STATED INCOME PROGRAM

Transcription

1 Fully Amortized 7/1 Portfolio ARM Product Mix Primary Residence, Second Home and Investment Property Purchase, Rate & Term Refinance and Cash-Out Refinance STATED INCOME PROGRAM Rate Guide as of 5/23/2018 Rate & Pricing Adjustments Field Adjustments Product Description Rate Price Investment.25% to Rate 7/1 ARM 1/2/5 4.75% PAR Cash-Out.25% to Rate *Pricing subject to change without notice Foreign National.50% to Rate 2 to 4 Unit.25% to Rate Margin 3.000% / Index: 1 yr LIBOR 680 to 699 Fico 0.25% to Rate & 0.125% to Fee 700 to 719 Fico 0.125% to Fee Asset Based Income Option.25% to Rate Asset Based Income LTV > 50%.25% to Fee** **Asset Based Income LTV > 50% - Extension Fees 7-Day 0.125% to Fee 12 mo PI reserve in investor Account (0.250%) to Fee 15-Day 0.250% to Fee with ACH payment set up 1 Unit SFR & PUD Condominium 2-4 Unit Foreign Nationals Cash Out Transaction 1 Unit SFR & PUD Condominium 2-4 Unit Foreign Nationals/Cash Out Max Loan Amount Max LTV / CLTV / HCLTV Min FICO Up to $1,000, $1,000,001 to $1,500, $1,500,001 to $2,500, up to $1,000, $1,000,001 to $1,500, Up to $1,500, Up to $1,000, NA $1,000,001 to $1,500, NA $1,500,001 to $2,500, NA Max LTV/CLTV/HCLTV 60% / Max cash out amount $2.5MM (Foreign National Limited by Above LTV) 6 months seasoning required. (Delayed Financing Acceptable by Exception) Asset Based Income Option Max Loan Amount Max LTV / CLTV / HCLTV Min FICO Up to $1,000, $1,000,001 to $1,500, $1,500,001 to $2,500, Up to $750, Up to $1,500, Not available for Asset Based Income Option INCOME DOCUMENTATION SELF EMPLOYED For application received on or before 6/30: YTD & 1 full year of Interim Profit & Loss Statement completed by an independent third-party. For application received on or after 7/1: YTD Profit & Loss Statement completed by an independent third-party. CPA Letter (from CPA that prepared previous 2 years tax returns) verifying prepared business ownership and same location for at least 2 years & business license. SALARY OR WAGE - EARNING EMPLOYEES Written Verification of Employment Form (FNMA Form 1005) completed by employer ASSET BASED INCOME OPTION (ABIO) SELF EMPLOYED CPA Letter verifiying business ownership for at least 2 years OR 2 years business license Definitive Description of Business, Industry, and Borrower's Title listed on 1003 Current Employment (1003) must show on credit report / Third-party listing to verify business name and phone number. SALARY OR WAGE - EARNING EMPLOYEES Verbal verification of employment / Current Employment (1003) must show on credit report. GENERAL UNDERWRITING GUIDELINES Maximum Front-End/Total Debt-to-Income (DTI) ratio allowed: 38/43% Qualifying Interest Rate: the greater of start rate or fully-indexed rate. Condo must be warrantable by Fannie Mae; non-warrantable condominiums will be reviewed on an individual basis. No minimum borrower contribution on Owner Occupied and Second Homes (excludes Foreign National). Gift is allowed for 100% of down payment for all occupancies and properties. ABIO will still require borrower's own funds to validate the income even if no minimum contribution is required for down payment and/or closing costs. Gift fund is not allowed for Reserves. Subject property cannot be listed for sale at the application date for Rate and Term and Cash Out. Loan amount > $1.5MM requires a prior investor approval and an additional underwriting fee of $1,460 CREDIT STANDARDS Mortgage Rent Max 1x30 in the past 12 months Tradelines 3 tradelines seasoned for at least 12 months required Bankruptcy / SS & DIL / Foreclosure 3 yrs / 2 yrs / 5 yrs Loan Modification 2 yrs All Property Type Asset Based Income Option Cash Out Refinance ASSET / RESERVES Loan Amount LTV <=60% & Loan Amt up to $1MM LTV % & Loan Amt up to 1MM Loan Amount $1,000,001 to $2,500,000 All Asset Based Income Option* All Cash Out Loans** Required Reserve (P&I) 6 months in US Financial Institution 12 months in US Financial Institution 12 months in US Financial Institution 12 months in US Financial Institution 12 months in US Financial Institution Most recent 2 months bank statement required Business Funds: may be used up to 100% of current balance if borrower can demonstrate 100% ownership of the business. * Refer to Underwriting guidelines regarding down payment requirements for purchase loans. ** All Cash Out Assets Must be Liquid - Checking, Savings, or MMA APPRAISAL GUIDELINES Loan Amount Appraisal Requirement Up to $1,000,000 One Full Appraisal and One Automated Valuation Model (AVM) $1,000,001 - $2,500,000 One Full Appraisal and One Field Review FOREIGN NATIONALS Copy of passport, I-94 and valid VISA (F-1 AND F-2 type are not allowed). Copy of passport and either I-94W or proof of ESTA Approval required for borrowers on VISA Waiver Program. Borrower must have U.S. address when applying for loan. Foreign assets used for downpayment, closing cost, and/or reserves must be transferred to U.S. Institutional account prior to ordering loan docs. Most recent 3 months bank statement required. Automatic debit payment required from U.S. banking institution. 24 months P&I reserves required for subject property. 12 P&I reserves to be deposited into investor financial institution bank account prior to funding.

2 7/1 PORTFOLIO ARM (STATED INCOME)

3 PRODUCT FEATURES Available for Primary, Second Home and Investment Properties Available for Purchase, Rate/Term, and Cash-Out Transactions Does NOT have to be a business purpose loan Provides two options for income documentation: Alternative Documentation and Asset Based Income Option (ABIO)

4 WINPRIME LENDING ONE SIMPLE PRODUCT BASE RATE 4.75% 7/1 LIBOR ARM (WSJ) Fixed for 7 years, adjustable for 23 years No Interest Only features No Balloon payments No Prepayment features Margin is 3.000% & Caps are (1/2/5)

5 STANDARD ALT DOC OR ABIO? Alternative Documentation Asset Based Income Option (ABIO) No Paystubs No Tax Returns No Tax Transcripts Verification of Income Profit & Loss Statement verified by a licensed 3 rd party within 6 month coverage (Self Employed Borrower) Written VOE (Wage Earner) Verification of Job CPA Letter & Business License (Self Employed Borrower) Verbal VOE with 2 year history of employment (Wage Earner) Verification of Income Asset-Based Income Verification Verification of Job CPA Letter OR Business License (Self Employed Borrower) Verbal VOE (Wage Earner) Employment Listed on Credit Report

6 WHAT IS THE 6 MONTH P&L REQUIRMENT? If the current tax year has passed 6 months, provide current tax year P&L for two quarters If the current tax year has not passed 6 months, provide current year P&L and previous year full 12 month P&L.

7 FOREIGN NATIONAL BORROWERS The Foreign National program allows for citizens of foreign countries to purchase a second home in United States. No FICO or international credit report is required. Borrower cannot be US Citizen or Green Card holder. Must follow Alternative Documentation income requirements by providing letter of employment and verification of income from company letterhead All documents must be translated by a third party translator

8 FICO SCORES No FICO score reporting on any of the 3 bureaus (if one fico score ineligible; if two fico scores falls under regular rules) Borrower can be US Citizen or Green Card holder Must follow standard streamline income requirements. Priced similar to the Foreign National program.

9 ALTERNATIVE DOCUMENTATION PARAMETERS Max Loan Amount Max LTV/CLTV/HCLTV Min FICO Up to $1,000,000 70% 70% Unit SFR & PUD $1,000,001 - $1,500,000 65% 65% 700 $1,500,001 - $2,500,000 60% 60% 720 Condominium Up to $1,000,000 65% 65% 680 $1,000,001 - $1,500,000 60% 60% Unit Up to $1,500,000 60% 60% 700 Up to $1,000,000 60% 60% N/A Foreign Nationals $1,000,001 - $1,500,000 55% 55% N/A $1,500,001 - $2,500,000 50% 50% N/A Cash Out Transaction Max LTV/CLTV/HCLTV 60% / Max cash out amount $2,500,000 (Foreign National Limited by Above LTV) 6 month seasoning required. (Delayed Financing Acceptable by Exception)

10 EMPLOYMENT DETAILS CPA letters must be on a formal letterhead with tax preparer license numbers CPA s can be: Certified Public Accountant, Enrolled Agent, CTEC, or Tax Attorney Product is not eligible for borrowers employed by relatives, Property Sellers, Or Real Estate Brokers CPA license must be verifiable by 3 rd Party verification.

11 EMPLOYMENT SCENARIOS Self employed borrower who files their own taxes or cannot provide a CPA letter? o Not eligible for Alt Doc, must go ABIO and provide 2 y ears business license from a regulatory agency or licensing bureau. Self employed borrower who uses a CPA but no business license? o Acceptable if borrower s industry does not require a business license from a regulatory agency AND if they provide evidence of the legal entity (LLC, LP, or Inc.). Eligible for both ABIO and Alternative Doc. Documentation for Commission / 1099 Employee on Alt Doc? o If Borrower can show 3 rd party verifiable license (e.g. realtors, insurance agents, etc.): Must provide a license, CPA Letter and P&L Statement VVOE o If Borrower cannot show 3 rd party verifiable license (e.g. retail sales person): Provide written AND verbal VOE CPA Letter to confirm that they have been filing taxes as schedule C for two years. ABIO for commission / 1099 would still require either License or CPA letter.

12 ABIO PARAMEMETERS Asset Based Income Option (ABIO) Max Loan Amount Max Min FICO LTV/CLTV/HCLTV 1 Unit SFR & PUD Up to $1,000,000 60% 60% 700 $1,000,001 - $1,500,000 55% 55% 720 $1,500,001 - $2,500,000 50% 50% 720 Condominium Up to $750,000 55% 55% Unit Up to $1,500,000 50% 50% 720 Foreign Nationals / Cash Out Not Available for Asset Based Income Option

13 WHAT IS ACCEPTABLE ASSET-BASED INCOME? Stated Income means the borrower states their REASONABLE current income in the 1003 (Application). We verify that their monthly income can be SUPPORTED by the liquid assets pre-closing. Calculation: Assets / 6 must be greater than Stated Income

14 IS THIS SCENARIO ACCEPTABLE FOR ABIO? Medical Doctor who has $300,000 in assets and 1003 income of $20,000 a month? o Yes, this scenario is eligible. $300,000 / 6 = $50,000 which is greater than $20,000 monthly income listed on the application. We use $20,000 for qualification. Wage Earning Gardener who has $100,000 in assets and stated income of $10,000 a month? o No, this scenario is not eligible. $100,000 / 6 = $16,666 > $10,000 monthly income stated, however it is not reasonable for a gardener to make $10,000 a month. Self-Employed Import / Export Entrepreneur with $500,000 in assets and stated income of $100,000 a month? o Yes, this scenario is eligible. $500,000 / 6 = $83,333 & borrower states $100,000 a month. However only $83,000 is used for qualification purposes.

15 Rate & Pricing Adjustments Field Investment Adjustments.25% to Rate ABIO RATE GUIDE BASE RATE 4.75% Cash - Out.25% to Rate Foreign National.50% to Rate 2 to 4 Unit.25 to Rate 680 to 699 FICO.25% to Rate &.125% to Fee 700 to 719 FICO.125% to Fee RATE & FEE ADD-ONS Asset Based Income Option.25% to Rate Asset Based Income LTV > 50%.25% to Fee ** ** Asset Based Income LTV > 50% - 12 mo PI reserve in Investor Account (.25%) to Fee with ACH payment set up

16 WINPRIME LENDING PRODUCT RATE EXAMPLES Alternative Documentation, Purchase, SFR, Investment, $1M Loan Amount, 686 FICO 4.75% Base Rate +.25% Investment +.25% FICO Score 5.25% Final Rate

17 WINPRIME LENDING PRODUCT RATE EXAMPLES Alternative Documentation, Purchase, Second Home, PUD, Foreign National, $1.5 Million Loan Amount 4.75% Base Rate +.50% Foreign National 5.25% Final Rate

18 WINPRIME LENDING PRODUCT RATE EXAMPLES ABIO, Purchase, Owner Occupied, $1 Million Loan Amount, 2 Units, 705 FICO 4.75% Base Rate +.25% ABIO +.25% 2-4 Unit 5.25% Final Rate

19 FREQUENTLY ASKED QUESTIONS Can a borrower have two jobs on this product? o Yes, as long as the borrower has 2 years history of holding two jobs and can document the employment and income for both jobs as required by documentation type.

20 FREQUENTLY ASKED QUESTIONS How do you calculate other REO when tax returns are provided? o We calculate as follows: (75% of lease x % of Ownership) PITIA Properties without lease agreements cannot use the income to qualify.

21 FREQUENTLY ASKED QUESTIONS Can you use multiple income streams? o Yes! For instance, if the borrowers have chosen the alternative documentation option and the borrower received self employed income while the co-borrower receives a wage, we can utilize both incomes to qualify. The self employed borrower s income will be supported by a valid P&L, and the co-borrower s income will be supported by a written verification of employment with the total monthly amount used to qualify.

22 FREQUENTLY ASKED QUESTIONS Can I gross up non-taxable income like social security? o No. Since WINPRIME LENDING does not receive or require tax returns, we cannot determine what portion of the income is non-taxable. We will qualify at the monthly amount derived from the award letter.

23 Asset Based Income Option (ABIO) Income Calculation Worksheet Loan Number: Employer Name: Borrower Name: Property Address: Calculation #1 Income from Assets Total Verified Seasoned Assets = Assets as Monthly Income = (Total Assets / 6 Months) Calculation #2 Income from 1008 Total Income on 1008 = # of Months of Income per Assets = The Qualifying Income must be the lower of the two incomes in Calculation #1 & #2 Total Qualified Monthly Income: $ Calculation #3 Income from Payment History (R&T Refi Only) Total Income on 1008 = Number of Months Payment History = The Qualifying Income on Rate & Term Refinances will require an established payment history. If a payment history is established, we will utilize the income listed on the Total Qualified Monthly Income: $