JET DSCR – Gold

GENERAL GUIDELINES
Min FICO
640
Min Loan Amount
$100,000 Loan Amount < $150k (Max LTV 70% Pur / 65% Ref – Min 1.25 DSCR)
Max Loan Amount
$3,500,000
Property Types
SFR, 2-4 Unit Restrictions: NY & IL (2-4 Units Not Eligible) Condo: Max LTV : Pur 75% / Refi 70% Condo Hotel: Max LTV : Pur 75% / Refi 65% : 1.5M Max L/A Up to 5 Acres, not meeting the rural definition.
Rural
Not Eligible
Housing History
Must have at least 12 months of experience owning and/or managing income producing REO within most recent 36 months.
Housing Event
1x30x12 0x60x12 – Max LTV: Pur 70% / Refi 65% BK/FC/SS/DIL: = 36 Months = 24 Mo – Max LTV: Pur 75% / Ref 70%
Eligible Borrower
U.S. Citizens Permanent Resident Aliens Non-Permanent Resident Alien: Employment Status Documentation is required for all borrowers, and may consist of one of the following: o Employment Authorization Documents, provide one of the following: ▪ Form I-766 Employment Authorization Document (EAD), (work permit/card) is required for US employment if the borrower is not sponsored by a current employer. ▫ If the EAD will expire within six (6) months of loan application, it is acceptable to obtain a letter from the employer documenting the borrower’s continued employment and continued EAD renewal. The employer on the loan application must be the same as on the unexpired EAD. The EAD documentation is acceptable for up to 540 days if an automatic extension has been granted. ▪ Form I-765 Application for Employment Authorization, the form: ▫ Must reflect approval status in the Action Block (upper right-hand corner of the form) ▪ Form I-797, I-797A, I-797B, or I-797C conveying approval status ▫ Petitioner to match employer name on application o If EAD is not provided, a copy of the Visa permitting employment authorization needs to be included in the credit file. ▪ The following VISA types are acceptable: E-1, E-2, E-3, G-1 through G-5, H-1B, L-1A, L-1B, O-1, R-1. ▪ Other VISA types permitting employment may be considered, see the U.S. Dept of State Website at Directory of Visa Categories (state.gov). o Asylum – Individuals granted asylum are eligible, documentation includes one of the following: ▪ Form I-766 Employment Authorization Document (EAD), (work permit/card) referencing code C08, or ▪ Form I-94 with a stamp or notation, such as “asylum granted indefinitely” or the appropriate provision of law (8 CFR 274a.12(a)(5) or INA 208) to show their employment authorization. The Non-Agency (Non-QM) – First Lien 65 01/22/2025 asylee does not need to present a foreign passport with this Form I-94. An asylee can also present an electronic Form I-94 with an admission class of “AY.” o Deferred Action for Childhood Arrivals (DACA) ▪ Form I-766 Employment Authorization Document (EAD), (work permit/card) referencing code C33, or ▪ Form I-797 conveying approval status for Case Type I765-Application for Employment Authorization referencing code C33, or ▪ Form I-765 Application for Employment Authorization, the form: ▫ Must reflect approval status in the Action Block (upper right-hand corner of the form) Guideline restrictions: o Standard or Alt Documentation limited to 24-months only. Maximum LTV/CLTV limited to 80%. o DSCR Documentation (Investment Only): Maximum LTV/CLTV 75%. o Non-occupant co-borrowers are not allowed. o Gift funds are not allowed.
Entity Vesting:
Max 4 Entity Owners Personal guaranties must be provided by member(s) representing at least 50% ownership of the entity. Documents Required: Articles of Incorporation, Operating Agreement, Tax Identification Number, Certificate of Good Standing.
Credit
Use representative credit score of the borrower / guarantor with the highest representative score
Tradelines
If borrower / guarantor has three (3) credit scores, the min tradeline requirement is waived otherwise: 2 reporting 24 months w/ activity in last 12 months or 3 reporting 12 months w/ recent activity
Cash-Out
$500,000 LTV >= 65% $1,000,000 LTV < 65%
Flip Transactions
Sold within 90 days (10% Increase) Sold within 91-180 days (20% Increase) Additional appraisal required
Assets
30 days asset verification required
Gifts
10% min borrower contribution
Reserves
2 months of PITIA Loan Amount > $1.5M : 6 Months Loan Amount > $2.5M : 12 Months Cash out may be used to satisfy requirement
Seller Concession
3%
First Time Investor
Min 700 Fico No mortgage late payments in 36 Mo (if applicable) = 36 Months from any housing event Own a primary residence for at least 1 year cash-out not eligible SFR Only DSCR > 1.00
First Time Homebuyer
Not Eligible
Appraisals
FNMA form 1004, 1025, 1073 with interior / exterior inspection. Appraisal review required unless 2nd appraisal obtained. Loans Amount > $2,000,000 – Require 2nd Appraisal
Declining Markets
5% reduction to LTV
Long Term Rental
Purchase Transactions: o Monthly Gross Rents are the monthly rents established on FNMA Form 1007 or 1025 reflecting long term market rents. o If the subject property is currently tenant occupied, the 1007 or 1025 must reflect the current monthly rent. Monthly gross rent is to be evaluated to each unit individually. ▪ If using the lower of the actual lease amount or estimated market rent, nothing further is required. ▪ If using a higher actual lease amount, evidence of 2-months of receipt is required, and the lease amount must be within 120% of the estimated market rent from the 1007/1025. If the actual rent exceeds the estimated market rent by more than 120%, the rents are capped at 120%. ▪ If using a higher estimated market rent from 1007/1025, it must be within 120% of the lease amount. If the estimated market rent exceeds the lease amount by more than 120%, the estimated market rent is capped at 120%. o A vacant or unleased property is allowed without LTV restriction. o Unit subject to rent control or housing subsidy must utilize current contractual rent to calculate DSCR. Refinance Transactions: o Required documentation: ▪ Original appraisal report reflecting tenant-occupied, and FNMA Form 1007 or 1025 reflecting long-term market rents, and lease agreement. ▪Executed lease agreement Leases that have converted to month-to-month are allowed. If lease agreement is not provided, LTV/CLTV is limited to lesser of 70% or the LTV/CLTV based upon the DSCR/FICO/Loan balance matrix o Monthly Gross Rents are determined by using the actual lease amount or estimated market rent from 1007/1025. Monthly gross rent is to be evaluated for each unit individually. ▪ If using the lower of the actual lease amount or estimated market rent, nothing further is required. ▪ If using a higher actual lease amount, evidence of 2-months of receipt is required, and the lease amount must be within 120% of the estimated market rent from the 1007/1025. If the actual rent exceeds the estimated market rent by more than 120%, the rents are capped at 120%. ▪ If using a higher estimated market rent from 1007/1025, it must be within 120% of the lease amount. If the estimated market rent exceeds the lease amount by more than 120%, the estimated market rent is capped at 120%. o A vacant or unleased property is allowed subject to the following: ▪ LTV/CLTV limits: Lesser of 70%, or the LTV/CLTV based upon the DSCR/FICO/Loan balance matrix o Unit subject to rent control or housing subsidy must utilize current contractual rent to calculate DSCR. DSCR Calculation: o Debt Service Coverage Ratio is the Monthly Gross Rents divided by the PITIA of the subject property.
Short Term Rental
Short-term rentals are properties which are leased on a nightly, weekly, monthly, or seasonal basis. Short-Term Rental Income – Purchase and Refinance Transactions: o LTV is lesser of 75% for a purchase and 70% for a refinance, or the LTV based upon the DSCR/FICO/Loan balance. (Excludes Condo Hotel projects) o DSCR Calculation: ▪ Monthly gross rents based upon a 12-month average to account for seasonality required. ▪ Gross rents reduced by 20% to reflect extraordinary costs (i.e., advertising, furnishings, cleaning) associated with operating short-term rental property compared to non-short term property. If the rental documentation referenced below includes expenses, actual expenses should be compared to the 20% expense factor. If actual expenses are less than 20%, a minimum 20% expense factor is required to be utilized. If actual expense exceeds 20%, the actual expense factor should be used. ▪ (Gross Rents * .80) divided by PITIA = DSCR. When short-term rental income is documented using multiple sources, the lowest source of monthly income is to be utilized for calculating DSCR. Any of the following methods may be used to determine gross monthly rental income: o A 1007 or 1025 Comparable Rent Schedule survey prepared by the appraiser reflecting long-term or short-term market rents. ▪ Provide the source of the data used to complete the STR analysis. ▪ INclude comparable STR properties, focusing on room count, gross living area (GLA), location and market appeal. ▪ Indlue daily rental rate and occupancy percentage. ▪ Factor seasonality and vacancy into the analysis. ▪ Must be completed by a licensed appraiser. o The most recent 12-month rental history statement from the 3rd party rental/management service. ▪ The statement must identify the subject property/unit, rents collected for the previous 12-months, and all vendor management fees. The qualifying income must be net of all vendor or management fees. o The most recent 12-month bank statements from the borrower/guarantor evidencing short-term rental deposits. Borrower/guarantor must provide rental records for the subject property to support monthly deposits. o AIRDNA Rentalizer/Property Earning Potential Report accessed using the Explore Short-Term Rental data, must meet the following: ▪ Rentalizer (Property Earning Potential Report) Only allowed for purchase transaction -Gross rents equal the revenue projection from the Property Earning Potential Report less the 20% extraordinary expense factor Forecast period must cover 12-months and dated 90-days within the Note date Maximum occupancy limited to 2 individuals per bedroom Must have three (3) comparable properties similar in size, room count, amenities, availability, and occupancy -Market score must be 60 or greater as reflected on the Property Earning Potential Report.