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 properties

Loan Amounts

  • $750,000 Maximum Loan Amount
  • $500,000 Maximum Cash Out

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 Required
  • Self Employed and W-2 salary employees - OK

Eligible 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" - OK

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

Loan Amounts - PITI Reserves Requirements :

  • <$625,000 - 6 months
  • $625,000 - 9 months
  • $1,000,000 - 12 months' reserves
  • $2,000,000 - 18 months' reserves

$3,000,000 - 24 months' reserves

Loan Purpose:

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

Property Types:

  • SFR / Single Family Residence
  • PUD's
  • 1-2 Unit

Owner Occupied / Primary Residence

680 Credit Score

  • 75% LTV to $1,000,000
  • 65% LTV to $2,000,000
  • 50% LTV to $3,000,000

Second Home

640 Credit Score

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

Investment Property

660 Credit Score

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

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

Credit Criteria:

Derogatory tradelines (liens, judgments, charge-offs, and collections) - 2 years seasoned

Housing Event Seasoning Requirements:

  • Foreclosure - 2 years seasoned
  • Bankruptcy - 4 years seasoned
  • Short Sale - 2 years seasoned
  • Mortgage lates - 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