Mortgage Service Clarification

Jumbo Bank Statement Loan to 3 Million

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Purpose:

• Purchase

• Refinance

• Maximum Cash Out - $2,000,000

Available Loan Amounts:

• $3,000,000 Maximum

Eligible Employment Types:

• Self Employed  (Defined as =/> 25% Owner)

• Wage Earner / W2 Co-Borrower - OK

Eligible Employment History:

• One Year Employment History - OK "Lite Doc"

Employment Verification:

Acceptable (VOE) Verification of Employment lender guideline options:

• Business License

• Business Organization Paperwork or regulatory equivalent.

• CPA Letter or equivalent

Income Documentation: (No 4506-T)

• 12 or 24 Months Business Bank Statements

• 12 or 24 months Personal Bank Statements

• "Borrower Prepared" & Unaudited Profit & Loss Statement - No 4506T Form or CPA Letter

Liquid Reserves Requirements:

6 For self-employed borrowers, liquid reserve requirements - business bank account OK - percentage utilization allowed is equal to the percentage of ownership. - for example, 60% owner of the business can utilize 60% of the business bank account balance.

Utilize Liquid Assets for Additional Qualifying Income

 Eligible Liquid Assets Examples:

• Checking & Savings Accounts

• Stocks

• Bonds

• Mutual funds

• Certificates of Deposit

• Money Market Funds

• Trust Accounts

• Retirement Accounts "amount invested"

• Trade Equity

• Savings Bonds

• Trust Accounts

• Sale of Real Estate

Eligible Business Entities:

• C Corporation

• S Corporation

• LLC

• Sole Proprietor

Eligible Property Types:

• SFR - Single Family Residence - Detached

• SFR - Single Family Residence - Attached

• 1 - 2  Units

• 2 - 4 Units

• Condominiums

• PUD's

Eligible Occupancies:

• Owner-Occupied

• Investment

• Second Home (Vacation)

Credit:

Credit Scores - 620 Minimum

720 Score - Max LTV 85

Housing / Life Event Credit Seasoning:

• Bankruptcy: 4 years, 3 Years with Compensating Factors

• Foreclosure: 4 years, 3 Years with Compensating Factors

• Short Sale: 4 years, 2 Years with Compensating Factors

• Loan Modification: 4 Years, 3 Years with Compensating Factors

Compensating factor examples: Low LTV. Low DTI. Credit depth and over-all seasoning

DTI - 50% Max

States: Alabama | Arizona | Arkansas | California | Colorado | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Kansas | Lousiana | Nevada | North Carolina | Pennsylvania | Lousiana | Oregon | Tennessee | Texas | Utah | Washington | Wisconsin

reference: 255.052519