Residential Real Estate Lending Underwriting Guidelines
GEOGRAPHIC LENDING TERRITORY
GCF Bank's (GCF) primary lending territory is Gloucester County and surrounding areas in Southern New Jersey.
NON-DISCRIMINATION
It is not the policy of the Bank to discriminate against borrowers on the basis of race, color, national origin, religion, sex, marital status or age.
| Owner Occupied (first & second homes) | 80% |
| Owner Occupied (first & second homes) with PMI | 95% |
| Owner Occupied First-Time Home Buyer Program with PMI | 95% |
| Owner Occupied Affordable Housing Program with PMI | 95% |
| Non-Owner Occupied/Investment | 70% |
| Owner Occupied (first & second homes) | 75% |
| Non-Owner Occupied/Investment | 70% |
| Owner Occupied (first & second homes) | 80% |
| Owner Occupied (first & second single family homes) | 80% |
| Owner Occupied (first & second multi (2-4) family homes) | 75% |
| Non-Owner Occupied/Investment (single family homes) | 70% |
| Owner Occupied (first & second single family homes) | 80% |
| Owner Occupied (first & second multi (2-4) family homes) | 75% |
| Non-Owner Occupied/Investment (single family homes) | 70% |
Value is determined by Market Value Appraisal or Sales Price, the lesser of the two. All loans must include an appraisal made by an independent New Jersey State Licensed or Certified Appraiser. All types and sizes of real estate loans are governed by this policy (not covered by the Commercial Loan Policy), with the exception of appraisal requirements on home Equity Loans and Lines of Credit. Automated Valuation Models (AVM) are acceptable for all Home Equity Loans and Lines of Credit in amounts of $250,000 or less. Should the AVM not provide sufficient value to support the request, a full appraisal may be requested by the borrower at the borrower's expense.
| Multi-family and Investment Loans | 30 yrs. max |
| Home Equity Loans | 30 yrs. max |
| Home Equity Lines of Credit | 25 yrs. max |
| Owner occupied 1-4 family residential loans | 30 yrs. max |
AFFORDABLE HOUSING AND FIRST TIME HOME BUYERS
GCF Bank, in order to make mortgage loans available to low and moderate income families and to first home buyers, will make loans on single family residential real estate up to 95% of appraised value or sales price, whichever is lower. In order to do this, GCF will offer Private Mortgage Insurance with such loans.
All previously approved underwriting standards will be adhered to. Exceptions to the guidelines are as follows:
| Affordable Housing | 1st Time Home Buyers | |
|---|---|---|
| Down Payment | 5% | 5% |
| Minimum Borrower Equity (1) | 3% | 5% |
| Interest Rate (2) | 1/4% < Going Rate | 1/4% < Going Rate |
| Points | 0 | 0 |
| Term | Up to 30 years | Up to 30 years |
| Income | Max. Med. Family (3) | No limit |
| Housing Ratio/Income/Debt Ratio | 33%/38% | 28%/36% |
| Payment Reserve (4) | Taxes/Interest | Taxes/Interest |
| Education | Completion CHBP (5) | Optional |
(1) Including closing costs
(2) GCF's stated rate for 0 points
(3) As provided by HUD
(4) Interest and taxes
(5) Community Home Buyers Program (mandated by GEMIC)
MORTGAGE LOAN DOCUMENT REQUIREMENTS
In addition to completing a loan application form, GCF will require the following documentation to proceed with your loan request.
PURCHASE OR REFINANCE LOAN
- Your application fee of $495 and appraisal fee to be determined
- Copy of your Deed
- Copy of the last survey
- Copy of the current tax bill covering one year
- 2 recent pay stubs
- Last 2 years tax returns (if self-employed)
- Agreement of Sale (Purchase)
- Agreement of Sale (Sale)
- Loan Verification Form
- Other
Construction Loan
- Your application fee of $495 and appraisal fee to be determined
- Copy of the Deed
- Copy of the last survey
- Plans and Specifications
- Signed contract
- References from the builder of homes built and suppliers
- Last 2 years tax returns (if self-employed)
- 2 recent pay stubs
HOME EQUITY LOAN DOCUMENT REQUIREMENTS
In addition to completing a loan application form, GCF will require the following documentation. Specific requirements vary by individual circumstance.
- 2 years tax returns (if self-employed)
- 2 recent pay stubs
- copy of real estate tax bill
- copy of title insurance policy
- proof of current mortgage balance
- property information sheet
- copy of deed
- check for recording fees (maximum fee $150)
- current homeowners insurance policy showing GCF Bank as mortgagee
- payoff figure plus per diem on loans to be paid off as of date of settlement
