Program Description: Financing for investor occupancy on mixed-use property
Products and Terms:
- 5/1 ARM: Fully Amortizing
- 5/1 ARM: With 7 or 10 year Interest-Only period
- 7/1 ARM: Fully Amortizing
- 7/1 ARM: With 10 year Interest-Only period
- 30-Yr Fixed: With 7 or 10 year Interest-Only period
- 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 60% and 12 months of reserves are required.
Minimum Debt Service Coverage: 1.1 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.
Acceptable occupancy: Investor / business purpose properties only. Borrowers must sign a business use affidavit (no primary or second home occupancies)
Acceptable property types: Properties consisting of 2 to 6 units; if the property is less than 5 units, at least 1 unit must be commercial (store, restaurant, etc.) and properties with more than 2 commercial occupancy units are not permitted. PLEASE SEE CONSOLIDATED GUIDELINES FOR IMPORTANT
ADDITIONAL PROPERTY REQUIREMENTS
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.