CALIFORNIA BAD CREDIT CASH-OUT REFINANCE- CAN BE A GOOD OPTION!
90% Jumbo Bad Credit Cash-Out Mortgage Refinance California
- Min Fico 500+ (including jumbo) = OK!
- Up to 85% LTV (purchase & R/T) w/ no MI
- Foreclosure, Short Sale, Bankruptcy, SS, BK, or Deed in Lue = OK!
- Up to 80% of your home value (cash-out) = OK!
- Maximum cash-out to $500,000 = OK!
- Loans up to $3 million (minimum loan $100,000)
- Cash out for reserves = OK!
- Mortgage Late Payments= OK!
- DTI up to 55% considered= OK!
- Limited or no tradelines OK to max 75% LTV
- 500+ Fico Rate and term Bad Credit Cashout down to 65% of Appraisal
- 540+ Fico Rate and term Bad Credit Cashout down to 70% of Appraisal
- 600+ Fico Rate and term Bad Credit Cashout down to 75% of Appraisal
- 640+ Fico Rate and term Bad Credit Cashout down to 80% of Appraisal
- 680+ Fico Rate and term Bad Credit Cashout down to 80% of Appraisal
- $1,500,000 = Bad Credit Cashout = Max Loan Amount
California Bad Credit Cash-out Refinance General Information
Loan Terms: ● 5 year ARM, 7 year ARM or 30 Year Fixed Options
● No Prepayment penalty ● Floor = Start rate
● Caps are 2/2/5 (2% initial change cap/ 2% annual cap/ 5% lifetime cap)
● All bad credit loans require to impound for tax and insurance California home Types:
● SFRs, condos, townhouses, 2-4 units (no rural properties < $200,000)
● The California home must be clean and in better than average cond
● The California home must show “pride of ownership” Debt to Income Ratio:
● 55% Max back end ratio
California Bad Credit Cash-out Refinance Income Documentation
● Alt Doc Options- 24 months business bank statements or 24 or 12 months personal bank statements(self-employed only), rental income qualified by lease agreements.
● Full Doc – W-2 & paystubs, 1040s ● Full Doc – 1 year (W-2 and Current YTD Paystub)
● Full Doc – 1 year (One-year Tax Return, Self Employed)
● Alt Doc – 24 months business bank statements or 24 or 12 months personal bank statements(self-employed only), rental income qualified by lease agreements.
● Asset Only Options- 100% of amount needed to amortize loan plus monthly debts for 60 months, max 80% LTV to 1.0M; Max 75% LTV to $1.5M
● Asset Assist- Assets divided by 120 is added to income. $1.5M max loan amount to 75% LTV, Max 80% LTV to $1M. Down Payments:
● All down payment funds must be verified prior to drawing loan documents
● Secondary Financing 80% Max LTV/90% Max CLTV Tax Liens, Judgments:
● All tax liens and judgments must be paid at closing. Collection Accounts:
● Collections and charge off the need to be paid off except – Medical Collections – Collection accounts older then 2 years First time home buyer:
California Bad Credit Cash Out California Mortgage Refinance Programs
- California Bad Credit Cash Out Refinance Bank Statement Only
- California Bad Mortgage Refinance To Pay off Tax Liens And Mechanics Liens
- Bad Credit Cash Out Refinance California Business Loans!
- FL Mortgage After Foreclosure – Short Sale – Bankruptcy- Foreclosure
- Bad Credit Cash Out Refinance California mortgage
- Bad Credit Cash Out Refinance California Mortgage Refinance
- Bad Credit Cash Out Refinance California Portfolio Lenders
- Buy a California home 1 day after a Foreclosure or Bankruptcy
- Bad Credit Cash Out Refinance California FHA Mortgage Lenders
- No Credit score California mortgage
- Bad Credit Cash Out Refinance California FHA mortgage
- Hard Money California mortgage
- Bad Credit Cash Out Refinance California Modular Home Loans
- California Chapter 13 Bankruptcy Mortgage Lenders
- Bad Credit Cash Out Refinance 2nd Second California Mortgage
- California Stop Foreclosure Loans
- Bad Credit Cash Out Refinance California VA mortgage
- Bad Credit Cash Out Refinance California Cash for Deed
- Bad Credit Cash Out Refinance California Mortgage Rates Sheet
- Bad Credit Cash Out Refinance California Mortgage with Judgements
- Bad Credit Cash Out Refinance California Mortgage with Evictions
- Bad Credit Cash Out Refinance California Mortgage with Tax Liens
- Bad Credit Cash Out Refinance Investor Loans Buyer Or Refi With California LLC!
bad credit California cashout mortgage lenders
Credit Score Use middle FICO score of the primary wage earner
Housing History 30’s and 1 x 60 in the past 12 months allowed (No add‐on to rate) 1 or more 90 day late in the past 12 months allowed
Min Credit Score Owner Occupied: 500 Non‐Owner Occupied: 580 Non‐Perm Resident Aliens: 580 Second Home: 580 First Time Homebuyer: 540
Bad Credit Mortgage Lenders Tradeline Requirements Standard: 3 trade lines reporting for ≥ 12 month; or 2 trade lines reporting for ≥ 24 months with activity in the past 12 months 12 to 24 months canceled rent checks can be used as a trade lineLimited Trade lines Max LTV 75% No minimum trade line requirements Not allowed on Investment properties
DTI Requirements Max 40/50% Investment properties max 50%
Seasoning Requirements Foreclosure, Deed‐In‐Lieu & Short Sale – None
Bankruptcy 7 ‐ 12 months
from discharge date Bankruptcy 7: None when property excluded from
BK and a 0 x 30 x 12 residential pay history Bankruptcy 13: None if filed >24
months ago and paid as agreed All BK’s must be discharged (case by case exceptions) Reserves 3 months minimum Investment properties – 6 months
Loan amounts ≥ $453,100 ‐ 6 months Loans ≥ $750,000 ‐ 9 months
Second Home – 6 months First Time Homebuyer – 6 months
Limited trade lines – 6 months Non‐Perm Resident Aliens – 6 months
Non‐Perm Resident Alien with non‐US credit – 12 months Residual Income Primary Residence $1,500
First‐Time Homebuyer Residential pay history 0x30
California bad California bad credit Cashout Refinance – • For California homes owned 12-months or longer, the LTV/CLV is based upon the appraised value. • If Cash-Out Seasoning is 7-11 months, the transaction property value is limited to the lower of the current appraised value or the property’s purchase price + documented improvements• If Cash-Out Seasoning is 6 months or less, the transaction property value is limited to delayed financing or inherited California homes.
California Home and Property Types -Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable condos approved case by case:
Ineligible California California homes include: • Acreage greater than 10 acres (appraisal must include total acreage) • Agricultural zoned property • Condo hotel • Co-ops • Hobby Farms •Income producing California homes with acreage • Leaseholds • Log Homes • Manufactured housing • Mixed-use California homes • Modular homes • California homes subject to oil and/or gas leases •Unique California homes • Working farms, ranches or orchards.
California Approved Condos Property Types –Fannie Mae eligible projects and Non-Warrantable projects allowed • GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower • Borrower project/Unit concentration limit: two (2) units • Project meets all FNMA Insurance requirements for property, liability and fidelity coverage • Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit • The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire .• All projects are subject to full review and approval.
California Tax Liens – All California income tax liens (federal, state, local) must be paid off prior to or at loan closing. Tax liens that do not impact title may remain open provided the
following are meet;
• The file must contain a copy of the repayment agreement
• A minimum of 6-payments has been made under the plan with all payments made on time
• The balance of the lien must be included when determining the maximum CLTV for the program
• Refinance transactions require a subordination agreement from the taxing authority
Bad credit Downpayment requirements- Down payment funds should be documented for 60 days per the Fannie Mae Verification of Deposits and Assets guidelines with the documentation
included in the loan file.In addition to documenting the down payment, closing costs, and minimum PITIA reserve requirements, all borrowers must disclose and verify all other
liquid assets.• Business funds may be used for down payment, closing costs and for the purposes of calculating reserves. GreenBox will perform a business cash flow analysis to confirm that the withdrawal of funds for this transaction will not have a negative impact on the business. GreenBox will utilize FNMA Form
1084 or a similar cash flow analysis form to show the business can support the withdrawal of the funds.
• Account Statements should cover most recent 60-day period
• Stocks/Bond/Mutual Funds -100% of stock accounts can be considered in the calculation of assets for closing and reserves;
• Vested Retirement Account funds –60% may be considered for closing and/or reserves;
• Non-vested or restricted stock accounts are not eligible for use as down payment or reserves.
• Any assets which produce income or are used as income already included in the income calculation are not eligible for use as down payment or reserves.
California Mortgage After California mortgage after bankruptcy / bad California bad credit Housing Event- Chapter 7 and Chapter 11 bankruptcies must be discharged for a minimum of 12 months from closing date. Seasoning is measured from the month and
year of discharge. There is no seasoning requirement for Chapter 13 bankruptcies when the California mortgage after bankruptcy is discharged prior to closing. If the Chapter 13 California mortgage after bankruptcy was dismissed
, 12-months’ seasoning is required from the date of the dismissal.
A Chapter 13 California mortgage after bankruptcy may remain open after loan closing when all of the following requirements are met:
• A minimum 12-month repayment period in the California mortgage after bankruptcy has elapsed.
• All required California mortgage after bankruptcy plan payments have been made on time.
• The borrower has received written permission from the California mortgage after bankruptcy court to enter into the mortgage transaction.
• Full California mortgage after bankruptcy papers may be required. For a 120-day mortgage late, seasoning is from the date the mortgage was brought current. Seasoning for a modification is from the date the modification
was executed. A cash-out refinance to pay off the remaining balance of a Chapter 13 California mortgage after bankruptcy is allowed. In addition to meeting the requirements listed above, the
transaction must provide an overall reduction in monthly obligations for the borrower.
California Mortgage with bad credit collections And Charge-Offs Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in
full prior to or at closing.
Medical California collections may remain open with a max cumulative balance of $10,000
California collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented
All open California judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Charge-offs and California collections not excluded by the above bullet points must be paid or may stay open if using one or a combination of both of the following:
o Payments for open charge-offs or California collections are included in the DTI (Subject to program DTI restrictions)
o Reserves are sufficient to cover the balance of the charge-offs or California collections and meet reserve requirements.
California bad credit Standards
Clean housing history since housing event • Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent
account must either be brought current or paid off at closing.
Standard: 3 tradelines reporting for 12+ mo’s or 2 tradelines reporting for 24+ mo’s with activity in the last 12 mo’s Limited: No minimum tradeline
Only the primary bad credit California wage-earner must meet the minimum tradeline requirements listed above. To qualify as an acceptable tradeline, the bad California bad credit line must be reflected on the borrower’s bad California bad credit report. The bad credit California account must have activity in the past 12 months and may be open or closed. bad credit California Accounts with delinquencies are allowed when the account is no more than 30-days past due at time of application. An acceptable 12- or 24-month housing history not reporting on bad California bad credit may also be used as a tradeline. bad California bad credit lines on which the bad credit California mortgage applicants are not obligated to make payments are not acceptable for establishing a minimum history. Examples of unacceptable tradelines include loans in a deferment period, collection or charged-off accounts discharged through bankruptcy, and authorized user accounts. Student loans can be counted as tradelines as long as they are in repayment and are not deferred. Standard Tradelines: California mortgage applicants qualifying with Standard Tradelines are eligible for all occupancy types and programs. Limited Tradelines: The following requirements apply when qualifying with Limited Tradelines: 10% minimum California mortgage applicants contribution • Minimum 6 months reserves after closing • Full documentation of income. When qualifying with Limited Tradelines, the lower of either the Representative Loan Score or a 580 score is used to qualify the borrower on the Non-Prime Matrix and Recent Housing Event Matrix. The loan may be priced, however, using the actual Representative Loan Score • Primary residence only
California mortgage applicants Housing late payments exceeding 1x60x24 require a letter of explanation from the California mortgage applicants. The situation causing the delinquency must be adequately
documented as resolved. The new housing payment must be considered when determining if the situation is adequately resolved.
California bad California bad credit Mortgage Lenders Requirments
|California bad California bad credit Mortgage||California bad California bad credit Mortgage Min Fico|
|Housing||1 x 120 0 x 30 since housing event|
|Chapter 13 or Chapter 7 bankruptcy||12 months payment or settled|