| Product | Premier Jumbo (E1) | Jumbo Prime (J10) | Standard Bank Statement (A10) | Asset Optimizer (A11) | Debt Service Coverage (I 10) |
| Summary | Full Doc with 2 years of tax returns. | Full Doc requiring only 1 year tax returns. | 12 or 24 month Bank Statements or 1099 | High Asset Borrower | Investor Debt Service Coverage |
| Target Borrowers | All occupancies, 660+, Full Doc for Rate Conscious borrowers (rates in the 3’s and 4’s!) | All occupancies, 660+, Full Doc | Self-Employed borrowers that “write everything off” and can’t qualify using their tax returns. | High Assets with Low Income (possible retirees with large retirement accts, or Trust Fund borrowers) | Investors with income that is difficult to document (i.e. extensive tax returns, Schedule C losses, write-offs, etc.) |
| Products | 30 year fixed | 5/1 ARM, 7/1 ARM, 15 Yr FRM, 30 Yr FRM 40 year Interest Only available on all | 5/1 ARM, 7/1 ARM, 15 Yr FRM, 30 Yr FRM 40 year Interest Only available on all | 5/1 ARM, 7/1 ARM, 15 Yr FRM, 30 Yr FRM 40 year Interest Only available on all | 5/1 ARM, 7/1 ARM, 15 Yr FRM, 30 Yr FRM 40 year Interest Only available on all |
| MAX Loan Amount | $3M | $4M | $4M | $4M | $3M |
| Min FICO | 660 – from all borrowers | 660 – from all borrowers | 660 – from all borrowers | 660 – from all borrowers | 660 – from all borrowers |
| Max LTV | 90% | 85% | 85% | 80% | 70% |
| Cash Out | Yes | Yes | Yes | Yes | Yes |
| Housing History | 12 months | 12 months | 12 months | 12 months | None |
| Bankruptcy | 4 years | 4 years, 2 years with reduced LTV | 4 years | 4 years, 2 years with reduced LTV | 4 years, 2 years with reduced LTV |
| Income Doc | Full Doc with 2 years of tax returns. | Full Doc. Current YTD plus 1 year of tax returns | 12 or 24 months of Bank Statements or 1099. | None | None |
| Business Ownership Requirements | Can close in LLC or Corporation | Can close in LLC or Corporation | |||
| Non- Warrantable Condo | No | Yes | Yes | Yes | Yes |
| Calculating Monthly Income | Averaged YTD plus 2 years of tax return income. | Averaged YTD plus 1 year of tax retun income | Percentage (20% to 50%) of gross deposits given – based on the type of business. Sprout will calculate for the LO prior to submitting the loan. | Total all assets divided by 60. Checking, Savings, Stock, IRA, Retirement, etc – all ok. Example $1M IRA/60 = $16,600 per month in income. | If rental income (from appraisal or lease) covers the PITIA of the subject property – that is all the is needed for income. |
| Marketing Tips: | • 90% SFR Purchase to $1M • Cash-out can be used to meet reserve requirement • Gifts OK • 1x30x12 OK on mortgage • 1 appraisal up to $1.5M • No MI on any product |
• DTI up to 50% • Non-Warrantable/Condotel OK • 3 months reserves up to $1M • Cash-out can be used to meet reserve requirement • Gifts OK • 1x30x12 OK on mortgage • 1 appraisal up to $1.5M • Foreign Nationals permitted • No MI on any product |
• DTI up to 50% • Non-Warrantable/Condotel OK • 3 months reserves up to $1M • Cash-out can be used to meet reserve requirement • Gifts OK • 1x30x12 OK on mortga • 1 appraisal up to $1.5M • No MI on any product |
• DTI up to 50% • Assets do NOT need to be liquidated or tied to the mortgage • Non-Warrantable/Condotel OK • 3 months reserves up to $1M • Cash-out can be used to meet reserve requirement • Gifts OK • 1x30x12 OK on mortgage • 1 appraisal up to $1.5M • Foreign Nationals permitted |
• Investments only • Non-Warrantable OK • 3 months reserves up to $1M • Cash-out can be used to meet reserve requirement • Gifts OK • 1x30x12 OK on mortgage • 1 appraisal up to $1.5M • Foreign Nationals permitted |
| Operational Tips: | Standard FNMA income calculations. Great rates 80% LTV and under. | • Investor Cash-out, if business purpose, can follow non-TRID tract. No disclosures/no rescission period. | • Sprout will do bank statement income analysis for the broker PRIOR to loan submission – so broker can be sure the DTI fits guidelines. Just send bank statements to AE for review. • If paid on a 1099 – submit either one or two years of 1099s and get 90% of the 1099 income. |
• No income documentation needs to be submitted. No tax returns. • Assets used for income calculation can not be used for reserves. Separate reserve assets required. |
• Income calculator for this product is on the Sprout website or can be obtained from the AE. Calculator is required for loan submission. • No personal income documentation required. |
| NonQM Profile Category | High LTV, Investor, Interest Only | Foreign National, High LTV, Investor, Non-Warrantable, Interest Only | Bank Statements, Investor, Non-Warrantable, Interest Only | Asset Qualify, No-Income, Foreign National, Investor, Non-Warrantable, Interest Only | Foreign National, Investor, Non-Warrantable, Interest Only, No Income |
Sprout:
Michael Sweeney
Direct: 828-620-8051
Email: Michael.Sweeney@SproutMortgage.com
