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A product for people who has had a recent credit event that puts them outside the standard agency credit guidelines to qualify for a mortgage.

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.

Contact info:

Susan Menkhaus Jaffe
Direct: 203-355-6141
sjaffe@sgcp.com

Scenario Desk:

Susanna Carouthers
Direct: 330-338-7785
suzanna.carouthers@nationslending.com

SG Capital Calculator

EA CORE Guidelines

EA Plus Guidelines

SG Training Materials

Training Video

EA Core Info

EA Plus Info

SG Capital Process

Broker Initial Disclosure

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Let's talk! 800-459-7512