Simple Access Non-QM Improvements

Simple Access Non-QM Improvements – For the Winning Shot!

With the new improvements made to our Simple Access® suite of Non-QM products, you can take that 3 point shot right at the 4th quarter! We’ve implemented more pricing and guideline flexibility to accommodate ALL of your borrowers!

All Documentation Types:

• Max LTV on a primary residence purchase transaction with FICO score 720 + and loan amount >$1MM and up to $1.5MM increased to 90
• Max LTV on a primary residence cash out refinance transactions with FICO score 720+ and loan amount up to $1.5MM increased to 80
• Max LTV on a primary residence purchase or rate/term refinance transactions with FICO 720+ and loan amount >$3MM and up to $3.5MM increased to 75
• Max LTV on a primary residence purchase or rate/term refinance transactions with FICO 680-719 and loan amount >$3MM and up to $3.5MM increased to 65
• Max LTV for primary residence purchase transactions in NY/NJ/CT increased to 90 where LTV grids otherwise permit
• Age of credit documents extended back to 120 days except for CPA letter for self-employment verification which is extended to 60 days
• Housing payment history requirement of 0x60x24 eliminated-now 0x30x12
• Borrower contribution requirement removed for primary residences with LTVs <=70 (other than FTHB living rent free)
• Entity vesting guideline changes
  – Requirement that entity only hold title to subject property eliminated
  – Attorney opinion letter requirement eliminated
• COVID documentation requirements eliminated (i.e. LOEs, recent receipt of rent when not using a lease as a means of calculating rental income/debt service, etc.)
• Allowance of properties that are agriculturally zoned with less than 20 acres provided appraiser confirms no agricultural zoning
• Removed requirement to include PPP loans taken out in income calculation
• Transferred appraisals are no longer an exception-subject to the below conditions
  – Executed transfer letter
  – A copy of appraiser’s license
  – A copy of appraiser’s E&O insurance
  – AIR cert
  – A CDA with a variance between zero and 10% positive, inclusive
• Collections that exceed $250 individually and $1,000 in aggregate do not need to paid off as long as it can be evidenced that they cannot become a judgment that will affect title to our subject property

Bank Statements

• Minimum ownership interest in business to use business bank statements for income calculation reduced to 25%
• 1-2 years self-employed allowed with 2 years previous employment in same line of work, no gaps in employment, and additional six months reserves

Investor Cash Flow

• Guideline waiver for landlord history requirement added when the following are met
• Max LTV increased on IO loans where IO payment used to calculate DSCR increased to 75
• Max LTV for <1.0 DSCR increased to 75 for purchases only.  Must have minimum 1 year PPP

View our program descriptions for more guidelines enhancements