In writing, the borrower must clearly identify what caused the major mortgage or credit crisis and must demonstrate why this new loan will enable them to rebuild a proper pay history.
BAD CREDIT CASH OUT REFINANCE FLORIDA
Occupancy Requirments – Bad Credit Florida Mortgage Lenders:
• Owner Occupied ONLY (see our business purpose subprime rate sheet for N/O/O properties).
Property Types Requirments – Bad Credit Florida Mortgage Lenders::
• SFR’s – Condos – Townhouses – 2 to 4 Units.
• Condotels – NO area restriction.
• Florida Non-Warrantable condo lenders – Max LTV 80%.
Property Condition Requirments – Bad Credit Florida Mortgage Lenders::
• The subject property must show “Pride of Ownership”
• See Florida Hard-Money Lenders for hard money properties types.
Loan Terms Requirments – Bad Credit Florida Mortgage Lenders::
• All loans are 5-year, interim fixed, variable rate 30 year fully amortized product.
• Index – 6-month Libor – Caps 2/2/6 – Floor = Start Rate.
• 30-year fixed option available. See add-on section.
Loan Amounts Requirments – Bad Credit Florida Mortgage Lenders::
• $100,000 Minimum to $3,000,000 Maximum – Owner Occupied.
• Loan amounts over $1,000,000 need management approval.
• Loan Amounts greater than $2M require 2 Appraisals.
Debt to Income (DTI)
• 90.01-95% LTV: 43% max DTI
• 80.01-90% LTV: 50% max DTI
• Up to 80% LTV: 55% max DTI
Income Documentation Requirments – Bad Credit Florida Mortgage Lenders::
Full Doc – W-2’s & Paystub, 1040’s
Alt Doc – 12- or 24-months bank statements.
VOE Only Program – For NON-Self-Employed Borrowers Only:
• Verifiable VOE from Employer (not self-employed or self-prepared). The VOE must be fully filled out and must include
all income and averages. The VOE must be signed and dated by the employer with accurate contact info.
1099 Only Program: For Non-Self-Employed Independent Contractors
• 2 Years 1099’s
• Athas to verbally verify the accuracy of income on 1099’s
P&L’s Only Program – For Self Employed Borrowers Only:
• Complete 2 years Profit and Loss Statement and 2019 Complete YTD Profit and Loss Statement
• Professionally Prepared P&L’s – Verifiable letter from licensed CPA, Certified Tax Preparer or Enrolled Agent Attesting that they prepared the P&L statements.
• Borrower Prepared P&L’s – Borrower to sign and date the P&L’s and attest to the accuracy of the P&L’s via a hand written, signed and dated letter. And a verifiable letter from a licensed CPA, Certified Tax Preparer or Enrolled Agent
attesting the borrower prepared P&L’s are factual.
• Proof that the borrower has been self-employed for that business for 2 years.
1 Month Personal Bank Statement Program – (Self Employed Borrowers Only)
1-month personal bank statement. Use deposits minus any unusually large deposits for income.
• 650+ Middle Fico score for all borrowers.
• No mtg lates in the last 60 months if homeowner.
• No FC, SS, BK or major MTG delinquencies (over 30 days) in last 5 years.
• If renter 0x30 VOR for 24 months-VOR must be arms-length and verifiable.
• Proof Self Employed for 2 years.
Asset Depletion Program – Available for All Employment Types including Retired/Unemployed:
• Borrower has enough liquid assets to pay Athas mortgage (PITI) for 7 years (borrowers cannot be over 55 years in age) or;
• Borrower has enough liquid assets to pay Athas mortgage in full (no age restrictions apply). Borrower must exhibit
liquid reserves greater than the new mortgage debt, post-closing – i.e. Loan amount = $100k; liquid reserves = $101k.
• Liquid Assets are assets that exist post-transaction and are not inclusive of any cash out proceeds.
• Retirement Accounts (401k, IRA, etc.….) – NOT Acceptable.
Down Payments or Liquid Cash Reserves Requirments – Bad Credit Florida Mortgage Lenders:::
• All down payment funds MUST be sourced & seasoned 60 days +6 mths PITI in liquid cash reserves from 90.01-95% ltv
• All down payment funds MUST be sourced in the last 30 days from 80.01-90% ltv.
• 100% Gift funds are acceptable up to 80% LTV – direct relative. $1M-$2M 50% can be gift – $2M+ no gift.
Pre-Pay Note Requirments – Bad Credit Florida Mortgage Lenders:::
• No pre-payment penalty on ANY consumer products.
Ancillary fees paid at closing:
• Rage of $1200-1500 Underwriting fee.
Federal / State Tax Liens & Judgments:
• All income tax liens & judgments on credit must be paid through closing if they are in excess of $2,500. All tax liens and judgments on title must be paid.