Asset-Based Loan Program
Qualifying Criteria for this loan program is Asset Based. This program can also be used to supplement additional alt doc programs such as Bank Statements and/or 1099's.
Form 4506-T Not Required and Form 4506-C Not Required
This loan program is specifically designed for moderate to high-net-worth borrowers. Qualifying calculation based on verified liquid assets as an alternative method to traditional income verification to determine borrower's ATR "Ability to Repay".
Our investors take a common-sense approach to underwriting the creditworthiness of a particular borrower regarding 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 (if applicable).
Alternative Income Documentation:
- 1, 3, 6, 12 or 24 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 Wage Earner and Salary Employees - OK.
- Maximum Loan Amount - $10,000,000
- Maximum Cash Out (cash-in-hand) - $2,000,000
Eligible Asset Documentation
- 2 Months Seasoning Required
- VOD / Verification of Deposit - OK
- Liquid Asset Business Funds can be used at 100% value 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
Loan Amounts - PITI Reserves Requirements
- $1,500,000 - 6 Months Reserves
- $2,000,000 - 9 Months Reserves
- $3,000,000 - 12 Months Reserves
- $4,000,000 - 18 months Reserves
- $5,000,000 - 24 months Reserves
Eligible Property Types
- SFR / Single Family Residence
- PUD's
- 2 Unit
- 4 Unit
660 Credit Score
- 90% LTV to $3,000,000
- 85% LTV to $2,000,000
- 80% LTV to $3,000,000
Second Home:
640 Credit Score
- 70% LTV to $1,000,000
- 65% LTV to $2,000,000
- 55% LTV to $3,000,000
660 Credit Score
- 80% LTV to $1,000,000
- 70% LTV to $2,000,000
- 60% LTV to $3,000,000
Cash Out Requirements:
12 months Title Seasoning required to use current Market Value (opposed to purchase price value) for LTV qualification
Credit Criteria:
- Derogatory tradelines (liens, judgments, charge-offs, and collections) - 2 years seasoned
- Foreign Nationals OK for second homes and investment properties
Housing Event Seasoning Requirements:
- Foreclosure - 3 Years Seasoned
- Bankruptcy - 4 Years Seasoned
- Short Sale - 3 Years Seasoned
- Mortgage Lates - 1 Year Seasoned
Credit Criteria and Tradeline Requirements::
- 5 tradelines - 24 months history
- 3 tradelines open and active - 24-month history
Underwriter Notes
Loan Amounts greater than $1,500,000 requires 2 appraisals.
Gift Money and or Gift of Equity - Not Allowed
Permanent and Non-Permanent Resident Aliens - OK.
First-Time Homebuyers - OK to 80% LTV with a maximum loan amount of $1,500,000.
Nonexistent Housing Payment History for previous 2 years considered on case-by-case basis.
Dodd-Frank Compliant
States
Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin.
Reference # 444 010288