SUCCESS STORIES

Together we can face challenges as deep as the ocean and as high as the sky.

Scenario 1: $1,061,650 / Purchase

Nice craftsman style home

Doc Type: Full Doc
Occupancy: Primary
Product: 7/6 S ARM
LTV:
85%
FICO:
726

Scenario: Borrower had two 60 day mortgage lates as a result of an auto payment issue with their bank that was resolved and back payments made immediately following.

Resolution: Considered, borrower to provide LOE explaining situation.

Comp Factors: Credit profile free from derogatory remarks except for mortgage lates, strong assets, low DTI, and long term property ownership.

Scenario 2: $714,000 / Purchase

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV:
85%
FICO:
780

Scenario: Borrower had >3 but under 10 NSFs in 12 months due to their customers checks being returned/bouncing.

Resolution: Considered, LOE provided by borrower aligned with bank statements and NSFs were not fault of borrower.

Comp Factors: Upward income trajectory, good asset position both business and personal, and long term employment.

Nice landscaped yard

Scenario 3: $4,250,000 / Cash-out Refi

Waterfront home

Doc Type: Asset Qualifier
Occupancy: Primary
Product: 7/6 S IO ARM
LTV:
63%
FICO:
632

Scenario: Borrower had previous credit issues since resolved, including 120 day mortgage lates. All tradelines were current and paid on time for most recent 14 month period and borrower was looking to use CO proceeds to pay down margin loan used to acquire subject property for cash <6 months prior.

Resolution: Considered, allowed CO proceeds to be used to pay down margin loan and use account value post-pay down toward asset count. Documented funds used to acquire subject property and LOE on credit history.

Comp Factors: Exceptionally strong asset position, bolstered in a few months by sale of REO, low LTV, and credit score not necessarily indicative of current profile.

Scenario 4: $950,000 / Purchase

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV:
55%
FICO:
762

Scenario: Borrower was in a seasonable business where summer is busiest. Borrower provided LOE addressing nature of business and was able to effectively pivot business operations to a remote work environment and still have a strong summer despite pandemic. 12 months bank statements provided, utilizing CPA letter for expense ratio.

Resolution: Considered, CPA confirmed reasoning for decline based on seasonality of business.

Comp Factors: Strong reserves, low LTV, good credit profile showing timely payments.

House with American Flags

Scenario 5: $900,000 / Purchase

Nice house

Doc Type: Asset Qualifier
Occupancy: Primary
Product: 30 FRM
LTV:
75%
FICO:
762

Scenario: Borrower seeking to use joint funds from spouse not on loan, but on title, toward allowable asset count.

Resolution: Considered, validated spouse had minimal debt.

Comp Factors: Strong asset position, borrower had clean credit profile.

Scenario 6: $1,650,000 / Purchase

Doc Type: Asset Qualifier
Occupancy: Primary
Product: 30 FRM
LTV:
54%
FICO:
742

Scenario: Borrower looking to purchase a primary and was short < 5% assets on a qualification method.

Resolution: Considered with no adjustment, borrower had supplemental assets but as an ineligible asset type.

Comp Factors: Low LTV, strong forward looking asset position.

Modern luxury home

Scenario 7: $870,000 / Purchase

Garden house

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV:
53%
FICO:
745

Scenario: Borrower has a 1x30x12 on a departing residence that occurred shortly after property was sold.

Resolution: Considered, borrower provided LOE and late was an aberration.

Comp Factors: Otherwise strong credit profile, low LTV, strong upward income trajectory.

Scenario 8: $994,000 / Purchase

Doc Type: Bank Statement
Occupancy: Primary
Product: 7/6 S ARM
LTV:
70%
FICO:
683

Scenario: Between 1-2 years ago, borrower switched to being a self-employed a financial advisor with at least 10 years experience in the industry on W2. While income was declining, an updated statement cured the deposit trend. DTI was also near 55, but borrower had a 680+ FICO, 70 LTV, purchase transaction, met the residual income requirements and had 6 months additional reserves on top of what would be needed to waive.

Resolution: Considered, borrower provided updated statement and verified 2+ years of previous employment in same line of work.

Comp Factors: Long term previous employment, previous mortgage tradeline history paid timely over lifetime, good reserves.

Neighborhood

Scenario 9: $1,250,000 / Rate/Term Refi

House at night

Doc Type: Investor Cash Flow
Occupancy: NOO
Product: 30 FRM IO
LTV:
38%
FICO:
704

Scenario: Borrower had 2x30x12 due to switching servicers and inadvertently not settling up a new ACH.

Resolution: Considered, lates were aberrations and not indicative of overall credit profile.

Comp Factors: Otherwise clean credit, low LTV, good reserves.

Scenario 10: $200,000 / Rate/Term Refi

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV:
39%
FICO:
801

Scenario: Borrower had two business accounts, request was to combine the two business accounts into one income stream for calculation purposes. One account showed a decline in income, while the other showed an offsetting increase in deposits.

Resolution: Considered, when combined, the overall deposits were increasing.

Comp Factors: Low LTV, robust credit profile, low DTI, monthly payment going.

Townhouse

Scenario 11: $2,950,000 / Purchase

House with pool

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 
75%
FICO: 
770

Scenario: Borrower was self-employed and owned < 50% of a business with business partner owning the remaining share. Borrower runs the business while business partner administered services.

Resolution: Considered, documented and tracked ownership interest and allowed use based on proportionate ownership percentage.

Comp Factors: Strong FICO, robust credit profile, low DTI, great reserves.

Scenario 12: $2,500,000 / Purchase

Doc Type: Asset Qualifier
Occupancy: Primary
Product: 10/6 S ARM
LTV: 
56%
FICO: 
747

Scenario: Borrower was short assets up to 15% utilizing method 3.

Resolution: Considered, shortage not to exceed 15%.

Comp Factors: Low LTV, good credit profile with high FICO and borrower owns various properties all paid timely.

Luxury home

Scenario 13: $1,237,500 / Purchase

Luxury home

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 
75%
FICO: 
727

Scenario: Borrower accidentally deposited business income into personal account and was looking to use deposits toward qualifying income.

Resolution: Considered, verified deposits were part of income stream and sourced/documented funds being received.

Comp Factors: Good credit profile, low DTI, long term employment.

Scenario 14: $720,000 / Purchase

Doc Type: Full Doc
Occupancy: Primary
Product: 30 FRM
LTV:
80%
FICO: 
720

Scenario: Borrower had just under 7 years distribution continuance and assets in account were borrower’s own but seasoned for less than 12 months in an institution.

Resolution: Considered, documented source of funds for distributions as borrower’s own. Borrower had additional assets beyond distribution account to provide future income and sufficient assets to repay loan in full.

Comp Factors: Strong asset position, DTI more than 10% below max.

Backyard patio

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Luxury Mortgage Corp.®
Four Landmark Square
Suite 300
Stamford, CT 06901
(888) 458-6267

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Luxury Mortgage Corp.®
18100 Von Karman Ave
Suite 350
Irvine, CA 92612
(949) 516-0710

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