Bulletin 2021-090 Smart Series Product Enhancements and Updates

Maximum Cash Out

$500,000 regardless of LT/CLTV

$1,000,000

• One loan with an LTV/CLTV ≤ 60%
• Multiple loans where all loans have an LTV/CLTV ≤ 60%

$500,000

• One or more loans that have an LTV/CLTV ≥ 60%

Qualifying Ratios

50% DTI

Maximum 45% DTI for loan amounts greater than $2,000,000

SmartSelf Expense Ratio

• The below industries typically have capital intensive expenses and require confirmation from the CPA or licensed third party tax preparer (PTIN) to identify the actual business expense percentage
• The lowest acceptable expense factor for qualifying is 50%
  • Automobile manufacturing or dealerships
  • Construction
  • Manufacturing (food industry such as ownership in a store, store chain, restaurant, delicatessen, food supplier, etc.)
  • Telecommunication
  • Transportation (e.g., Trucking, Uber/Lyft, etc.)

• Except in the Capital Intensive Industries listed below, gross deposits will be multiplied by a 50% expense factor to determine a net deposit number and divide by 12 or 24 months, depending on the number of bank statements provided. The lowest acceptable expense factor for qualifying is 25%,
• Capital Intensive Industries
  • Gross deposits will be multiplied by a 70% expense factor to determine a net deposit number
  • Confirmation from the CPA or licensed third-party tax preparer (PTIN) to identify the actual business expense percentage if it is less than 70%. The lowest acceptable expense factor for qualifying in these industries is 50%
    • Automobile manufacturing or dealerships
    • Construction (e.g., New Home Builders, etc.)
    • Manufacturing (food industry such as ownership in a store, store chain, restaurant, delicatessen, food supplier, etc.)
    • Telecommunication
    • Transportation (e.g., Trucking, Uber/Lyft, etc.)
    • Medical centers (>20 employees)
    • Farming & agricultural

Asset Utilization as Income

• Retirement Accounts - 80%
  • Borrower must be 59 ½
  • Eligible only if distributions have not been set up

Retirement Accounts – 100%

• Borrower is at least 59 ½ years old (retirement age)
• Documentation has been provided confirming the borrower has full access to the funds
• If the borrower is not 59 ½ years old, the borrower must have enough liquid assets to qualify until they reach 59 ½ years of age

Eligibility Matrices

Primary Residence Purchase and Rate & Term Refi

720 at 80% LTV - $3,000,000

720 at 85% LTV - $2,500,000

720 at 90% LTV - $2,000,000

680 at 85% LTV - $2,000,000

660 at 80% LTV - $2,000,000

720 at 90% LTV - $2,500,000

720 at 80% LTV - $3,000,000

700 at 85% LTV - $2,500,000

680 at 90% LTV - $2,000,000

660 at 80% LTV - $2,000,000

Eligibility Matrices

Primary Residence
Cash-out Refi

720 at 85% LTV - $2,000,000

720 at 80% LTV - $2,500,000

680 at 80% LTV - $1,500,000

660 at 75% LTV - $2,000,000

720 at 90% LTV - $2,500,000

720 at 80% LTV - $3,000,000

700 at 85% LTV - $2,500,000

680 at 90% LTV - $2,000,000

660 at 80% LTV - $2,000,000

Eligibility Matrices

Second Home Purchase and Rate & Term Refi

720 at 80% LTV - $2,500,000

680 at 75% LTV - $2,000,000

660 at 65% LTV - $2,000,000

660 at 70% LTV - $1,500,000

740 at 85% LTV - $3,000,000

720 at 80% LTV - $2,500,000

680 at 75% LTV - $2,000,000

660 at 65% LTV - $2,000,000

660 at 80% LTV - $1,500,000

Eligibility Matrices

Second Home
Cash-out Refi

720 at 70% LTV - $2,500,000

720 at 75% LTV - $2,000,000

680 at 65% LTV - $2,000,000

660 at 65% LTV - $1,000,000

720 at 70% LTV - $2,500,000

720 at 75% LTV - $2,000,000

700 at 80% LTV - $1,500,000

680 at 65% LTV - $2,000,000

660 at 65% LTV - $1,000,000

Qualifying Ratio

Maximum 50% DTI

Maximum 45% DTI for loan amounts greater than $2,000,000

Maximum Cash Out

Primary Residence and Second Home

$500,000

$1,000,000

• One loan with an LTV/CLTV ≤ 60%
• Multiple loans where all loans have an LTV/CLTV ≤ 60%

$500,000

• One or more loans that have an LTV/CLTV > 60%

Maximum Cash Out

Investment Properties

$350,000

LTV ≤ 70%: $500,000