융자지식218-  STATED INCOME A UNDERWRITING GUIDELINES 2 7/1 PORTFOLIO ARM (STATED INCOME)

융자지식218-  STATED INCOME A UNDERWRITING GUIDELINES 2

7/1 PORTFOLIO ARM (STATED INCOME)
PRODUCT FEATURES
 Available for Primary, Second Home and Investment Properties
 Available for Purchase, Rate/Term, and Cash-Out Transactions
 Does NOT have to be a business purpose loan
 Provides two options for income documentation:

Alternative Documentation and Asset –Based Income Option (ABIO)

ONE SIMPLE PRODUCT
BASE RATE 4.75%
 7/1 LIBOR ARM (WSJ)
 Fixed for 7 years, adjustable for 23 years
 No Interest Only features
 No Balloon payments
 No Prepayment features
 Margin is 2.75% & Caps are (1/2/5)

STANDARD ALT DOC OR ABIO?
Alternative Documentation, Asset Based Income Option (ABIO)
No Paystubs
No Tax Returns
No Tax Transcripts

Alternative Documentation

Verification of Income
 Profit & Loss Statement verified
by a licensed 3rd party within 6
month coverage (Self Employed
Borrower)
 Written VOE (Wage Earner)

Verification of Job
 CPA Letter & Business License
(Self Employed Borrower)
 Verbal VOE with 2 year history
of employment (Wage Earner)

Asset Based Income Option (ABIO)

Verification of Income
 Asset-Based Income Verification

Verification of Job
 CPA Letter OR Business
License (Self Employed
Borrower)
 Verbal VOE (Wage Earner)
 Employment Listed on Credit
Report

WHAT IS THE 6 MONTH P&L REQUIRMENT?
 If the current tax year has passed 6 months, provide current tax year
P&L for two quarters
 If the current tax year has not passed 6 months, provide current
year P&L and previous year full 12 month P&L.

FOREIGN NATIONAL BORROWERS
 The Foreign National program allows for citizens of foreign
countries to purchase a second home in United States.
 No FICO or international credit report is required.
 Borrower cannot be US Citizen or Green Card holder.
 Must follow Alternative Documentation income requirements by
providing letter of employment and verification of income from
company letterhead
 All documents must be translated by a third party translator
FICO SCORES
 No FICO score reporting on any of the 3 bureaus (if one fico score –
ineligible; if two fico scores – falls under regular rules)
 Borrower can be US Citizen or Green Card holder
 Must follow standard streamline income requirements.
 Priced similar to the Foreign National program.