Occupancy:

  • Owner Occupied ONLY (see our business purpose subprime rate sheet for N/O/O properties).

Property Types:

  • SFR’s, Condos, and Townhouses (2 to 4 units)
  • Condotels – NO area restriction.
  • Non-Warrantable condos

Property Condition:

  • Property must show “Pride of Ownership”.
  • See Hard-Money product for properties that have deferred maintenance.

Loan Terms:

  • All loans are 5-year, interim fixed, variable rate, and 30-year fully amortized products.
  • Index – 1-year Libor – Caps 2/2/6 – Floor = Start Rate.
  • 30-year fixed option available. See add-on section.

Loan Amounts:

  • $100K Minimum to $3 million Maximum – Owner Occupied.
  • Loan amounts over $1 million need management approval.
  • Loan Amounts greater than $1.5 million require two Appraisals.

Debt to Income (DTI):

  • 55% max DTI with 24 months bank statements, traditional Full-Doc, and LTVs up to 80%.
  • 50% max DTI for other ATR tests, Interest Only, and LTVs over 80%.

Interest Only Qualification: Must qualify fully indexed at 30 years amortized.

Interest Only Term: 40-year loan / 10-year I/O term.

Income Documentation:

  • Full Doc – W-2’s & Paystub, 1040’s
  • Alt Doc – 12- or 24-month bank statements.

VOE Only Program: For Non-Self-Employed Borrowers Only

  • Verifiable VOE from Employer (not self-employed or self-prepared).
  • The VOE must be fully filled out and must include all income and averages.
  • The VOE must be signed and dated by the employer with accurate contact info.

1099 Only Program: For Non-Self-Employed Independent Contractors

  • 2 Years 1099’s
  • Athas to verbally verify the accuracy of income on 1099’s

K-1s Only Program:

  • 2 Years K1s
  • CPA, certified tax preparer, or enrolled agent attesting that K1s are accurate & borrower self-employed for two years or more.

P&Ls Only Program: For Self-Employed Borrowers Only

  • Full-year 2019 Complete Profit and Loss Statement and 2020 Complete YTD Profit and Loss Statement
  • Professionally Prepared P&Ls – Verifiable letter from a licensed CPA, Certified Tax Preparer, or Enrolled Agent attesting that they prepared the P&L statements.
  • Borrower Prepared P&Ls – Borrower to sign and date the P&Ls and attest to the accuracy of the P&Ls via a handwritten, signed, and dated letter. A verifiable letter from a licensed CPA, Certified Tax Preparer, or Enrolled Agent attesting the borrower-prepared P&Ls are factual.
  • Proof that the borrower has been self-employed for that business for 2 years.

Asset Depletion Program: Available for All Employment Types including Retired/Unemployed

  • Qualifying income is based upon Total Assets Eligible for Depletion, less down payment, less out-of-pocket closing costs, less required reserves, divided by 84. This amount will be used as the monthly income. Debt calculations will need to include all debts, not just housing debts.

Down Payments or Liquid Cash Reserves:

  • All down payment funds MUST be sourced & seasoned in the last 60 days from 70.01-85% LTV.
  • All down payment funds MUST be sourced & seasoned in the last 30 days up to 70% LTV.
  • 100% Gift funds are acceptable up to 70% LTV – direct relative. $1M-$2M 50% can be gift – $2M+ no gift.

Pre-Pay Note: No pre-payment penalty on ANY consumer products.

Ancillary fees paid at closing:

  • $1,295 – Underwriting fee.
  • $200 – Attorney Doc review for all TX and SC transactions.

Rate Lock: Rate floats until docs are delivered

Federal / State Tax Liens & Judgments: All income tax liens & judgments on credit must be paid through closing if they are in excess of $2,500. All tax liens and judgments on title must be paid.

Minimum Rate: 4.99%

Maximum Points to Broker: 3%

Iowa Maximum Points:

  • 2% – Max allowable combined Lender & Broker fees = 2%
  • The underwriting fee in Iowa will be called a commitment fee.

High-Cost Loans: High-cost loans are unacceptable on our Sub-Prime product.