Onyx ITIN

Jet Direct Funding Guidelines

Onyx ITIN

ITIN borrower program guidelines, including LTV / FICO matrices, loan parameters, credit, income, asset, reserve, and property requirements.

Onyx ITIN

LTV / FICO Matrix

Primary Residence / Second Home¹

Property Type	Loan Amount	Credit Score	Purchase Max LTV	Rate/Term Max LTV	Cash-Out Max LTV	Reserves (mo.)
SFR / PUD / Condo (1-Unit)	≤ $1,000,000	680+	75%	75%	70%	3
		660–679	75%	75%	60%	3
		640–659	65%	65%	50%	3
		620–639	65%	65%	NA	3
SFR / PUD / Condo (1-Unit)	$1,000,001 – $1,500,000	680+	75%	75%	70%	6
		660–679	75%	75%	60%	6
		640–659	65%	65%	50%	6
		620–639	65%	65%	NA	6
2–4 Units	≤ $1,000,000	680+	70%	70%	65%	3
		660–679	65%	65%	60%	3
		640–659	60%	60%	50%	3
2–4 Units	$1,000,001 – $1,500,000	680+	70%	70%	65%	6
		660–679	70%	70%	60%	6
		640–659	60%	60%	50%	6

Investment

Property Type	Loan Amount	Credit Score	Purchase Max LTV	Rate/Term Max LTV	Cash-Out Max LTV	Reserves (mo.)
SFR / PUD / Condo (1-Unit)	≤ $1,000,000	700+	75%	75%	70%	3
		680–699	70%	70%	65%	3
		660–679	70%	70%	60%	3
SFR / PUD / Condo (1-Unit)	$1,000,001 – $1,500,000	700+	75%	75%	70%	6
		680–699	70%	70%	65%	6
		660–679	70%	70%	60%	6
2–4 Units	≤ $1,000,000	680+	65%	65%	60%	3
2–4 Units	≤ $1,000,000	660–679	60%	60%	55%	3
2–4 Units	$1,000,001 – $1,500,000	680+	65%	65%	60%	6
2–4 Units	$1,000,001 – $1,500,000	660–679	60%	60%	55%	6

Footnotes & Additional Requirements

¹ Second Homes: 2–4 unit properties not allowed.
Cash-Out (Texas): Texas Cash-Out 50(a)(6) not eligible.
No Credit Score: Limited to 65% Max LTV/CLTV and 1-Unit properties only. Must meet same requirement as score of 620 for Purchase/R/T and 660 for Cash-Out.
Interest Only: Min FICO 700 | Max LTV/CLTV 70%.
P&L Income Option: Min FICO 700.
Declining Market: 5% LTV Reduction applies.

Onyx ITIN

LOAN PARAMETERS

PARAMETER	DETAIL
Eligible Income Doc Types	Salary: WVOE Self-Employed: Full Doc (2-yr Tax Returns), P&L (12 mo.), Bank Statements (12 or 24 mo.), 1-Year 1099
Max DTI	50%
Available Loan Terms	Fixed Rate: 30 Year Interest Only: 10-Year I/O on 30-Year Fixed — qualified at higher of Note Rate or Fully Indexed Rate
Minimum Loan Amount	$100,000
Eligible Occupancy Types	Primary Residence, Second Home, Investment Property
Pre-Payment Penalty (PPP)	State-specific; refer to PPP Matrix
Ineligible Property Types	Working Farms / Ranches / Orchards Hobby Farms Condotels / Co-ops Timeshares Mixed-Use Modular / Manufactured / Mobile Homes Unique Homes (Log Homes, Geodesic Domes, Tiny Homes, Barndominiums, etc.)
Eligible Borrowers	ITIN Borrowers with valid government photo ID (license, passport). Visa/EAD card not required. Co-Borrowers with SSN allowed. Individuals (sole ownership, joint tenancy, tenancy in common, etc.) Inter-Vivos Revocable Trusts (must meet Fannie Mae guidelines)
First Time Homebuyers	Allowed. May NOT use proposed rental income to qualify for investment property purchases.
Rate/Term Refinance — Seasoning	No seasoning required. Non-purchase money mortgages: 6 months seasoning. Max cashback: lesser of $5,000 or 2% of new loan amount.
Cash-Out Refinance — Seasoning	6 months required. If property acquired < 12 months, LTV/CLTV based on lower of appraised value or purchase price + documented improvements.
Seller Concessions (IPC)	> 75% LTV/CLTV: 6% max ≤ 75% LTV/CLTV: 9% max
Max LenderMAC Loans / Borrower	4 loans; Aggregate loan amount may not exceed $5 million
Escrow Hold Back	Ineligible
Impounds / Escrow	May be waived per state law. HPML and flood insurance must be escrowed.
Approved States	Refer to eligible states list on website

Onyx ITIN

CREDIT GUIDELINES

CATEGORY	GUIDELINE
Credit Report	Tri-Merged Credit Report using Borrower’s ITIN Number required.
Qualifying FICO	Middle score of 3 scores, or lower of 2 scores.
No Credit Score — Default FICO	620 for Purchase & Rate/Term Refinance; 660 for Cash-Out Refinance.
Frozen Accounts	Invalid credit score due to frozen account must be unfrozen; new credit report required.
Credit Inquiries	Must confirm no undisclosed debt.
Minimum Tradelines (with Score)	Per program matrix; if not met, non-traditional tradelines may be provided in Credit Supplement format.
Minimum Tradelines (No Score)	3 Non-Traditional tradelines documented in credit supplement.
Acceptable Non-Traditional References	Housing payments, installment loans, non-payroll deducted insurance, auto/renter’s insurance, lease payments, local store payments, childcare, documented loans.
Authorized User Accounts	May be excluded from Debt-to-Income calculation.
Disputed Accounts	Must be supported by credit supplement showing dispute removed and remaining balance details.
Collections / Charge-Offs	Non-medical: if within past 3 years and > $5,000 (individually or in aggregate), must be paid off.
Judgments / Garnishments / Liens	All delinquent credit (including taxes, judgments, tax liens) must be paid at or before closing.
Deed in Lieu / Pre-Foreclosure / Short Sale	Waiting period required — refer to Note date guidelines. Credit events > 7 years not counted.
Bankruptcy	3 years from discharged/dismissed date to Note date.
Foreclosure	Refer to program-specific seasoning requirements.
Mortgage / Rent History	No more than 1×30 late payment within 12 months.
VOM / VOR — Private Landlord	12 months cancelled checks, bank statements, Credit Supplement, or similar acceptable evidence.
Age of Credit Documents	Credit Reports: 120 days Refresher Credit: within 10 days Title Reports: 120 days Employment/Income: 90 days Asset Docs: 90 days Appraisal: 120 days
IRS Debt	Must be paid in full prior to closing, or IRS Payment Agreement provided with 3 months’ payments.

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INCOME GUIDELINES

INCOME TYPE	DOC OPTION	REQUIREMENTS / NOTES
Wage Earner	Full Doc	Minimum 2 years employment history. Verbal VOE within 10 business days prior to note date.
Self-Employed — Full Doc	2-Year Tax Returns	Most recent 2 years personal & business tax returns, YTD P&L, business/professional license for past 2 years. IRS Transcripts required.
Self-Employed — P&L Only	P&L (12 mo.)	Licensed Tax Preparer (CPA, CTEC, EA) prepared P&L for most recent 12 months. PTINs not acceptable. End date must be < 90 days from closing.
Self-Employed — P&L + Bank Stmts	P&L + 2 mo. Bank Stmts	CPA/CTEC/EA P&L supported by min 2 months business bank statements. Deposits must be ≥ P&L sales/revenue (or no more than 20% below). Qualifying income = lower of: (a) P&L net income ÷ 12, or (b) avg monthly deposits.
Self-Employed — 1099	1-Year 1099	Business owners paying via 1099 NOT eligible. Gross 1099 income minus 10% expense factor = qualifying income. 1099 Tax Transcripts required.
Self-Employed — Bank Statements (Business)	12 or 24 mo.	Min 25% ownership required. 100% owner required if using personal bank statements (sole prop, SMLLC, Sch C). Large deposits (>150% avg monthly) must be documented.
Self-Employed — Bank Statements (Personal)	12 or 24 mo.	Borrower must be 100% owner. Deduct deposits not associated with business. Joint accounts: only 50% of deposits considered. NSF occurrences require LOE.
Rental Income	Lease / Form 1007 or 1025	Qualify at gross rent × 75% (vacancy factor). Non-subject property: lower of current lease or market data. New purchase: lower of lease or Form 1007/1025 rent schedule.

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ASSETS & RESERVES

CATEGORY	GUIDELINE
Acceptable Liquid Asset Docs	Most recent 1-month bank statement VOD covering at least 30 days balance Sourcing of large deposits NOT required
Business Funds	Eligible per % of borrower’s ownership of business
Reserves — ≤ $1,000,000 Loan	3 Months PITIA
Reserves — > $1,000,000 Loan	6 Months PITIA
Interest Only Loans — Reserves	Based on ITIA (excludes principal)
Reserve Scope	Required for subject property only. Cash-out net proceeds may be used to meet reserve requirements.
Restricted Stock Units (RSUs)	NOT eligible for reserves
Life Insurance Net Cash Value	100% of vested amount may be considered for reserves
1031 Exchange	Assets from Like-Kind Exchange eligible if properly documented per IRC and Fannie Mae guidelines
Gifts	Allowed; donor must state repayment is not expected
Asset Document Age	Must be dated within 90 days of Note date

Onyx ITIN

PROPERTY GUIDELINES

TOPIC	GUIDELINE
Appraisal — ≤ $1.5MM	One full appraisal + CDA* if both CU and LCA scores exceed 2.5
Appraisal — Transferred	Permitted; CDA required when both CU and LCA scores exceed 2.5 or score unavailable. Must comply with AIR.
CDA Variance Tolerance	Must be within 10%. If variance exceeds 10% (lower than appraised value), additional appraisal or CDA may be required.
Appraisal — Flip (≤365 days)	A CDA is required. No assignment of contract to another buyer. Acknowledgement from borrower required.
Declining Market	5% LTV reduction applies when appraiser indicates declining market.
Rural Property — Criteria	Neighborhood < 25% built-up; area zoned agricultural; comparable outbuildings or large storage sheds.
Rural Property — Eligibility	1-unit only; Purchase and R/T Refi only (no cash-out); max 10 acres; max 70% LTV; neighborhood ≥ 25% built-up; no working farm; no income generation; no transferred appraisals.
Solar Panels (Leased / PPA)	May not be included in appraised value. Property must maintain alternate electric access. Lease/PPA must include damage repair obligation and loss payee restrictions for lender protection.
Condos — Warrantable	Must comply with Fannie Mae B4-2 Project Standards. Not in ‘Unavailable’ status in CPM.
Condos — Non-Warrantable	Minimum loan: $175,000. Full Lender Review required; Limited Review not allowed. Arms-length transaction required. Max LenderMAC exposure: 20% of total project units.
Non-Warrantable — Commercial Space	Up to 50% allowed
Non-Warrantable — HOA Reserves	≥ 5% minimum annual budgeted replacement reserve
Non-Warrantable — Investor Concentration	Up to 30% allowed
Non-Warrantable — Delinquent HOA Dues	No more than 25% of total units may be 60+ days past due on HOA fees
Non-Warrantable — Master Policy	Up to 10% allowed
ADUs — General	Total units + ADUs may NOT exceed 4. ADU must be subordinate in size, have separate ingress/egress, kitchen, and bathroom. Cannot be accessible only through primary dwelling.
ADUs — Rental Income	Qualify at gross rent × 75%. Form 1007 required. Owner-Occupied/2nd Home: ADU income may NOT be used for qualifying.
HPML — Second Appraisal	>10% price increase if seller acquired property in past 90 days; >20% increase if seller acquired in past 91–180 days. Borrower may not pay for 2nd appraisal.
For Sale By Owner (FSBO)	Allowed; must confirm no property flipping and arms-length transaction.

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Stand-Alone Closed-End Second Lien — Alternative Documentation Program Guidelines

LTV / CLTV / HLTV Matrix

Property types: SFR, PUD and warrantable condominiums, 1–4 units. Max CLTV/HLTV is the same as Max LTV. Second homes are limited to 1-unit properties.

Full Doc, Bank Statement and 1099

Loan Amount	Credit Score	Primary	Second Home	Investment
≤ $250,000	700+	80%	80%	70%
	680–699	75%	75%	65%
	660–679	65%	65%	60%
$250,001–$500,000	720+	80%	80%	70%
	700–719	70%	70%	65%
	680–699	65%	65%	60%
$500,001–$750,000	700+	70%	70%	65%

WVOE, P&L and DSCR

Loan Amount	Credit Score	Primary	Second Home	Investment
≤ $250,000	700+	75%	75%	70%
	680–699	70%	70%	65%
	660–679	65%	65%	60%
$250,001–$500,000	720+	75%	75%	70%
	700–719	70%	70%	65%
	680–699	65%	65%	60%
$500,001–$750,000	700+	70%	70%	65%

Additional reductions: If the first mortgage is Interest Only or an eligible Balloon Mortgage, maximum CLTV is 65%, and the loan is qualified using the first-lien interest-only payment. Reduce maximum CLTV by 5% for a declining market and by 10% when ownership seasoning is under six months.

Loan Parameters

Parameter	Detail
Product	Stand-Alone Closed-End Second Lien — Alternative Documentation
Eligible Property Types	SFR, PUD and warrantable condominium, 1–4 units
Minimum Loan Amount	$75,000
Maximum Loan Amount	$750,000
Eligible Income Documentation	Full Doc, 12- or 24-month Bank Statements, 1099, WVOE, P&L and DSCR
Available Terms	30-year or 20-year fixed; 10-year Interest Only available on 30- or 20-year terms; 20/10-year non-Interest-Only term
DSCR Qualifying Payment	Based on the interest-only payment (ITIA) on the subject property
Eligible Occupancy	Primary residence, second home and investment property. DSCR is investment property only.
Underwriting	Manual Underwrite only
Prepayment Penalty	Hard straight prepayment penalty of 5% where permitted. Refer to the state-specific PPP Matrix. PPP buyout may be available.
Impounds / Escrow	Not required for taxes and hazard insurance
Assumable	Not allowed
Eligible Borrowers	U.S. Citizens, Permanent Resident Aliens and Non-Permanent Resident Aliens Non-Permanent Resident Aliens must have a valid SSN and EAD with at least 90 days remaining Individuals and Inter-Vivos Revocable Trusts meeting Fannie Mae guidelines LLC/Corporation borrowers with documented 100% ownership; investment properties only; entity must be purchaser on the purchase contract
Ineligible Borrowers	Non-occupant co-borrowers/co-signers; borrowers who are party to a lawsuit; borrowers on HUD LDP, GSA or other exclusionary lists
Eligible Transactions	Closed-end second-lien refinances, subject to program seasoning and transaction requirements
Ineligible Transactions	Purchase transactions and HPML flip transactions
Properties in a Business Name	Ineligible unless the loan is a Business Purpose Loan
Ineligible Property Types	Agricultural/commercial properties; working farms, ranches and orchards; hobby farms; properties over 20 acres; condotels; co-ops; non-warrantable condos; timeshares; leasehold/land trust; mixed-use; modular, manufactured or mobile homes; log homes and unique homes such as geodesic domes, tiny homes and barndominiums

Credit Guidelines

Age of Documents

Document	Maximum Age
Credit Reports	120 days from Note date
Preliminary Title Reports	120 days from Note date
Employment / Income	No more than 60 days from Note date
Asset Documents	No more than 90 days from Note date
Appraisal	No more than 120 days. A 1004D/FHLMC 442 recertification by the original appraiser is required to confirm no decline in value and must be dated within 120 days of the Note date.

Credit Requirements

Category	Guideline
Credit Report	Tri-Merged Credit Report with at least two FICO scores required, except Foreign Nationals
Qualifying Score	Middle of three scores or lower of two scores; representative loan score is the lowest representative score among all borrowers
Credit Inquiries	All inquiries within 90 days must be addressed and confirm no undisclosed debt
Minimum Tradelines	Three tradelines with at least 12 months of history; open or closed. Waived when borrower(s) have three FICO scores.
Authorized User Accounts	May not be used to satisfy the tradeline requirement
Charge-Offs — Primary	Do not have to be paid if they do not threaten first-lien position
Charge-Offs — Second Home / Investment	Collections and charge-offs totaling more than $5,000 must be paid in full
Delinquent Credit	Judgments, garnishments, non-mortgage charge-offs, delinquent taxes, tax liens, mechanics’/materialmen’s liens and other priority liens must be addressed
Bankruptcy	Three years from discharge or dismissal to Note date
Foreclosure / Short Sale / DIL	Program seasoning applies; credit events over seven years old are not counted
Mortgage History	No 30-day late payments during the most recent 12 months
DSCR Mortgage History	12-month history applies to every mortgage tradeline on credit, including the subject property and primary residence
Private Lender Mortgage	If not reported on a credit supplement, provide 12 months of cancelled checks or bank statements

Debt and First Mortgage Requirements

Category	Guideline
Installment Debt	Include debts with more than 10 remaining payments in DTI. Debt may be paid down to 10 or fewer payments to exclude.
30-Day Charge Accounts	Balance must be paid in full monthly. Evidence of payoff may replace verification of funds when paid before closing.
Deferred Installment Debt	Use payment on credit report or a forbearance agreement showing the future monthly payment
Student Loans	Use credit-report payment; if blank, use 1% of the outstanding balance or a fully amortizing calculated payment
Lease Payments	Include as a monthly DTI obligation
Ineligible First Mortgages	Reverse mortgages; private mortgages opened within the past 12 months; cross-collateralized/blanket mortgages; HELOCs
First Mortgage Documents	Mortgage statement showing current balance, term, fully indexed payment and escrow; HOA statement; Note/Deed; property insurance

Income Guidelines

Income Type	Documentation / Requirements
Wage Earner — Full Doc	Most recent two years of W-2s and a 30-day year-to-date paystub or equivalent
Foreign Income	Letter from a Licensed Tax Preparer confirming the most recent two years of foreign income tax filings
P&L Only	CPA, CTEC or EA-prepared P&L for the most recent 12 or 24 months. PTIN-only preparers are not acceptable. P&L end date must be less than 60 days from closing. Confirm preparer credentials, business details, borrower ownership and preparation/review of the two most recent years of business tax filings.
P&L + 2 Months Bank Statements	Licensed Tax Preparer-prepared 12-month P&L supported by at least two months of business bank statements. Deposits, after removing inconsistent items, must be at least equal to or no more than 20% below P&L sales/revenue. Qualifying income is the lower of P&L net income ÷ 12 or average qualifying monthly deposits.
1099 Income	Most recent one- or two-year 1099(s) and 1099 tax transcript. P&L and tax returns are not required. Qualifying income is gross 1099 income minus a 10% expense factor. Business owners paying themselves through 1099 are ineligible.
Contract Employees	Two years in same/similar work and at least 12 months at current job; provide current YTD bank/payment statements dated within 30 days of Note date. Use lower of validated YTD or calculated qualifying income.
Bank Statements — Business	12 or 24 months; borrower must be self-employed for at least two years and own at least 25% of the business
Bank Statements — Personal	12 or 24 months; borrower must be 100% owner and operate as sole proprietor, single-member LLC or 1099-based Schedule C filer
Joint Accounts	Remove non-business deposits and use only the borrower’s documented ownership percentage
Large Deposits	A single deposit over 150% of average monthly total deposits must be sourced/explained or excluded
Transfers	Transfers between accounts are excluded from income
NSF Activity	Letter of Explanation may be required to show activity was not caused by financial mismanagement or insufficient income
Tax Transcripts	Required when paystubs, W-2s, 1099s and/or tax returns are used to document income

DSCR & Rental Income

Category	Guideline
Non-Subject Rental Income	Use the lower of the current executed lease or supported internet rental data such as Rentometer or Zillow
Subject Property Rental Income	Use the lower of the current executed lease or Form 1007/1025 rent schedule
Standard Minimum DSCR	≥ 1.000
Short-Term Rental Minimum DSCR	≥ 1.15
Qualifying PITIA / ITIA	Calculated using the Note Rate; Interest-Only loans use the interest-only payment (ITIA)
Higher Current Rent	May be used when it does not exceed 125% of Form 1007/1025 market rent and is supported by an executed lease plus two months’ receipt history
Online Short-Term Rental Platforms	Provide the most recent 12 months of rental history with at least a 12-month operating history. Income is the lower of Form 1007 or the platform history calculation.
Non-Online Short-Term Rentals	Use a 12-month average for seasonality. When multiple sources exist, use the lowest monthly income source. A 20% expense factor may apply.
Unacceptable Income	Draw income, capital withdrawals, illegal/unreported income, unverifiable income and room/boarder rent from the subject property
Protected Income	May be considered when reliability, regularity, source and continuance can be verified

Assets & Loan Limits

Category	Guideline
Asset Documentation Threshold	Required when funds needed for closing exceed $3,000
Acceptable Liquid Asset Documentation	Most recent 30 days of bank statements; VOD covering at least 30 days; or asset/brokerage statement covering at least 30 days with current balance
Large Deposit Sourcing	Not required for asset qualification
Reserves	Not required
Maximum Financed Properties	Maximum 10 properties owned by borrower(s), including the subject property
Aggregate LenderMAC Exposure	Maximum $5 million to one borrower
LenderMAC Loan Count	Maximum four LenderMAC loans to one borrower
Frequent Cash-Out Refinances	No more than two cash-out refinances within 12 months on the same property, unless Management Review grants an exception

Appraisal Guidelines

Category	Requirement
Compliance	All appraisals must comply with USPAP and Appraisal Independence Requirements
Ordering	Order through an AIR-compliant AMC or the Correspondent’s AIR-compliant process
Loan Amount ≤ $250,000	Exterior drive-by appraisal allowed for 1-unit properties; or new full appraisal; or eligible prior full appraisal. HPML loans require a full appraisal.
Loan Amount > $250,000	Full appraisal on applicable FNMA form, or eligible prior full appraisal
Transferred Appraisals	Permitted. CDA required when both CU and LCA scores exceed 2.5 or a score is unavailable. Must meet transfer policy and AIR.
Collateral Review	CDA, full appraisal or field review required when CU and LCA scores exceed 2.5 or are unavailable
C6-Rated Comparables	Not acceptable
Value Discrepancy	A lower value up to 10% may be accepted, or a second appraisal/field review obtained. When two valuations are used, use the lower value.
Investment Property	Comparable Rent Schedule Form 1007 required for rental/DSCR transactions
Illegal Second Unit / ADU	Rental income may not be used. Appraiser must show the improvement is typical and include at least one comparable with similar illegal use. Hazard coverage must include the total square footage.
ADU Unit Limit	Total units plus ADUs may not exceed four. ADUs must be subordinate in size, have separate ingress/egress and not be accessible only through the primary dwelling.
ADU Appraisal Support	At least two comparables with similar features and analysis of marketability, conformity and value impact
ADU Rental Income	Document on Form 1007 using lower of market or actual current lease; qualifying income equals 75% of gross rent. ADU income may not be used on owner-occupied or second-home transactions.

Property, Title & State Eligibility

Category	Guideline
Warrantable Condos	Must comply with the Fannie Mae Selling Guide
Non-Warrantable Condos	Ineligible
Value Basis	LTV/CLTV/HCLTV generally based on appraised value, subject to seasoning requirements
Ownership Seasoning	Minimum six months, measured from the recording date of the current loan to disbursement of the new loan; at least one borrower must be on Title and Note
Seasoning Under Six Months	10% CLTV reduction
Declining Market	5% CLTV reduction
Title — Loan ≤ $250,000	Owner & Encumbrance Property Report, ALTA Full Title Policy or ALTA Short Form Limited Coverage Junior Loan Policy
Title — Loan > $250,000	ALTA Full Title Policy or ALTA Short Form Limited Coverage Junior Loan Policy
No Existing First Mortgage	If the closed-end second will occupy first-lien position, a full title policy is required
Hazard Insurance	Coverage must adequately cover both first and second mortgages or provide Guaranteed Replacement Cost
Flood Insurance	Required when the property or improvements are in a Special Flood Hazard Area
Approved States	Refer to the current eligible-state list on LenderMAC’s website
Texas 50(a)(6) / 50(a)(4)	Ineligible
New York	Ineligible

State-list verification: The source guideline file indicates one additional ineligible state, but the state name was illegible in the source PDF used to prepare the workbook. Confirm the current published state eligibility list before posting or locking this section.

Onyx DSCR

Alternative Documentation Non-QM Program Guidelines

LTV / CLTV Matrix

Important: Superscripts and footnotes from the source workbook are retained below the matrices. Confirm pricing, state restrictions and current overlays against the latest rate sheet before relying on these guidelines for a loan file.

Alt-Doc Program — Maximum LTV / CLTV by Property Type, Loan Amount & Credit Score

Full Doc, Bank Statement, WVOE, P&L, and 1099 documentation types | Superscripts refer to footnotes below the tables

SFR / PUD / Condo (1 Unit)

Loan Amount	Credit Score	Purchase	Rate/Term	Cash Out	Reserves (mo.)
≤ $1,000,000	740+	90%¹˒²	85%¹	75%	3
	700-739	85%¹	80%	75%	3
	680-699	80%	80%	70%	3
	660-679	75%	75%	65%	3
	640-659	70%	70%	—	3
	620-639	65%	65%	—	3
$1,000,001-$1,500,000	740+	90%¹˒²	85%¹	75%	6
	700-739	85%¹	80%	75%	6
	680-699	80%	80%	70%	6
	660-679	75%	75%	65%	6
	640-659	70%	70%	—	6
	620-639	65%	65%	—	6
$1,500,001-$2,000,000	680+	75%	75%	65%	6
	660-679	70%	70%	60%	6
	640-659	60%	60%	60%	6
$2,000,001-$2,500,000	680+	75%	75%	50%	9
	660-679	70%	70%	50%	9
	640-659	60%	60%	50%	9
$2,500,001-$3,000,000	680+	70%	70%	50%	9
	660-679	60%	60%	50%	9

2-4 Units

Loan Amount	Credit Score	Purchase	Rate/Term	Cash Out	Reserves (mo.)
≤ $1,000,000	700+	70%	70%	60%	3
	680-699	70%	70%	60%	3
	660-679	60%	60%	50%	3
	640-659	60%	60%	—	3
$1,000,001-$1,500,000	700+	70%	70%	60%	6
	680-699	70%	70%	60%	6
	660-679	60%	60%	50%	6
	640-659	60%	60%	—	6
$1,500,001-$2,000,000	700+	65%	65%	60%	6
	680-699	65%	65%	60%	6
	660-679	65%	65%	50%	6
	640-659	55%	55%	—	6
$2,000,001-$2,500,000	700+	65%	65%	50%	9
	680-699	65%	65%	50%	9
	660-679	65%	65%	50%	9
	640-659	55%	55%	—	9
$2,500,001-$3,000,000	700+	65%	65%	—	9
	680-699	65%	65%	—	9
	660-679	55%	55%	—	9

Foreign Nationals³ (1-4 Units)

Loan Amount	Credit Score	Purchase	Rate/Term	Cash Out	Reserves (mo.)
≤ $1,000,000	N/A	70%	70%	60%	3
$1,000,001-$1,500,000	N/A	70%	70%	60%	6
$1,500,001-$2,000,000	N/A	65%	65%	60%	6
$2,000,001-$2,500,000	N/A	65%	65%	—	9
$2,500,001-$3,000,000	N/A	65%	65%	—	9

Interest Only Option

Primary Residence / Second Home		Investment Properties
Purchase / R&T (Min FICO 700)	1 Unit Max LTV/CLTV: 75% 2-4 Units Max LTV/CLTV: 65%	Purchase / R&T (Min FICO 720)	1 Unit Max LTV/CLTV: 70% 2-4 Units Max LTV/CLTV: 60%
Cash-Out (Min FICO 720)	1 Unit Max LTV/CLTV: 65% 2-4 Units Max LTV/CLTV: 55%	Cash-Out (Min FICO 720)	1 Unit Max LTV/CLTV: 60% 2-4 Units Max LTV/CLTV: 50%

Additional Requirements & Footnotes

¹	LTV/CLTV > 80%: Bank Statement Doc Type Only
²	Condos: Max LTV/CLTV is capped at 85%. Non-Warrantable Condos: 5% LTV reduction applies — refer to Condominium tab for additional requirements.
³	Foreign Nationals: Interest Only NOT allowed; 2-4 Unit Properties only allowed on Investment Properties at maximum 60% LTV; Primary Homes are NOT allowed; Non-Warrantable Condos NOT allowed
Investment Properties	Max LTV/CLTV: 80%
Second Homes	2-4 Unit Properties not allowed
Rural Properties	Additional LTV/FICO and Underwriting restrictions apply — refer to the Appraisal & Rural tab for details
Declining Market	5% LTV reduction applies — refer to the Appraisal & Rural tab for additional details regarding requirements and restrictions

Program Overview

Program Snapshot

Product	Alt-Doc Non-QM — Full Doc, WVOE, P&L, Bank Statement, and 1099 income documentation
Eligible Income Document Types	Salary: Full Doc, WVOE \| Self-Employed: P&L (12mo), Bank Statements (12/24mo), or 1-Year 1099
Max DTI	50%
Minimum Loan Amount	$100,000
Eligible Occupancy	Primary Residence, Second Home, Investment Property
Underwriting	Manual Underwrite Only
Available Terms	Fixed Rate: 30 Year
Interest Only Option	10-Year I/O available; qualified on the remaining 20-Year non-interest-only term
Investment Properties	Max LTV/CLTV: 80%
Second Homes	2-4 Unit properties NOT allowed
Rural Properties	Additional LTV/FICO and underwriting restrictions apply — see Appraisal & Rural tab
Declining Market	5% LTV reduction applies — see Appraisal & Rural tab
Tax Transcripts	Required if paystubs, W-2, 1099, and/or tax returns are used for qualification
Prepayment Penalty	Applies per rate sheet/PPP Matrix; state-specific restrictions may apply — refer to the PPP Matrix
Escrow Waiver	Not allowed
Impounds/Escrow	May be waived per state law; HPML loans must be impounded/escrowed; flood insurance impound cannot be waived

Eligible Borrowers & Vesting

Eligible	Permanent Resident Aliens Non-Permanent Resident Aliens (valid SSN and EAD, min. 90 days remaining on expiration date at funding, or evidence of extension application) Individuals (sole ownership, joint tenancy, tenancy in common, etc.) Inter-Vivos Revocable Trusts — must meet Fannie Mae guidelines Business Purpose Loans Only — LLC/Corp: borrower(s) must have 100% ownership interest documented; LLC/Corp must be the purchaser of the purchase contract
Ineligible	Co-Signers not allowed Business Purpose Loans (non-licensing) not allowed Borrowers on OFAC’s Specially Designated Nationals (SDN) and Blocked Persons List
Non-Permanent Resident / Non-Resident Aliens	See Foreign National Borrower eligibility (Foreign National program) for details
Foreign National Notes	Copy of passport, valid/eligible Visa, and I-94 required A valid Visa or I-94 may not be required when the Borrower is not present in the U.S. and is purchasing investment property (e.g., closing remotely / closing via POA) Borrower must have a US address entered as the mailing address on the loan application Limited to a maximum of 3 loans or $2,500,000 financed amount (including subject property)

First Time Homebuyers / First Time Investors

Definition	An individual who had no ownership interest (sole or joint) in a residential property in the 3 years preceding the purchase of the security property
Eligibility	First Time Homebuyers and First Time Investors are allowed
Restriction	First Time Homebuyers may NOT use rental income to qualify for investment property purchases

Ineligible Property Types

Ineligible

Working Farms, Ranches, Orchards
Hobby Farms
Condotels/Co-ops
Timeshares
Mixed-Use Properties
Modular Homes
Manufactured Homes
Mobile Homes
Unique Homes (Log Homes, Geodesic Domes, Tiny Homes, Barndominiums, etc.)
High-Rise Condominiums / 2-4 Unit Condominiums (per source note — verify condo unit-count restriction against current guidelines)

Credit Guidelines

Credit, Age of Documents & Debt Obligation Guidelines

Age of Credit Documents

Credit Reports	120 days from Note date
Refresher Credit	Required within 10 days of the Note date (confirms no new/undisclosed debt)
Preliminary Title Reports	120 days from Note date
Employment/Income	No more than 90 days from Note date
Asset Documents	No more than 90 days from Note date
Appraisal	No more than 120 days; 1004D/FHLMC 442 recertification by original appraiser required confirming no value decline, dated within 120 days of Note date

Credit Requirements

Credit Report	Tri-Merged Credit Report with minimum of (2) FICO scores required for all borrowers on the loan
Frozen Credit	Any invalid score due to a frozen account must be unfrozen and a new credit report issued
Credit Inquiries	Must be addressed, confirming no undisclosed debt
Minimum Tradelines	Three (3) tradelines with 12 months’ history, OR two (2) tradelines with 24 months’ history (tradelines may be open or closed)
Authorized User Accounts	May be excluded from Debt-to-Income (DTI) calculation, subject to underwriter review
Disputed Accounts	Evaluated for current balances and derogatory status; must be supported by a credit supplement showing the dispute has been removed
Collection/Charge-Off Accounts	Non-medical accounts opened within the past 3 years and exceeding $5,000 (individually or aggregate) must be paid off. All medical collections are excluded from this requirement.
Judgments / Garnishments / Liens	Delinquent credit (taxes, judgments, tax liens, mechanics’/materialmen’s liens) that may affect the lender’s 1st lien position must be paid or satisfied before closing

Derogatory Credit Events (Event to Note Date)

Deed-in-Lieu / Pre-Foreclosure / Short Sale	Seasoning requirement applies from completion/settlement date to Note date (refer to current rate sheet/matrix for exact period)
Bankruptcy	3 years from discharge/dismissal date to Note date
Foreclosure	Seasoning required from completion date to Note date (refer to current rate sheet/matrix for exact period)
Multiple Events	Credit events occurring greater than 7 years prior are not counted toward multiple-event restrictions

Mortgage / Rent Payment History

Standard	No more than 1×30 late payment within the most recent 12 months
Borrower on Title, Not on Note	When a borrower is on title to the subject property but not obligated on the mortgage note, mortgage history on that property is not required
No Mortgage	If borrower(s) does not have a mortgage, evidence of no mortgage is required
Rent-Free Living	If living rent-free and purchasing an investment property, a signed third-party letter documenting the rent-free arrangement is required
Private Lender/Landlord	Payment history documented via 12 months’ cancelled checks, 12 months’ bank statements, or similar acceptable evidence when a VOM/VOR is required and the property owner/mortgage holder is a private party

HELOC Payment

Standard	Current monthly payment reflected on the credit report may be used for qualifying
If Not Shown	Use the payment reflected on the updated billing statement, or 1% of unpaid principal balance (UPB)

Debt & Liability Treatment

Installment Debt	Debts with more than 10 months of remaining payments must be included in DTI; may be paid down to ≤10 monthly payments to be excluded (pay-downs require liquid funds documented to support the remaining balance)
30-Day Charge Accounts	Balance must be paid in full every month; verified funds must be in addition to down payment/closing/reserve funds. If paid off prior to closing, evidence of payoff may substitute for verifying funds.
Deferred Installment Debt (non-student)	Use payment on credit report, or a forbearance agreement reflecting a future monthly payment
Student Loans	Use credit-report payment if shown; if blank, use 1% of outstanding balance or a fully-amortizing calculated payment
Lease Payments	Must be included in DTI as a monthly obligation
Co-Obligor Debt (Paid by Other Party)	Excludable from DTI if supported by evidence of at least 12 months’ payment by the other party with no delinquencies
Debts Paid by Business (Self-Employed)	Excludable from personal DTI if: (1) evidence of debt payment from business funds for the most recent 12 months, and (2) no late payments in the last 12 months
Revolving Accounts	Use monthly payment shown on credit report; if unavailable, use the greater of $10 or 5% of outstanding balance (or current balance if less than $10)
Payoff of Revolving Accounts	To qualify without the monthly payment on the current balance, evidence of payoff is required

Refinance

Refinance Transaction Requirements

Rate/Term Refinance

Seasoning	No seasoning required
Non-Purchase-Money Payoff	A rate/term refinance may include payoff of non-purchase-money mortgages seasoned at least 6 months
Max Cash Back	Lesser of $5,000 or 2% of the new loan amount
Texas Rate/Term Restrictions	Impounds may not be added to the new loan amount for the payoff POC (Paid Outside Closing) fees may not be refunded when financed into the loan amount, and the loan amount must be reduced accordingly Loans that fall into Texas Cash-Out 50(a)(6) eligibility are NOT allowed as a rate/term transaction

Cash-Out Refinance

Definition	Any refinance that does not meet the Rate/Term Refinance criteria is considered cash-out
Seasoning	Six (6) months seasoning required — borrower must have held title (need not have been on the mortgage) for at least 6 months prior to the Note date of the new loan
Ownership ≥ 12 Months	If the property was acquired 12 months or longer prior, LTV/CLTV is based upon the current appraised value
Ownership 6-12 Months	Value is limited to the lower of the current appraised value, or the property’s purchase price plus documented improvements analyzed by the appraiser
Seasoning Exceptions (<6 months)	Cash-out seasoning of 6 months or less is allowed only when the borrower acquired the property through inheritance, was legally awarded the property through divorce, or via an intra-family transfer
Entity-Held Property	If held by an LLC/partnership, the borrower must have been the majority (≥51%) owner for a minimum of 6 months; net proceeds must go to the individual borrower(s) prior to or at closing
Business Purpose Loans	Proceeds from cash-out on Business Purpose Loans are subject to business-purpose use restrictions — refer to full guidelines
Texas Cash-Out (50(a)(6))	Subject to compliance with all Texas Equity loan requirements Each owner of the home and spouse must acknowledge the loan Texas cash-out loans are eligible for fixed-rate mortgages only

Cash-Out Refinance — Delayed Financing

Eligibility	Borrowers who purchased the subject property within the past 6 months, with no mortgage financing used to acquire it (all-cash purchase), are eligible for cash-out refinance if all requirements are met
Eligible Purchasing Entities	A natural person An eligible inter vivos revocable trust where the borrower is both beneficiary and the individual who established the trust An LLC or partnership in which the borrower(s) have 100% individual or joint ownership
Documentation	A recorded deed/settlement statement confirming no mortgage financing was used to acquire the property; source of funds may include personal loan documents or a HELOC on another property
Maximum New Loan Amount	No more than the borrower’s actual documented initial investment, plus closing costs/prepaid items/points on the new loan, subject to the maximum LTV/CLTV/HCLTV
Other Requirements	All other Cash-Out refinance guidelines apply and must be met

Property Previously Listed for Sale

Primary/Second Homes	Property must have been taken off the market on or before the disbursement date of the new mortgage loan
Investment Property	Additional seasoning/documentation requirements apply — refer to full guidelines for the specific timeframe and any pricing adjustment

Income Documentation

Income Documentation Guidelines

Wage Earner Income — Option 1: Full Doc

Documentation	Most recent 2 years W-2 and 30-day YTD paystub
WVOE (Alternative)	Written Verification of Employment completed by the employer (FNMA Form 1005 or equivalent)
Foreign Income	For U.S. Citizens/Permanent Residents working abroad, foreign income paid in foreign currency is eligible with a Written Verification (converted to USD) AND a letter from a Licensed Tax Preparer confirming the most recent 2 years of foreign income tax filings
Translation	Any documents not in English must be translated

Self-Employed — P&L Only

Documentation	Licensed Tax Preparer (CPA, CTEC, EA) prepared Profit & Loss Statement(s) for most recent 12 months. PTINs are not acceptable. End date must be less than 90 days from closing.
Business License	Valid Business or Professional license (or equivalent, e.g. state cert. of authority, trade-specific permit) for past 2 years for any business requiring licensing
Tax Preparer Verification	Confirm preparer’s name, address, phone, license number, date, and signature; confirm preparer has prepared/reviewed most recent 2 years of business tax return filings and prepared the P&L; confirm business name, borrower name(s), and % ownership
Translation	Any documents not in English must be translated

Self-Employed — P&L + 2 Months Bank Statements

Documentation	Licensed Tax Preparer prepared P&L for most recent 12 months, supported by minimum 2 months Business Bank Statements. PTINs not acceptable. End date must be less than 90 days from closing.
Deposit Support Test	Total bank deposits (minus inconsistent deposits) must be greater than, or no more than 20% below, the P&L sales/revenue
Qualifying Income	Lower of: (a) P&L Net Income ÷ 12, or (b) total bank deposits (minus inconsistent deposits) ÷ number of statements (min. 2)

Self-Employed — 1-Year 1099 Income

Ineligibility	Self-employed business owners paying their own earnings via 1099 are NOT eligible
Qualifying Income	Total gross 1099 income, minus a 10% expense factor
Contract Employees	Prior 2 years employed with same/similar employer(s) in same line of work, min. 12 months at current job; provide current YTD bank statements and/or payment statements dated within 30 days of Note date — lower of validated YTD or qualifying income is used
Documentation	P&L/Tax Returns are NOT required; 1099 Tax Transcript(s) ARE required

Self-Employed — Bank Statements (Business or Personal)

Eligibility	Self-employed minimum 2 years; income used to qualify must be generated from self-employment/business
Co-Borrower Wage Income	May be used if not associated with the borrower’s business and borrower is not employed by family members
Business License	Valid Business/Professional license (or equivalent) for past 2 years where required
Business Bank Statements	Borrower must have minimum 25% ownership of the business
Personal Bank Statements	Borrower must be 100% owner, with business structured as Sole Proprietor, Single-Member LLC, or 1099-based Schedule C filer
Joint Bank Accounts	Deduct deposits not associated with borrower’s business; if jointly held, only the borrower’s ownership % of deposits may be considered
Ineligible Deposits	Non-business account transfers, cash advances from credit cards, income sources already counted, and similar non-qualifying deposits
Large Deposits	Any single deposit exceeding 150% of average monthly total deposits requires sourcing/explanation, or may be excluded from the bank statement average
Transfers Between Accounts	Excluded from income calculation
Ownership % Alignment	Income used must align with borrower’s percentage of business ownership per most recent year’s tax return (personal bank statements require 100% ownership)
NSF Occurrences	Must have been promptly covered by subsequent deposits; a Letter of Explanation may be required to confirm NSF was not due to financial mismanagement or insufficient income

Employment Verification

Wage Earner	Verbal VOE required within 10 business days prior to the Note date
Self-Employed	Verbal VOE (business existence confirmation) required within 90 business days prior to the Note date

Tax Transcripts

Requirement	Required if paystubs, W-2, 1099, and/or tax returns are used for qualification

Rental Income & Reserves

Rental Income, Assets, Reserves & Financed-Property Limits

Rental Income

General	Qualifying rental income accounts for vacancy losses per the specific occupancy scenario below
Non-Subject Property	Rental income based on the lower of the current executed lease agreement, or internet searches (e.g., Rentometer, Zillow)
Subject Investment Property (Refinance)	Rental income based on the lower of the current executed lease agreement or Form 1007/1025 Rent Schedule
Subject Investment Property (Purchase)	Rental income based on the lower of the lease/security deposit documentation; receipt of the security deposit and proof of first month’s rent deposited to the borrower’s account is required. If unavailable, a recently completed Form 1007/1025 Rent Schedule may be used to determine gross market rent.
Higher Rental Income	May be considered in certain cases provided adequate documentation is submitted

Assets & Reserves — Documentation

General Requirement	Borrower must document sufficient assets for down payment, closing costs, and reserves
Acceptable Liquid Asset Docs	Most recent 1 month’s bank statement A VOD (Verification of Deposit) covering at least the most recent 30-day balance A Bank Certification Letter documenting account holder, minimum 30 days, and current balance
Large Deposit Sourcing	NOT Required
Business Funds	May be used up to the borrower’s percentage of ownership in the business
Foreign Assets	May be used as a source of closing funds when wired directly to the closing agent (wire must include bank name, account holder name, and account number matching the source account); reserves must be documented in a US bank account; assets verified in USD equivalency at the current exchange rate
ACH Funds	Must be from a US bank; an executed ACH enrollment form (with routing number, account number, and account type) must be included in the loan file

Reserve Requirements

Loan Amount	Required Reserves (PITIA)
≤ $1,000,000 AND ≤ 75% LTV	None
≤ $1,000,000	3 Months
≤ $2,000,000	6 Months
≤ $3,000,000	9 Months

Interest-Only Loans	Reserves are based on the Interest-Only payment (ITIA)
Reserve Scope	Reserves are required for the subject property only
Cash-Out Net Proceeds	May be used to meet reserve requirements
Restricted Stock Units (RSUs)	Not eligible for reserves
Life Insurance Cash Value	100% of the vested amount may be considered for reserves
1031 Exchange	Assets for the down payment from a like-kind 1031 exchange are eligible if properly documented and compliant with the Internal Revenue Code and Fannie Mae guidelines
Asset Document Age	Asset documents must be dated within 90 days of the Note date
Gift Funds	Gift letter must contain the donor’s information and state that repayment is not expected; refer to full guidelines for eligible donor relationships and documentation requirements

Interested Party Contributions (IPC)

> 75% LTV/CLTV	Maximum 6%
≤ 75% LTV/CLTV	Maximum 9%

Maximum Number of Financed Properties

LenderMAC Aggregate Exposure	Aggregate LenderMAC loan amount to one borrower may not exceed $5 million
LenderMAC Loan Count	Maximum of 4 LenderMAC loans allowed to one borrower
Exceptions	May be granted upon Management Review

Appraisal & Rural

Appraisal, ADU, Rural Property & Solar Panel Requirements

General Appraisal Requirements

Compliance	All appraisals must comply with USPAP, Appraisal Independence Requirements (AIR), and applicable HPML requirements
Ordering	Must be ordered through an AIR-compliant Appraisal Management Company (AMC), or via the Correspondent’s own AIR-compliant process
Seller Responsibility	Seller reviews the appraisal for accuracy, completeness, and marketability, and confirms acceptable collateral

Appraisal Requirement by Loan Amount

Loan Amount	Requirement
≤ $1.5MM	One (1) Full Appraisal + CDA if both CU and LCA scores exceed 2.5 or are not available
> $1.5MM – $2.0MM	One (1) Full Appraisal + CDA
> $2.0MM	Two (2) Full Appraisals

Transferred Appraisals	Permitted; a CDA is required when both CU and LCA scores exceed 2.5, or when a score is unavailable. Must comply with the Seller’s appraisal transfer policy and AIR standards.
CDA Variance	Clear Capital Collateral Desktop Analysis (CDA) must be within 10% variance of the appraised value; if variance exceeds 10%, refer to guidelines for resolution
Property Resold Within 365 Days	Additional appraisal review applies — see Property Flip section on the Condo & Closing tab

Higher-Priced Mortgage Loan (HPML) — 2nd Appraisal

Trigger	When a consumer buys a primary residence with an HPML-covered loan and the property was previously sold in the prior 180 days, a second appraisal report may be required
Required When	Sales price increased more than 10% if the seller acquired the property in the past 90 days Sales price increased more than 20% if the seller acquired the property 91-180 days prior
Cost	The Borrower may not pay for the 2nd appraisal

Unpermitted Additions / Garage Conversions

Appraiser Comments Required

Addition/conversion completed in a workmanlike manner; any health and safety issues

Accessory Dwelling Units (ADUs)

Eligible ADU	1-, 2-, or 3-unit properties with one ADU are eligible per Freddie Mac Selling Guide 5601.2
ADU Characteristics	Includes a kitchen, bathroom, and separate entrance Is independent of the primary dwelling unit Is smaller in size than the primary dwelling unit Contributes less to the property’s value than the primary dwelling unit
Appraisal Report Must Include	Any effect the ADU has on market value/marketability; conformity to the subject neighborhood and market
Illegal 2nd Unit / ADU	Property appraised on current use, reporting illegal use; rental income from an illegal 2nd unit may NOT be used to qualify; appraiser must comment improvements are typical for the market with at least 1 comparable with the same illegal use; hazard insurance must cover total square footage including the illegal unit

Multiple ADUs

General Limits	Total units + ADUs on the property may NOT exceed 4 (e.g., 3-unit triplex + 1 ADU; 2-unit duplex + 2 ADUs; 1-unit SFR + 3 ADUs)
ADU Requirements	Subordinate in size to the primary dwelling; must have separate ingress/egress from the primary dwelling; cannot be accessible only through the primary dwelling
Appraisal Support	Report must demonstrate improvements are typical for the market via analysis of at least 2 comparables with similar features
ADU Rental Income — Refinance	Market rent for the ADU documented on FNMA Form 1007; file must include a copy of the current lease (use lower of market rent or actual)
ADU Rental Income — Purchase	Market rent documented on Form 1007; use lower of market rent or actual with deposit evidence; if unavailable, Form 1007 may be used to determine gross market rent
Qualifying ADU Income	Gross rent × 75% to account for vacancy losses; Owner-Occupied/2nd Home: ADU income may NOT be used as qualifying income
Unpermitted ADUs	Legal non-conforming use acceptable provided current use does not adversely affect value/marketability, supported by market acceptance analysis (min. 2 comparables)

Declining Market

LTV Reduction

A 5% LTV reduction applies to all loans when the appraiser indicates the property is located in a declining market

Rural Property

Typically Considered Rural When	Neighborhood is less than 25% built-up Area around the property is zoned agricultural Subject property and/or comparables have an outbuilding or larger storage sheds
Eligibility & Restrictions	1-Unit properties only Purchases and Rate/Term Refinances only (Cash-Out NOT allowed) Maximum acreage: 10 acres Maximum LTV allowed: 70% Neighborhood area must be at least 25% built-up Property cannot be a working farm Property cannot generate income Transferred Appraisals not allowed Not allowed on Foreign Nationals

Solar Panels (Leased / Third-Party Owned)

Appraised Value	Leased/PPA solar panels may NOT be included in the appraised value of the property
Alternate Power Access	The property must maintain access to an alternate source of electric power meeting community standards
Lease/PPA Structure	Must provide delivery of a specific amount of energy at a fixed payment during a given period, with protection if the panels fail to meet required energy output for that period
Casualty/Damage	Lease/PPA must state that responsibility for damage/defect or removal of panels belongs to the equipment owner, who must repair damage and restore the property
Loss Payee	The solar panel owner must agree not to be named loss payee on the property insurance policy
Lender Rights on Default/Foreclosure	The lender must have the right to: (1) terminate the lease and require removal of the equipment; (2) become the beneficiary of the borrower’s lease at no transfer fee; or (3) enter a new lease with the third party on terms no less favorable than before; the lease/agreement may not result in a lien superior to the Lender’s

Condo, Flip & Closing

Condominium, Property Flip, Non-Arm’s Length, At-Interest Parties & Closing

Condominium — Warrantable

Standard	Condominium projects must comply with the Fannie Mae Selling Guide B4-2 Project Standards
Pending Litigation	Projects with pending litigation may be considered on an exception basis, subject to review
CPM Status	Project must not be in an “Unavailable” status in Fannie Mae’s Condominium Project Manager (CPM)

Condominium — Non-Warrantable

Eligibility	Non-Warrantable Condos are eligible subject to a 5% LTV reduction and the additional restrictions below
Minimum Loan Amount	$175,000
Review Type	A Full Lender Review is required. A Limited Review is NOT allowed.
Transaction Type	Must be an Arm’s-Length transaction
LenderMAC Project Exposure	Maximum of 20% of total units in a project
CPM Status	Project must not be in an “Unavailable” status in Fannie Mae’s Condominium Project Manager (CPM)

Non-Warrantable Condo — Project Requirements

Requirement	Standard
Commercial Space	Up to 50% allowed
HOA Reserves	≥ 5% minimum annual budgeted replacement reserve
Investor Concentration	Up to 30% allowed
Delinquent HOA Dues	No more than 25% of total units in the project may be 60+ days past due on HOA fee payments
Fidelity / Master Insurance Policy	Up to 10% allowed

Property Flip

Definition	A property being resold within 365 days of the seller’s acquisition (Recording Date) is considered a “flip”
Requirements	A Collateral Desktop Analysis (CDA) is required (not required for loans obtaining 2 appraisals) No assignment of the purchase contract to another buyer No property flipping patterns that indicate value manipulation

Non-Arm’s Length Transactions

Defined Parties	Includes, but is not limited to: Builder, Developer, or the Property Seller
Restriction Reference	Refer to full guidelines (e.g., Fannie Mae Selling Guide B3-3.1-2) for additional non-arm’s-length restrictions
Family Employment	When a borrower is employed by a family member, income must be documented by 2 years’ tax returns

At-Interest Parties

Definition	Individuals who, while not necessarily related to or employed by the borrower, have a personal or financial stake in the outcome of the loan (e.g., dual-role real estate/mortgage professionals)
Examples of Eligible At-Interest Parties		Additional Documentation Required
Buyer(s)/Borrower(s) acting as their own real estate agent (self-representing as agent in own transaction)		Standard income docs (e.g., 30 days paystubs, 2-Yr W-2s, tax returns); disclosure to lender of dual role as buyer/borrower and selling agent, as well as to the MLO
Realtor/Broker selling their own property, acting as agent as well as MLO		Borrower employed by a family member requires 2 years’ tax returns; a borrower’s family member serving dual roles as both MLO and real estate agent, or where the seller is the borrower’s employer, requires additional disclosure/documentation
Lender Discretion	LenderMAC reserves the right to require additional documentation or decline transactions involving At-Interest Parties due to increased risk

For Sale By Owner (FSBO)

Review Focus

Additional review applies to confirm no bailout scenario related to where the property was located, and no property flipping

Escrow Hold Back & Impounds

Escrow Hold Back	Ineligible
Impounds/Escrow	May be waived per state law; HPML loans must be impounded/escrowed; flood insurance impound cannot be waived even where property tax/hazard insurance impounds are waived

Ineligible Settlement / Closing Agents

Ineligible Agents

Lender, Affiliate of Lender, or Employee of Lender
Loan Originator, Employer of Originator, Employee of the Originator, or Employee of the Originator’s Employer
Title Insurance Company providing the insurance, its Affiliate, or an Employee of the Title Insurance Company
Real estate agent on the transaction, or an entity/individual affiliated with that agent

State Eligibility

Approved States	Refer to eligible states on LenderMAC’s website
Brooklyn, New York	Flagged separately in source document — likely subject to a specific restriction or exception; confirm current status against LenderMAC’s published state/market eligibility list

Note: Several clauses in the source PDF (e.g., exact Deed-in-Lieu/Foreclosure seasoning periods, full non-arm’s-length restriction citation, gift fund donor-relationship rules, and the precise Brooklyn/NY restriction) were rendered incompletely in the source document itself. These are summarized at a high level here — confirm exact wording against LenderMAC’s current published guidelines before relying on them for a specific loan file.

ONYX NonQM

Onyx NonQM

Alternative Documentation Non-QM Program Guidelines

LTV / CLTV Matrix

Alt-Doc Program — Maximum LTV / CLTV by Property Type, Loan Amount & Credit Score

Full Doc, Bank Statement, WVOE, P&L, and 1099 documentation types | Superscripts refer to footnotes below the tables

SFR / PUD / Condo (1 Unit)

Loan Amount	Credit Score	Purchase	Rate/Term	Cash Out	Reserves (mo.)
≤ $1,000,000	740+	90%¹˒²	85%¹	75%	3
	700-739	85%¹	80%	75%	3
	680-699	80%	80%	70%	3
	660-679	75%	75%	65%	3
	640-659	70%	70%	—	3
	620-639	65%	65%	—	3
$1,000,001-$1,500,000	740+	90%¹˒²	85%¹	75%	6
	700-739	85%¹	80%	75%	6
	680-699	80%	80%	70%	6
	660-679	75%	75%	65%	6
	640-659	70%	70%	—	6
	620-639	65%	65%	—	6
$1,500,001-$2,000,000	680+	75%	75%	65%	6
	660-679	70%	70%	60%	6
	640-659	60%	60%	60%	6
$2,000,001-$2,500,000	680+	75%	75%	50%	9
	660-679	70%	70%	50%	9
	640-659	60%	60%	50%	9
$2,500,001-$3,000,000	680+	70%	70%	50%	9
	660-679	60%	60%	50%	9

2-4 Units

Loan Amount	Credit Score	Purchase	Rate/Term	Cash Out	Reserves (mo.)
≤ $1,000,000	700+	70%	70%	60%	3
	680-699	70%	70%	60%	3
	660-679	60%	60%	50%	3
	640-659	60%	60%	—	3
$1,000,001-$1,500,000	700+	70%	70%	60%	6
	680-699	70%	70%	60%	6
	660-679	60%	60%	50%	6
	640-659	60%	60%	—	6
$1,500,001-$2,000,000	700+	65%	65%	60%	6
	680-699	65%	65%	60%	6
	660-679	65%	65%	50%	6
	640-659	55%	55%	—	6
$2,000,001-$2,500,000	700+	65%	65%	50%	9
	680-699	65%	65%	50%	9
	660-679	65%	65%	50%	9
	640-659	55%	55%	—	9
$2,500,001-$3,000,000	700+	65%	65%	—	9
	680-699	65%	65%	—	9
	660-679	55%	55%	—	9

Foreign Nationals³ (1-4 Units)

Loan Amount	Credit Score	Purchase	Rate/Term	Cash Out	Reserves (mo.)
≤ $1,000,000	N/A	70%	70%	60%	3
$1,000,001-$1,500,000	N/A	70%	70%	60%	6
$1,500,001-$2,000,000	N/A	65%	65%	60%	6
$2,000,001-$2,500,000	N/A	65%	65%	—	9
$2,500,001-$3,000,000	N/A	65%	65%	—	9

Interest Only Option

Primary Residence / Second Home		Investment Properties
Purchase / R&T (Min FICO 700)	1 Unit Max LTV/CLTV: 75% 2-4 Units Max LTV/CLTV: 65%	Purchase / R&T (Min FICO 720)	1 Unit Max LTV/CLTV: 70% 2-4 Units Max LTV/CLTV: 60%
Cash-Out (Min FICO 720)	1 Unit Max LTV/CLTV: 65% 2-4 Units Max LTV/CLTV: 55%	Cash-Out (Min FICO 720)	1 Unit Max LTV/CLTV: 60% 2-4 Units Max LTV/CLTV: 50%

Additional Requirements & Footnotes

¹	LTV/CLTV > 80%: Bank Statement Doc Type Only
²	Condos: Max LTV/CLTV is capped at 85%. Non-Warrantable Condos: 5% LTV reduction applies — refer to Condominium tab for additional requirements.
³	Foreign Nationals: Interest Only NOT allowed; 2-4 Unit Properties only allowed on Investment Properties at maximum 60% LTV; Primary Homes are NOT allowed; Non-Warrantable Condos NOT allowed
Investment Properties	Max LTV/CLTV: 80%
Second Homes	2-4 Unit Properties not allowed
Rural Properties	Additional LTV/FICO and Underwriting restrictions apply — refer to the Appraisal & Rural tab for details
Declining Market	5% LTV reduction applies — refer to the Appraisal & Rural tab for additional details regarding requirements and restrictions

Program Overview

Program Snapshot

Product	Alt-Doc Non-QM — Full Doc, WVOE, P&L, Bank Statement, and 1099 income documentation
Eligible Income Document Types	Salary: Full Doc, WVOE \| Self-Employed: P&L (12mo), Bank Statements (12/24mo), or 1-Year 1099
Max DTI	50%
Minimum Loan Amount	$100,000
Eligible Occupancy	Primary Residence, Second Home, Investment Property
Underwriting	Manual Underwrite Only
Available Terms	Fixed Rate: 30 Year
Interest Only Option	10-Year I/O available; qualified on the remaining 20-Year non-interest-only term
Investment Properties	Max LTV/CLTV: 80%
Second Homes	2-4 Unit properties NOT allowed
Rural Properties	Additional LTV/FICO and underwriting restrictions apply — see Appraisal & Rural tab
Declining Market	5% LTV reduction applies — see Appraisal & Rural tab
Tax Transcripts	Required if paystubs, W-2, 1099, and/or tax returns are used for qualification
Prepayment Penalty	Applies per rate sheet/PPP Matrix; state-specific restrictions may apply — refer to the PPP Matrix
Escrow Waiver	Not allowed
Impounds/Escrow	May be waived per state law; HPML loans must be impounded/escrowed; flood insurance impound cannot be waived

Eligible Borrowers & Vesting

Eligible	Permanent Resident Aliens Non-Permanent Resident Aliens (valid SSN and EAD, min. 90 days remaining on expiration date at funding, or evidence of extension application) Individuals (sole ownership, joint tenancy, tenancy in common, etc.) Inter-Vivos Revocable Trusts — must meet Fannie Mae guidelines Business Purpose Loans Only — LLC/Corp: borrower(s) must have 100% ownership interest documented; LLC/Corp must be the purchaser of the purchase contract
Ineligible	Co-Signers not allowed Business Purpose Loans (non-licensing) not allowed Borrowers on OFAC’s Specially Designated Nationals (SDN) and Blocked Persons List
Non-Permanent Resident / Non-Resident Aliens	See Foreign National Borrower eligibility (Foreign National program) for details
Foreign National Notes	Copy of passport, valid/eligible Visa, and I-94 required A valid Visa or I-94 may not be required when the Borrower is not present in the U.S. and is purchasing investment property (e.g., closing remotely / closing via POA) Borrower must have a US address entered as the mailing address on the loan application Limited to a maximum of 3 loans or $2,500,000 financed amount (including subject property)

First Time Homebuyers / First Time Investors

Definition	An individual who had no ownership interest (sole or joint) in a residential property in the 3 years preceding the purchase of the security property
Eligibility	First Time Homebuyers and First Time Investors are allowed
Restriction	First Time Homebuyers may NOT use rental income to qualify for investment property purchases

Ineligible Property Types

Ineligible

Working Farms, Ranches, Orchards
Hobby Farms
Condotels/Co-ops
Timeshares
Mixed-Use Properties
Modular Homes
Manufactured Homes
Mobile Homes
Unique Homes (Log Homes, Geodesic Domes, Tiny Homes, Barndominiums, etc.)
High-Rise Condominiums / 2-4 Unit Condominiums (per source note — verify condo unit-count restriction against current guidelines)

Credit Guidelines

Credit, Age of Documents & Debt Obligation Guidelines

Age of Credit Documents

Credit Reports	120 days from Note date
Refresher Credit	Required within 10 days of the Note date (confirms no new/undisclosed debt)
Preliminary Title Reports	120 days from Note date
Employment/Income	No more than 90 days from Note date
Asset Documents	No more than 90 days from Note date
Appraisal	No more than 120 days; 1004D/FHLMC 442 recertification by original appraiser required confirming no value decline, dated within 120 days of Note date

Credit Requirements

Credit Report	Tri-Merged Credit Report with minimum of (2) FICO scores required for all borrowers on the loan
Frozen Credit	Any invalid score due to a frozen account must be unfrozen and a new credit report issued
Credit Inquiries	Must be addressed, confirming no undisclosed debt
Minimum Tradelines	Three (3) tradelines with 12 months’ history, OR two (2) tradelines with 24 months’ history (tradelines may be open or closed)
Authorized User Accounts	May be excluded from Debt-to-Income (DTI) calculation, subject to underwriter review
Disputed Accounts	Evaluated for current balances and derogatory status; must be supported by a credit supplement showing the dispute has been removed
Collection/Charge-Off Accounts	Non-medical accounts opened within the past 3 years and exceeding $5,000 (individually or aggregate) must be paid off. All medical collections are excluded from this requirement.
Judgments / Garnishments / Liens	Delinquent credit (taxes, judgments, tax liens, mechanics’/materialmen’s liens) that may affect the lender’s 1st lien position must be paid or satisfied before closing

Derogatory Credit Events (Event to Note Date)

Deed-in-Lieu / Pre-Foreclosure / Short Sale	Seasoning requirement applies from completion/settlement date to Note date (refer to current rate sheet/matrix for exact period)
Bankruptcy	3 years from discharge/dismissal date to Note date
Foreclosure	Seasoning required from completion date to Note date (refer to current rate sheet/matrix for exact period)
Multiple Events	Credit events occurring greater than 7 years prior are not counted toward multiple-event restrictions

Mortgage / Rent Payment History

Standard	No more than 1×30 late payment within the most recent 12 months
Borrower on Title, Not on Note	When a borrower is on title to the subject property but not obligated on the mortgage note, mortgage history on that property is not required
No Mortgage	If borrower(s) does not have a mortgage, evidence of no mortgage is required
Rent-Free Living	If living rent-free and purchasing an investment property, a signed third-party letter documenting the rent-free arrangement is required
Private Lender/Landlord	Payment history documented via 12 months’ cancelled checks, 12 months’ bank statements, or similar acceptable evidence when a VOM/VOR is required and the property owner/mortgage holder is a private party

HELOC Payment

Standard	Current monthly payment reflected on the credit report may be used for qualifying
If Not Shown	Use the payment reflected on the updated billing statement, or 1% of unpaid principal balance (UPB)

Debt & Liability Treatment

Installment Debt	Debts with more than 10 months of remaining payments must be included in DTI; may be paid down to ≤10 monthly payments to be excluded (pay-downs require liquid funds documented to support the remaining balance)
30-Day Charge Accounts	Balance must be paid in full every month; verified funds must be in addition to down payment/closing/reserve funds. If paid off prior to closing, evidence of payoff may substitute for verifying funds.
Deferred Installment Debt (non-student)	Use payment on credit report, or a forbearance agreement reflecting a future monthly payment
Student Loans	Use credit-report payment if shown; if blank, use 1% of outstanding balance or a fully-amortizing calculated payment
Lease Payments	Must be included in DTI as a monthly obligation
Co-Obligor Debt (Paid by Other Party)	Excludable from DTI if supported by evidence of at least 12 months’ payment by the other party with no delinquencies
Debts Paid by Business (Self-Employed)	Excludable from personal DTI if: (1) evidence of debt payment from business funds for the most recent 12 months, and (2) no late payments in the last 12 months
Revolving Accounts	Use monthly payment shown on credit report; if unavailable, use the greater of $10 or 5% of outstanding balance (or current balance if less than $10)
Payoff of Revolving Accounts	To qualify without the monthly payment on the current balance, evidence of payoff is required

Refinance

Refinance Transaction Requirements

Rate/Term Refinance

Seasoning	No seasoning required
Non-Purchase-Money Payoff	A rate/term refinance may include payoff of non-purchase-money mortgages seasoned at least 6 months
Max Cash Back	Lesser of $5,000 or 2% of the new loan amount
Texas Rate/Term Restrictions	Impounds may not be added to the new loan amount for the payoff POC (Paid Outside Closing) fees may not be refunded when financed into the loan amount, and the loan amount must be reduced accordingly Loans that fall into Texas Cash-Out 50(a)(6) eligibility are NOT allowed as a rate/term transaction

Cash-Out Refinance

Definition	Any refinance that does not meet the Rate/Term Refinance criteria is considered cash-out
Seasoning	Six (6) months seasoning required — borrower must have held title (need not have been on the mortgage) for at least 6 months prior to the Note date of the new loan
Ownership ≥ 12 Months	If the property was acquired 12 months or longer prior, LTV/CLTV is based upon the current appraised value
Ownership 6-12 Months	Value is limited to the lower of the current appraised value, or the property’s purchase price plus documented improvements analyzed by the appraiser
Seasoning Exceptions (<6 months)	Cash-out seasoning of 6 months or less is allowed only when the borrower acquired the property through inheritance, was legally awarded the property through divorce, or via an intra-family transfer
Entity-Held Property	If held by an LLC/partnership, the borrower must have been the majority (≥51%) owner for a minimum of 6 months; net proceeds must go to the individual borrower(s) prior to or at closing
Business Purpose Loans	Proceeds from cash-out on Business Purpose Loans are subject to business-purpose use restrictions — refer to full guidelines
Texas Cash-Out (50(a)(6))	Subject to compliance with all Texas Equity loan requirements Each owner of the home and spouse must acknowledge the loan Texas cash-out loans are eligible for fixed-rate mortgages only

Cash-Out Refinance — Delayed Financing

Eligibility	Borrowers who purchased the subject property within the past 6 months, with no mortgage financing used to acquire it (all-cash purchase), are eligible for cash-out refinance if all requirements are met
Eligible Purchasing Entities	A natural person An eligible inter vivos revocable trust where the borrower is both beneficiary and the individual who established the trust An LLC or partnership in which the borrower(s) have 100% individual or joint ownership
Documentation	A recorded deed/settlement statement confirming no mortgage financing was used to acquire the property; source of funds may include personal loan documents or a HELOC on another property
Maximum New Loan Amount	No more than the borrower’s actual documented initial investment, plus closing costs/prepaid items/points on the new loan, subject to the maximum LTV/CLTV/HCLTV
Other Requirements	All other Cash-Out refinance guidelines apply and must be met

Property Previously Listed for Sale

Primary/Second Homes	Property must have been taken off the market on or before the disbursement date of the new mortgage loan
Investment Property	Additional seasoning/documentation requirements apply — refer to full guidelines for the specific timeframe and any pricing adjustment

Income Documentation

Income Documentation Guidelines

Wage Earner Income — Option 1: Full Doc

Documentation	Most recent 2 years W-2 and 30-day YTD paystub
WVOE (Alternative)	Written Verification of Employment completed by the employer (FNMA Form 1005 or equivalent)
Foreign Income	For U.S. Citizens/Permanent Residents working abroad, foreign income paid in foreign currency is eligible with a Written Verification (converted to USD) AND a letter from a Licensed Tax Preparer confirming the most recent 2 years of foreign income tax filings
Translation	Any documents not in English must be translated

Self-Employed — P&L Only

Documentation	Licensed Tax Preparer (CPA, CTEC, EA) prepared Profit & Loss Statement(s) for most recent 12 months. PTINs are not acceptable. End date must be less than 90 days from closing.
Business License	Valid Business or Professional license (or equivalent, e.g. state cert. of authority, trade-specific permit) for past 2 years for any business requiring licensing
Tax Preparer Verification	Confirm preparer’s name, address, phone, license number, date, and signature; confirm preparer has prepared/reviewed most recent 2 years of business tax return filings and prepared the P&L; confirm business name, borrower name(s), and % ownership
Translation	Any documents not in English must be translated

Self-Employed — P&L + 2 Months Bank Statements

Documentation	Licensed Tax Preparer prepared P&L for most recent 12 months, supported by minimum 2 months Business Bank Statements. PTINs not acceptable. End date must be less than 90 days from closing.
Deposit Support Test	Total bank deposits (minus inconsistent deposits) must be greater than, or no more than 20% below, the P&L sales/revenue
Qualifying Income	Lower of: (a) P&L Net Income ÷ 12, or (b) total bank deposits (minus inconsistent deposits) ÷ number of statements (min. 2)

Self-Employed — 1-Year 1099 Income

Ineligibility	Self-employed business owners paying their own earnings via 1099 are NOT eligible
Qualifying Income	Total gross 1099 income, minus a 10% expense factor
Contract Employees	Prior 2 years employed with same/similar employer(s) in same line of work, min. 12 months at current job; provide current YTD bank statements and/or payment statements dated within 30 days of Note date — lower of validated YTD or qualifying income is used
Documentation	P&L/Tax Returns are NOT required; 1099 Tax Transcript(s) ARE required

Self-Employed — Bank Statements (Business or Personal)

Eligibility	Self-employed minimum 2 years; income used to qualify must be generated from self-employment/business
Co-Borrower Wage Income	May be used if not associated with the borrower’s business and borrower is not employed by family members
Business License	Valid Business/Professional license (or equivalent) for past 2 years where required
Business Bank Statements	Borrower must have minimum 25% ownership of the business
Personal Bank Statements	Borrower must be 100% owner, with business structured as Sole Proprietor, Single-Member LLC, or 1099-based Schedule C filer
Joint Bank Accounts	Deduct deposits not associated with borrower’s business; if jointly held, only the borrower’s ownership % of deposits may be considered
Ineligible Deposits	Non-business account transfers, cash advances from credit cards, income sources already counted, and similar non-qualifying deposits
Large Deposits	Any single deposit exceeding 150% of average monthly total deposits requires sourcing/explanation, or may be excluded from the bank statement average
Transfers Between Accounts	Excluded from income calculation
Ownership % Alignment	Income used must align with borrower’s percentage of business ownership per most recent year’s tax return (personal bank statements require 100% ownership)
NSF Occurrences	Must have been promptly covered by subsequent deposits; a Letter of Explanation may be required to confirm NSF was not due to financial mismanagement or insufficient income

Employment Verification

Wage Earner	Verbal VOE required within 10 business days prior to the Note date
Self-Employed	Verbal VOE (business existence confirmation) required within 90 business days prior to the Note date

Tax Transcripts

Requirement	Required if paystubs, W-2, 1099, and/or tax returns are used for qualification

Rental Income & Reserves

Rental Income, Assets, Reserves & Financed-Property Limits

Rental Income

General	Qualifying rental income accounts for vacancy losses per the specific occupancy scenario below
Non-Subject Property	Rental income based on the lower of the current executed lease agreement, or internet searches (e.g., Rentometer, Zillow)
Subject Investment Property (Refinance)	Rental income based on the lower of the current executed lease agreement or Form 1007/1025 Rent Schedule
Subject Investment Property (Purchase)	Rental income based on the lower of the lease/security deposit documentation; receipt of the security deposit and proof of first month’s rent deposited to the borrower’s account is required. If unavailable, a recently completed Form 1007/1025 Rent Schedule may be used to determine gross market rent.
Higher Rental Income	May be considered in certain cases provided adequate documentation is submitted

Assets & Reserves — Documentation

General Requirement	Borrower must document sufficient assets for down payment, closing costs, and reserves
Acceptable Liquid Asset Docs	Most recent 1 month’s bank statement A VOD (Verification of Deposit) covering at least the most recent 30-day balance A Bank Certification Letter documenting account holder, minimum 30 days, and current balance
Large Deposit Sourcing	NOT Required
Business Funds	May be used up to the borrower’s percentage of ownership in the business
Foreign Assets	May be used as a source of closing funds when wired directly to the closing agent (wire must include bank name, account holder name, and account number matching the source account); reserves must be documented in a US bank account; assets verified in USD equivalency at the current exchange rate
ACH Funds	Must be from a US bank; an executed ACH enrollment form (with routing number, account number, and account type) must be included in the loan file

Reserve Requirements

Loan Amount	Required Reserves (PITIA)
≤ $1,000,000 AND ≤ 75% LTV	None
≤ $1,000,000	3 Months
≤ $2,000,000	6 Months
≤ $3,000,000	9 Months

Interest-Only Loans	Reserves are based on the Interest-Only payment (ITIA)
Reserve Scope	Reserves are required for the subject property only
Cash-Out Net Proceeds	May be used to meet reserve requirements
Restricted Stock Units (RSUs)	Not eligible for reserves
Life Insurance Cash Value	100% of the vested amount may be considered for reserves
1031 Exchange	Assets for the down payment from a like-kind 1031 exchange are eligible if properly documented and compliant with the Internal Revenue Code and Fannie Mae guidelines
Asset Document Age	Asset documents must be dated within 90 days of the Note date
Gift Funds	Gift letter must contain the donor’s information and state that repayment is not expected; refer to full guidelines for eligible donor relationships and documentation requirements

Interested Party Contributions (IPC)

> 75% LTV/CLTV	Maximum 6%
≤ 75% LTV/CLTV	Maximum 9%

Maximum Number of Financed Properties

LenderMAC Aggregate Exposure	Aggregate LenderMAC loan amount to one borrower may not exceed $5 million
LenderMAC Loan Count	Maximum of 4 LenderMAC loans allowed to one borrower
Exceptions	May be granted upon Management Review

Appraisal & Rural

Appraisal, ADU, Rural Property & Solar Panel Requirements

General Appraisal Requirements

Compliance	All appraisals must comply with USPAP, Appraisal Independence Requirements (AIR), and applicable HPML requirements
Ordering	Must be ordered through an AIR-compliant Appraisal Management Company (AMC), or via the Correspondent’s own AIR-compliant process
Seller Responsibility	Seller reviews the appraisal for accuracy, completeness, and marketability, and confirms acceptable collateral

Appraisal Requirement by Loan Amount

Loan Amount	Requirement
≤ $1.5MM	One (1) Full Appraisal + CDA if both CU and LCA scores exceed 2.5 or are not available
> $1.5MM – $2.0MM	One (1) Full Appraisal + CDA
> $2.0MM	Two (2) Full Appraisals

Transferred Appraisals	Permitted; a CDA is required when both CU and LCA scores exceed 2.5, or when a score is unavailable. Must comply with the Seller’s appraisal transfer policy and AIR standards.
CDA Variance	Clear Capital Collateral Desktop Analysis (CDA) must be within 10% variance of the appraised value; if variance exceeds 10%, refer to guidelines for resolution
Property Resold Within 365 Days	Additional appraisal review applies — see Property Flip section on the Condo & Closing tab

Higher-Priced Mortgage Loan (HPML) — 2nd Appraisal

Trigger	When a consumer buys a primary residence with an HPML-covered loan and the property was previously sold in the prior 180 days, a second appraisal report may be required
Required When	Sales price increased more than 10% if the seller acquired the property in the past 90 days Sales price increased more than 20% if the seller acquired the property 91-180 days prior
Cost	The Borrower may not pay for the 2nd appraisal

Unpermitted Additions / Garage Conversions

Appraiser Comments Required

Addition/conversion completed in a workmanlike manner; any health and safety issues

Accessory Dwelling Units (ADUs)

Eligible ADU	1-, 2-, or 3-unit properties with one ADU are eligible per Freddie Mac Selling Guide 5601.2
ADU Characteristics	Includes a kitchen, bathroom, and separate entrance Is independent of the primary dwelling unit Is smaller in size than the primary dwelling unit Contributes less to the property’s value than the primary dwelling unit
Appraisal Report Must Include	Any effect the ADU has on market value/marketability; conformity to the subject neighborhood and market
Illegal 2nd Unit / ADU	Property appraised on current use, reporting illegal use; rental income from an illegal 2nd unit may NOT be used to qualify; appraiser must comment improvements are typical for the market with at least 1 comparable with the same illegal use; hazard insurance must cover total square footage including the illegal unit

Multiple ADUs

General Limits	Total units + ADUs on the property may NOT exceed 4 (e.g., 3-unit triplex + 1 ADU; 2-unit duplex + 2 ADUs; 1-unit SFR + 3 ADUs)
ADU Requirements	Subordinate in size to the primary dwelling; must have separate ingress/egress from the primary dwelling; cannot be accessible only through the primary dwelling
Appraisal Support	Report must demonstrate improvements are typical for the market via analysis of at least 2 comparables with similar features
ADU Rental Income — Refinance	Market rent for the ADU documented on FNMA Form 1007; file must include a copy of the current lease (use lower of market rent or actual)
ADU Rental Income — Purchase	Market rent documented on Form 1007; use lower of market rent or actual with deposit evidence; if unavailable, Form 1007 may be used to determine gross market rent
Qualifying ADU Income	Gross rent × 75% to account for vacancy losses; Owner-Occupied/2nd Home: ADU income may NOT be used as qualifying income
Unpermitted ADUs	Legal non-conforming use acceptable provided current use does not adversely affect value/marketability, supported by market acceptance analysis (min. 2 comparables)

Declining Market

LTV Reduction

A 5% LTV reduction applies to all loans when the appraiser indicates the property is located in a declining market

Rural Property

Typically Considered Rural When	Neighborhood is less than 25% built-up Area around the property is zoned agricultural Subject property and/or comparables have an outbuilding or larger storage sheds
Eligibility & Restrictions	1-Unit properties only Purchases and Rate/Term Refinances only (Cash-Out NOT allowed) Maximum acreage: 10 acres Maximum LTV allowed: 70% Neighborhood area must be at least 25% built-up Property cannot be a working farm Property cannot generate income Transferred Appraisals not allowed Not allowed on Foreign Nationals

Solar Panels (Leased / Third-Party Owned)

Appraised Value	Leased/PPA solar panels may NOT be included in the appraised value of the property
Alternate Power Access	The property must maintain access to an alternate source of electric power meeting community standards
Lease/PPA Structure	Must provide delivery of a specific amount of energy at a fixed payment during a given period, with protection if the panels fail to meet required energy output for that period
Casualty/Damage	Lease/PPA must state that responsibility for damage/defect or removal of panels belongs to the equipment owner, who must repair damage and restore the property
Loss Payee	The solar panel owner must agree not to be named loss payee on the property insurance policy
Lender Rights on Default/Foreclosure	The lender must have the right to: (1) terminate the lease and require removal of the equipment; (2) become the beneficiary of the borrower’s lease at no transfer fee; or (3) enter a new lease with the third party on terms no less favorable than before; the lease/agreement may not result in a lien superior to the Lender’s

Condo, Flip & Closing

Condominium, Property Flip, Non-Arm’s Length, At-Interest Parties & Closing

Condominium — Warrantable

Standard	Condominium projects must comply with the Fannie Mae Selling Guide B4-2 Project Standards
Pending Litigation	Projects with pending litigation may be considered on an exception basis, subject to review
CPM Status	Project must not be in an “Unavailable” status in Fannie Mae’s Condominium Project Manager (CPM)

Condominium — Non-Warrantable

Eligibility	Non-Warrantable Condos are eligible subject to a 5% LTV reduction and the additional restrictions below
Minimum Loan Amount	$175,000
Review Type	A Full Lender Review is required. A Limited Review is NOT allowed.
Transaction Type	Must be an Arm’s-Length transaction
LenderMAC Project Exposure	Maximum of 20% of total units in a project
CPM Status	Project must not be in an “Unavailable” status in Fannie Mae’s Condominium Project Manager (CPM)

Non-Warrantable Condo — Project Requirements

Requirement	Standard
Commercial Space	Up to 50% allowed
HOA Reserves	≥ 5% minimum annual budgeted replacement reserve
Investor Concentration	Up to 30% allowed
Delinquent HOA Dues	No more than 25% of total units in the project may be 60+ days past due on HOA fee payments
Fidelity / Master Insurance Policy	Up to 10% allowed

Property Flip

Definition	A property being resold within 365 days of the seller’s acquisition (Recording Date) is considered a “flip”
Requirements	A Collateral Desktop Analysis (CDA) is required (not required for loans obtaining 2 appraisals) No assignment of the purchase contract to another buyer No property flipping patterns that indicate value manipulation

Non-Arm’s Length Transactions

Defined Parties	Includes, but is not limited to: Builder, Developer, or the Property Seller
Restriction Reference	Refer to full guidelines (e.g., Fannie Mae Selling Guide B3-3.1-2) for additional non-arm’s-length restrictions
Family Employment	When a borrower is employed by a family member, income must be documented by 2 years’ tax returns

At-Interest Parties

Definition	Individuals who, while not necessarily related to or employed by the borrower, have a personal or financial stake in the outcome of the loan (e.g., dual-role real estate/mortgage professionals)
Examples of Eligible At-Interest Parties		Additional Documentation Required
Buyer(s)/Borrower(s) acting as their own real estate agent (self-representing as agent in own transaction)		Standard income docs (e.g., 30 days paystubs, 2-Yr W-2s, tax returns); disclosure to lender of dual role as buyer/borrower and selling agent, as well as to the MLO
Realtor/Broker selling their own property, acting as agent as well as MLO		Borrower employed by a family member requires 2 years’ tax returns; a borrower’s family member serving dual roles as both MLO and real estate agent, or where the seller is the borrower’s employer, requires additional disclosure/documentation
Lender Discretion	LenderMAC reserves the right to require additional documentation or decline transactions involving At-Interest Parties due to increased risk

For Sale By Owner (FSBO)

Review Focus

Additional review applies to confirm no bailout scenario related to where the property was located, and no property flipping

Escrow Hold Back & Impounds

Escrow Hold Back	Ineligible
Impounds/Escrow	May be waived per state law; HPML loans must be impounded/escrowed; flood insurance impound cannot be waived even where property tax/hazard insurance impounds are waived

Ineligible Settlement / Closing Agents

Ineligible Agents

Lender, Affiliate of Lender, or Employee of Lender
Loan Originator, Employer of Originator, Employee of the Originator, or Employee of the Originator’s Employer
Title Insurance Company providing the insurance, its Affiliate, or an Employee of the Title Insurance Company
Real estate agent on the transaction, or an entity/individual affiliated with that agent

State Eligibility

Approved States	Refer to eligible states on LenderMAC’s website
Brooklyn, New York	Flagged separately in source document — likely subject to a specific restriction or exception; confirm current status against LenderMAC’s published state/market eligibility list

Note: Several clauses in the source PDF (e.g., exact Deed-in-Lieu/Foreclosure seasoning periods, full non-arm’s-length restriction citation, gift fund donor-relationship rules, and the precise Brooklyn/NY restriction) were rendered incompletely in the source document itself. These are summarized at a high level here — confirm exact wording against LenderMAC’s current published guidelines before relying on them for a specific loan file.

Onyx ITIN

LTV / FICO Matrix

Primary Residence / Second Home1

Investment

Footnotes & Additional Requirements

LOAN PARAMETERS

CREDIT GUIDELINES

INCOME GUIDELINES

ASSETS & RESERVES

PROPERTY GUIDELINES

Onyx 2nd Lien

Onyx 2nd Lien

LTV / CLTV / HLTV Matrix

Full Doc, Bank Statement and 1099

WVOE, P&L and DSCR

Loan Parameters

Credit Guidelines

Age of Documents

Credit Requirements

Debt and First Mortgage Requirements

Income Guidelines

DSCR & Rental Income

Assets & Loan Limits

Appraisal Guidelines

Property, Title & State Eligibility

Onyx DSCR

Onyx DSCR

LTV / CLTV Matrix

Alt-Doc Program — Maximum LTV / CLTV by Property Type, Loan Amount & Credit Score

SFR / PUD / Condo (1 Unit)

2-4 Units

Foreign Nationals³ (1-4 Units)

Interest Only Option

Additional Requirements & Footnotes

Program Overview

Program Snapshot

Eligible Borrowers & Vesting

First Time Homebuyers / First Time Investors

Ineligible Property Types

Credit Guidelines

Credit, Age of Documents & Debt Obligation Guidelines

Age of Credit Documents

Credit Requirements

Derogatory Credit Events (Event to Note Date)

Mortgage / Rent Payment History

HELOC Payment

Debt & Liability Treatment

Refinance

Refinance Transaction Requirements

Rate/Term Refinance

Cash-Out Refinance

Cash-Out Refinance — Delayed Financing

Property Previously Listed for Sale

Income Documentation

Income Documentation Guidelines

Wage Earner Income — Option 1: Full Doc

Self-Employed — P&L Only

Self-Employed — P&L + 2 Months Bank Statements

Self-Employed — 1-Year 1099 Income

Self-Employed — Bank Statements (Business or Personal)

Employment Verification

Tax Transcripts

Rental Income & Reserves

Rental Income, Assets, Reserves & Financed-Property Limits

Rental Income

Assets & Reserves — Documentation

Reserve Requirements

Interested Party Contributions (IPC)

Maximum Number of Financed Properties

Appraisal & Rural

Appraisal, ADU, Rural Property & Solar Panel Requirements

General Appraisal Requirements

Appraisal Requirement by Loan Amount

Higher-Priced Mortgage Loan (HPML) — 2nd Appraisal

Unpermitted Additions / Garage Conversions

Accessory Dwelling Units (ADUs)

Multiple ADUs

Declining Market

Rural Property

Solar Panels (Leased / Third-Party Owned)

Primary Residence / Second Home¹