Bank Statement, P&L, 1099, WVOE – Iron coming soon

JET DSCR – Iron

GENERAL GUIDELINES
Min FICO
660
Min Loan Amount
$100,000
Max Loan Amount
$3,000,000
Property Types
SFR, 2-4 Unit
Rural
Ineligible
Housing History
Requires a 12-month housing history on the subject property, primary residence and all additional financed properties. The housing history requirements for additional financed properties (properties other than the subject property and primary residence) are limited to properties with mortgages reflected on the credit report. All payment histories must reflect 0X30. Borrowers who have lived in a rent-free situation are eligible if the borrower is an experienced real estate investor with a minimum of 12 months ownership and management of income-producing residential or commercial real estate within the past 24 months.
Housing Event
BK/FC/NOD/SS/DIL/MOD : 4+ Years
Eligible Borrowers
U.S. Citizens Permanent Resident Aliens Non-Permanent Resident Aliens (See Separate Matrix)
Entity Vesting:
Max 4 Entity Owners Gaurantor(s) must be a managing member or majority owners and have at least 25% ownership of the business entity. Documents Required: Articles of Incorporation, Operating Agreement, Tax Identification Number, Certificate of Good Standing (within 30 days of closing)
Credit
The representative credit score for qualification purposes for an individual borrower is the middle score of the three (3) scores reported. If two (2) scores are reported the representative credit score is the lower of the two scores.
Tradelines
For each borrower, a minimum of 2 trade lines must be evident and must meet the following criteria: o One trade line must be open for 24 months and active within the most recent 6 months, and o One trade line must be rated for 12 months and may be open or closed.
Cash-Out
$500k LTV > 60% Unlimited Cash-Out LTV <= 60% Properties listed for sale are ineligible for refinance unless the listing was withdrawn or expired 6 months prior to the date of closing.
Flip Transactions
case-by-case
Assets
Assets must be sourced/seasoned for 30 days and may be verified using one of the following: Direct written verification, completed by the depository. Recent account statements covering a period of one (1) month for each bank, brokerage, mutual fund account or investment portfolio.
Gifts
Gift funds are not allowed
Reserves
<= $1.0M : 3 Months $1.0M – $2.0M : 6 Months $2.0M – <= $3.0M : 9 Months Cash-Out may be used as reserves No additional reserves for other financed properties.
Seller Concession
3%
First Time Investor
Not Allowed. Borrowers must have a minimum of 12 months ownership and management of income-producing residential or comercial real estate within the past 24 months.
First Time Homebuyer
Not Eligible
Appraisals
–
Declining Markets
10% reduction to maximum LTV/CLTV
Long Term Rental
Tenant Occupied: Use the lower of the (a) executed lease agreement or (b) market rent from appraisal. o Determined by fully executed lease in file with tenant currently occupying or will occupy within 30 days of the Note date. o An expired lease agreement that has verbiage that states the lease agreement becomes a month-to-month lease once the initial lease/rental term expires is allowed. o On a multi-unit property, the occupancy (tenant occupied or non-tenant occupied) and income calculation method is determined independently for each unit. In addition, a multi-unit property is considered tenant occupied and is not subject to the reduction in maximum LTV/CLTV for a refinance of an unleased property if at least one of the units is tenant occupied. Non-Tenant Occupied: market rent from the appraisal may be used solely. o On a multi-unit property, the occupancy (tenant occupied or non-tenant occupied) and income calculation method is determined independently for each unit. In addition, a multi-unit property is considered non-tenant occupied and is subject to the 5% reduction in maximum LTV/CLTV for a refinance of an unleased property if none of the units are tenant occupied.
Short Term Rental
Short Term Rental Calculation- The following requirements apply to short-term rentals from on-line services such as Airbnb or VRBO: Mortgage refinancing only (no purchase transactions) Minimum 12-month rental history DSCR would be calculated based on average actual rental income calculated over 12 months based on statements from the on-line service. No market rents are used in calculations. Third party verification (city, county, etc.) required to confirm short term rentals are legally permissible and licensed where applicable.