DEEPHAVEN MORTGAGE RESPONSIBLE NON-QM LENDING Heather Carrico 10.31.17
DEEPHAVEN DIFFERENCE Top 10 Reasons to use Deephaven More investor loan opcons Limited by past consumer credit problems Qualify with alternacve income documentacon Borrowers who were negacvely impacted by housing crisis Outside of agency investor guidelines 1. Personal & Business Bank Stateme 2. Loan Amounts Up to $2.5M 3. DTI Up To 55% 4. Use Cash Out Proceeds as Reserve 5. Credit Scores as Low as 500 6. Investors with greater than 10 pro 7. Non Warrantable condos 8. Prior Foreclosure or BK 9. No doc Inventor loans 10. No MI on LTVs up to 90%
DEEPHAVEN PRODUCTS Expanded-Prime Start here for all owner-occupi and 2nd home borrowers at lea 5 years from a housing event. This is a near-miss product wit our most compeccve pricing. Near-Prime Start here for all owner-occupi and 2nd home borrowers at lea 3 years from a housing event. Non-Prime Start here for all owner-occupi and 2nd home borrowers withi years or less from a housing event. Investment Property Start here for all investment properces and foreign nacona
EXPANDED-PRIME Provides lending opportunices to borrowers who are at least 5 years away from previous housing event and/or Bankruptcy Interest Only ARM s 10 year I/O term with 20 year amorczacon Credit score as low as 660 LTV s for PURCHASE and RATE/TERM up to 85% LTV s for CASH OUT up 70% Non-Warrantable Condo s not allowed Max DTI 50% Bank Statement DocumentaCon Allowed 24 months or 12 months Personal and 24 months Business No Excep>ons will be allowed haven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
EXPANDED-PRIME
NEAR-PRIME Provides lending opportunices to borrowers who may have consumer credit challenges bu whose housing history is more consistent. The program also helps self-employed borrowers who may not qualify using Appendix Q underwricng standards. Interest Only ARM s 10 year I/O term with 30 year AmorCzaCon Credit scores as low as 620 LTV s for PURCHASE and RATE/TERM up to 90% LTV s for CASH OUT up to 85% LTV s for Non-Warrantable Condo up to 80% DTI as high as 55% Bank Statement DocumentaCon Allowed 24 months or 12 months Personal and 24 mon Business haven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
NEAR-PRIME
NON-PRIME The typical borrower does not qualify for convenconal or government financing due to the recent foreclosure and, possibly, a related bankruptcy. Also helps self-employed borrowers who may not qualify using Appendix Q underwricng standards. Credit scores as low as 500 Interest Only ARM s - 10 year I/O term with 30 year AmorCzaCon LTV s for PURCHASE and RATE/TERM up to 85% LTV s for CASH OUT up to 80% LTV s for Non-Warrantable Condo up to 80% DTI as high as 55% Cash out proceeds as reserves Bank Statement DocumentaCon Allowed 24 months or 12 months Personal and 24 mon Business haven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
NON-PRIME
INVESTMENT Provides lending opportunices to investors who have been negacvely impacted by the housing crisis. There is no seasoning requirement for a prior housing default Investor A and A- Interest Only ARM s 10 year I/O term with 20 year AmorCzaCon Investor Advantage Interest Only ARM s : 3/1 ARM - 5 year I/O term with 25 year AmorCzaCon 7/1 ARM - 10 year I/O term with 20 year AmorCzaCon Credit scores as low as 560 LTV s for PURCHASE and RATE/TERM up to 80% LTV s for CASH OUT up to 75% LTV for Non-Warrantable Condo up to 75% LTV s for Foreign naconals (A- and Investor Advantage) up to 75% Bank Statement DocumentaCon Allowed: 12 months Personal and 24 months Business haven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
INVESTMENT
EDIT lines elines reporcng for 12+ months elines reporcng for 24+ months, all with accvity in the last 12 months delines used to qualify may not exceed 0x60 in the most recent 12 months ited Tradelines allowed on the Non-Prime product 6 months reserves required, 10% minimum borrower contribucon (see guidelines for all requirements) ans in a deferment period, colleccon or charged-off accounts, accounts discharged through bankruptcy, and thorized user accounts are not considered acceptable trade lines senta>ve Credit Score ry Wage Earner representacve score is use to determine the credit score for the loan aven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
RSONAL BANK STATEMENT PROGRAM General Requirements 24 months or 12 months complete bank statements (TransacCon history printouts are not acceptable) IniCal signed 1003 with monthly income disclosed Personal Bank Statements 100% of deposits, averaged over 24 months or 12 months Transfers between personal accounts should be excluded Transfers from a business account into a personal account are acceptable Unusual deposits must be documented Borrowers will qualify off the lower of the following - Income figure listed on Signed 1003 Personal Bank Statement Average (total deposits [minus any disallowed deposits] 24 months or 12 months) aven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
SINESS BANK STATEMENT PROGRAM General Requirements 24 months complete Business bank statements (TransacCon history printouts are not acceptable) One of the following is needed: Profit and loss statement covering the same 24 months period prepared by CPA or licensed Tax Preparer Expense Statement prepared by CPA or licensed Tax Preparer and a Borrower Prepared P&L BizMiner Report and a Borrower Prepared P&L IniCal signed 1003 with monthly income disclosed Business Bank Statements Business bank accounts, personal bank accounts addressed to a DBA, or personal accounts with evidence of business expenses can be used for qualificacon Wire transfers and transfers from other accounts must be documented or excluded Statements should show a trend of ending balances that are stable or increasing over Cme Business expenses must be reasonable for the type of business (examples of business with higher expense racos may include construccon companies, builders, restaurants and retail firms) Must own 100% of business aven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
BUSINESS BANK STATEMENT PROGRAM CALCULATING QUALIFYING INCOM ION A: 3 rd Party Prepared P&L lifying Income is the lowest of the two following calculacons: t Income from the P&L Example: $420K / 24 = $21K ome Listed on the IniCal Signed 1003 Example: $25K ION B/C: Borrower Prepared P&L along with a 3 rd Party Prepared Expense Statement/BizMiner report for discre>onary Owner Earnings ed on Industry code and loca>on) lifying Income is the lowest of the three following calculacons: t Income using the Expense Statement/BizMiner (Gross Revenue x {1 Expense Statement} ) OR Example: $800K x (1-.40=.60) = $480K/24 = $20K t Income from the P&L Example: $504K/24 = $21K ome Listed on the IniCal Signed 1003 Example: $25K ORTANT ITEMS TO NOTE Total Bank Statement Deposits MUST be within 5% of the Gross Revenue from the P&L P&L must be the same 24 month period as the bank statements aven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
ASSET DEPLETIO llowed under Near-Prime ONLY - Rate/Term Refi or Purchases Net of down payment, loan costs and reserves: borrowers must have a minimum of the lesser of a) 1.5 Cmes the loan balance OR b) $1mm in qualified assets Qualified assets include: 1. 100% of checking/savings/money market accounts 2. 70% of remaining value of stocks/bonds 3. 60% of recrement assets onthly Income = Net Qualified Assets / 120 Months aven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
ASSET DEPLETIO CALCULATIO haven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
NON - WARRANTABLE CONDOS Commercial Space Fannie No more then 25% of a condo project can be commercial space. Deephaven Up to 30% of the condo project can be commercial space. HOA Dues Fannie No more than 15% of total units in project may be 60 days or more past due. Deephaven No more than 20% of units may be 60 days or more past due. Li>ga>on Fannie If the lender determines that pending licgacon involves minor masers with no impact on the safety, structural soundness, habitability, or funcconal use of the project, the project is eligible provided the licgaco limited to one of the following categories: non-monetary licgacon involving neighbor disputes or rights of quiet enjoyment licgacon for which the claimed amount is known, the insurance carrier has agreed to provide the defen and the amount is covered by the HOA's or co-op corporacon's insurance; or the HOA or co-op is named as the plaincff in a foreclosure accon, or as a plaincff in an accon for past du HOA assessments Deephaven Acceptable as long as the pending lawsuit(s) are not structural in nature, do not affect the marketability of the units and: PotenCal damages do not exceed 25% of the HOA reserves, OR The associacon s insurance policy is sufficient to cover the licgacon
NON - WARRANTABLE CONDOS Single En>ty Ownership Fannie Projects in which a single encty owns more than 10% of the project are ineligible (2 4 unit project unit max; 5 20 unit project = 2 units max) Deephaven Allows up to 20% Investor Concentra>on Fannie At least 50% of the total units in the project must be conveyed to principal residence or second hom purchasers (investor occupancy only does not apply to primary or 2 nd home occupancy) Deephaven - Up to 60%. Guidelines specify that higher percentages may be considered under the Investmen Property Program, but does not explicitly say does not apply to primary or 2 nd home occupancy
FOREIGN NATIONALS Documenta>on Copies of the borrower s passport and unexpired visa must be obtained The following visa types are allowed as foreign naconals: B-1and B-2, H-2 and H-3, I, J-1 and J-2, O-2, P-1 and P-2 Credit For borrowers with a valid SSN A U.S. credit report should be obtained providing merged credit informacon from the 3 major naconal credit repositories Must meet standard tradeline requirements Qualifying Foreign Credit 3 open accounts with a 2-year history 2-year housing history can be used as a tradeline U.S. credit accounts can be combined with lesers of reference to establish the 3 open accounts
FOREIGN NATIONALS Income Salaried foreign naconal borrowers: Leser from employer providing current monthly salary and YTD earnings or 2 months pay stubs with YTD earnings VerificaCon of earnings for the last 2 years Employer to be independently verified Self-Employed foreign naconal borrowers for at least 2 years are allowed: Leser from a CPA providing income for the last 2 years and YTD earnings Self-employed business and CPA are to be independently verified (via LexisNexis, D&B InternaConal Business Search, Google, or other means of verificacon) **All documents must be translated by a cercfied translator Assets 12 months PITIA reserves required for the subject property All funds for the transaccon must be seasoned for 60 days Assets used for down payment and closing costs must also be seasoned in a U.S. depository insctucon for 30 prior to closing Assets held in foreign accounts are eligible for reserves. A 30 day statement is required. Funds to be converte U.S. dollars using the current exchange rate Property Eligible for 2 nd Home and Investment Property must verify any mortgage history for current residence.
DOWN PAYMENT AND ASSETS Minimum Borrower Contribu>on Borrowers must contribute a minimum of 5% of their own funds toward the down payment on purchase transaccons 10% contribucon required for the following: No housing history Loans amount > $424,100 2 nd Homes Limited trade lines Gi[ Funds Gi funds are allowed a er the borrower has made the minimum required borrower contribucon towards the down payment
DOWN PAYMENT AND ASSETS PITIA Reserves All transaccons require a minimum of 3 months reserves 6-12 month reserves are required for certain transaccons. Refer to the specific matrix and guidel Re>rement Accounts Vested funds from recrement accounts (IRA/Keogh and 401(k) accounts) are acceptable for down payment, closing costs, and reserves 100% of the vested amount may be used ReCrement accounts that do not allow any type of withdrawal may not be considered Funds do not have to be withdrawn to use for reserves
RESIDUAL INCOME AND PAYMENT SHOCK Residual Income Payment Shock $2,500 is required for Expanded-Prime product 150% max payment shock on primary residence transac>ons $2,500 is required for Near-Prime product $1,500 is required for Non-Prime product Up to 250% allowed with compensa>ng factor Addi>onal $150 per dependent is also required
ATIO GRID haven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub
INVESTOR ADVANTAGE Credit scores as low as 640 with a maximum $2,000,000 loan amount Investor Advantage designed for experienced investors with no income and no employment verificacon. Invertor Advantage Interest Only ARM s only 3/1 with 5 year I/O and 25 year AmorCzaCon, 7/1 I/O with 20 year AmorCzaCon LTV s for PURCHASE and Rate/Term up to 75% LTV s for CASH OUT up to 70%
INVESTOR ADVANTAGE ROAD MAP Addi>onal forms Required a. Business Purpose Affidavit 2 copies required 1 signed at applicacon and another signed AND notarized at closing b. Fannie Mae form 3170, 1-4 Family Rider c. Personal Guaranty if vested in an LLC
INVESTOR ADVANTAGE ROAD MAP We will accept a 1003 and ask that the following seccons not be completed: a. SecCon IV Employment InformaCon b. SecCon V Monthly Income and Combined Housing Expense InformaCon
FAQ - INVESTOR ADVANTAGE QUALIFICATIONS Credit Score Credit Reports should be supplied for all borrowers and/or guarantors If two borrowers, the lower of the two middle credit scores will be used for RepresentaCve Loan Score Tradelines 3 tradelines reporcng for 12+ months, OR 2 tradelines reporcng for 24+ months All with accvity in the last 12 months Late Payments Rolling late payments are not permised Employment / Income There is no employment verificacon or income analysis required There is no Debt-to-Income (DTI) or Debt Service Coverage RaCo (DSCR) requirement
FAQ - INVESTOR ADVANTAGE QUALIFICATIONS Documenta>on Full asset documentacon is required for purchase transaccons to evidence sufficient funds to clos Assets must be sourced or seasoned for 60 days Gi[ Funds Not permised Reserves There is no reserve requirement Appraisal Two (2) appraisals are required for loans > $1,500,000 A Clear Capital Collateral Desk Analysis (CDA) is required for all transaccons
CENARIO DESK General uideline ues>ons nswered Excep>on Requests Credit Review Complex Income calcula>on ques>ons The Deephaven Mortgage Scenario Desk is designed to help you quickly determine whi borrowers are likely to qualify for our progra Deephaven s experienced mortgage professionals are here to help at any step al the way! Quick Ques>ons? Call: 704.628.4109 Email: scenario@deephavenmortgage.com haven Mortgage LLC This material is intended solely for the use of licensed mortgage professionals. DistribuCon to consumers is strictly prohibited. Program and rates are subject to change without nocce. Not available in all states. Terms sub