JUMBO LOAN MATRIX
Loan Purpose
Occupancy Types
LTV/CLTV
Subordinate Financing
Loan Amount Limits
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Purchase
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Limited Cash-out Refinance
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Cash-out Refinance
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Principal Residence Properties
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Second Home Properties
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Investment Properties
Purchase
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Primary Residence: 90%
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Second Home: 90%
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Investment: 80%
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Rate / Term Refinance
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Primary Residence: 90%
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Second Home: 90%
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Investment: 80%
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Cash-out Refinance
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Primary Residence: 75%
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Second Home: 70%
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Investment: 65%
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Allowed up to maximum CLTV per matrix.
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Minimum loan amount: $1 over the current one-unit conforming loan limit.
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Maximum loan amount: $3,000,000
Borrower Eligibility
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U.S. Citizens
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Permanent Resident Aliens
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Inter-Vivos Revocable Trust
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Non-Occupant Co-borrower (Allowed per AUS)
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First Time Homebuyer
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Limits on Number of Financed Properties
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Primary residence - No limit.
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Second home or investment property - up to 10 properties.
Income and Employment
The stable and reliable flow of income is a key consideration in mortgage loan underwriting. A key driver of successful homeownership is confidence that all income used in qualifying the borrower will continue to be received for the foreseeable future. If the income does not have a defined expiration date and the applicable history of receipt of the income is documented, the income is considered as stable, predictable, and likely to continue. Otherwise, additional documentation from the borrower will be required to analyze the likelihood of the income will continue for at least next three years.
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Employment income refers to the income received from work in the form of W-2. Verification of the most recent two years of employment and income are generally required. It can be done by obtaining copies of the most recent pay stubs, IRS Form W2's, and a written Verification of Employment (VOE), or direct electronic verification of employment by a TPV vendor. Primary employment is considered if the employee typically works 40 hours of service per week. If it is less than 40 hours of service per week, it is considered as part-time employment. Both types of employment are acceptable, however, part-time employment should have a recent 2-year consecutive employment and it is likely to continue. Similar with part-employment, these employment or incomes are also acceptable, such as seasonal employment, overtime, bonus, tips, commission.
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Self-employment income refers to income generated by a business in which the borrower has a 25 percent or greater ownership interest. Self-employment income can be used if the borrower has been self-employed for at least two years. However, if the borrower has less than two years history, self-employment income may only be considered if the borrower was previously employed in the same line of work or in a related occupation for at least two years. The lender will review the self-employment income based on the recent Federal tax returns. In addition, a year-to-date Profit and Loss (P&L) statement and balance sheet are required if more than a calendar quarter has been elapsed since the date of the most recent calendar or fiscal year-end tax period.
Other sources of income are also acceptable are: Social Security disability, VA disability, private disability, alimony, child support, maintenance income, military income, Mortgage Credit Certificate (MCC), other public assistance, automobile allowances, retirement income, rental income, boarders of the subject property, capital gains or losses, Trust income, Annuities, Note receivable income, foster care income, foreign income.
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Asset Assessment
Lenders will need to verify a borrower has sufficient funds for closing, down payment, and financial reserves (if applicable) with these following types of documentation: Request for Verification of Deposit (Form 1006), copies of bank statements or investment portfolio statements, copies of retirement account statements. Statements should not be 45 days earlier than the date of the loan application. Either the two- or one-month period of account activity will be needed depending on the loan application type.
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Any deposit exceeding 50% of the total monthly qualifying income will be considered as a large deposit, and it needs to be evaluated, except not on a refinance transaction unless it was from borrowed funds. To document a large deposit, a borrower can provide an explanation along with proof of ownership of an asset that was sold, evidence of gift fund receipt for the wedding; otherwise, the verified balance must be reduced by the amount or portion of the undocumented large deposit.
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Reserves are measured by the number of months of PITIA that a borrower could pay using his or her financial assets. Borrowers with multiple properties must meet the reserve requirements for each individual loan basis and each additional loan must have an additional six (6) months of reserves. Reserves must be verified and comprised of liquid assets the borrower can readily access. Equity lines of credit, gift funds, and cash out from the subject property on a refinance transaction are not acceptable sources to meet the reserve requirement. Business assets are not an acceptable source to meet reserve requirements.
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If loan amount is up to $1,500,000 - 6 months
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If loan amount is greater than $1,500,000 and up to $2,000,000 - 9 months
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If loan amount is greater than $2,000,000 - 24 months.
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Credit Score / istory
Debt-to-Income (DTI)
Minimum credit requirements as determined by AUS. All borrowers must have a minimum of 2 credit scores. Qualifying FICO as per matrix. If only one credit score or no credit score is not reported borrower is not eligible.
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A minimum of twenty-four (24) months verified housing history is required with no late. Borrowers with no mortgage/rental history due to a residence scenario requiring no mortgage or rental payments are eligible with a satisfactory letter of explanation. If the housing history reflects a forbearance arrangement, the payment history must reflect 0 x 30 in the most recent 24 months since exiting forbearance. The payment history must be provided by the lender or servicer.
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Derogatory Credit Events in the Credit Report
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At least seven (7) years must have elapsed since bankruptcy discharge or dismissal, foreclosure, notice of default (NOD), short sale, deed-in-lieu, or modification measured from the date of completion to the date of application.
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Liens or judgements that have the potential to impact lien position must be explained and paid off.
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Collection accounts or charged-off accounts do not need to be paid off if the balance of an individual account is less than $1,000 or if there are multiple accounts the total balance of all account cannot exceed $2,500.
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The DTI ratio is based on the total of existing monthly liabilities and any planned future monthly liabilities divided by gross monthly income. Liabilities include but are not limited to all housing expenses, revolving debts, installment debts, other mortgages, rent, alimony, child support, and other consistent and recurring expenses. The DTI is capped at 43% for most jumbo loan products.
Property Eligibility
The dwelling must consist of one to four units, and is located in the United State, Puerto Rico, the U.S. Virgin Islands, and Guam. It must be:
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residential in nature as defined by the characteristics of the property and surrounding market area.
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secured by an interest in real property within the meaning of the Internal Revenue Code.
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safe, sound, and structurally secure.
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readily accessible by roads that meet local standards.
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served by utilities that meet community standards.
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suitable for year-round use.
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Interested Party Contributions
Interested parties to a transaction include, but not limited to, the property seller, the builder/developer, the real estate agent or broker, or an affiliate who may benefit from the sale of the property.