Commercial Jumbo Loan 80% LTV to $6,000,000

Underwriter Notes & Highlights:

Subject property and the borrower’s primary residence. The rest of the properties on the schedule of real estate will be checked via 3rd party sources to ensure there are no Notices of Default (NOD).

Mortgages not rated on the credit report require canceled checks. The following is our delinquency tolerance on mortgages:

* No delinquencies in the past 90 days
* All must be current
* One 30-day late maximum in the past 12 months
* Two 30-day lates maximum in the past 24 months
* Bankruptcy – Must be seasoned 24 months from discharge or Sale.
* Foreclosure- Must be seasoned 24 months from discharge or Sale.

Credit Report

* 660 middle score or lower of two. A one score report is a decline.
* 620 case-by-case. LTV reduced to 50%

Appraisal Notes:

4-unit properties are ordered through a 3rd party. Commercial appraisals require a Good Faith Deposit of $995. Our real estate department bids out the order and selects the appraiser weighing cost, estimated time of completion, and appraiser’s credentials.

Lease Agreements

Rent roll and P&L for the property. These reflect the income the property generates. Rent rolls and operating income statements are not required on the investor 4-unit program. On our Traditional program, they are required, and we will not order the appraisal unless we have these items.

Executed Purchase Contract

Required for any submission of a purchase transaction.

Funds to Close

90 days sourced and seasoned for purchases or refinances that are short to close. Funds from outside of the United States must be deposited into a bank within the United States before close. Funds can be seasoned in a foreign account.

Environmental

* 3rd Party Environmental Insurer is Utilized.

Eligible Vesting

* Natural persons
* Trusts
* Limited liability companies
* Partnerships
* Corporations

Entity Review

Entity docs will be reviewed immediately upon receiving all the necessary forms.

Trusts should only require the trust certification. We do not want to see the trust documents

LLCs, partnerships, and corporations must submit an Operating Agreement, making sure it breaks down the percentages of ownership, the EIN, and the Certificate of Good Standing.

Not for Profits are doable but very tricky and difficult. My suggestion is to do the loan to one of their members as an individual, where they can grant deed it back to the entity after the close.

When vesting as a corporation or partnership we have a 3rd party review the entity docs to ensure we are allowing a valid vesting. It is a good practice to include entity docs with the initial loan submission to get the borrower’s signature block sooner rather than later.

All Eligible Loans must have a natural person as the guarantor.

Closing costs must be 90 days source and seasoned

Business Accounts are an Acceptable Source of Funds

* Acceptable Assets- Additional acceptable sources of funds if properly verified, include, but are not limited to: U.S. Savings Bonds, Stocks/bonds/mutual funds, Repayment of a loan, Sale of Property or Real Property, IRA/Keogh Accounts, trade equity
* Minimum of 10% must be borrower’s own funds for purchase transactions.
* The escape hatch- If you are 5% below program max, the seasoning of the funds can be waived. For example, you submit a 70% LTV purchase where either the seasoning of the funds does not meet the 90-day requirement. OR you have a donor that refuses to let us run credit. Drop the LTV to 65%, and just show that the required down is currently in the borrower’s bank statement.

First Time Investor Notes

* 5% LTV reduction
* First Time Buyer is a borrower who does not own a property for the previous 3 years.
* 12-month rental verification required with canceled checks for the first-time buyer. * If missing checks, and additional 5% LTV reduction.
* First-time investor is someone who owns their primary residence but has not had an investment property in the past 2 years.
* First Time Buyers
* First-time investors are ineligible for out-of-state transactions.

Subordinate Financing OK

The Combined Loan-to-Value (CLTV) does not exceed 10% of the maximum LTV for Class type.

* Subordinate financing should be underwritten at market rates
* 80% CLTV maximum

Eligible Borrowers:

* Non-Permanent Resident Aliens and Foreign Nationals
* Non-Permanent Resident Aliens and Foreign Nationals are eligible for this program
* Non-Permanent Resident Aliens are foreigners who reside in the on a temporary basis and have government-issued documentation work visa
* 650 minimum credit score
* Valid Identification
* Proof of physical address
* Work Visa or Green Card

Foreign Investors

These are for investors that do not have a valid green card or work visa. Lender does not loan to these types of borrowers.

Compensating Factors

Compensating factors mean guideline exceptions

* LTV below 50% – credit, location, funds to close and any approval conditions are negotiable.
* Credit score over 720 with the depth of credit
* Great looking property in an improving market
* Properties in stable metro areas, New York City, Los Angeles, San Francisco, Houston, Dallas etc.
* 5+ unit properties are liquid in ALMOST any market.
* Seasoned funds to close on purchases where the LTV is below program max.

Collateral

* Properties listed in the past 6 months are not eligible for cash out.

Eligible Occupancies

* Owner Occupied properties

Ineligible Property Types

* Gas stations
* Vacant commercial properties
* Raw land, Churches, where the sole or predominant use of the property is only as a church
* Leasehold estates
* Nightclubs
* Healthcare
* Funeral homes, campgrounds
* Education (schools, etc.)
* Car wash
* Auto-dealerships- even small ones with a decent land to building ratio are a decline
* RV parks
* Marinas with lake access only
* Golf courses
* Any property where the business is regulated by the Perishable Agricultural Commodities Act (PACA)

Property Classifications

* 1 – 4 unit, Owner Occupied SFR, town-houses, 2-4 units, and condos- 70% maximum LTV
* 70% LTV to $1,000,000
* 65% LTV to $2,000,000
* 5+ units & mixed-use properties- 75% MAX
* 75% LTV to $5,000,000

Mixed-use properties must meet the following standards:

* Approximately 50% of the building, by either size or rental income, should be residential.
* The percentage of square footage allowed for commercial use is as follows: Commercial use is generally confined to the ground floor;
* Approximately one-half for commercial use in a one or 2-story building or two-building property.
* Approximately one-third for commercial use in a 3-story building; Commercial use must not affect the health, safety or comfort of residential occupants.
* Acceptable commercial uses are general office and retail.

Process

We can close loans only as quickly as your broker/borrower returns the stipulations requested. If we ask for something, we need it. It is our money to lend, so we ask for what we need. We will take a commonsense approach and allow alternative documentation to what was requested if it makes sense.

Once the file has been cleared to close by underwriting, it moves to the funding department.

Funding

We have a 48 hour turn time on getting loan docs prepared. Be sure your broker has not set up a closing as our funding department will contact the closer and set the time. Our funding department will coordinate with the closers to ensure the loan docs are correct, and there is enough time for the closer to review the docs.