Asset-Based Loan Program

Qualifying criteria for this loan program is liquid asset-centric. Retirement Account funds qualify.

4506-T Not Required

This loan program is specifically designed for high net worth borrowers. Qualifying calculation based on verified liquid assets as an alternative method to income verification to determine borrowers ATR Ability to Repair.

Our investors take a common sense approach to underwriting the creditworthiness of a particular borrower in regard to the individual's ability to repay the loan. People and their financial situations can be complex and unique, each with their own qualities and compensating factors. Our objective is to identify a borrower's reasonable ability to repay a loan while mitigating risk for the end investor. Often the answer is overwhelmingly obvious that the applicant is worthy of a loan and thus the interest rate, fees and terms offered are very reasonable. Unconventional income is often better in terms of proper evaluation. This decision is centered upon the verification of the income documents provided by the borrower.

Verified Assets for income, down payment, closing costs and cash reserves

Foreign Nationals OK for second homes and Investment property

Alternative Income Documentation:

  • 12 months bank statements - large or disproportionate deposits must be sourced
  • No Tax Returns, W-2's, paycheck stubs, profit and loss statements
  • Self Employed and W-2 salary employees - OK

Asset Documentation:

  • 12 months seasoned required - actual bank statements, not computer browser summary print out
  • VOD / Verification of Deposit - OK
  • Liquid assets for down payment and closing costs required

Acceptable Asset Documentation Sources:

  • Checking and savings account - 100%
  • Stocks and bonds - 75%
  • Mutual funds - 75%
  • 401K and IRA - 75%

"Business funds" not acceptable

Loan Amount - Liquid Reserve Requirement Matrix:

The amount of liquid reserves required is quantified by the number of month's cash reserves as well as the total loan amount

  • 0 - $417,000 - 6 months' reserves / liquid assets
  • $625,000 - 9 months' reserves / liquid assets
  • $1,000,000 - 12 months' reserves / liquid assets
  • $2,000,000 - 18 months' reserves / liquid assets
  • $3,000,000 - 24 months' reserves / liquid assets

Loan Purpose:

  • Purchase
  • Refinance Rate & Term
  • Refinance and Cash Out

Property Types:

SFR / Single Family Residence

  • PUD's
  • 1-2 Units
  • Condos

Owner Occupied / Primary Residence

  • 680 Credit Score
    • 70% LTV to $750,000
    • 65% LTV to $2,000,000
    • 50% LTV to $3,000,000

$750,000 Maximum loan amount

$500,000 maximum cash out

Second Home

  • 680 Credit Score
    • 65% LTV to $750,000
    • 60% LTV to $2,000,000con
    • 50% LTV to $3,000,000

$500,000 maximum cash out

Investment Property:

  • 660 Credit Score
    • 75% LTV to $750,000
    • 65% LTV to $2,000,000
    • 50% LTV to $3,000,000

$500,000 Maximum Cash Out

Cash Out requirements- 12 months title seasoning required to use current market value for LTV qualification

Credit Criteria:

  • 680 Credit Score
    • Foreclosure - 2 years seasoned
    • Bankruptcy - 4 years seasoned
    • Short Sale - 2 years seasoned
    • Mortgage lates - 2 years seasoned
    • Derogatory tradelines (liens, judgments, charge-offs, and collections) - 2 years seasoned

Tradelines:

  • 5 tradelines - 24 months history
  • 3 tradelines open and active - 24-month history

Underwriter Notes:

Loan Amounts greater than $1,000,000 requires 2 appraisals

Gift money and or equity - no can do

Permanent and Non-Permanent Resident Aliens - OK

First Time Homebuyers - OK to 60% LTV with a maximum loan amount of $1,200,000

Nonexistent housing history for last 2 years considered

Dodd-Frank Compliant

States: Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Vermont, Washington, Wisconsin, West Virginia

 

Reference # 444 010288

Mortgage brokers/lenders perform acts for which a real estate license is required.