For assets to close, yes. If Business assets are to be used, the business’s Accountant/CPA/Tax Preparer must verify that business will not be adversely impacted by Borrower withdrawals.
Do you allow credit rescoring mid-process or does the score have to be updated prior to application?
This is allowed on a case-by-case basis. If tradelines are being paid off or paid down to improve FICO scores, must provide proof of payment and source of funds used.
If the loan program is for Lite Doc investment, yes. If the loan program is DSCR, it will depend on the state in which the property is located.
Yes, 100% gift funds are allowed for down payments and closing costs. You can also accept a gift of equity from your relative in the purchase.
The accountant does not need to make a representation that the P&L is audited.
We allow up to 10k of unsourced deposits over a one-month period combined.
It depends on the loan program. For Owner-Occupied Lite Doc and Bank Statement programs, see below: LTV Min. Reserve Requirement Less than or equal to 65% LTV 0 months PITI(A) Greater Than 65% LTV 3 months PITI(A) Borrowers who own other financed properties are required to evidence an additional 1 month of PITIA reserves for […]
The only restriction is that First Time Homebuyers require a Minimum 660 FICO. You can be a FTHB and purchase an investment property and use the rental income to qualify unlike Fannie Mae and Freddie Mac – and we also accept gifts towards down payment and closing costs.
We require at least 3 tradelines reported for a minimum 12-month period. Borrower may use alternative tradelines to meet the minimum requirements.
We do not apply an expense factor of the P&L, we qualify using the net income. But, if the client owns less than 100% of the business we will use the percentage of ownership by the net income.