What is Stated Mortgage Home Loan? Stated Mortgage Loan is perfect for borrowers who want to buy or refinance a primary residence or second home but cannot document income or employment to qualify for other Non-Conforming type loans . A Stated Mortgage Loan underwriting is based on LTV, FICO, and Liquidity, (b) Income Documentation is not required; c) Employment is not required; and (d) Debt-to-Income (DTI) is Not Calculated Most people confuse Stated Mortgage for non-owner occupied investment property loans which uses the comparable rental income to qualify you and does not require proof of income The minimal requirements makes a Stated Mortgage ideal for borrowers unable to qualify for conventional loan and other Non-QM types loans due to: • High DTI (debt-to-income) ratios • Volatile, Irregular Employment or No Employment • Retirees on fixed incomes • Owners of Cash Businesses • Change of Industry or Type of Employment • Transitioning from W-2 to Self-employed under 1 year • Online Retailers using difference online payment systems Benefits of a No Income / No Employment Verification Mortgage • Purchase or Refinancing: Primary or Second homes • No income verification • No employment verification • No tax returns • No 1099’s • No W2’s • No DTI calculated Key Loan Highlights • Min $200,000 up to $3,000,000 MILLION LOAN AMOUNTS • No Income or employment verification required • Owner Occupied Primary Residence & Second Homes only • 80% LTV 740+ with Credit Scores for owner occupied 1-4 units & 2nd homes (no reduction in LTV for multifamily) • 75% LTV with Credit Scores of 680-739 • 70% LTV for 660-679 Credit Scores • 65% LTV for 640-659 Credit Scores • CASH-OUT CAN BE USED AS RESERVES FOR CASH OUT TRANSACTIONS – NO LIMIT ON CASH OUT UP TO 70% LTV • Reserves must be borrowers, down payment and closing costs can be gifted • Assets sourced & seasoned for only 30 days • No employment or income on 1003 • 1 Tradeline for 24 months or 2 tradelines for 12 months open - active within the last 90 days • BK one day out – F/C, Short sale, or deed in lieu 12 months seasoning • Cash out can be used as reserves for cash out transactions – no limit on cash out • Min Loan Amount (not purchase price) $150,000 up to $3 Million • 30yr fixed and Interest only adjustable-rate loans available • No Pre-Payment Penalty / No Mortgage Insurance Primary Documentation Required • Last 2 months banks statements showing a sufficient source of Funds for down payment, closing cost and reserves. The reserves amount is based on your credit score for both purchases and refinancing. RESERVES CASH-OUT CAN BE USED FOR CASH OUT TRANSACTIONS • Last Mortgage Statement if Refinancing • Valid Drivers License • Appraisals (must ordered by underwriting some recent appraisals can transferred) • Most recent Mortgage Statement if refinancing Credit Requirements: A hard inquiry full credit report must be pulled by 1st Florida Lending • A minimum (middle) credit score of 660 • There can be no mortgage lates within the last 12 months. • Revolving or installments payments require Letters of Explantion (LOE) • Active collections cannot exceed $25,000 Tradeline Documents Requirement: Borrower must have active tradeline(s) a outlined in option 1, 2 or 3. (A tradeline is defined as any combination of credit cards, student loans, car loans etc. ) • Option 1. Active tradeline for 24 months • Option 2. Active tradeline for 12 months • Option 3. I have both of the above • Either tradelines must be active within the last 90days If the Borrower has not established an active tradeline as defined in Option 1 or 2. We cannot proceed with this loan. Mortgage Credit Events - OK • Foreclosure Seasoning - 12 months from removal of name on deed • Short Sale / Deed in Lieu Seasoning - 12 Months out • Bankruptcy Seasoning - Settled/Discharged Eligible Properties • Primary Residences: Borrowers must occupy the property as your permanent residence • Second Homes: Must be occupied by the borrower some portion of the year. Must be located a reasonable distance from the borrowers and is restricted to one-unit dwellings. The borrower must have exclusive control over the property and cannot be rental property or a timeshare agreement. Condominiums • Fannie Mae warrantable condo’s up to max LTV per eligibility grid • Non-warrantable condo’s up to 65% max LTV Mixed-Use Properties • The property must be a 1-unit dwelling the borrower occupies as a primary residence. • The borrower must be both the owner and operator of the business. • The property must be primarily residential in nature • The dwelling may not be modified in a manner that has an • adverse impact on its marketability Ineligible Properties: Any property that is Zoned Commercial, Investment Properties, Condotels, Co-ops, Manufactured / Mobile Homes, working farms, ranches, orchards, Acreage limited to 40 acres