SG Asset Qualification | Nations Branch

CLICK THIS LINK BEFORE YOU BEGIN

Product	EA Core	EA Plus
Summary	For borrowers with extensive assets (retired, inherited) who want to qualify for a mortgage based on income from assets	For borrowers with extensive assets (retired, inherited) who want to qualify for a mortgage based on income from assets.
Target Borrowers	Retirees, recent beneficiaries of inheritances	Retirees, recent beneficiaries of inheritances
Ineligible	Cash out, non-owner occupied, recent credit event, gift funds, foreign assets
Program Requirements	Borrowers much have a minimum in $450K in post-close assets. Net assets are calculated by deducting downpayment and closing cost. Qualifying assets are calculated by applying the following haircuts to each asset: 85% of remaining value of stocks/bonds/funds 80% for all retirement assets 75% of OREO Home Equity (see guides for details) Qualified assets are then calculated with a 10-year draw schedule (Net assets/120) to determine a Qualifying Monthly Income	Borrowers much have a minimum of the lesser of $1m in Qualified Assets or 1.25 times the loan balance Qualified Assets, but never less than $450K. Net assets are calculated by deducting downpayment and closing cost. Qualifying assets are calculated by applying the following haircuts to each asset: 100% of checking/savings/money accounts 80% of remaining value of stocks/bonds/funds 70% for all retirement assets Qualified assets are then calculated with a 10-year draw schedule (Net assets/120) to determine a Qualifying Monthly Income
Additional Income	The monthly income calculated from asset utilization can be combined with other sources of income (rent, pension, social security) and W-2.	Qualifying Monthly Income can NOT add any employment related sources of income
Products	30-yr Fixed, 30yr IO Fixed, 5/1 ARM, 5/1 IO, 7/1 ARM, 7/1 IO 40yr IO Fixed Rate, 40yr IO ARM	30-yr Fixed, 30yr IO Fixed, 5/1 ARM, 5/1 IO, 7/1 ARM, 7/1 IO 40yr IO Fixed Rate, 40yr IO ARM
MAX Loan Amount	$3.0M	$2.5M
Min FICO	580; unless using OREO valuation, then 700	680
Max LTV	80%	75%
Cash Out		No
Housing History	No recent credit events	No recent credit events
Bankruptcy	Not permitted	Not permitted
Non- Warrantable Condo	Yes, with LTV adjustment (-10%)	Yes, with LTV adjustment
Marketing Tips:	• For retirees, or borrowers with modest current income but extensive assets • Can include equity in other residential properties • No tax returns required	• For retirees, or borrowers with extensive assets, ability to make a higher downpayment • No tax returns required
Operational Tips:	· Utilize the SG Capital Asset Utilization Calculator to assist in calculating qualified monthly income.	• Utilize the SG Capital Asset Utilization Calculator to assist in calculating qualified monthly income.