- Mortgage History
- 0x30x12
- Credit Event Seasoning
- >84 Months · >48–83 Months MAX CLTV 70%
- Occupancy
- Non-Owner Occupied (Investor — Business Purpose)
- Property Types — Eligible
- Single Family (SFR) · 2-4 Units (Reduce MAX CLTV by 5%)
- Property Types — Ineligible
- Condos, Non-Warrantable Condos, Rural, Row Homes, Condotels, Commercial/Agricultural, Leasehold, Land Trusts, Age-Restricted, Hobby Farms, Modular, Land Contract & Log Homes
- Reserves
- No reserves required
- Short Term Rentals
- Not Allowed
- Interest Only
- Not Allowed
- DSCR Calculation
- DSCR = Gross Rents / PITIA (fully amortizing). Min DSCR 1.00x
- Ownership Seasoning
- Minimum 6 months ownership required
- Lease / Gross Income
- Lesser of estimated market rent from Form 1007 or monthly rent from existing lease (higher lease rent allowed with 3 months receipt). Lease in place required for all subject properties. 2+ Unit properties: max 1 vacant unit allowed.
- Citizenship
- US Citizens · Permanent Resident Aliens · Non-Permanent Resident Aliens (w/ US Credit)
- Personal Guaranty
- Required on all loans to Entity / LLC borrowers
- Eligible Borrowers
- Natural Persons · Corporations · LLC Entities. LLC Borrowing Entities: Domestic LLC required; US Citizen / Perm Resident / Non-Perm guarantors allowed (see guidelines).
- Appraisal Requirements
- ≤ $400,000: AVM + Property Condition Report, OR Full interior appraisal (FNMA 1004 or 1025), OR BPO. > $400,000: Full interior appraisal (FNMA 1004 or 1025). Appraisal Waivers are not acceptable.
- AVM Requirements
- Client to order AVM up-front when Loan Amount ≤ $400,000 · Confidence Rating: ClearCapital ≥ 87% / FSD ≤ 0.13. If AVM does not meet required confidence rating, a Residential Evaluation or Clear Capital Flex Appraisal is required.
- Credit / Tradelines
- Standard: 3 trades ≥ 12 months OR 2 trades ≥ 24 months (all with activity in last 12 months) OR 1 mortgage/installment ≥ 36 months with 12 months activity. Acceptable tradelines must show 0x60 in most recent 12 months.
- Qualifying FICO
- Higher middle score when 3 agency scores are provided, or lower score when only 2 agency scores are provided, of all borrowers/guarantors.
- Title Policy
- ≤ $400,000: Owner & Encumbrance Property Report (short form). > $400,000: Full Title Policy
- Listed Properties
- Properties listed for sale in prior 6 months from application are ineligible
- Escrows / Flood
- Sufficient flood insurance coverage required — lesser of 1st lien UPB + 2nd lien UPB or $250,000. Documentation of sufficient coverage required.
- Compliance
- Compliance with all applicable federal and state regulations
- Declining Market
- If appraisal is marked, reduce MAX CLTV by 5%
- Hazard Coverage
- 100% replacement cost or updated coverage to cover both 1st and 2nd lien required
- Prepayment Penalty
- Prepayment Fee Structures: 5%, 3% (Min 2yr Term) · 1 Year Prepay Term requires a 5% Prepay Fee · No Prepay or Restrictions — States priced with No Prepay: AK, KS, MI, MN, NM, RI · IL & NJ vested as Individual · PA <$320K · OH 1-2 units.
- State Limitations
- TN — Max Loan Term 15 Years · TX — Second Home & Investment Only · PA — MAX CLTV 70%
- Ineligible States / Areas
- HI — lava zones 1 & 2 · Baltimore City, MD