI Ratio to Consider
VA loans with Best Capital Funding will require Impounds for HOI and taxes
Existing (previously occupied or completed for at least one year)
New Construction (less than one year old and not previously occupied)
Proposed or Under Construction
Manufactured Homes on permanent foundations
Fees the Veteran May Pay
1% flat charge (origination fee) by the lender
Reasonable discount points
Appraisal and compliance inspections (1 for existing construction, more allowed for new construction)
Second appraisal to help support a reconsideration of value (not a VA appraisal) if the veteran is insisting on the reconsideration of value (not lender, seller, or real estate agent requesting)
Recording fees and taxes
Interthinx DISSCO Fraud report
Survey and plot plans
Title exam, title insurance , EPA endorsement
Funding Fee (can finance)
Overnight fee (refinance only) when less than per diem cost
Fees the Veteran May Not Pay
Termite report (except cash out refinance)
Employment verification fee
Tax Service Fee
Lender/Broker fees (other than 1% origination)
Interest rate lock-in fees
Loan broker fees / real estate agent commission
Lender’s attorney fees
Lender’s inspection fees
Can charge the veteran unallowable fees up to 1% of the loan amount if a 1% origination is not charged.
Can split (for example, charge .5% origination and .5% in unallowable fees)
However, veteran can never pay: Termite report (unless Cash-out refinance)
Realtor fees or commissions
Attorney fees (other than for performing title work, or his personal attorney)
Mortgage Broker fees or commissions
Employment verification charges
Purchase: Veteran can pay “reasonable” discount points
IRRRL: Maximum of 2 discount points can be financed in loan.
More than 2 points must be paid cash
Cash-out refinance: Veteran can pay “reasonable” discount points, subject to LTV limit
Limited to 4% for:
VA funding fee
Gifts such as a television set or microwave oven
Extra points to provide permanent interest rate buydowns
Escrowed funds to provide temporary interest rate buydowns
Payoff of credit balances or judgments on behalf of the buyer
NOTE: Reasonable discount points (excess is concession) and buyer’s closing costs are not included in the 4% limit
like the many in the industry, the implementation of the new URLA has created some challenges. See below if you are having issues with uploading the 3.4 version. Here is a Blank Fillable URLA in PDF
In the Best Capital Funding Wholesale Broker Portal ( https://bestcapfunding.com/partner-login/), import a MISMO 3.4 file you exported from your LOS
If you get an error or multiple errors, you may import the FNMA 3.2 file
You will need to complete the "Declaration" questions and other info not included in the 3.2 format. See your AM and AE for assistance
Upon successful import of either format file, you will be able to price/register/lock loan
Upload the New Format of the URLA/1003 as a pdf into the eDocs section
Upload the credit report, fee sheet, and Best Capital Funding submission form
Best Capital Funding Wholesale team will assist to handle at this point and run LPA