1. Subprime First Mortgages
Loan Amounts for Regular programs and Subprime 80/20
Risk Grade Mortgage NOD/FC Minimum
As of 08/16/06
Owner-Occupied Primary Residence: SFR, PUD, Low-/High-Rise Condo, 2 Units
Rating Discharged Dismissed Released Score Combined 2nd Lien
700+ $1M $1M $1M $1M $850k $750k $700k $1M $200k
AA+ 0x30x12 1 day 2 yrs 3 yrs 680 $1M $1M $1M $1M $850k $750k $700k $650k
$1M $200k
640 $1M $1M $1M $1M $850k $750k $700k $850k $170k
620 $1M $1M $1M $900k $850k $750k $650k $850k $170k
600 $1M $1M $1M $900k $800k $750k $600k $750k $150k
580 $850k $850k $850k $800k $750k $650k $550k $650k $130k
560 $750k $750k $750k $700k $650k $600k $500k na na
540 $700k $700k $700k $700k $650k $550k na na na
520 $700k $700k $700k $650k $550k na na na na
500 $700k $700k $700k $650k na na na na na na
660 $1M $1M $1M $1M $850k $650k $650k $850k $170k
$600k
$600k 90%
na
na
$600k
AA 1x30x12 1 day 2 yrs 3 yrs 640 $1M $1M $1M $1M $850k $650k $600k $600k
$850k $170k
(See **** footnote) 600 $1M $1M $850k $850k $750k $650k $600k1 $600k1
$750k $150k
Rolling 30s 580 $850k $850k $850k $850k $750k $650k $550k1 na na
100% 1
95%
1 SFRs, PUDs and condo. Owner-occupied, primary residences only.
2
Secondary financing not allowed with LTVs greater than 90%.
na
6x30 = 15 560 $750k $750k $750k $700k $650k $600k na na
na na
na
540 $700k $700k $700k $650k $650k $550k na na na
520 $700k $700k $700k $650k $550k na na na na
500 $700k $700k $700k $650k na na na na na
620 $850k $850k $850k $750k $750k $600k na na na
na
na
A- 2x30x12 1 day 2 yrs 3 yrs 600 $750k $750k $750k $750k $750k $600k na na
na na
Rolling 30s 580 $750k $750k $750k $650k $650k $600k na na
na na
6x30 = 15 560 $650k $650k $650k $650k $650k $600k na na
na na
540 $650k $650k $650k $600k $600k $550k na na
na na
520 $650k $650k $650k $600k $550k na na na
na na
500 $650k $650k $650k $600k na na na na
na na
600 $650k $650k $650k $600k $600k na na na na
na
B 1x60x12 1 day 1 yr 2 yrs 580 $650k $650k $650k $600k $550k na na na na na
Unlimited 30s BK 13 buyout OK 560 $600k $600k $600k $550k $550k na na na na na
No rolling 60s5 520 $600k $600k $600k $550k $550k na na na na na
500 $600k $600k $600k $550k na na na na na na
600 $600k $600k $600k $550k na na na na na
580 $600k $600k $550k $550k na na na na na na
C 1x90x12 1 day 1 yr 1 yr 560 $550k $550k $550k $500k na na na na na na
Unlimited 30s/60s BK 13 buyout OK 540 $550k $550k $550k $450k na na na na na
No rolling 90s
500 $550k $550k $550k na na na na na na
C- 2x90x12 1 day 1 yr No Open NOD/FC
No 120's BK 13 buyout OK
Unlimited 30s/60s
No rolling 90s
500 $500k $500k na na na na
DTI Ratios 55% 55% 55% 55% 55%2 55%2 50%
Max Cash Out 4
For complete details, see Seller's Guide: Section 18.6, General Underwriting Guidelines for Subprime Loans, Section 19.1, Risk Grades, LTVs, and Loan Amounts or individual loan program guidelines.
For an Underwriting Summary, see Underwriting Notes tab in this matrix.
1 Cash-out is not allowed.
2 Borrowers must have twice the required disposable income.
3 12 months Bank Statements:
─ Min. 600 credit score for LTV/CLTV > 90%.
─ Non-self employed / W-2 borrowers: Max loan amount of $500,000 (individual or combined).
4 Chapter 13 BK Buyouts: Maximum $5,000 cash out after bankruptcy payoff.
Misc. Notes:
─ Credit Comeback program is available for 40-, 30-, or 15-year fixed-rate loan only.
**** If 1x30 mortgage late is not rolling, AA+ guidelines may be used; however, AA pricing still applies.
OCCUPANCY / PROPERTY LTV ADJUSTMENTS
Risk
Grade 2nd Home Non-O/Occ
All,
-10% -10%
except C- -10% * N/A -15%
INTEREST-ONLY
Guideline Restriction
─ Rural Properties
─ 10, 20, 25, and 40/40 terms
─ Credit Comeback program
560
Ineligible
Refer to Sections 20.3, Subprime 80/20 Program for details.
2 Units
Property Type Owner-
Occupied
All 0
80/15/5, 80/10/10, 75/25
options also available.
3-4 Units
Rural Housing
0
95% LTV/CLTV
Restrictions apply. See Section 18.4 of the
Seller's Guide, for details.
* Maximum $500K. Borrower cannot own any other real estate in whole or in part.
80/20 Program
Terms 10-year term not allowed.
Max $500,000
90% LTV/CLTV
5 If a mortgage shows serious delinquency (120 days or more past due in the last 36 months),
the file should contain evidence that no foreclosure activity has taken place.
Options
na na na na
─ Form 4506-T is required on all Full Doc loans.
Geographic
Restrictions
N/A -10%
SFR (attached and detached)
PUD
Low & High-rise Condo/Twnhs
All
Ineligible in Arkansas.
Some eligible states are
subject to additional
restrictions.
≥ 620
Non-owner Occ.
2nd Home
3-4 Unit
80% LTV/CLTV 85% LTV/CLTV
DTI
LTV/CLTV ≤ 95%: 50%
LTV/CLTV > 95%: 45%
(50% w/2 mo. reserves)
50%
2 Units
Not Allowed
< 620
Risk Grades
Min. Credit Score
AA+, AA and A- only.
FIRST-TIME HOMEBUYERS WITHOUT
12 MONTHS' RENTAL VERIFICATION
520
500
90% 90%
90%
Bankruptcy 100%
$700k
CLTV TABLE
(Countrywide only purchases the first lien)
Max CLTV
85%
na
90%
Credit Score
≤ 80% LTV > 80% LTV 2
560
540
na
Maximum Loan Amount and Loan-to-Value (LTV)
65% 70% 75% 90%
80% 95%
80-20
FULL DOCUMENTATION
(For other Occupancy and Property types, refer to "Occupancy/Property LTV Adjustment" table)
FULL DOC (incl. 12 months Bank Statements 3 )
$650k
na
na
na
na
50% 50%
$500k $150k $100k
Subprime Matrix 8/15/2006 Page 1 of 5
2. Loan Amounts for Regular programs and Subprime 80/20
Risk Grade Mortgage NOD/FC Minimum 65% 70% 75% 80% 85% 90% 95% 100%2
Rating Discharged Dismissed Released Score
Combined 2nd Lien
700+ $1M $1M $1M $1M $850k $750k $700k $700k $1M $200k
680 $1M $1M $1M $1M $850k $750k $700k $650k $1M $200k
640 $1M $1M $1M $1M $850k $600k $600k $550k $850k $170k
620 $1M $1M $1M $900k $850k $600k $550k na na na
600 $1M $1M $900k $750k $650k $600k na na na na
AA+ 0x30x12 1 day 2 yrs 3 yrs 580 $850k $850 $800k $650k $600k $550k na na na na
560 $750k $750k $700k $600k $550k na na na na na
540 $700k $700k $650k $600k $550k na na na na na
520 $700k $700k $650k $550k $450k na na na na na
500 $700k $700k $650k $550k na na na na na na
640 $1M $1M $900k $800k $700k $550k na na na na
600 $1M $1M $800k $700k $600k $550k na na na na
1x30x12 580 $850k $850k $800k $700k $600k $550k na na na na
(See **** footnote) 1 day 2 yrs 3 yrs 560 $750k $750k $700k $600k $550k na na na na na
Refer to Sections 20.3, Subprime 80/20 Program for details.
Max CLTV
Rolling 30s 540 $700k $700k $650k $550k $550k na na na na na 2 Secondary financing not allowed with LTVs greater than 90%.
6x30 = 14 520 $700k $700k $650k $550k na na na na na na
500 $700k $700k $650k na na na na na na na
620 $850k $800k $700k $600k $600k na na na na na
600 $750k $700k $600k $600k $600k na na na na na
A- 2x30x12 1 day 2 yrs 3 yrs 580 $750k $700k $600k $550k $550k na na na na na
Rolling 30s 560 $650k $600k $550k $550k $550k na na na na na
6x30 = 14 520 $650k $600k $550k $500k na na na na na na
500 $650k $600k $550k na na na na na na na
580 $550k $500k $500k na na na na na na na
500 $500k $500k $500k na na na na na na na
C
1x90x12 Unlimited
30s/60s
No rolling 90s
1 day 1 yr
BK Buyout OK 1 yr 500 $400k $350k na na na na na na na na Min. Credit Score
55% 55% 55% 55% 55%1 55%1 50% 50%
Max Cash Out 3
For complete details, see Seller's Guide: Section 18.6, General Underwriting Guidelines for Subprime Loans, Section 19.1, Risk Grades, LTVs, and Loan Amounts or individual loan program guidelines.
For an Underwriting Summary, see Underwriting Notes tab in this matrix.
0
Property Type Risk
Grade
Max $500,000
All 0 N/A N/A
560
Max. LTV/CLTV 95% (80/20 program: 100% CLTV)
DTI 80/20 program: 45%
FIRST-TIME HOMEBUYERS WITHOUT
12 MONTHS' RENTAL VERIFICATION
85% LTV/CLTV
All -10% 1 N/A
50%
Non-O/Occupied
2nd Home
3-4 Unit
Non-
O/Occ
SFR (attached and detached)
PUD
Low & High-rise Condo/Twnhs
≥ 660
< 660
2nd 2 Units 90% LTV/CLTV 95% LTV/CLTV
Home
1 DTI Ratios: Borrowers must have twice the required disposable income.
Non-owner occupied properties eligible to maximum 50%.
3 Chapter 13 BK Buyouts: Maximum $5,000 cash out after bakruptcy payoff.
4 If a mortgage shows serious delinquency (120 days or more past due in the last 36 months),
the file should contain evidence that no foreclosure activity has taken place. -10% -10% 2
80% LTV/CLTV
Misc. Notes:
─ Credit Comeback program is available for 40-, 30-, or 15-year fixed-rate loan only.
2 Units
All
Guideline Restriction
Risk Grades AA+, AA and A- only
─ Rural Properties
─ Investment Properties
─ 10, 20, 25, and 40/40 terms
─ Credit Comeback program
LTV/CLTV ≤ 95%: 50%
LTV/CLTV > 95%: 45%
(50% w/2 mo. reserves)
DTI
Bankruptcy
AA
50%
Subprime First Mortgages
STATED DOCUMENTATION (Self-employed)
Maximum Loan Amount and Loan-to-Value (LTV)
80-20%
As of 08/16/06
STATED DOC: Self-Employed Owner-Occupied Primary Residence: SFR, PUD, Low-/High-Rise Condo, 2 Units
(For other Occupancy and Property types please see Occupancy/Property LTV Adjustment Matrix.)
$250k $150k $100k
2 Reserves required for first-time homebuyers.
See Underwriting Notes page for details.
OCCUPANCY / PROPERTY LTV ADJUSTMENTS
N/A
Owner-
Occupied
3-4 Units
Credit Score
CLTV TABLE
(Countrywide only purchases the first lien)
≤ 80% LTV > 80% LTV 2
560 100% 1 90%
540 95% 90%
520 90% 90%
500 90% Not Allowed
1 SFRs, PUDs and condo. Owner-occupied, primary residences only.
INTEREST-ONLY
B
1x60x12 Ineligible
Unlimited 30s
1 day 1 yr
No rolling 60s
BK Buyout OK 2 yrs
80/20 PROGRAM
Options 80/15/5, 80/10/10, 75/25 options also available.
Terms 10-, 20-, 25- year terms not allowed.
Geographic
Restrictions
Ineligible in Arkansas. Some eligible states are
subject to additional restrictions.
**** If 1x30 mortgage late is not rolling, AA+ guidelines may be used;
however, AA pricing still applies. Rural Housing Restrictions apply. See Section 18.4 of
the Seller's Guide for details.
1 Maximum $500K. Borrower cannot own any other real estate in whole or in part
2 Eligible subject to the following restrictions:
─ AA+ risk grade only.
─ 620 minimum credit score.
─ Interest-only option is not allowed.
─ Credit Comeback program is not allowed.
─ Borrowers who own five or more properties, including subject property, are not allowed.
Subprime Matrix 8/15/2006 Page 2 of 5
3. Subprime First Mortgages
STATED DOCUMENTATION (Non-self Employed / W-2)
Loan Amounts for Regular programs and Subprime 80/20
As of 08/16/06
Risk Grade Mortgage NOD/FC Minimum 65% 70% 75% 80% 85% 90% 95% 100%
Rating Discharged Dismissed Released Score Combined 2nd lien
680+ $1M $1M $1M $1M $850k $600k na na $1M $200k
640 $1M $1M $1M $1M $850k $600k na na $850k $170k
620 $1M $1M $1M $900k $850k $600k na na na na
600 $1M $1M $900k $750k $650k $600k na na na na
AA+ 0x30x12 1 day 2 yrs 3 yrs 580 $850k $850k $800k $650k $600k $550k na na na na
560 $750k $750k $700k $600k $550k na na na na na
540 $700k $700k $650k $600k $550k na na na na na
520 $700k $700k $650k $550k $450k na na na na na
500 $700k $700k $650k $550k na na na na na na
640 $1M $1M $900k $800k $700k $550k na na na na
620 $1M $1M $800k $700k $600k $550k na na na na
1x30x12 600 $1M $1M $800k $700k $600k na na na na na
AA (See **** footnote) 1 day 2 yrs 3 yrs 580 $850k $850k $800k $650k $600k na na na na na
Rolling 30s 560 $750k $750k $700k $600k $550k na na na na na
6x30 = 13 540 $700k $700k $650k $550k $550k na na na na na
Credit Score
Max CLTV
≤ 80% LTV 80% LTV 2
560 100% 1 90%
540 95% 90%
520 90% 90%
520 $700k $700k $650k $550k na na na na na na 2 Secondary financing not allowed with LTVs greater than 90%.
500 $700k $700k $650k na na na na na na na
620 $850k $800k $700k $600k na na na na na na
600 $750k $700k $600k $600k na na na na na na
A- 2x30x12 1 day 2 yrs 3 yrs 580 $750k $700k $600k $550k na na na na na na
Rolling 30s 560 $650k $600k $550k $550k na na na na na na
6x30 = 13 520 $650k $600k $550k $500k na na na na na na
500 $650k $600k $550k na na na na na na na
580 $550k $500k $500k na na na na na na na
B 1 day 2 yrs
500 $500k $500k $500k na na na na na na na
C 1 day 1 yr
BK 13 Buyout OK
1 yr
Min. Credit Score 620 for all borrowers
na na na
DTI Ratios 55% 55% 55% 55% 55%1 55%1 50% 50%
Max Cash Out 2
50%
For complete details, see Seller's Guide: Section 18.6, General Underwriting Guidelines for Subprime Loans, Section 19.1, Risk Grades, LTVs, and Loan Amounts or individual loan program guidelines. Property Types
For an Underwriting Summary, see Underwriting Notes tab in this matrix. Occupancy
All 0 -10%
All 0 N/A N/A
FIRST-TIME HOMEBUYERS WITHOUT
12 MONTHS' RENTAL VERIFICATION
2 Units 90% LTV/CLTV 95% LTV/CLTV
DTI
LTV/CLTV ≤ 95%: 50%
LTV/CLTV 95%: 45%
(50% w/2 mo. reserves)
1 DTI Ratios: Borrowers must have twice the required disposable income.
Non-owner occupied properties eligible to maximum 50%.
2 Chapter 13 BK Buyouts: Maximum $5,000 cash out after bankruptcy payoff
Max. LTV/CLTV 90% (80/20 program: 100% CLTV)
50%
Non-O/O
2nd Home
3-4 Unit
80% LTV/CLTV 85% LTV/CLTV
$250k $150k
INTEREST-ONLY
Guideline Restriction
Risk Grades AA+ and AA only
na na na
500 90% Not Allowed
1 SFRs, PUDs, and condo. Owner-occupied, primary residences only.
500
1x90x12
Unlimited 30s/60s
No rolling 90s
80/20 PROGRAM
Options 80/15/5, 80/10/10, 75/25 options also available.
Terms 10-, 20-, 25- year terms not allowed.
Geographic
Restrictions
Ineligible in Arkansas. Some eligible states are
subject to additional restrictions.
CLTV TABLE
(Countrywide only purchases the first lien)
STATED DOC: Non-Self Employed / W2 Owner-Occupied Primary Residence: SFR, PUD, Low-/High-Rise Condo, 2 Units
(For other Occupancy and Property types please see Occupancy/Property LTV Adjustment Matrix.)
Bankruptcy 80/20
$100k 80/20 program: 45%
1x60x12
Unlimited 30s
No rolling 60s3
1 yr
BK 13 Buyout OK
SFR, PUD, and low-rise condo only
DTI
─ Rural Properties
─ Investment Properties
─ 10, 20, 25, and 40/40 terms
─ 3-4 units
─ Credit Comeback program
Ineligible
$400k $350k na na
OCCUPANCY / PROPERTY LTV ADJUSTMENTS
Max $500,000
Property Type Risk
Grade
Owner-
Occupied
2nd
Home
Non-
O/O
SFR (attached and detached)
PUD
Low High-rise Condo/Twnhs
3 If a mortgage shows serious delinquency (120 days or more past due in the last 36 months),
the file should contain evidence that no foreclosure activity has taken place.
Misc. Notes:
─ Credit Comeback program is available for 40-, 30-, or 15-year fixed-rate loan only.
Owner-occupied primary residences only
1 Maximum $500K. Borrower cannot own any other real estate in whole or in part
2 Eligible subject to the following restrictions:
─ AA+ risk grade only.
─ 620 minimum credit score.
─ Interest-only option is not allowed.
─ Credit Comebak program is not allowed.
─ Borrowers who own five or more properties, including subject property, are not allowed.
-10% 2
2 Units
3-4 Units All -10% 1 N/A N/A
**** If 1x30 mortgage late is not rolling, AA+ guidelines may be used;
however, AA pricing still applies
Refer to Sections 20.3, Subprime 80/20 Program for details.
Rural Housing Restrictions apply. See Section 18.4 of the
Seller's Guide for details.
660 ≥ 660
Subprime Matrix 8/15/2006 Page 3 of 5
4. Subprime Second Mortgages
(Guidelines for second lien mortgages delivered for purchase in stand-alone transactions)
As of 08/16/06
CLOSED-END FIXED RATE SECONDS (Stand-alone Transactions)
Owner-Occupied Primary Residence
Mortgage NOD/FC
Rating Discharged Filed/Dismissed Released
Maximum Loan Amt: $100,000
(Maximum 1st Loan Amt = $400K; maximum combined loan amt = $500K)
(NOTE: Subprime 80/20 second lien subject to different maximum loan amount guidelines)
Min Credit Score Max CLTV
AA+ 0x30x12 2 yrs 2 yrs 3 yrs SFRs, PUDs,
Low-rise Condos,
Row Houses
90%
600
580
560 80%
85%
Min Credit Score Max CLTV
1x30x12
AA (See **** footnote) 2 yrs 2 yrs 3 yrs SFRs, PUDs,
Rolling 30s Low-rise Condos,
6x30 = 1 Row Houses
600 90%
580
85%
Min Credit Score Max CLTV
2 yrs
A- 2x30x12 2 yrs 3 yrs SFRs, PUDs,
If filed, discharge
Rolling 30s Low-rise Condos,
6x30 = 1 Row Houses
560
85%
80%
Min Credit Score Max CLTV
is required
1x60x12 18 mos 18 mos 2 yrs SFRs, PUDs, 560 80%
Rolling 30s BK 13 buyout OK Low-rise Condos,
No rolling 60s Row Houses
Min Credit Score Max CLTV
1x90x12 1 yr 1 yr 1 yr SFRs, PUDs, 560 70%
Rolling 30s/60s BK 13 buyout OK Low-rise Condos,
No rolling 90s Row Houses
Owner-Occupied Primary Residence
Bankruptcy /Chapter7/13
Mortgage NOD/FC
B
C
Risk Grade Rating Discharged Filed/Dismissed Released Property Type
(Maximum 1st Loan Amt = $400K; maximum combined loan amt = $500K)
Min Credit Score Max CLTV
600
600 90%
AA+ 0x30x12 2 yrs 2 yrs 3 yrs Detached SFRs/PUDs
580 85%
Min Credit Score Max CLTV
1x30x12
(See **** footnote) 2 yrs 2 yrs 3 yrs Detached SFRs/PUDs 600 90%
Rolling 30s
6x30 = 1
Min Credit Score Max CLTV
2 yrs
AA
A- 2x30x12 2 yrs 3 yrs Detached SFRs/PUDs 580 85%
Rolling 30s
6x30 = 1
If filed, discharge
is required
Credit Notes for Closed-end Fixed Rate and HELOCs:
Maximum debt-to-income (DTI) ratios: 50%
**** If 1x30 mortgage late is not rolling, AA+ guidelines may be used; however, AA pricing still applies.
580 85%
FULL DOC Only
Risk Grade
Bankruptcy /Chapter7/13
Maximum Line Amt: $100,000
Subprime HELOCs
FULL DOC Only (12 months bank statements not allowed)
Subprime HELOC (Stand-alone Transactions)
560
Property Type
80%
580
Subprime Matrix 8/15/2006
Page 4 of 5
5. Subprime Underwriting Notes
As of 08/16/06
For complete details, refer to Seller's Guide Section
18.6, General Underwriting Guidelines for Subprime Loans.
PRODUCT INFORMATION CENTER: (800) 669-6680 (EXT 4801)
Platinum Website: https://cld.countrywide.com
Platinum HELP Desk: (877) 425-3463
DOCUMENTATION REQUIREMENTS APPRAISAL REQUIREMENTS
An appraisal review performed by LandSafe's® ValuefinderSM or LandSafe's Appraisal Review Analysis
(LARA) is required for any of the following:
─ LTVs over 90%.
─ 3-4 unit properties.
─ Second home and non-owner occupied transactions.
─ Non-arms length, For Sale By Owner, and gift equity transactions.
─ Loan amounts $350,000 and ≤ $500,000.
─ High-rise condos.
─ C and C- risk grade loans.
─ Contract-for-deed transactions.
─ Lease option (option to purchase) transactions.
─ Loans submitted under the 80/20 program.
For combined loan amounts $500,000: Review appraisal required in addition to one full appraisal
for the following:
─ CA, CO, CT, MA, NJ, NY, WA: 2055 (SFRs or PUDs) or 1075/466 (condominiums) from
LandSafe Services, Inc. OR second full appraisal from Countrywide-approved company.
─ All other states: Second full appraisal from Countrywide-approved company.
ADDITIONAL NOTES
CREDIT
To be considered a valid and usable credit score, the credit report must reflect two or three scores.
─ If there is one or no score reported on the credit report, refer to Valid/Usable Credit Score in the
Seller's Guide, Section 18.6A, Subprime Credit-Score Underwriting, for more information.
Judgments, Collections/Charge-offs and Tax Liens: See Treatment of Major Adverse Credit in Section 18.6,
General Underwriting Guidelines for Subprime Loans for details.
Multiple Unrelated Bankruptcies: The use of the filing date is not allowed.
─ If the primary borrower contributes less than 75% of the total reported income, all co-borrowers with
contributing income must have a minimum credit score of 500.
─ Rate and term refinances allow incidental cash back equal to the lesser of 2% of the new
principal mortgage amount or $2,000. Debt consolidation is considered cash out.
─ 2 months proposed housing expense (PITI plus HOA) are required and must be
verified with source or seasoned for 60 days for the following:
° First-lien loan amounts greater than $650,000, regardless of LTV.
─ This requirement may be waived with Full documentation and proof of two years’ income.
(paystub plus two years’ W-2s for wage-earners; two years’ tax returns for self-employed.)
See Salaried Borrowers or Self-Employed Borrowers in Section 18.6, General Underwriting
Guidelines for Subprime Loans, for additional details. Bank Statements are not allowed.
° First-time homebuyers with Stated Documentation and LTV 95%.
° First-time homebuyers with all of the following:
─ No rental verification.
─ LTV/CLTV 95%.
─ DTI 45%.
─ Credit Score 620 (Full doc) or 660 (Stated doc).
─ Properties identifed in the appraisal as declining property values, over supply of housing, or
marketing time over six months are considered on a case-by-case basis.
─ Disposable income requirements:
1 person.......$550 3 persons.........$900
2 persons.....$700 4 persons.......$1,000
FULL: Complete verification and documentation of income is required.
12 Months Bank Statements: Allowed as Full Doc subject to the following additional requirements:
─ LTVs/CLTV 90%: Minimum credit score of 600 for Self-employed borrowers.
Must have a verified 2-year history of self-employment.
─ Non-self employed / W-2: Not allowed on individual or combined loan amounts $500k.
─ Subprime HELOC programs are not allowed.
─ Owner-occupied 3-4 unit properties are not allowed.
Salaried Borrowers (each borrower):
Current year-to-date pay stub dated within 60 days of the Note and one of the following:
─ W-2 (1 year prior), OR
─ Tax Returns (1 year prior) AND 4506, OR
─ Fully executed VOE.
Self-Employed Borrowers (each borrower):
─ Tax Returns (1 year prior-personal business) with signed YTD PL AND 4506, OR
─ 12 months personal and/or business bank statments with corresponding signed PL.
STATED: Income on 1003 application is not verified; however, income must be reasonable for the borrower's
profession and level of experience.
Not available for fixed income, foreign or military borrowers.
Salaried Borrowers (each borrower)
─ Verbal verification of employment.
Self-Employed Borrowers (each borrower)
─ Disinterested third party verification of self-employment. Minimum 2 years verified history.
─ Form 4506 is not required.
Verbal VOE is requirement on all transactions prior to closing.
Blacked out documentation is considered altered and is not allowed.
Subprime Matrix Page 5 of 5