Stated Income/Verified Assets
| Feature | Characteristics |
|---|---|
| Loan amount | From $100K to $400K |
| Interest rate | Starting at 7.75% on our Adjustable Program |
| Loan term | 25 year fixed rate with NO BALLOON (only applicable on the Non-Adjustable Program) |
| Prepayment penalty | 5 years declining at 5, 4, 3, 2, 1 on our Fixed Program and 5% flat for 5 years on our Adjustable Program |
| LTV | Up to 70% max for multifamily and other property types. LTV will be reduced based on the transaction risks and credit scores |
| CLTV | Up to 80% |
| Minimum Credit Score | 600 |
| Territory | Nationwide except for Alabama, Alaska, Hawaii, Michigan, Nevada, Ohio, West Virginia, Vermont & Los Angeles county, CA |
| Credit quality | Usually we request mortgage to be current, and must have been rated for 24 months. Mortgage rating must not have more than 1 X (30) days delinquency in the past 12 months. HOWEVER, we will also consider 3 X (30) days and 1 X (60) days delinquencies in the last 12 months period OR 6 X (30) days and 1 X (60) days in the prior 24 months. Please note that interest will be higher |
| Bankruptcies | Generally not allowed in the prior 2 years |
| Charge Offs / Collections | Not allowed in the prior 12 months period. Charge offs over $500 are not allowed in the period between months 13 and 24. Exceptions may be granted with a higher rate |
| Property type | 2-4 Unit, apartments (5+ units), mixed-use, professional office space, retail store – strip/free standing, small commercial, motel/hotel, mobile home park, office/warehouse, church/house of worship, garage/storage/auto, bar with apartments, restaurant, auto repair/auto body |
| DSCR | 1.20 Minimum for multifamily/mixed-use1.30 Minimum for motel/hotels
1.35 Minimum for retail store/strip, mobile home park, small commercial, office warehouse, church/house of worship 1.40 Minimum for automotive/storage |
| Purchase, rate & term, limited cash out | |
| Investment property or owner occupied | |
| Closing time | 4 weeks typically, if complete package |
| For loans below $250K, DTI ratio is used in lieu of DSCR | |
| Appraisal | Usually 3 approaches will be used to determine property value as follows:1. Sales comparables
2. Cost approach 3. Income approach Investor bases the final loan amount on the lowest of the three approaches |