Expanded Products/Non-QM Guideline Enhancements
Today we are announcing several key guidelines enhancements which are summarized below:
• 1 Year P&L Only feature with 2 months business bank statements
• DSCR down to .75% on purchase (previously was 1.0%)
• Expanded LTVs on DSCR in multiple FICO buckets for purchase, rate & term and cash out.
• Increased allowable LTV for first-time investors up to 75%
• Expanded short-term rental guidelines- calculation expanded to allow a 2nd option for short-term rentals such as Airbnb and VRBO
• Reduced minimum FICO on Non-Prime 2nd home and & investment down to a 660.
• Expanded non-warrantable condo guidelines – increased commercial space allowed up to 50% (was 40%)
• Bridge loans are now an acceptable source of funds.
• Increased allowable exposure of on financed properties to $10M and 10 loans (was $5M and 5 loans)
• Increased allowable payment shock on primary residence from 150% to 300%
• Gift funds are now allowed on investment property transactions