INVESTMENT PROPERTY PROGRAMS

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PROPERTY TYPE:

● SFR, Condo, Townhome, 2-4 Units , PUD.

● No below average properties

INELIGIBLE PROPERTIES:

● Rural Properties, Site > 10 Acres, High-rise Condo in Dade/Broward Counties, Florida (8+ stories)

LOAN TERMS:

● 5 ARM or 30 Year Fixed

● 10 Year /40 Year Term IO

● Index is 1 year LIBOR

● Pre-payment penalty standard—3 years

● Caps are 2/2/5 (2% Initial Change Cap / 2% Period Adj / 5% Lifetime Cap)

● Margin 5.75%

● All loans require impounds for tax and insurance

LOAN AMOUNTS:

● $100,000-$1,500,000

HOUSING HISTORY/CREDIT EVENT SEASONING:

● 1x30 mortgage lates last 12 months, no rolling

 700 plus credit score

● 48 months seasoning for bankruptcy, foreclosure, short sale or deed in lieu. No multiple events

● 12 months’ housing history required

FOREIGN NATIONALS

● Max 70% LTV Purchase, 65% LTV R/T or C/O

● If no FICO, Price as 680

● Loan must be made to domestic LLC with domestic agent

DSCR QUALIFICATION:

● DSCR—Total borrower income not disclosed, DTI not calculated

● Rental Income is Market Rents on FNMA form 1007 or 216

● DSCR = Rental Income/PITIA, 0.75 minimum required, Fico below 640 requires 1.0 or greater

FULL/ALT QUALIFICATION:

● Full Doc - 1 or 2 year (W-2 & paystubs, 1040s, K1’s)

● Alt Doc - 12 or 24 months business or personal bank stmts (Self Employed and Gratuity earners only), Full Doc income with lease agreements,

● Max DTI = 50%

● Residual Income—$1,500 per household plus $500 1st child, $250 thereafter. Child maximum $1,500.

CREDIT SCORE/TRADELINE REQUIREMENTS:

● Tradeline—3 trade lines reporting for ≥ 12 month; or 2 trade lines reporting for ≥ 24 months with activity in the past 12 months. Borrower must have housing history or one of the trades must have $5,000 high

● Credit Score—All Borrowers must meet program requirements. The middle score of the primary wage earner is used for pricing and LTV purposes.

TAX LIENS AND JUDGMENTS:

● All tax liens and judgments must be paid at closing

CASH OUT:

● Cash Out must be for business purpose, and funds must be wired to business account

COLLECTION/CHARGE-OFF ACCOUNTS:

● Collections and charge offs need to be paid off except:

- Medical Collections.

- Collection accounts older than 2 years.

ASSETS/RESERVES:

● 6 months reserves

● No reserves required IF < 65% ltv AND DSCR >1.1:1

● Cash-out be used to satisfy reserve requirement when LTV ≤ 65% LTV.

● Funds to close must be borrower’s own funds (no gift)

● Gift funds allowed provided borrower contributes 20% own funds

LISTED PROPERTIES

● Properties listed in the last 6 months are allowed with a minimum 2-year prepayment penalty required

OCCUPANCY:

● Non-Owner Occupied only

RESTRICTIONS ON PROPERTIES OWNED / FINANCED:

● No maximum on number of properties owned

● Maximum 10 loans to borrower, maximum combined Loan amount $4,000,000

CLOSING:

● Legal Entity—loan must be made to a domestic LLC and a domestic agent of service is required

● Other closing conditions apply. Please see loan approval for