Private lender credit standards
Luxury Mortgage Wholesale
88 sections · 4 documents
· newest document 2026-07-31
dscrasset-depletionbank-statement
DSCR values stated in these documents: 1.00 · 1.15 · 1.20
Private standard, not a regulation. These are private, per-lender commercial standards, not regulation. They differ by lender by design and are revised without notice, often at the same web address. A program shown here is what the cited document said on the date given; it is not confirmation the lender still offers it.
Source documents
| Document | Document date | Verified unchanged |
|---|
| luxurymortgagewholesale.com-GraduateProgram.pdf | 2026-07-31 inferred | — |
| luxurymortgagewholesale.com-Prime_InvestorCashFlow-WSE.pdf | 2026-07-08 inferred | — |
| luxurymortgagewholesale.com-SA_InvestorCashFlow-WSE.pdf | 2026-07-31 inferred | — |
| luxurymortgagewholesale.com-SimpleSeconds-WSE.pdf | 2026-05-12 inferred | — |
“Inferred” means the document printed a date but did not label it as an effective or
revision date. It is the latest plausible date on the page, not a stated one.
Criteria tables
FICO
luxurymortgagewholesale.com-SA_InvestorCashFlow-WSE.pdf · 2026-07-31
| LTV AND LOAN AMOUNTS REQUIREMENTS PURCHASE/RATE & TERM REFINANCE PURCHASE/RATE & TERM REFINANCE 1-4 Unit Investment Property >=1.00 DSCR 1-4 Unit Investment Property <1.00 DSCR. Min 0.75X FICO LTV* CLTV* Loan Amount FICO LTV* CLTV* Loan Amount 720 65% 65% $ 4,000,000 70% 70% $ 2,500,000 700 70% 70% $ 3,000,000 75% 75% $ 1,500,000 700 75% 75% $ 2,500,000 65% 65% $ 2,500,000 680 80% 80% $ 1,500,000 75% 75% $ 1,500,000 65% 65% $ 3,000,000 660 70% 70% $ 1,500,000 680 70% 70% $ 2,500,000 80% 80% $ 1,500,000 65% 65% $ 2,500,000 660 75% 75% $ 1,500,000 640 70% 70% $ 1,500,000 620 65% 65% $ 1,500,000 | | | |
| PURCHASE/RATE & TERM REFINANCE | | | |
| 1-4 Unit Investment Property >=1.00 DSCR | | | |
| FICO | LTV* | CLTV* | Loan Amount |
| 720 | 65% | 65% | $ 4,000,000 |
| 700 | 70% | 70% | $ 3,000,000 |
| 75% | 75% | $ 2,500,000 |
| 80% | 80% | $ 1,500,000 |
| 680 | 65% | 65% | $ 3,000,000 |
| 70% | 70% | $ 2,500,000 |
| 80% | 80% | $ 1,500,000 |
| 660 | 65% | 65% | $ 2,500,000 |
| 75% | 75% | $ 1,500,000 |
| 640 | 70% | 70% | $ 1,500,000 |
| CASH-OUT REFINANCE | | | |
|---|
| 1-4 Unit Investment Property >=1.00 DSCR | | | |
| FICO | LTV | CLTV | Loan Amount |
| 720 | 55% | 55% | $ 4,000,000 |
| 700 680 | 65% | 65% | $ 3,000,000 |
| 70% | 70% | $ 2,500,000 |
| 75% 60% | 75% 60% | $ 1,500,000 $ 3,000,000 |
| 65% | 65% | $ 2,500,000 |
| 75% | 75% | $ 1,500,000 |
| 660 | 65% 70% | 65% 70% | $ 2,500,000 $ 1,500,000 |
| 620 | 65% | 65% | $ 1,500,000 |
LTV AND LOAN AMOUNTS REQUIREMENTS
luxurymortgagewholesale.com-SA_InvestorCashFlow-WSE.pdf · 2026-07-31
| LTV AND LOAN AMOUNTS REQUIREMENTS PURCHASE/RATE & TERM REFINANCE PURCHASE/RATE & TERM REFINANCE 1-4 Unit Investment Property >=1.00 DSCR 1-4 Unit Investment Property <1.00 DSCR. Min 0.75X FICO LTV* CLTV* Loan Amount FICO LTV* CLTV* Loan Amount 720 65% 65% $ 4,000,000 70% 70% $ 2,500,000 700 70% 70% $ 3,000,000 75% 75% $ 1,500,000 700 75% 75% $ 2,500,000 65% 65% $ 2,500,000 680 80% 80% $ 1,500,000 75% 75% $ 1,500,000 65% 65% $ 3,000,000 660 70% 70% $ 1,500,000 680 70% 70% $ 2,500,000 80% 80% $ 1,500,000 65% 65% $ 2,500,000 660 75% 75% $ 1,500,000 640 70% 70% $ 1,500,000 620 65% 65% $ 1,500,000 | | | |
| PURCHASE/RATE & TERM REFINANCE | | | |
| 1-4 Unit Investment Property >=1.00 DSCR | | | |
| FICO | LTV* | CLTV* | Loan Amount |
| 720 | 65% | 65% | $ 4,000,000 |
| 700 | 70% | 70% | $ 3,000,000 |
| 75% | 75% | $ 2,500,000 |
| 80% | 80% | $ 1,500,000 |
| 680 | 65% | 65% | $ 3,000,000 |
| 70% | 70% | $ 2,500,000 |
| 80% | 80% | $ 1,500,000 |
| 660 | 65% | 65% | $ 2,500,000 |
| 75% | 75% | $ 1,500,000 |
| 640 | 70% | 70% | $ 1,500,000 |
| CASH-OUT REFINANCE | | | |
|---|
| 1-4 Unit Investment Property >=1.00 DSCR | | | |
| FICO | LTV | CLTV | Loan Amount |
| 720 | 55% | 55% | $ 4,000,000 |
| 700 680 | 65% | 65% | $ 3,000,000 |
| 70% | 70% | $ 2,500,000 |
| 75% 60% | 75% 60% | $ 1,500,000 $ 3,000,000 |
| 65% | 65% | $ 2,500,000 |
| 75% | 75% | $ 1,500,000 |
| 660 | 65% 70% | 65% 70% | $ 2,500,000 $ 1,500,000 |
| 620 | 65% | 65% | $ 1,500,000 |
Loan Amount
luxurymortgagewholesale.com-SA_InvestorCashFlow-WSE.pdf · 2026-07-31
| LTV AND LOAN AMOUNTS REQUIREMENTS PURCHASE/RATE & TERM REFINANCE PURCHASE/RATE & TERM REFINANCE 1-4 Unit Investment Property >=1.00 DSCR 1-4 Unit Investment Property <1.00 DSCR. Min 0.75X FICO LTV* CLTV* Loan Amount FICO LTV* CLTV* Loan Amount 720 65% 65% $ 4,000,000 70% 70% $ 2,500,000 700 70% 70% $ 3,000,000 75% 75% $ 1,500,000 700 75% 75% $ 2,500,000 65% 65% $ 2,500,000 680 80% 80% $ 1,500,000 75% 75% $ 1,500,000 65% 65% $ 3,000,000 660 70% 70% $ 1,500,000 680 70% 70% $ 2,500,000 80% 80% $ 1,500,000 65% 65% $ 2,500,000 660 75% 75% $ 1,500,000 640 70% 70% $ 1,500,000 620 65% 65% $ 1,500,000 | | | |
| PURCHASE/RATE & TERM REFINANCE | | | |
| 1-4 Unit Investment Property >=1.00 DSCR | | | |
| FICO | LTV* | CLTV* | Loan Amount |
| 720 | 65% | 65% | $ 4,000,000 |
| 700 | 70% | 70% | $ 3,000,000 |
| 75% | 75% | $ 2,500,000 |
| 80% | 80% | $ 1,500,000 |
| 680 | 65% | 65% | $ 3,000,000 |
| 70% | 70% | $ 2,500,000 |
| 80% | 80% | $ 1,500,000 |
| 660 | 65% | 65% | $ 2,500,000 |
| 75% | 75% | $ 1,500,000 |
| 640 | 70% | 70% | $ 1,500,000 |
| CASH-OUT REFINANCE | | | |
|---|
| 1-4 Unit Investment Property >=1.00 DSCR | | | |
| FICO | LTV | CLTV | Loan Amount |
| 720 | 55% | 55% | $ 4,000,000 |
| 700 680 | 65% | 65% | $ 3,000,000 |
| 70% | 70% | $ 2,500,000 |
| 75% 60% | 75% 60% | $ 1,500,000 $ 3,000,000 |
| 65% | 65% | $ 2,500,000 |
| 75% | 75% | $ 1,500,000 |
| 660 | 65% 70% | 65% 70% | $ 2,500,000 $ 1,500,000 |
| 620 | 65% | 65% | $ 1,500,000 |
FICO
luxurymortgagewholesale.com-SA_InvestorCashFlow-WSE.pdf · 2026-07-31
| LTV AND LOAN AMOUNTS REQUIREMENTS PURCHASE/RATE & TERM REFINANCE PURCHASE/RATE & TERM REFINANCE 1-4 Unit Investment Property >=1.00 DSCR 1-4 Unit Investment Property <1.00 DSCR. Min 0.75X FICO LTV* CLTV* Loan Amount FICO LTV* CLTV* Loan Amount 720 65% 65% $ 4,000,000 70% 70% $ 2,500,000 700 70% 70% $ 3,000,000 75% 75% $ 1,500,000 700 75% 75% $ 2,500,000 65% 65% $ 2,500,000 680 80% 80% $ 1,500,000 75% 75% $ 1,500,000 65% 65% $ 3,000,000 660 70% 70% $ 1,500,000 680 70% 70% $ 2,500,000 80% 80% $ 1,500,000 65% 65% $ 2,500,000 660 75% 75% $ 1,500,000 640 70% 70% $ 1,500,000 620 65% 65% $ 1,500,000 | | | |
| PURCHASE/RATE & TERM REFINANCE | | | |
| 1-4 Unit Investment Property >=1.00 DSCR | | | |
| FICO | LTV* | CLTV* | Loan Amount |
| 720 | 65% | 65% | $ 4,000,000 |
| 700 | 70% | 70% | $ 3,000,000 |
| 75% | 75% | $ 2,500,000 |
| 80% | 80% | $ 1,500,000 |
| 680 | 65% | 65% | $ 3,000,000 |
| 70% | 70% | $ 2,500,000 |
| 80% | 80% | $ 1,500,000 |
| 660 | 65% | 65% | $ 2,500,000 |
| 75% | 75% | $ 1,500,000 |
| 640 | 70% | 70% | $ 1,500,000 |
| CASH-OUT REFINANCE | | | |
|---|
| 1-4 Unit Investment Property >=1.00 DSCR | | | |
| FICO | LTV | CLTV | Loan Amount |
| 720 | 55% | 55% | $ 4,000,000 |
| 700 680 | 65% | 65% | $ 3,000,000 |
| 70% | 70% | $ 2,500,000 |
| 75% 60% | 75% 60% | $ 1,500,000 $ 3,000,000 |
| 65% | 65% | $ 2,500,000 |
| 75% | 75% | $ 1,500,000 |
| 660 | 65% 70% | 65% 70% | $ 2,500,000 $ 1,500,000 |
| 620 | 65% | 65% | $ 1,500,000 |
Lien
luxurymortgagewholesale.com-SimpleSeconds-WSE.pdf · 2026-05-12
| Prepayment Penalty | **NOTE: UCC filings that are paid through tax assessments (such as HERO and PACT loans) are not eligible and must be paid in full with proceeds** Not permitted |
|---|
| Interest Only | Full Documentation, Bank Statements and 1099 Only Qualify at the applicable FRM based on the amortizing term of the loan. The following amortization terms would be used for qualifying on a 30 year term loan. As interest only term is 10 years. • 30 FRM w/ IO: 20 years Investor Cash Flow Qualify the Applicant at the start rate based on a 30 year term, unless the loan qualifies to utilize the Interest Only payment to calculate the DSCR 5% reduction to max CLTV |
| Escrows | Not required |
| Mortgage Insurance | Not required |
| Min/Max Loan Amounts | Minimum: $150,000 Maximum: $1,000,000 Minimum percentage of second is 15% of first mortgage Max total financing is limited to the below: $2,000,000 over 80% CLTV (total amount of 1st and 2nd lien combined) $3,000,000 up to 80% CLTV (total loan amount of 1st and 2nd lien combined) |
| Assumptions | ▪ Not permitted |
| Ineligible Senior Lien | ▪ Senior liens with high-risk features which can include, but are not limited to: ▪ Loans in forbearance or deferment ▪ Negative Amortization ▪ Balloon, if the balloon payment becomes due during the amortization period of our new 2nd lien ▪ Reverse Mortgages ▪ Private Mortgages |
| SECOND MORTGAGE NON-QM PURCHASE/RATE & TERM REFI Primary Residence FICO | CLTV | Loan Amount | DTI | Second Home FICO | CLTV | Loan Amount | DTI | Investment Property FICO | CLTV | Loan Amount | DTI |
|---|
| 740 | 85 | $ 500,000 | 50 | 740 | 80 | $ 500,000 | 50 | 740 | 70 | $ 750,000 | 50 |
| 720 | 75 | $ 1,000,000 | 50 | 720 | 70 | $ 1,000,000 | 50 | 720 | 65 | $ 1,000,000 | 50 |
| 80 | $ 750,000 | 50 | | 75 | $ 750,000 | 50 | | 70 | $ 750,000 | 50 |
| 700 | 75 | $ 750,000 | 50 | 700 | 70 | $ 750,000 | 50 | 700 | 65 | $ 750,000 | 50 |
| 680 | 75 | $ 500,000 | 50 | 680 | 70 | $ 500,000 | 50 | 680 | 65 | $ 500,000 | 50 |
DTI
luxurymortgagewholesale.com-SimpleSeconds-WSE.pdf · 2026-05-12
| SECOND MORTGAGE NON-QM PURCHASE/RATE & TERM REFI Primary Residence FICO | CLTV | Loan Amount | DTI | Second Home FICO | CLTV | Loan Amount | DTI | Investment Property FICO | CLTV | Loan Amount | DTI |
|---|
| 740 | 85 | $ 500,000 | 50 | 740 | 80 | $ 500,000 | 50 | 740 | 70 | $ 750,000 | 50 |
| 720 | 75 | $ 1,000,000 | 50 | 720 | 70 | $ 1,000,000 | 50 | 720 | 65 | $ 1,000,000 | 50 |
| 80 | $ 750,000 | 50 | | 75 | $ 750,000 | 50 | | 70 | $ 750,000 | 50 |
| 700 | 75 | $ 750,000 | 50 | 700 | 70 | $ 750,000 | 50 | 700 | 65 | $ 750,000 | 50 |
| 680 | 75 | $ 500,000 | 50 | 680 | 70 | $ 500,000 | 50 | 680 | 65 | $ 500,000 | 50 |
| CASH-OUT REFINANCE Primary Residence FICO | CLTV | Loan Amount | DTI | Second Home FICO | CLTV | Loan Amount | DTI | Investment Property FICO | CLTV | Loan Amount | DTI |
|---|
| 740 | 85 | $ 500,000 | 50 | 740 | 80 | $ 500,000 | 50 | 740 | 70 | $ 750,000 | 50 |
| 720 | 75 | $ 1,000,000 | 50 | 720 | 70 | $ 1,000,000 | 50 | 720 | 65 | $ 1,000,000 | 50 |
| 80 | $ 750,000 | 50 | | 75 | $ 750,000 | 50 | | 70 | $ 750,000 | 50 |
| 700 | 70 | $ 750,000 | 50 | 700 | 65 | $ 750,000 | 50 | 700 | 60 | $ 750,000 | 50 |
| 680 | 70 | $ 500,000 | 50 | 680 | 65 | $ 500,000 | 50 | 680 | 60 | $ 500,000 | 50 |
Events
luxurymortgagewholesale.com-SA_InvestorCashFlow-WSE.pdf · 2026-07-31
| • Rural Properties up to 10 acres up to 75% LTV/CLTV with min. 1.000 DSCR, no 5-10 units |
| Ineligible Property Types | • Mixed use properties • Properties with more than 5 acres • Rural Properties that do not meet the above criteria • See Underwriting Guidelines for full list of unacceptable property types |
| Eligible Transactions | Purchase, including non-arm’s length transactions-see Underwriting Guidelines Rate and Term Refinance • Max cash back to borrower is the greater of 1% of the balance of the new refinance mortgage loan or $5000 • No title seasoning required • Payoff of first and second, where the second is seasoned >6 months and not drawn >$5,000 in 6 months preceding application date unless the second was used in full to purchase the property. • Buyout accompanied by an executed buyout agreement • If loan being paid off was closed in the 12 months preceding the application date and was a cash out transaction, the loan will be treated as a Rate and Term if it was the only refinance within the preceding 12 month period as long as borrower has owned the property for 6 months. • Technical refinances/delayed financing allowed-see Underwriting Guidelines Cash-Out Refinance • Refinances which do not fit into the rate and term guidelines are deemed to be cash out • A refinance of a loan which was a cash out in the preceding 12 months will be considered a cash out refinance if there was more than one refinance in the preceding 12 month period • Three months title seasoning required for cash out refinances-see Underwriting Guidelines for Determination of Value. • No limit on max cash out up to 65% LTV, max $1MM cash out above 65% LTV • Value to be utilized must be supported-see Underwriting Guidelines |
| Credit Requirements | |
| Trade Lines | Each Applicant must have three trade lines and a credit history covering 24 months. One trade line must have been active within the last 6 months. At least one trade line must be seasoned 24 months. The same trade line may be used to cover both the 24 month history and active requirement. If an Applicant’s spouse is the only Co-Applicant listed, only one Applicant is required to meet this guideline. See Underwriting Guidelines for more details and alternatives. If membership/ownership is tied at 50/50 then higher of the two member/owner scores can be used. |
| Credit Score | • Credit scores allowed down to 620, subject to loan amount and LTV restrictions. Minimum Fico score for all borrowers 620. • Use the highest middle score for all borrowers/guarantors with membership/ownership/partnership over 25% on the loan. |
| Housing Payment History | Housing payment history no greater than 1x30x12 for all mortgages/rental verifications. Note that 1 x 30 day late may be subject to a price adjustment and will limit the maximum LTV/CLTV to 80%. Loan amount above $3MM require 0 x 30 x 12. First Time Home Buyer (FTHB) Not allowed |
| Significant Credit Events | Applicants with any of the following major credit events (bankruptcy, foreclosure, modification, short sale, short pay, deed in lieu, and 120 day or greater mortgage late) are subject to the below requirements, measured from event completion date or discharge/dismissal to note date: Credit Event other than a Foreclosure: • 0-2 years removed: Not Eligible • 2-3 years removed: Max 70% LTVCLTV, and max $1.5MM loan amount • >3 years removed: Standard Guidelines Foreclosure: • 0-2 years removed: Not Eligible • 2-4 years removed: Max 70% LTVCLTV, min DSCR 1.000, minimum 10% borrower own funds, and max $1.5MM loan size • >4 years removed: Standard Guidelines Additional Requirements: |
| • Active NOD or Lis Pendens not allowed. An historic NOD or Lis Pendens is not against guidelines, however the underlying event will be evaluated against the Significant Credit Event and Housing Payment History requirements guidelines. • Judgment/Tax Lien: must meet one of the following: o Paid off prior to or at closing, or o Show 6 month satisfactory payment history, include payment in the DSCR (if attached to the subject property), subordinate if recorded o Judgments/Liens outside of 5 years from application date and less than $25,000 can remain open unless it will affect title. • Collections/Charge-Offs: May be excluded if individually less than $5,000 or over 24 months old from the credit report date and the aggregate of accounts outstanding is under $15,000 it may remain open if it does not affect title. If Otherwise, they must be paid off. Medical collections may remain open regardless of amount if they do not affect title. • Collections/Charge-Offs: May be excluded if individually less than $5,000 or over 24 months old from | |
| the credit report date and the aggregate of accounts outstanding is under $15,000 it may remain open if it | |
| does not affect title. If Otherwise, they must be paid off. Medical collections may remain open regardless | |
| of amount if they do not affect title. Any that are greater or which may affect title must be paid off prior to | |
| or at closing. | |
| Charge-offs and collections not excluded by the above and not impacting title must be paid unless one or | |
| a combination of both of the following can be met: | |
| Income and Assets | | |
| DSCR | No DTI is developed for this product. Qualification is based solely on the Debt Service Coverage Ratio (DSCR) of the subject property only. The minimum DSCR is 1.000 for standard guidelines. Note: that certain DSCR levels i.e., < 1.000 may be subject to pricing adjustments, LTV/FICO restrictions, additional reserve requirements, Landlord History Waiver not eligible and max loan amount $3MM. DSCR < .75 not eligible. | |
| Applicant Eligibility | All Applicants must either own their current primary residence or own an investment property. If the borrower is not a First Time Home Buyer then this requirement can be waived at Underwriter’s discretion. At least one Applicant on the loan must have at least a 12 month history of owning and managing rental properties or a multi-unit primary residence collecting rent(s) unless the DSCR is >1.000, though it does not need to have been in the most recent three years. See landlord waiver section belowfor criteria to waive this requirement if the DSCR is not > 1.000. Commercial properties are acceptable for this purpose, as long as the Applicant was a majority owner of the property. Applicants who are not able to meet this requirement may be eligible if the below criteria is met. | |
| Landlord Waiver | If Applicants meet all of the below criteria, they are not required to document a previous 12 month history of owning and managing rental properties. Purchase Transactions: • 680 FICO • 0x30x12 on all housing trade lines as of the application date • Own current primary residence • No mortgage forbearances with a missed payment in the most recent 12 months prior to the application date Refinance Transactions: • 680 FICO • 0x30x12 on all housing trade lines as of application date • Own current primary residence • No mortgage forbearances with a missed payment in the most recent 12 months prior to the application date • Subject property must have been acquired in the last 12 months • At least 3 consecutive months receipt of rent from the property are provided prior to application date • On Multi-Unit Properties (for requirements above) only 1 unit is required to be verified | |
Types
luxurymortgagewholesale.com-GraduateProgram.pdf · 2026-07-31
| Simple Access® – Graduate Program | | | |
| Program Description – Mortgage Solutions for borrowers who recently completed post graduate degrees who are | | | |
| employed in specialized professions (see below) | | | |
| Luxury Mortgage Corp. offers Graduate Program loans to Applicants under expanded underwriting guidelines. Loans in this program consider all factors as required in the Ability to Repay Rule as defined in section 1026.43. This program is designed for Applicants who are not eligible for agency and prime credit jumbo loans and is based on a common sense approach to underwriting. Qualifying income will allow future income based on a fully executed contract. Borrower must provide copy of graduate degree or a letter from the school, on school letterhead, containing the following: anticipated graduation date and type of graduate degree student is receiving. The graduate degree must be in one of the following areas: Medical, Legal, Engineering, Architecture or Accounting. Highlights include the following: • Loan amounts up to $1.5MM • Primary Residence Only • Interest only available with 30 or 40 year term • 5/6, 7/6, and 10/6 ARM, 15, 30, and 40 FRM (40 year • DTI up to 50 allowed term IO only) • Credit scores down to 720 • No PMI required • Non-Warrantable Condos may be considered • Purchase and Rate and Term Refinances | | | | |
| Eligibility Types | | | |
| Applicants | | • US Citizen • Permanent Resident Alien • Non-Permanent Resident Alien with the following visas: A05, E, G, H, L, O, P, R1 and TN that meet the 2 year residency, employment (or school) and credit in the US requirement. • First time home buyer • Non-Occupant Co-Applicants-see Underwriting Guidelines | | |
| Ineligible Applicants | | • Irrevocable Trust • Diplomatic immunity • ITIN Borrowers • Applicants with any ownership in a business that is Federally illegal, regardless of if the income is not being used for qualifying may be considered on exception basis. | | |
| Eligible Occupancy | | Primary | | |
| Property Types | | • 1-2 unit attached and detached properties • Warrantable Condos • Non-Warrantable Condos and Condotels on Approved Flag List or in nationally recognized high end hotel brands allowed with a pricing adjustment-see Underwriting Guidelines for permissible NW features (max 80% LTV/CLTV for Non-Warrantable Purchase/Rate and Term, 75% LTV/CLTV for Condotel Purchase/Rate and Term) • PUDs | | |
| Ineligible Property Types | | • Mixed use properties • Rural Properties • Properties over 20 acres • See Underwriting Guidelines for full list of unacceptable property types • Investment Property • Second Home • Manufactured Housing • Co-Ops • Illinois Land Trusts | | |
| | • Irrevocable Trusts | |
|---|
| Eligible Transactions | | Purchase, including non-arm’s length transactions-see Underwriting Guidelines Rate and Term Refinance • Max cash back to borrower is the greater of 1% of the balance of the new refinance mortgage loan or $5000No title seasoning required • Payoff of first and second, where the second is seasoned >6 months and not drawn >$5,000 in the 6 months preceding application date unless the second was used in full to purchase the property • Buyout accompanied by an executed buyout agreement • If a loan being paid off was closed in the 12 months preceding the application date and was a cash out transaction, the loan will be treated as cash out unless it was the only refinance within the last 12 months and the borrower has owned the property for at least 6 months. | |
| Credit Requirements | | |
| Trade Lines | | Each Applicant must have three trade lines and a credit history covering 24 months. One trade line must have been active within the last 6 months. At least one trade line must be seasoned 24 months. The same trade line may be used to cover both the 24 month history and active requirement. The trade lines do not need to be open. If an Applicant’s spouse is the only Co-Applicant listed, only one Applicant is required to meet this guideline. See Underwriting Guidelines for more details and alternatives. | |
| Credit Score | | • Credit scores allowed down to 720, subject to loan amount and LTV restrictions • Use middle score of the primary income earner for pricing and guideline purposes • Use lower of Occupying for Non-Occupying Co-Applicant middle score for guidelines purposes | |
| Housing Payment History | | Housing payment history no greater than 1x30x12 for all mortgages/rental verifications. Note that 1 30 day late may be subject to a price adjustment and will limit the maximum LTV/CLTV to 80%. First Time Home Buyer (FTHB) A First Time Home Buyer is defined as an individual who has not had individual ownership interest in a residential property within the last five years. First Time Home Buyers are eligible for financing under the Simple Access programs under the standard criteria with minimum 6 months PITIA reserves. | |
| Significant Credit Events | | Applicants with any of the following major credit events (bankruptcy, foreclosure, modification, short sale, short pay, deed in lieu, and 120 day or greater mortgage late) are subject to the below requirements, measured from event completion or discharge/dismissal date to note date: Credit Event other than a Foreclosure • 0-2 years removed: Not eligible • 2-4 years removed: Max 75% LTV/CLTV • >4 years removed: Standard Guidelines Foreclosure: • 0-3 years removed: Not allowed • 3-4 years removed: Max 70% LTV/CLTV • >4 years removed: Standard Guidelines Additional Guidelines: • Active NOD or Lis Pendens not allowed. An historic NOD or Lis Pendens is not against guidelines, however the underlying event will be evaluated against the Significant Credit Event and Housing Payment History requirements guidelines. • Judgment/Tax Lien: Must meet one of the following: o Paid off prior to or at closing, or o Show 6 month satisfactory payment history, include payment in DTI, subordinate if recorded o Judgments/Liens outside of 5 years from application date and less than $25,000 can remain open unless it will affect title • Collections/Charge-Offs: May be excluded if individually less than $5,000 or over 24 months old from the credit report date and the aggregate of accounts outstanding is under $15,000 it may remain open | |
Events
luxurymortgagewholesale.com-GraduateProgram.pdf · 2026-07-31
| | • Irrevocable Trusts | |
|---|
| Eligible Transactions | | Purchase, including non-arm’s length transactions-see Underwriting Guidelines Rate and Term Refinance • Max cash back to borrower is the greater of 1% of the balance of the new refinance mortgage loan or $5000No title seasoning required • Payoff of first and second, where the second is seasoned >6 months and not drawn >$5,000 in the 6 months preceding application date unless the second was used in full to purchase the property • Buyout accompanied by an executed buyout agreement • If a loan being paid off was closed in the 12 months preceding the application date and was a cash out transaction, the loan will be treated as cash out unless it was the only refinance within the last 12 months and the borrower has owned the property for at least 6 months. | |
| Credit Requirements | | |
| Trade Lines | | Each Applicant must have three trade lines and a credit history covering 24 months. One trade line must have been active within the last 6 months. At least one trade line must be seasoned 24 months. The same trade line may be used to cover both the 24 month history and active requirement. The trade lines do not need to be open. If an Applicant’s spouse is the only Co-Applicant listed, only one Applicant is required to meet this guideline. See Underwriting Guidelines for more details and alternatives. | |
| Credit Score | | • Credit scores allowed down to 720, subject to loan amount and LTV restrictions • Use middle score of the primary income earner for pricing and guideline purposes • Use lower of Occupying for Non-Occupying Co-Applicant middle score for guidelines purposes | |
| Housing Payment History | | Housing payment history no greater than 1x30x12 for all mortgages/rental verifications. Note that 1 30 day late may be subject to a price adjustment and will limit the maximum LTV/CLTV to 80%. First Time Home Buyer (FTHB) A First Time Home Buyer is defined as an individual who has not had individual ownership interest in a residential property within the last five years. First Time Home Buyers are eligible for financing under the Simple Access programs under the standard criteria with minimum 6 months PITIA reserves. | |
| Significant Credit Events | | Applicants with any of the following major credit events (bankruptcy, foreclosure, modification, short sale, short pay, deed in lieu, and 120 day or greater mortgage late) are subject to the below requirements, measured from event completion or discharge/dismissal date to note date: Credit Event other than a Foreclosure • 0-2 years removed: Not eligible • 2-4 years removed: Max 75% LTV/CLTV • >4 years removed: Standard Guidelines Foreclosure: • 0-3 years removed: Not allowed • 3-4 years removed: Max 70% LTV/CLTV • >4 years removed: Standard Guidelines Additional Guidelines: • Active NOD or Lis Pendens not allowed. An historic NOD or Lis Pendens is not against guidelines, however the underlying event will be evaluated against the Significant Credit Event and Housing Payment History requirements guidelines. • Judgment/Tax Lien: Must meet one of the following: o Paid off prior to or at closing, or o Show 6 month satisfactory payment history, include payment in DTI, subordinate if recorded o Judgments/Liens outside of 5 years from application date and less than $25,000 can remain open unless it will affect title • Collections/Charge-Offs: May be excluded if individually less than $5,000 or over 24 months old from the credit report date and the aggregate of accounts outstanding is under $15,000 it may remain open | |
| | if it does not affect title. If Otherwise, they must be paid off. Medical collections may remain open regardless of amount if they do not affect title. Any that are greater which may affect title must be paid off prior to or at closing. Charge-offs and collections not excluded by the above and not impacting title must be paid unless one or a combination of both of the following can be met: • Payments for open charge-offs or collections are included in the DTI (subject to program DTI restrictions). If the payment amount is not known, 5% of the balance may be used as the payment. • Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserves requirement All of the following are required: • Maximum $15,000 each • Maximum LTV/CLTV: 80% • Minimum credit score: 680 | |
| Income and Assets | | |
| DTI | | • Maximum DTI: 50.000 | |
| Residual Income | | The minimum residual income for each loan is $2,500. Do not include income taxes in the calculation. | |
| Documentation Requirements | | Documentation Requirements Borrower must provide copy of graduate degree or a letter from the school, on school letterhead, containing the following: anticipated graduation date and type of graduate degree student is receiving. The graduate degree must be in one of the following areas: Medical, Legal, Engineering, Architecture or Accounting. Employment Contracts/Raises An employment contract is a legally enforceable written document executed jointly by the employer and employee. Employment agreements and offer letters are additional forms of acceptable employment documentation, provided they are fully executed by all parties and afford the same information as previously described. The contract (including employment agreements and offer letters) should define pertinent employment details including employment start date, the Applicant’s length of employment and salary. The contract terms should be reasonable relative to the role. The Applicant must also meet employment stability standards as outlined above. Guaranteed performance raises and bonuses from an Applicant’s current employer may also be considered under this section. Qualify an Applicant utilizing the income documented in the employment contract as defined provided: • The employment contract is fully executed by the employer and employee and does not contain contingencies, and • The Applicant will start employment or begin receipt of the income (as applicable) within 60 days of closing Traditional Wage Earner: Provide the last two years’ W-2’s and the most recent 30 consecutive days of paystubs including year to date income with the most recent one dated within 120 calendar days of funding and fully executed contract with all contingencies cleared. Borrowers employed by a family-owned business must provide evidence that he/she is not an owner of the business which may include: • Copies of signed personal tax returns (or tax transcript), or • Signed copy of the corporate tax return showing ownership percentage Self Employed Borrower: A borrower with a 25% or greater ownership in a business is considered self-employed. Self-employed borrower must provide the following documentation: • Signed, dated individual tax returns, with all applicable tax scheduled for the most recent 2 years; | |
Employment Contracts/Raises
luxurymortgagewholesale.com-GraduateProgram.pdf · 2026-07-31
| | if it does not affect title. If Otherwise, they must be paid off. Medical collections may remain open regardless of amount if they do not affect title. Any that are greater which may affect title must be paid off prior to or at closing. Charge-offs and collections not excluded by the above and not impacting title must be paid unless one or a combination of both of the following can be met: • Payments for open charge-offs or collections are included in the DTI (subject to program DTI restrictions). If the payment amount is not known, 5% of the balance may be used as the payment. • Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserves requirement All of the following are required: • Maximum $15,000 each • Maximum LTV/CLTV: 80% • Minimum credit score: 680 | |
| Income and Assets | | |
| DTI | | • Maximum DTI: 50.000 | |
| Residual Income | | The minimum residual income for each loan is $2,500. Do not include income taxes in the calculation. | |
| Documentation Requirements | | Documentation Requirements Borrower must provide copy of graduate degree or a letter from the school, on school letterhead, containing the following: anticipated graduation date and type of graduate degree student is receiving. The graduate degree must be in one of the following areas: Medical, Legal, Engineering, Architecture or Accounting. Employment Contracts/Raises An employment contract is a legally enforceable written document executed jointly by the employer and employee. Employment agreements and offer letters are additional forms of acceptable employment documentation, provided they are fully executed by all parties and afford the same information as previously described. The contract (including employment agreements and offer letters) should define pertinent employment details including employment start date, the Applicant’s length of employment and salary. The contract terms should be reasonable relative to the role. The Applicant must also meet employment stability standards as outlined above. Guaranteed performance raises and bonuses from an Applicant’s current employer may also be considered under this section. Qualify an Applicant utilizing the income documented in the employment contract as defined provided: • The employment contract is fully executed by the employer and employee and does not contain contingencies, and • The Applicant will start employment or begin receipt of the income (as applicable) within 60 days of closing Traditional Wage Earner: Provide the last two years’ W-2’s and the most recent 30 consecutive days of paystubs including year to date income with the most recent one dated within 120 calendar days of funding and fully executed contract with all contingencies cleared. Borrowers employed by a family-owned business must provide evidence that he/she is not an owner of the business which may include: • Copies of signed personal tax returns (or tax transcript), or • Signed copy of the corporate tax return showing ownership percentage Self Employed Borrower: A borrower with a 25% or greater ownership in a business is considered self-employed. Self-employed borrower must provide the following documentation: • Signed, dated individual tax returns, with all applicable tax scheduled for the most recent 2 years; | |
| • Borrowers self-employed by Corporations, “S” Corporation or Partnership must provide signed copies of Federal business income tax returns for the last 2 years, with all applicable tax schedules, and; • Year end and/or year to date profit and loss statement and balance sheet for primary business(s) relied upon for qualifying, if the note date of the loan will be more than 120 days removed from the end date of the most recent tax returns provided. Year to date profit and loss statement and balance sheet requirement can be waived with CPA letter stating business is open and active and income is stable; • Self Employed Income: Verification of business existence must be obtained within 30 days of closing from a third-party source such as a CPA, regulatory agency or licensing bureau Contractors or 1099 employees: A two year history of self-employment is not required if the following requirements are met: • Graduate has an executed employment contract with a guaranteed salary or hourly rate with a stated number of hours to be worked clear of contingencies; and • Employment Start Date must be within 60 days of loan closing • If a borrower has recently obtained a Graduate Degree then contract income hourly rate at guaranteed minimum hours minus a 10% expense factor can be utilized to qualify. |
| Qualification | Traditional Wage Earners and Contractors/1099 Employees will be qualified based on the fully executed contract with all contingencies cleared. If utilizing an employment contract for qualifying the borrower must verify sufficient income or cash reserves to support the mortgage payment and any other obligations between loan closing and the start of employment. Applicants must be self-employed for 2 years. Self-employed borrowers will be qualified based on a 24 month average of income if increasing, 12 month average if decreasing. If decreasing, additional documentation may be required. A year end and/or year to date profit and loss statement and balance sheet dated within 120 calendar days of funding may be required. See Underwriting Guidelines for additional information. |
| Other Income Sources | Rental Income: Method 1 | Tax Returns Utilize the net figure on schedule E page 1 of most recent year’s tax return adding back depreciation, amortization, and interest. Subtract the principal and interest component of the mortgage payment. Current insurance, taxes, and homeowner’s association dues do not need to be documented. Method 2 | Lease Use 75% of current lease less documented PITI plus HOA dues and/or common charges. If lease is materially greater than income listed on tax return(s), Applicant to provide supporting explanation/documentation. Document the unit in question is rented with most recent month’s rent check. Rental income from a vacant property may only be used on a subject property purchase transaction. If the borrower is a salaried employee with Non-Subject Property Income rental income 75% of lease less PITIA can be utilized with proof of three months receipt of lease income without tax returns (Max 3 Properties). Asset Depletion Applicants may supplement income disclosed via traditional income sources by annuitizing their assets. They may set up a monthly distribution and document receipt of at least one monthly distribution prior to closing. The distribution must have at least 7 years of continuance based on the face value of the asset as of the distribution commencement. Verify current balance within 120 days of the note date. Retirement accounts are ineligible if Applicant is under 59.5-see Underwriting Guidelines Passive Asset Utilization Applicants may supplement income disclosed via traditional sources by depleting assets available over a 5 year term with no rate of return imputed. All assets necessary to complete the transaction, including post-closing reserves, must be deducted in order to complete the calculation. Verify current balance within 60 days of the note date. To meet asset requirements up to 10% of assets utilized may |
Passive Asset Utilization
luxurymortgagewholesale.com-GraduateProgram.pdf · 2026-07-31
| • Borrowers self-employed by Corporations, “S” Corporation or Partnership must provide signed copies of Federal business income tax returns for the last 2 years, with all applicable tax schedules, and; • Year end and/or year to date profit and loss statement and balance sheet for primary business(s) relied upon for qualifying, if the note date of the loan will be more than 120 days removed from the end date of the most recent tax returns provided. Year to date profit and loss statement and balance sheet requirement can be waived with CPA letter stating business is open and active and income is stable; • Self Employed Income: Verification of business existence must be obtained within 30 days of closing from a third-party source such as a CPA, regulatory agency or licensing bureau Contractors or 1099 employees: A two year history of self-employment is not required if the following requirements are met: • Graduate has an executed employment contract with a guaranteed salary or hourly rate with a stated number of hours to be worked clear of contingencies; and • Employment Start Date must be within 60 days of loan closing • If a borrower has recently obtained a Graduate Degree then contract income hourly rate at guaranteed minimum hours minus a 10% expense factor can be utilized to qualify. |
| Qualification | Traditional Wage Earners and Contractors/1099 Employees will be qualified based on the fully executed contract with all contingencies cleared. If utilizing an employment contract for qualifying the borrower must verify sufficient income or cash reserves to support the mortgage payment and any other obligations between loan closing and the start of employment. Applicants must be self-employed for 2 years. Self-employed borrowers will be qualified based on a 24 month average of income if increasing, 12 month average if decreasing. If decreasing, additional documentation may be required. A year end and/or year to date profit and loss statement and balance sheet dated within 120 calendar days of funding may be required. See Underwriting Guidelines for additional information. |
| Other Income Sources | Rental Income: Method 1 | Tax Returns Utilize the net figure on schedule E page 1 of most recent year’s tax return adding back depreciation, amortization, and interest. Subtract the principal and interest component of the mortgage payment. Current insurance, taxes, and homeowner’s association dues do not need to be documented. Method 2 | Lease Use 75% of current lease less documented PITI plus HOA dues and/or common charges. If lease is materially greater than income listed on tax return(s), Applicant to provide supporting explanation/documentation. Document the unit in question is rented with most recent month’s rent check. Rental income from a vacant property may only be used on a subject property purchase transaction. If the borrower is a salaried employee with Non-Subject Property Income rental income 75% of lease less PITIA can be utilized with proof of three months receipt of lease income without tax returns (Max 3 Properties). Asset Depletion Applicants may supplement income disclosed via traditional income sources by annuitizing their assets. They may set up a monthly distribution and document receipt of at least one monthly distribution prior to closing. The distribution must have at least 7 years of continuance based on the face value of the asset as of the distribution commencement. Verify current balance within 120 days of the note date. Retirement accounts are ineligible if Applicant is under 59.5-see Underwriting Guidelines Passive Asset Utilization Applicants may supplement income disclosed via traditional sources by depleting assets available over a 5 year term with no rate of return imputed. All assets necessary to complete the transaction, including post-closing reserves, must be deducted in order to complete the calculation. Verify current balance within 60 days of the note date. To meet asset requirements up to 10% of assets utilized may |
| | come from cash out proceeds. Technical Refinance funds can be used for up to 10% of the eligible assets being utilized. Standard asset haircuts are utilized-see Underwriting Guidelines. Other Sources Document most recent 2 years receipt on tax returns and supporting tax documentation, current receipt, and expectation of at least three years’ continuance | |
| Asset Accounts | | • Use 100% of cash and cash equivalents • Use 100% of face value for marketable securities for reserve calculation. Proof of liquidation not required if asset balance is at least 120% of funds needed to close • Use 100% of retirement assets-must obtain terms and conditions verifying borrower ability to withdraw. • If Applicant is liquidating funds from non-retirement sources, document liquidation and end balance • If Applicant is liquidating from retirement accounts, document the liquidation and end balance • 529 accounts at 60% of face value with copy of plan confirming savings plan and not pre-paid tuition. • Business funds may be used provided the Applicant(s) own(s) a minimum of 25% combined ownership of the business. See Underwriting Guidelines if applicant(s) has less than 25% ownership. The amount of funds that may be utilized is based on the Applicant’s percentage of ownership. Applicant(s) must provide either: o A letter from Applicant’s CPA, EA, or licensed tax preparer stating that the Applicant(s) may access the business funds and that the withdrawal will have no adverse impact; or o Complete a Cash Flow Analysis evidencing the business has sufficient assets to cover the use of funds to close or reserves based on the following: ▪ Utilize the lowest ending balance for the 3 months prior to purchase acceptance date or application date for refinance for allowable funds. Then apply Applicant’s ownership percentage to the result to determine available business assets that may be utilized for the transaction • Cryptocurrency (Bitcoin and Ethereum only): 100% if liquidated. 60% if not liquidated. See Underwriting Guidelines for allowable types of cryptocurrency and requirements. | |
| Gifted Funds | | • Gift funds are allowed for funds to close, closing costs, and reserves. • No Applicant minimum contribution is required for primary residences with LTV/CLTV <=80% LTV/CLTV > 80% requires a minimum 5% borrower contribution. • Gifts must be documented in compliance with FNMA requirements and be from immediate family members-see Underwriting Guidelines. • Gifts of equity are allowed, max 80% LTV/CLTV. No Applicant contribution is required on a primary residence. | |
| Liabilities | | |
| Alimony/Child Support | | Alimony may be deducted from income rather than included as a liability, provided the alimony payments are tax deductible to the payor. Otherwise, include as a liability. Child support must be included as a liability. | |
| Installment Debt | | Installment loans must be included in the DTI. Installment debt with less than 10 months’ worth of payments remaining may be excluded from DTI, as long as the Applicant has the assets to make the remaining payments. Applicants may pay down the debt such that the remaining balance is less than the sum of 10 months’ worth of payments. The assets used must be sourced. Loans secured by financial assets (margin loan, 401(K) loan, etc.) do not need to be included in the DTI provided the asset balance exceeds the loan balance. Student loans that are deferred at least 12 months from the Note date do not need to be considered in the DTI calculation. Student loans that are in repayment will be considered in the DTI based on the actual documented payment. Authorized user accounts can be excluded from the debt-to-income ratio. | |
| Other Highlights | | |
| Appraisal / Valuation | | Purchases and Refinances: • All loan amounts, one appraisal required | |
Valuation
luxurymortgagewholesale.com-GraduateProgram.pdf · 2026-07-31
| | come from cash out proceeds. Technical Refinance funds can be used for up to 10% of the eligible assets being utilized. Standard asset haircuts are utilized-see Underwriting Guidelines. Other Sources Document most recent 2 years receipt on tax returns and supporting tax documentation, current receipt, and expectation of at least three years’ continuance | |
| Asset Accounts | | • Use 100% of cash and cash equivalents • Use 100% of face value for marketable securities for reserve calculation. Proof of liquidation not required if asset balance is at least 120% of funds needed to close • Use 100% of retirement assets-must obtain terms and conditions verifying borrower ability to withdraw. • If Applicant is liquidating funds from non-retirement sources, document liquidation and end balance • If Applicant is liquidating from retirement accounts, document the liquidation and end balance • 529 accounts at 60% of face value with copy of plan confirming savings plan and not pre-paid tuition. • Business funds may be used provided the Applicant(s) own(s) a minimum of 25% combined ownership of the business. See Underwriting Guidelines if applicant(s) has less than 25% ownership. The amount of funds that may be utilized is based on the Applicant’s percentage of ownership. Applicant(s) must provide either: o A letter from Applicant’s CPA, EA, or licensed tax preparer stating that the Applicant(s) may access the business funds and that the withdrawal will have no adverse impact; or o Complete a Cash Flow Analysis evidencing the business has sufficient assets to cover the use of funds to close or reserves based on the following: ▪ Utilize the lowest ending balance for the 3 months prior to purchase acceptance date or application date for refinance for allowable funds. Then apply Applicant’s ownership percentage to the result to determine available business assets that may be utilized for the transaction • Cryptocurrency (Bitcoin and Ethereum only): 100% if liquidated. 60% if not liquidated. See Underwriting Guidelines for allowable types of cryptocurrency and requirements. | |
| Gifted Funds | | • Gift funds are allowed for funds to close, closing costs, and reserves. • No Applicant minimum contribution is required for primary residences with LTV/CLTV <=80% LTV/CLTV > 80% requires a minimum 5% borrower contribution. • Gifts must be documented in compliance with FNMA requirements and be from immediate family members-see Underwriting Guidelines. • Gifts of equity are allowed, max 80% LTV/CLTV. No Applicant contribution is required on a primary residence. | |
| Liabilities | | |
| Alimony/Child Support | | Alimony may be deducted from income rather than included as a liability, provided the alimony payments are tax deductible to the payor. Otherwise, include as a liability. Child support must be included as a liability. | |
| Installment Debt | | Installment loans must be included in the DTI. Installment debt with less than 10 months’ worth of payments remaining may be excluded from DTI, as long as the Applicant has the assets to make the remaining payments. Applicants may pay down the debt such that the remaining balance is less than the sum of 10 months’ worth of payments. The assets used must be sourced. Loans secured by financial assets (margin loan, 401(K) loan, etc.) do not need to be included in the DTI provided the asset balance exceeds the loan balance. Student loans that are deferred at least 12 months from the Note date do not need to be considered in the DTI calculation. Student loans that are in repayment will be considered in the DTI based on the actual documented payment. Authorized user accounts can be excluded from the debt-to-income ratio. | |
| Other Highlights | | |
| Appraisal / Valuation | | Purchases and Refinances: • All loan amounts, one appraisal required | |
| All appraisals are subject to underwriting review and acceptance. CDA is required if LTV>80% regardless of CU score. Additional appraisal due diligence may be required at the discretion of underwriting. • Purchase: lesser of purchase price or appraised value • Refinance: For Rate and Term transactions utilize the appraised value regardless of seasoning. |
| Geographic Eligibility | See Rate Sheet for State Eligibility. Restrictions: • Properties which are identified by the appraiser to be in a declining market will be subject to a 5% LTV reduction from maximum LTV. • Loans that fall under the definition of New York Subprime Home Loan are not eligible for the product. NY Subprime is defined as a primary residence where the loan amount is under the county’s conforming limit (high balance if a high-cost county, standard if not) where the APR is more than 1.75% above the comparable rate based on the Freddie Mac Mortgage Survey. |
| Reserve Requirement | • Loan amount up to $1MM: 3 months PITIA • Loan amount above $1MM and up to $1.5MM: 6 months PITIA • 1 month PITIA for each payment due between the first payment due date and when employment begins. • Minimum 6 months PITIA for FTHB • Other real estate owned: 1 month of each property’s PITIA – See Underwriting Guidelines for an alternative • Reserves are not required on Primary Residence Rate Term Refinances when reducing monthly P&I by 20% and current mortgage is 0x30x24 and Credit Score of 720 |
| Title Vesting | • Individual names as joint tenants, community property, or tenants in common • Living trusts meeting FNMA’s requirements • Blind Trusts – See Underwriting Guidelines • Limited Liability Corporations – see Underwriting Guidelines • Partnerships/Corporation – see Underwriting Guidelines |
| ARM Terms | • Margin = 5.000% • Index = 30 Day Average of SOFR • Caps o 5/6 ARM: 2/1/5 o 7/6 ARM and 10/6 ARM: 5/1/5 • Floor Rate = Note Rate • Adjustment Period = 6 Months |
| Interest Only | Interest Only features are allowed on ARMs and FRMs. The IO period is 10 years. Maximum LTV/CLTV of 80% for a loan with an IO feature. 40 year term loan is not eligible on 5/6 ARM |
| Qualifying Payment | To determine the P&I component of the Qualifying Payment, utilize the below (except as otherwise specified): • Fixed Rate: Utilize the start rate over the amortizing term • Amortizing ARM: Utilize the greater of the start rate or the index plus margin, amortized over full term of the loan • FRM/ARM with IO Feature: Utilize the greater of the start rate or the index plus margin, with a payment calculated based on the amortizing term of the loan after the end of the IO period. |
| Pre-Payment Penalty | Not allowed |
| Mortgage Insurance | Not required |
Buydown
luxurymortgagewholesale.com-GraduateProgram.pdf · 2026-07-31
| Temporary Buydown | Temporary Buydown is permitted with the following requirements: • Max 80% LTV/CLTV • When qualifying the borrower, loans that have a Temporary Interest Rate Buydown must be qualified based on the Qualifying section requirements, without consideration to the “bought down” rate • Eligible on Primary and Second Home (Investment properties not allowed) o Eligible Property Types: o SFR o PUD o Warrantable Condo o 2-4 units • Product eligibility o Fully Amortizing: o 15-, 30-, and 40-Year Fixed Rate o 5/6, 7/6, and 10/6 SOFR ARM • Buydown funds are eligible from Seller/Builder o Borrower funded buydowns are not permitted. • An interest rate buydown plan must provide for: o a buydown period not greater than 2 years, and o increases of not more than 1% in the portion of the interest rate paid by the borrower in each 1-year interval. Note: All Temporary Buydown costs are included in the Interested Party Contribution calculation. |
| Min/Max Loan Amounts | Minimum: $150,000 Maximum: $1.5MM (Purchase/Rate and Term Refinance) |
| • Max 80% LTV/CLTV | |
| • When qualifying the borrower, loans that have a Temporary Interest Rate Buydown must be | |
| qualified based on the Qualifying section requirements, without consideration to the “bought |
| down” rate |
Warrantable Condo
luxurymortgagewholesale.com-GraduateProgram.pdf · 2026-07-31
| Temporary Buydown | Temporary Buydown is permitted with the following requirements: • Max 80% LTV/CLTV • When qualifying the borrower, loans that have a Temporary Interest Rate Buydown must be qualified based on the Qualifying section requirements, without consideration to the “bought down” rate • Eligible on Primary and Second Home (Investment properties not allowed) o Eligible Property Types: o SFR o PUD o Warrantable Condo o 2-4 units • Product eligibility o Fully Amortizing: o 15-, 30-, and 40-Year Fixed Rate o 5/6, 7/6, and 10/6 SOFR ARM • Buydown funds are eligible from Seller/Builder o Borrower funded buydowns are not permitted. • An interest rate buydown plan must provide for: o a buydown period not greater than 2 years, and o increases of not more than 1% in the portion of the interest rate paid by the borrower in each 1-year interval. Note: All Temporary Buydown costs are included in the Interested Party Contribution calculation. |
| Min/Max Loan Amounts | Minimum: $150,000 Maximum: $1.5MM (Purchase/Rate and Term Refinance) |
| • Max 80% LTV/CLTV | |
| • When qualifying the borrower, loans that have a Temporary Interest Rate Buydown must be | |
| qualified based on the Qualifying section requirements, without consideration to the “bought |
| down” rate |
Asset Accounts
luxurymortgagewholesale.com-Prime_InvestorCashFlow-WSE.pdf · 2026-07-08
| o 0x30x24 on all housing trade lines as of the application date o No mortgage forbearances with a missed payment in the most recent 12 months prior to the application date o Applicant must own their current residence • Refinance: o 0x30x24 on all housing trade lines as of the application date o No mortgage forbearances with a missed payment in the most recent 12 months prior to the application date o Applicant must own their current residence o Subject Property must have been acquired in the last 12 months o At least 3 consecutive months receipt of rent from the property are provided prior to application date (on multi-unit properties only 1 unit is required to be verified) In instances where there are multiple Applicants and all Applicants do not meet the below requirements, the file is subject to additional due diligence to verify it will be a business purpose loan. |
| Calculation Method | The DSCR is defined as the gross rents divided by the qualifying PITIA on the subject property Determination of Rents Purchase: • Use 100% of the lesser of current or market rents as determined by the appraiser. For rented properties, provide leases in place. • If vacant, 100% of market rents may be utilized. • See below for short-term rental income requirements Refinance: • Use 100% of the lesser of current or market rents as determined by the appraiser. Applicant must provide leases in place. • If the property is leased for more than the appraiser’s opinion of market rents, the lease amount up to 125% of market rent as reflected on the appraisal may be used provided the lease will continue for at least 6 months after the note date and the 2 months of rents due prior to the application date are documented as received timely. New leases can be utilized without 2 months receipt prior to the application date as long as the lease rent is not more than 125% of market rents as reflected on appraisal and as long as it is a long term (greater than 6 month) lease. First months’ rent and security deposit must be received prior to closing Short Term Rents not permitted IO Payment Qualification The interest only payment on a loan with an interest only payment feature may be used in lieu of an amortizing payment to calculate the Qualifying Payment and the DSCR. The amortizing payment described in the Qualifying Payment section must be used on loan which does not meet the criteria laid out here. Minimum Fico for IO feature is 700. |
| Asset Accounts | • Use 100% of cash and cash equivalents • Use 100% of face value for non-retirement asset accounts for reserve calculation. Proof of liquidation not required if asset balance is at least 120% of funds needed to close. • Use 100% 70% of retirement assets for reserve calculations. • If Applicant is liquidating funds from retirement account, document liquidation and end balance • 1031 exchanges eligible for investment properties-see Underwriting Guidelines • Business funds may be used provided the Applicant(s) own(s) a minimum of 25 50% combined ownership of the business with letter from all other owners stating borrower has full access to funds for stated purpose. The amount of funds that may be utilized is based on the Applicant’s percentage of ownership. Applicant(s) must provide either: o A letter from Applicant’s CPA, EA, or licensed tax preparer stating that the Applicant(s) may access the business funds and that the withdrawal will have no adverse impact; or • Cash out proceeds MAY be used to meet the reserve requirement regardless of LTV |
| Gifted Funds Liabilities | • Not Allowed |
|---|
| Not Applicable to this program. | |
| Other Highlights | |
| Appraisal / Valuation | Purchases and Refinances: • Loan amount up to $2MM, one appraisal required along with a secondary review including a CU score of 2.5 or below on loan amounts up to $1.5M, CDA, Field Review or Drive-By All appraisals are subject to underwriting review and acceptance. Loan amounts >$1.5MM and up to $2MM may not utilize a CU score in lieu of a CDA. Additional |
| appraisal due diligence may be required at the discretion of underwriting. • Purchase: lesser of purchase price or appraised value • Rate/Term Refinance:For Rate and Term transactions utilize the appraised value regardless of seasoning • Cash Out Refinance: For properties owned more than 6 months and less than 12 months prior to the mortgage loan application date, use the lesser of the purchase price at time of acquisition or the current appraised value unless the appraiser can justify the increase in value over the period of ownership. If utilizing the current value, the underwriter should comment on the 1008. • Technical Refinance: For Technical Refinance/Delayed Financing and Cash out Refinances where the property has been owned less than 6 months use lessor of purchase price plus documented improvements or appraised value. |
| Geographic Eligibility | See Rate Sheet for State Eligibility. Restrictions: • TX CO Refinances-not allowed • Properties which are identified by the appraiser to be in a declining market will be subject to a 5% LTV reduction from maximum LTV. • For Investment Properties Located in New Jersey with a prepayment penalty, loan must be made to a Corporation (LLC, Partnerships and any other entity type ineligible) as a Borrowing Entity with a full recourse personal guarantee from all material owners. • For Investment Properties located in Pennsylvania, prepayment penalties are prohibited on loans <$319,777 (2025) for 1-2 units; no restrictions apply to 1-2 units above this amount or 3-4unit properties • Max 50%LTV/CLTV for condominiums located in the state of Florida |
| Reserve Requirement | • LTV up to 70%: 6 months PITIA • LTV above 70%: 9 months PITIA |
| Title Vesting | • Individual names as joint tenants, community property, or tenants in common • Living trusts meeting FNMA’s requirements • Limited Liability Corporations-see Underwriting Guidelines • Partnerships/Corporations-see Underwriting Guidelines |
| ARM Terms | • Margin = 6.000% • Index = 30 Day Average of SOFR • Caps o 5/6 ARM: 2/1/5 o 7/6 and 10/6 ARM: 5/1/5 • Floor Rate = Note Rate |
No Rural Properties
luxurymortgagewholesale.com-SA_InvestorCashFlow-WSE.pdf · 2026-07-31
| Simple Access® – Investor Cash Flow (DSCR) | |
|---|
| Program Description – Qualify Based on the Subject Property Only | |
| Luxury Mortgage Corp. offers loans to Applicants utilizing solely the rental income on subject investment properties to determine cash flow. Loans in this program are deemed as exempt from the ATR rule as defined in section 1026.43 as they are business purpose loans. This program is designed for Applicants who are sound credit risks based on a common sense approach to underwriting. Highlights include the following: • Loan amounts up to $4MM • 5/6, 7/6 and 10/6 ARM, 15 and 30 FRM • Interest only available with no reduction to LTV • Multiple financed properties allowed • No DTI developed or employment verified • Credit scores down to 620 | |
| Eligibility Types | |
| Applicants | • US Citizen • Permanent Resident Alien • Non-Permanent Resident Alien with the following visas: A05, E, G, H, L, O, P, R1 and TN (max 75%LTV/CLTV)-Max Loan Amount $3MM |
| Ineligible Applicants | • Irrevocable Trust • Diplomatic immunity • Applicants with any ownership in a business that is Federally illegal, regardless of if the income is not being used for qualifying may be considered on exception basis. |
| Eligible Occupancy | Investment Properties |
| Property Types | • 1-4 unit attached and detached properties • 5-10 unit attached and detached with restrictions: • The below guidelines must be adhered to regardless of the standard Investor Cash Flow Guidelines • Minimum DSCR 1.150 • Min 750,000 Loan Amount • Max vacancy 2 units • No short-term rentals utilized for qualifying-must be long term market rent only • The lesser of market rents or actual rents to be utilized for qualifying • DSCR calculated based on the PITIA not Interest Only • No first-time investors • Housing history must be 0X30X24 • No Rural Properties • Minimum reserves 9 months up to $2MM loan amount, 12 months > $2MM loan amount • Commercial appraisal that is USPAP compliant performed by an appraiser with certification for Multi-Unit (Form FHMLC 71A, FNMA 1050) required including rent roll, map and income-expense statement-Transferred Appraisals Not Allowed • Lesser of market value or appraisal final value utilized for LTV/CLTV calculations. • Property must be in average condition. • BPO, Drive-By Commercial Sales must be provided as secondary appraisal evaluation. • Escrows required • 6 months PITIA in Rent Loss Insurance Coverage required • Title must be vested in an acceptable Entity (LLC, Partnership, or Corporation) with Full Recourse Personal Guarantee required • Gifts are not acceptable • See Exhibit I in UW Guidelines for closing doc review requirements • Warrantable Condos • Non-Warrantable Condos and Condotels on Approved Flag List or in nationally recognized high end hotel brands allowed with a pricing adjustment-see Underwriting Guidelines for permissible NW features (max 75% LTV/CLTV) • PUDs |
| • Rural Properties up to 10 acres up to 75% LTV/CLTV with min. 1.000 DSCR, no 5-10 units |
| Ineligible Property Types | • Mixed use properties • Properties with more than 5 acres • Rural Properties that do not meet the above criteria • See Underwriting Guidelines for full list of unacceptable property types |
| Eligible Transactions | Purchase, including non-arm’s length transactions-see Underwriting Guidelines Rate and Term Refinance • Max cash back to borrower is the greater of 1% of the balance of the new refinance mortgage loan or $5000 • No title seasoning required • Payoff of first and second, where the second is seasoned >6 months and not drawn >$5,000 in 6 months preceding application date unless the second was used in full to purchase the property. • Buyout accompanied by an executed buyout agreement • If loan being paid off was closed in the 12 months preceding the application date and was a cash out transaction, the loan will be treated as a Rate and Term if it was the only refinance within the preceding 12 month period as long as borrower has owned the property for 6 months. • Technical refinances/delayed financing allowed-see Underwriting Guidelines Cash-Out Refinance • Refinances which do not fit into the rate and term guidelines are deemed to be cash out • A refinance of a loan which was a cash out in the preceding 12 months will be considered a cash out refinance if there was more than one refinance in the preceding 12 month period • Three months title seasoning required for cash out refinances-see Underwriting Guidelines for Determination of Value. • No limit on max cash out up to 65% LTV, max $1MM cash out above 65% LTV • Value to be utilized must be supported-see Underwriting Guidelines |
| Credit Requirements | |
| Trade Lines | Each Applicant must have three trade lines and a credit history covering 24 months. One trade line must have been active within the last 6 months. At least one trade line must be seasoned 24 months. The same trade line may be used to cover both the 24 month history and active requirement. If an Applicant’s spouse is the only Co-Applicant listed, only one Applicant is required to meet this guideline. See Underwriting Guidelines for more details and alternatives. If membership/ownership is tied at 50/50 then higher of the two member/owner scores can be used. |
| Credit Score | • Credit scores allowed down to 620, subject to loan amount and LTV restrictions. Minimum Fico score for all borrowers 620. • Use the highest middle score for all borrowers/guarantors with membership/ownership/partnership over 25% on the loan. |
| Housing Payment History | Housing payment history no greater than 1x30x12 for all mortgages/rental verifications. Note that 1 x 30 day late may be subject to a price adjustment and will limit the maximum LTV/CLTV to 80%. Loan amount above $3MM require 0 x 30 x 12. First Time Home Buyer (FTHB) Not allowed |
| Significant Credit Events | Applicants with any of the following major credit events (bankruptcy, foreclosure, modification, short sale, short pay, deed in lieu, and 120 day or greater mortgage late) are subject to the below requirements, measured from event completion date or discharge/dismissal to note date: Credit Event other than a Foreclosure: • 0-2 years removed: Not Eligible • 2-3 years removed: Max 70% LTVCLTV, and max $1.5MM loan amount • >3 years removed: Standard Guidelines Foreclosure: • 0-2 years removed: Not Eligible • 2-4 years removed: Max 70% LTVCLTV, min DSCR 1.000, minimum 10% borrower own funds, and max $1.5MM loan size • >4 years removed: Standard Guidelines Additional Requirements: |
DSCR
luxurymortgagewholesale.com-SA_InvestorCashFlow-WSE.pdf · 2026-07-31
| • Active NOD or Lis Pendens not allowed. An historic NOD or Lis Pendens is not against guidelines, however the underlying event will be evaluated against the Significant Credit Event and Housing Payment History requirements guidelines. • Judgment/Tax Lien: must meet one of the following: o Paid off prior to or at closing, or o Show 6 month satisfactory payment history, include payment in the DSCR (if attached to the subject property), subordinate if recorded o Judgments/Liens outside of 5 years from application date and less than $25,000 can remain open unless it will affect title. • Collections/Charge-Offs: May be excluded if individually less than $5,000 or over 24 months old from the credit report date and the aggregate of accounts outstanding is under $15,000 it may remain open if it does not affect title. If Otherwise, they must be paid off. Medical collections may remain open regardless of amount if they do not affect title. • Collections/Charge-Offs: May be excluded if individually less than $5,000 or over 24 months old from | |
| the credit report date and the aggregate of accounts outstanding is under $15,000 it may remain open if it | |
| does not affect title. If Otherwise, they must be paid off. Medical collections may remain open regardless | |
| of amount if they do not affect title. Any that are greater or which may affect title must be paid off prior to | |
| or at closing. | |
| Charge-offs and collections not excluded by the above and not impacting title must be paid unless one or | |
| a combination of both of the following can be met: | |
| Income and Assets | | |
| DSCR | No DTI is developed for this product. Qualification is based solely on the Debt Service Coverage Ratio (DSCR) of the subject property only. The minimum DSCR is 1.000 for standard guidelines. Note: that certain DSCR levels i.e., < 1.000 may be subject to pricing adjustments, LTV/FICO restrictions, additional reserve requirements, Landlord History Waiver not eligible and max loan amount $3MM. DSCR < .75 not eligible. | |
| Applicant Eligibility | All Applicants must either own their current primary residence or own an investment property. If the borrower is not a First Time Home Buyer then this requirement can be waived at Underwriter’s discretion. At least one Applicant on the loan must have at least a 12 month history of owning and managing rental properties or a multi-unit primary residence collecting rent(s) unless the DSCR is >1.000, though it does not need to have been in the most recent three years. See landlord waiver section belowfor criteria to waive this requirement if the DSCR is not > 1.000. Commercial properties are acceptable for this purpose, as long as the Applicant was a majority owner of the property. Applicants who are not able to meet this requirement may be eligible if the below criteria is met. | |
| Landlord Waiver | If Applicants meet all of the below criteria, they are not required to document a previous 12 month history of owning and managing rental properties. Purchase Transactions: • 680 FICO • 0x30x12 on all housing trade lines as of the application date • Own current primary residence • No mortgage forbearances with a missed payment in the most recent 12 months prior to the application date Refinance Transactions: • 680 FICO • 0x30x12 on all housing trade lines as of application date • Own current primary residence • No mortgage forbearances with a missed payment in the most recent 12 months prior to the application date • Subject property must have been acquired in the last 12 months • At least 3 consecutive months receipt of rent from the property are provided prior to application date • On Multi-Unit Properties (for requirements above) only 1 unit is required to be verified | |
| managing rental properties or a multi-unit primary residence collecting rent(s) unless the DSCR is | |
|---|
| >1.0 | See landlord waiver |
| section belowfor criteria to waive this requirement if the DSCR is not > 1.0 | |
Eligibility
luxurymortgagewholesale.com-SA_InvestorCashFlow-WSE.pdf · 2026-07-31
| • Active NOD or Lis Pendens not allowed. An historic NOD or Lis Pendens is not against guidelines, however the underlying event will be evaluated against the Significant Credit Event and Housing Payment History requirements guidelines. • Judgment/Tax Lien: must meet one of the following: o Paid off prior to or at closing, or o Show 6 month satisfactory payment history, include payment in the DSCR (if attached to the subject property), subordinate if recorded o Judgments/Liens outside of 5 years from application date and less than $25,000 can remain open unless it will affect title. • Collections/Charge-Offs: May be excluded if individually less than $5,000 or over 24 months old from the credit report date and the aggregate of accounts outstanding is under $15,000 it may remain open if it does not affect title. If Otherwise, they must be paid off. Medical collections may remain open regardless of amount if they do not affect title. • Collections/Charge-Offs: May be excluded if individually less than $5,000 or over 24 months old from | |
| the credit report date and the aggregate of accounts outstanding is under $15,000 it may remain open if it | |
| does not affect title. If Otherwise, they must be paid off. Medical collections may remain open regardless | |
| of amount if they do not affect title. Any that are greater or which may affect title must be paid off prior to | |
| or at closing. | |
| Charge-offs and collections not excluded by the above and not impacting title must be paid unless one or | |
| a combination of both of the following can be met: | |
| Income and Assets | | |
| DSCR | No DTI is developed for this product. Qualification is based solely on the Debt Service Coverage Ratio (DSCR) of the subject property only. The minimum DSCR is 1.000 for standard guidelines. Note: that certain DSCR levels i.e., < 1.000 may be subject to pricing adjustments, LTV/FICO restrictions, additional reserve requirements, Landlord History Waiver not eligible and max loan amount $3MM. DSCR < .75 not eligible. | |
| Applicant Eligibility | All Applicants must either own their current primary residence or own an investment property. If the borrower is not a First Time Home Buyer then this requirement can be waived at Underwriter’s discretion. At least one Applicant on the loan must have at least a 12 month history of owning and managing rental properties or a multi-unit primary residence collecting rent(s) unless the DSCR is >1.000, though it does not need to have been in the most recent three years. See landlord waiver section belowfor criteria to waive this requirement if the DSCR is not > 1.000. Commercial properties are acceptable for this purpose, as long as the Applicant was a majority owner of the property. Applicants who are not able to meet this requirement may be eligible if the below criteria is met. | |
| Landlord Waiver | If Applicants meet all of the below criteria, they are not required to document a previous 12 month history of owning and managing rental properties. Purchase Transactions: • 680 FICO • 0x30x12 on all housing trade lines as of the application date • Own current primary residence • No mortgage forbearances with a missed payment in the most recent 12 months prior to the application date Refinance Transactions: • 680 FICO • 0x30x12 on all housing trade lines as of application date • Own current primary residence • No mortgage forbearances with a missed payment in the most recent 12 months prior to the application date • Subject property must have been acquired in the last 12 months • At least 3 consecutive months receipt of rent from the property are provided prior to application date • On Multi-Unit Properties (for requirements above) only 1 unit is required to be verified | |
| managing rental properties or a multi-unit primary residence collecting rent(s) unless the DSCR is | |
|---|
| >1.0 | See landlord waiver |
| section belowfor criteria to waive this requirement if the DSCR is not > 1.0 | |
Disclosure. CF Synergies provides AEO consulting to companies in the mortgage industry. Placement in anything published here is not for sale, and no lender receives preference in what is collected or shown.