Homebridge is making enhancements and updates to the Access (Non-QM) program as detailed below.
Investor Cash Flow (DSCR)
- The maximum loan amount restriction for an interest-only transaction has been removed when the LTV is 60% or less (previously capped at $2,000,000 regardless of LTV)
- Loans submitted by an MLO who is not currently licensed in the subject property state:
- The maximum LTV is 75% (previously no LTV restriction)
- Iowa has been added as a restricted state for loans submitted by an unlicensed MLO (i.e. the property cannot be located in Iowa)
Bank Statement
- Maximum NSFs allowed have been increased as follows:
- 12 month’s bank statements: Maximum 6 instances within past 12 months (previously 3)
- 24 month’s bank statements: Maximum 12 instances within the past 24 months (previously 6)
- Income trend requirements have been improved as follow for 24 Month Bank Statements:
- If eligible deposits have declined year over year up to 15%:
- A 24 month average will be utilized (previously 5%)
- If eligible deposits have declined by > 15% up to 50% year over year:
- A 12 month average of the most recent years eligible deposits may be used (previously restricted up to a 15% decline)
- If eligible deposits have declined by > 50%:
- The loan is ineligible (previously ineligible with deposits that declined > 15%)
P&L Only
- Removed the requirement for 2 months business bank statements to support the P&Ls
Foreign National Borrowers: Investor Cash Flow (DSCR) Only
- 75% LTV now available with $2,000,00 loan amount, minimum 700 credit score, and minimum 1.15 DSCR
- 70% LTV now available with $2,000,000 loan amount, minimum 700 credit score, and minimum 1.00 DSCR
- Borrowers without a U.S. credit score maximum 65% LTV
- Cash-out transactions with an LTV of 70.01% to 75% cannot use cash-out proceeds to satisfy reserve requirements
General Enhancements
- Cash-out transactions (Full Doc, Bank Statement, 1099 Only, P&L Only, and ICF)
- Unlimited cash-out now eligible with ≤ 65% LTV (previously 60%)
- LTV > 65% maximum cash-out proceeds $1,000,000 (previously 60%) except ICF:
- ICF Option: Maximum cash-out proceeds $750,000 (previously $500,000)
- Appraisal requirements have been enhanced as follows:
- One full appraisal now required for loan amounts up to $2,000,000 (previously $1,500,00)
- Two full appraisals now required for loan amounts > $2,000,000 (previously > 1,500,000)
- Non-warrantable condominium project requirements have been updated for the following
- The restriction that the transaction can have only one non-warrantable feature has been removed
- Reduced the presale requirement on new projects to 50% (previously 70%)
- The topic has been re-formatted to provide more clarity
- Investment transactions secured by a property located in the state of New Jersey may now offer a prepayment penalty option subject to the property closing in an LLC
- NJ PPP options are ineligible for transactions that are not closing in an LLC
- Homebridge will provide a Guaranty Agreement in the closing documents which must be signed by the borrower
- The loan documents will be required to be signed by the borrower as a managing member only, not as an individual on the Note, Security Instrument, and CD. The personal guarantor/borrower will not sign the Note, Security Instrument, or CD.
General Updates
Investment Property Cash-Out Transactions: All Documentation Options
- All investment property cash-out transactions require cash-out to be used for business purposes ONLY; cash-out proceeds cannot include consolidation of personal consumer debt
- Homebridge will require the borrower to sign a specific Affidavit at loan closing to confirm cash-out proceeds will be used for business purposes only.
- The Affidavit will be required on Full Doc, Bank Statement, 1099 Only, and P & L Only Access investment cash-out transactions and Homebridge will include in the loan document package
NOTE: The new Affidavit is not required on ICF transactions since the existing affidavit
already includes language confirming proceeds are used for business purposes only
Transactions Closing in an LLC
- Transactions closing in an LLC will have the debt reported on the borrower’s individual credit report
The Access (Non-QM) program guidelines have been updated and posted on the Homebridge website at www.HomebridgeWholesale.com
These updates apply immediately to both new submissions and pipeline transactions except as noted below:
- Investment Cash-Out Clarification:
- Applies immediately to all files that are CTC and new submissions
- NJ PPP Improvement:
- Apples immediately to pipeline transactions with a COC and new submissions
- ICF Transactions: Unlicensed MLO New LTV Restriction
- Applies to loans locked on or after December 7, 2023
NOTE: Transactions taking advantage of improved LTVs will require manual locks. To request a manual lock, email the Homebridge lock desk at locks@homebridge.com
If you have any questions, please contact your Account Executive
