Non-QM Alternative Mortgages

  • Qualify 12 Months Bank Statements - 12 Month Average Balance for Income Documentation

    Bank statements, in this case, are used as a traditional income documentation alternative. However,1099's can be used without the 1040 or schedule C can be accepted and considered more like a full income documentation program which will produce full income documentation pricing.

    90% Financing Available

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    Loan Purpose / LTV:

    Purchase or Rate and Term refinance 90% LTV to $450,000

    Cash Out Refinance to $400,000 - 75% LTV

    - $100,000 max cash out

    Credit Notes:

    Credit Score 660 minimum middle for all borrowers

    Bankruptcy discharged - 2 years seasoning required

    Foreclosure discharged - 4 Years seasoning required

    Loan Modification complete (yeah, right. Lose your paperwork, did they?)- 3 Years seasoning required

    Available Terms:

    5, 7 and 10 year ARM's and 15 year fix

    Balloon note at ARM maturity or option to roll into an equity line

     

    Owner Occupied Only

     

    1-4 Unit properties OK

     

    Get pre-qualified without credit check

     

    Refrence# - 74512

  • True Stated Income 2018

    Stated Income / Verified Asset mortgage program for borrowers that own their own business. Business entity types: c corporation, s corporation, LLC, partnerships.

    Self-Employed Home Loan: An alternative to the "bank statement loan" program for the well-qualified self-employed borrower. You could say this is an equity-based loan program in that the max LTV would be 65%. You could also call it a "portfolio loan" or "Non-QM" mortgage.

    On a refinance transaction, the purpose of a program like this is to improve the borrowers existing mortgage; Rate & Term refinance.

    With a substantial down payment purchase or good equity-position refinance, excellent credit with liquid assets in the amount of at least 12 months housing expense reserves. It can be an alternative to a "bank statement loan" program for the well-qualified borrower.

    Alternative income documentation for well-qualified self-employed borrowers

    Self-Employed mortgage loans

    California Only

    Product Term: 7/1. Interest-Only payment available.

    Property Types:

    • Single Family Residence SFR 
    • PUD
    • Condos
    • 2-4 Units

    Loan Amount / Credit Score / LTV Matrix

    SFR

    720 Credit Score

    • $1,000,000 - 65% LTV
    • $1,500,000 - 60% LTV
    • $2,500,000 - 55% LTV Condo

    700 Credit Score

    • $750,000 - 60% LTV

    2-4 Units

    720 Credit Score

    • $1,500,000 - 55% LTV

    Reserves Requirement

    All Stated Income Loans require 12 Months P&I Principle & Interest for each property financed; exceptions are common with compensating factors

    Stated Income / Asset Based (whichever is lower):

    Stated Income on 1003 (reasonable for job position/job title) or

    Verified Assets including down payment + / 6 = Income

    Employment Verification Documentation

    Self Employed

    Proof of ownership - Business License, CTP CPA Letter verifying 2yrs+ ownership, etc.

    Description ‐ Business, Industry, and Borrower's Title on 1003

    W-2 Employee

    VVOE Verbal Verification of Employment / Current Employment (1003 application) must show on credit report

    Non-Owner Occupied Investment OK

    2-4 Unites OK

    Exception down to 700 Credit Score

    Loan Amounts to $2,500,000

    Loan Amount exceptions made to 11,500,000

    Interest Only not available

    No 4506T not required

    Tax returns not required

    Paycheck stubs not required

    2 month Bank Statements

    Liquid assets from the businessis OK if 100% ownership

    DTI Max 45%

    Foreign Nationals OK

    100% Gift funds OK and 60% Foreign National

    Credit Notes

    Previous housing payment history, 1 30-day late Maximum

    3 open accounts on credit at minimum 1 year seasoned

    "Housing event" seasoning

    Bankruptcy - 3 years

    Short Sale - 2 years

    Foreclosure - 5 years

     

    Reference # 123-34c52-100717

  • Asset Based Qualification Program

    High Net Worth Borrowers

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    This is both a Stated Income and Asset Depletion loan program and it is designed for the high net worth borrower that is looking to purchase a primary home or Rate & Term refinance or Cash out refinance their primary home. The applicant must demonstrate their ability to save by providing proof of cash reserves that will support their existing and proposed debt, front and back-end debt ratio.

    Guidelines and Highlights

    Purpose:

    • Purchase, Rate & Term Refinance and Cash Out Refinance

    Income Programs:

    • Stated Income and Verified Assets SIVA
    • Asset Depletion
    • Tax Returns - Not Required
    • Form 4506-T - Not Required

    Income Documentation:

    • Bank Statements
    • Retirement Accounts
    • Investment Statements
    • Money Market Accounts

    Employment Type:

    • Self Employed

    Credit Criteria:

    • Mortgage history - no 30-Day lates for previous 25 months
    • Bankruptcy Seasoning: - 24 months
    • Foreclosure Seasoning - 24 months
    • Short Sale - 24 Months

    Credit Scores:

    • 680 Middle score for each borrower

    Loan to Value ratio (LTV)

    • 70% Maximum
    • Combined (piggyback Second Mortgage) Loan to Value ratio (CLTV)
    • 80% Maximum

    Debt to Income Ratio (DTI):

    • 50% maximum

    Maximum Loan amount:

    • $2,000,000

    Property Types:

    • SFR
    • 1-4 Units

    Occupancy:

    • Owner Occupied Only

    Terms:

    • 5 Year ARM
    • 7 Year ARM
    • 10 Year ARM

     

    States:

    Arizona, California, Colorado, District of Columbia, Florida, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Maryland, Minnesota, Nevada, Oklahoma, Oregon, Texas, Utah, Washington

     

    Reference# 535 06131519-9-22-1

     

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

  • Income Documentation Alternative for the Well Qualified Self Employed Borrower

    June 2018

    Tax Returns Not Required

    Form 4506T Not Required

    Stated Income loan program will be supported by the cash flow of bank statements and is for the Self Employed borrower only.

    Pre Qualification Form

     

    Stated Income / Verified Assets SIVA

    Primary Residence

    Loan Purpose

    Units

    LTV

    Maximum Loan Amount

    Maximum Cash Out

    Credit Score

    Purchase

    Rate and Term Refinance

    Single Family Residence 70% $1,000,000 N/A 700
    60% $2,000,000 700
    50% $3,000,000 700
    Cash Out 70% $1,000,000 $400,000 700

    Second Home

    Loan Purpose

    Units

    LTV

    Maximum Loan Amount

    Maximum Cash Out

    Credit Score

    Purchase

    Rate and Term Refinance

    Single Family Residence 60% $750,000 N/A 700

     

     

    Underwriting Guideline Summary

    Credit Notes:

    7-year credit history - No Foreclosure, Bankruptcy, Short Sale, Loan Modification or consumer credit counseling

    2 years clean credit history on mortgage and rent

    No consumer debt lates - 1 year

    Credit report must show a2-year history of 2 or more open and active trade line accounts

    Unlimited real estate properties owned, but 3 financed properties maximum

    Employment Type:

    Self Employed only - 25% ownership minimum

    Employment verification:

    Business license and or CPA letter depending on business industry showing2-year minimum same line of business verifyingthe name ofthe business,the percentage of ownership

    Business phone number will be verified by both 411 and or the internet

     

    Asset Documentation

     

    Stated Income / Verified Assets

    Tax Returns not required

     

    Required Asset Documentation:

    Income is being "stated" on the 1003 Uniform Residential Application, but not verified by traditional income documents

    2 months bank statements to verify liquid assets

    If using rental income to qualify, must provide leases for all rental properties

    All fixed income including retirement, annuities, dividends, Social Security, child support, alimony can be utilized to qualify

    Liquidity requirements:

    Verified assets must support the amount of income we are stating. Stated income amount should be proportionate to the cash flow of the bank statements

    Loan Amount between $400,000 and $650,000 - Minimum liquid asset requirement: $100,000

    Loan Amount between $650,000 and $1,000,000 - Minimum liquid asset requirement: $250,000

    Loan Amount between $1,000,000 and $1,500,000 - Minimum liquid asset requirement: $500,000

    Loan Amount between $1,500,000 and $3,000,000 - Minimum liquid asset requirement: $1,000,000

     

    Additional Underwriting Guideline Summary

    Property Types:

    • Single Family Residence
    • PUD
    • 12 acres maximum

    Eligible Borrowers:

    • Permanent Resident Aliens
    • Non-Permanent Resident Aliens

    6 months title seasoning required for the subject property

    Gift of equity not allowed

     

    Reference #124 528alnexsiva041415

     

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

     

  • Stated Income to $1,500,000 740 Credit Score

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    Loan Amounts:

    • $500,000 Minimum
    • $2,500,000 Maximum

    Acceptable Liquid Assets: (Verification of Deposit form or 2 months consecutive bank statements)

    • Checking
    • Savings
    • CD's
    • Money Market
    • Stocks/bonds
    • Retirement
    • Residual income

    Property Types:

    • Single Family Residence -SFR
    • Townhomes
    • PUDS
    • Condos - 4 stories max

    Available Terms:

    • 5 and 7 Year ARMs
    • 15 year fixed

    Underwriting Notes:

    Property Value:

    If subject property exceeds $3,500,000 value - 2 appraisals required

    "Mortgage Credit Scores" - middle of 3 or lower of 2

    No bankruptcies or foreclosures or consumer credit counseling allowed

    All collections, liens, judgments, and charge-offs

    Consumer debt - 2 30-day lates ok in last 12 months and no lates on installment debt in the last 12 months

    No mortgage lates for last 2 years

    Minimum of 4 open credit accounts required and 2 open and active with a 2-year history

    If borrowers' current property is going to be rented out / turned into an investment property, rental income can be qualified as additional income.

    No REO's

    The property must be in good and livable condition

    Refinance - must pay off existing mortgage liens

    No Cash Out (1% or $1000 max)

    For refinance - 6 months seasoning from purchase date and ownership cannot be transferred via transaction

    6 months seasoning required from the time of purchase if the subject property value has increased more than 10%

    Gift equity not allowed

    If the property is currently listed on the MLS, must be removed from the MLS prior to application date

    Permanent Resident Aliens OK

    No Mortgage / Real Estate, Construction, Property Management or Real Estate Investors allowed

    No Non-Occupant Borrowers allowed

    Max 4 financed properties allowed

    "Gift" down payment is OK if at least 5% is coming from the borrower.

    W-2 employee borrowers must have the same line of work job history for 2 years, no exception 

    Self Employed borrowers must have the same line of work job history for 2 years, no exceptions.

    The business phone will be verified via 411 directories or internet

    Fraud Alert report

  • Home Builder Construction Loan Program

    This is a short-term construction loan for home builders for subject properties located in Arizona, California, Colorado, Idaho, Illinois, Michigan, North Carolina, South Carolina, Ohio, Oregon, Texas, Utah, and Washington.

    Stated Income goes to 1 Million

    • 70% LTV (loan-to-value)
    • 85% LTC (loan-to-cost)

    Loan Amounts:

    • Maximum Loan Amount - 1 Million
    • Minimum Loan Amount - 50K

    Available Terms:

    • 4 months
    • 6 months
    • 9 months
    • 12 months

    Shorter-term - lower cost

    Blanket Loan available

    Construction Completion

    Draw Disbursement

    Eligible Property Types:

    • Single FamilyResidence SFR
    • 2 Unit
    • 3 Unit
    • 4 Unit

    Occupancies:

    • Owner Occupied and Non Owner Occupied

    Eligible Borrowers

    • Legal Entities - Yes
    • Foreign Nationals - Yes

    Underwriting Notes:

    Lender qualifies the lowest middle credit score of both borrowers

  • Stated Income Mortgage Program

    February 2019

    Almost all stated income loan programs are for investments properties. This loan is special in that it provides the option for people that cannot or prefer not to verify their income to purchase or refinance their primary home. In addition, what is also unique about this program is it allows for cash-out on a refinance in Arizona, California, Colorado, District of Columbia, Florida, Georgia, Idaho, Nevada, North Carolina, Oregon, Texas, Virginia, and Washington.

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    Self Employed only

    Loan purpose:

    Purchase, Rate and Term Refinance and Cash Out Refinance 

    Jumbo Loan Amounts

    Cash Out to $1,000,000

    Purchase and Rate & Term Refinance to $2,500,000

    Maximum LTV Financing:

    • Purchase to 75% LTV
    • Rate and Term to 75% LTV
    • Cash Out Refinance to 70%

    Property Types:

    • SFR
    • Condo (65% LTV maximum)

    No Non-warrantable Condos

    Occupancies:

    • Owner Occupied
    • Second Home to 60% LTV - $750,000 on Purchase and Refinance. -No Cash Out

    Credit Score Requirement:

    700 minimum middle score

    Verified Asset Requirements:

    • Loan amounts less than $650,000: $100,000 liquid
    • Loan amounts greater than $650,000: $250,000 liquid
    • Loan amounts between $1,000,000 to $1,500,000: $500,000 liquid
    • Greater than $1,500,000 - $1,000,000 liquid

    Underwriting Notes:

    Borrower cannot have more than 3 financed properties. No limit on number of properties owned

    Non owner occupied borrowers not allowed

    Private mortgage insurance not required

    10 acre maximum on property

    Appraisal notes:

    Full Appraisal required, interior and exterior with photos of both

    Desk review required for all loans greater than $750,000

    Property cannot have been on MLS for less than 90 days

    No purchase seasoning - utilize current market value

    Credit history notes:

    Payment history: No 30 day lates within last 24 months on mortgage or rent

    No 30 day lates on any consumer debt, revolving or installment

    Minimum 2 year active history on a minimum of 2 accounts required

    Unconventional credit not acceptable

    Job and Income document requirements:

    Self Employed:

    2 year job history

    Phone number will be verified via the internet

    Business license or CPA letter

    2 months bank statements or a VOD, Verification of Deposit, personal or business bank statements OK

    Rental Agreements can be qualified as income

    Eligible Borrowers:

    US Citizen

    Permanent and Non-permanent Resident Aliens

    3% contribution OK

    Any liens on the subject property must be a minimum of 6 months seasoned. 12 months on a HELOC with no draws within the last 12 months

     

    Reference# 254 525020215

    All articles on this Website are for informational purposes only. This Website refers all registrants to licensed Mortgage Brokers/Lenders that perform acts for which a real estate license is required.

  • Stated Income / Verified Assets

    Mortgage Pre Qualification Form - Credit Check Not Required

    Minimum Credit Score - 650 Mortgage Credit Score

    Maximum Financing 70% LTV

    Occupancies:

    Primary / Owner Occupied

    Second / Vacation Home

    Investment property / Non Owner Occupied

    This lender offers 3 alternative income documentation programs:

    Full Doc:

    For Self/Employed and W-2 wage earners

    Bank Statements:

    • For Self/Employed and W-2 Wage Earner Co-Borrowers

    Gross Sales for Investment properties

    • For Self/Employed - Gross Income amount utilized to calculate debt ratios

    Terms Available:

    ARM 30 year amortized

    Property Type:

    SFR

    Condos <4 stories

    Townhomes

    2-4 Units

     

    File will need to document Ability to Repay depending on total loan scenario

     

    Loan Amounts:

    Maximum loan amount - $500,000

    Senior Underwriter approval to $800,000

     

    Fix and Flip - OK

     

    Cross Collateral OK

     

    States;

    Arizona, California, Colorado, Florida, Georgia, Idaho, North Carolina, Oregon, Texas, Utah, Virginia, Washington

     

    Reference - 124 526020315