Create Contoso_Loan_Product_Eligibility_Guide.md

Author: mwhalin

samples/agent-catalog/msft-agent-samples/foundry-agent-service-sdk/home-loan-agent/Contoso_Loan_Product_Eligibility_Guide.md

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+# Contoso Bank Loan Product Eligibility Guide
+
+This guide outlines Contoso Bank's current mortgage loan offerings and the eligibility criteria
+associated with each product. It includes credit score thresholds, debt-to-income limits,
+down-payment requirements, and document checklists to help applicants understand which
+products they may qualify for.
+
+## Table of Contents
+1. [Credit Score Tiers & Minimum Requirements](#credit-score-tiers--minimum-requirements)
+2. [Loan Product Matrix](#loan-product-matrix)
+3. [Detailed Product Guidelines](#detailed-product-guidelines)
+4. [Frequently Asked Questions](#frequently-asked-questions)
+
+## 1. Credit Score Tiers & Minimum Requirements
+- **Excellent**: 760 and above
+- **Very Good**: 720 - 759
+- **Good**: 680 - 719
+- **Fair**: 620 - 679
+- **Marginal**: 580 - 619
+- **Poor**: below 580
+
+## 2. Loan Product Matrix
+| Loan Type               | Min Credit | Max DTI % | Highlights                           |
+|-------------------------|------------|-----------|--------------------------------------|
+| Conventional 30yr Fix   | 660        | 45        | Standard conforming loan             |
+| Conventional 15yr Fix   | 680        | 43        | Lower interest, faster payoff        |
+| FHA 30yr                | 580        | 50        | 3.5% down, flexible credit           |
+| VA 30yr                 | 620        | 50        | 0% down for eligible veterans        |
+| USDA Rural Dev          | 640        | 41        | 0% down, rural properties            |
+| Jumbo 30yr              | 720        | 43        | Loans > $750k, stricter reserves     |
+
+## 3. Detailed Product Guidelines
+
+### Conventional Loans
+- Minimum credit score: 660 (30yr), 680 (15yr).
+- Down payment: minimum 5% (may be gifted).
+- Mortgage insurance required if LTV > 80%.
+- Reserves: 2 months PITI for primary residence.
+
+### FHA Loans
+- Minimum credit score: 580 with 3.5% down.
+- Upfront MIP: 1.75%; annual MIP varies by LTV.
+- Flexible ratios up to 50% with compensating factors.
+- Non-occupant co-borrowers allowed.
+
+### VA Loans
+- Minimum credit score: 620 (lender overlay).
+- Funding fee may be financed; waived for some veterans.
+- Residual income test may override max DTI.
+- No mortgage insurance; 0% down up to conforming limits.
+
+### USDA Loans
+- Property must be in eligible rural area.
+- Income limits apply by county and household size.
+- Guarantee fee: 1% upfront, 0.35% annual.
+- Minimum credit score typically 640.
+
+### Jumbo Loans
+- Loan amounts above $750,000 (varies by county).
+- Minimum credit score: 720; max LTV 80%.
+- 12 months reserves typically required.
+- Full documentation required for self-employed borrowers.
+
+## 4. Frequently Asked Questions
+
+**Q: Can I qualify for an FHA loan with a 600 credit score?**  
+A: Yes, but you will need at least 10% down payment. Scores of 580 or higher require only 3.5% down.
+
+**Q: What is the maximum DTI for a VA loan?**  
+A: VA generally allows up to 50%, but residual income guidelines may override.
+
+**Q: How soon after bankruptcy can I apply for a Conventional loan?**  
+A: At least 4 years after Chapter 7 discharge, with re-established credit.
+
+**Q: Does Contoso Bank offer portfolio products?**  
+A: Yes, available on a case-by-case basis for unique scenarios such as foreign national borrowers.
+
+---
+
+This guide is for informational purposes only and is subject to change without notice.  
+For personalized assistance, contact Contoso Bank at 1-800-555-LOAN or visit [https://www.contosobank.com/loans](https://www.contosobank.com/loans).