PREFERRED PORTFOLIO ARM MATRIX
(Revised 02/26/2016)
7/1 ARM
Purchase & Rate/Term
Cash - Out
Property Type
Maximum Loan
Amount
LTV
CLTV
HCLTV
Min. Fico
Primary Residence / 2nd Home / Investment **
1 Unit
Condo
2 - 4 Units
Foreign National
(All Units)
**
70%
70%
70%
680
$1,000,000
65%
65%
65%
680
$1,500,000
60%
60%
60%
700
$2,500,000
55%
55%
55%
720
65%
65%
65%
720
60%
60%
60%
700
60%
60%
60%
720
55%
55%
55%
700
$1,000,000
60%
60%
60%
$1,500,000
55%
55%
55%
$2,500,000
50%
50%
50%
$1,500,000
HCLTV
Min. Fico
$1,000,000
50%
50%
50%
700
$2,500,000
50%
50%
50%
720
Max Cash Out Amount :
$2,500,000
(6 months seasoning required)
>> Loan Amount > (greater than) $1.5M requires an
investor prior approval underwriting with $750 additional
fee, which will be collected whether it funds or not. **
>> Saturdays do not count as RESPA days but they do
count as three days rescission period.
Qualifying Rate
1. YTD Profit and Loss Statement and one full year of
interim Profit & Loss statement.
3. CPA letter verifying
Greater of start rate or fully-indexed rate.
Hazard - must equal the lessor of the following
> 100% of the insurable value of the improvement as established
by the property insurer or
2. Business License for the past 2 years
Insurance
> The unpaid principal balance of the loan amount, as long as it
equals the minimum amount - 80% of the insurable value of
improvements
> 2 years of Business with same location
Income
Documentation
CLTV
N/A
Max LTV for Investment : 50% LTV if borrower has 5 - 8 financed properties.
Self Employed
LTV
Primary Residence / 2nd Home / Investment **
$625,000
$750,000
Maximum Loan
Amount
> Letter should indicate business name, borrower's
name and percentage of business ownership by the
borrower
Trade Lines
4. CPA License number
3 trade lines seasoned for at least
12 months
Max. 1x30 in past 12 months
5. CPA letter must be provided by the CPA who filed
borrower's tax returns
Mortgage / Rent
Max. 2x30 in past 24 months
6. Borr who filed his/her own tax return is not eligible.
1. Written Verification of Employment form (FNMA
Form 1005) completed by Employer
Wage Earner
2. Foreign Nationals - Length of employment; last 2
years income to YTD and current position indicated on
employing company letterhead.
Employment Max allowed 180 days with satisfactory explanation and must be in current job for at least
Gap (Salaried) 6 months
Max DTI
43%
Credit
Bankruptcy /
SS&DIL/Foreclosure
Loan Modification
Credit score
3yrs / 2yrs / 5yrs
2 years
At least 2 scores
Max 3x30 in past 24 months
0x60 in past 12 months
Installment/ Revolving Debt
0x90 in past 12 months
1x60 in past 24 months
1x90 in past 24 months
PREFERRED PORTFOLIO ARM MATRIX
Reserves
Condo
LTV <= 60% & Loan AMT up to $1M
LTV 60.01 - 70% and Loan AMT up to $1M
6 months P&I
12 months P&I
Delayed Financing
Loan AMT > $1M
12 months P&I
Loan Amount
> Business asset is not acceptable for reserves.
Reserves
Listing History
> Most recent 2 months Bank Statements (may require additional months)
Business Phone #
> Business Funds may be used up to 50% of current balance if 100% ownership of the
business is verified
Appraisal
3 months seasoning required
Must be verified through 411 or internet.
> US Citizen and Permanent Resident
Max Financed Prop
70% maybe considered for reserves
60% maybe considered for reserves
> Vested Retirement Account funds
One Full Appraisal
Loan AMT up to $ 1M
Loan AMT from > $1M to $2.5M
Allowed if the original purchase transaction was arms-length
transaction and source of funds for purchase transaction must be
borrower's own funds.
Max 8 properties per Borrower
3 months for Foreign National
> Stocks/Bonds/Mutual Funds
Must be warrantable by Fannie Mae
$2M up to 3 properties
Eligible States
One Full Appraisal and One Field Review
Borrower must contribute at least 10% towards the transaction from their own funds for
Source of Funds
purchase transactions (50% for foreign nationals)
California only
US Citizens
Eligible Borrowers
Permanent resident with proper document
Non-Permanent resident with acceptable VISA
Eligible Properties
1. Copy of passport, I-94 and valid VISA (F-1 and F-2 types are not allowed.)
$2M up to 8 properties
> Foreign National
Gift Funds
2. Copy of passport and either I-94 or Proof of ESTA Approval required for borrowers on
VISA Waiver Program
SFR / 2-4 Units / PUD / Condominium
1. Not allowed on Foreign National / Investment.
2. Can't be used as Reserve requirement
3. Borrower must have U.S. Address when applying for loan.
4. Max number of Financed properties is the lesser of 3 loans or $2M (total financed
amount including subject)
Foreign
Nationals
5. Foreign assets (down payment, CC, Reserves) must be transferred to U.S. institutional
account prior to ordering loan documents
1. Non-arms length
6. 24 months P&I reserves required for subject property
3. Power of attorney
> 24 months P&I reserves for subject property. 12 months P&I reserves to be
deposited into assigned financial instituion by OGI.
2. For sale by owner
4. At-Interest Transactions
Ineligible Transactions
7. Income
ex) > Realtor/broker acting as listing/selling agent as
well as the mortgage loan originator
> Seller acting as the mortgage loan originator
> VOE - indicate position, length of employment, last 2 years to present
income on official company letterhead signed by HR or Supervising officer
> borrower's family member acting as the
mortgage loan originator and real estate broker at
the same time
> Translated and notarized
8. Most recent 3 months bank statement required.
9. Automatic debit payment required from U.S. Banking institution
10. Not eligible countries
Iran
North Korea
Cuba
Sudan
Syria
Principal
Reduction
Not Allowed - Loan Amount must either
be reduced or qualified as a cash out
transaction. "NO EXCEPTION"