INVESTOR DSC
PROGRAM ID: SP I5
Program Description: Qualification based on cash flow from the rental property
Products and Terms:
- 5/1 ARM: Fully Amortizing
- 30-Yr Fixed: Fully Amortizing
Eligible borrowers: Borrowers who are natural persons may be citizens / US or foreigners. Borrowers who are eligible legal persons (LLCs and corporations) must be organized in one of the 50 states or DC. If one or more borrowers is foreign, LTV is capped at 70% and 12 mths of reserves are required.
Minimum Debt Service Coverage: 1.0 times PITIA
Minimum credit score: 620, based on no less than three trade lines established for one or more years, no foreclosure or bankruptcy over past 48 months at standard LTVs and reserves. No foreclosure or bankruptcy over past 24 months available at a max LTV of 75% and reserves increased by 6 months. Maximum permitted mortgage or rental payment delinquency is 1x30x12.
Loan amounts and loan to value limits:
- Investment / Business Purpose / Purchase and Rate & Term Ref-fi: 50% to $5,000,000
- Investment / Business Purpose / Cash-out Re-fi: 55% to $3,000,000
Acceptable occupancy: Investor / business purpose properties only. Borrowers must sign a business use affidavit (no primary or second home occupancies)
Acceptable property types: 1-4 units, warrantable / non-warrantable condo (non-warrantable condos require a rate add-on)
Required reserves: 3 -12 months PITIA (based on loan amount). For cash-out refinances, loan proceeds disbursed to Borrower may be used to meet reserve requirements. If Borrowers own investment properties which are not the Subject Property, then required reserves must be increased by 1% of the mortgages
outstanding on mortgage debt not secured by the Subject Property.
Acceptable states: 50states and DC (US Territories not allowed)
Other Info: ARM Index -1-yr LIBOR; Margins –owner occupied 3.25%; investor-occupied 5.25%; Floor (lifetime minimum rate) is initial note rate. Escrows required. 3-yr prepayment penalty required where permitted by law; PPP buyouts may be available.