Bulletin 2022-010 Smart Series Product Update

SmartVest Update

Topic

Current Guideline

New Guideline

Florida Condos

New or newly constructed condos located have a maximum 60% LTV/CLTV

No longer required

First-Time Investor

N/A

• A first-time investor is permitted if all of the following are met:
  • Minimum 700 credit score
  • Maximum 75% LTV
  • Borrower has owned a primary residence for at least 12 months and has a 12-month housing payment history (current or prior history)
  • Must have a 36-month credit history including the 12-month housing payment history
  • Minimum DCR 1.25
  • Maximum one investment property financed with Newrez SmartVest product if the borrower has less than three years of landlord experience

Short Term Rental (AirBNB)

· Short Term Leases

o Short term leases are not permitted

o If a 12-month lease converts to a month-to-month, use all leases throughout the year and average over the 12-month period. If there are months where the property was vacant, use zero for that month in the average.

· The average should be supported by the Single-Family Comparable Rent Schedule (Form 1007/1000) within reason. AirBNB, VRBO, and similar rental services are not acceptable

• Refinance transactions
• Maximum LTV must be reduced by 5%
• If the subject property is a condo, provide evidence that the property is eligible for short term rentals (condo association letter, etc.)
• Documentation to evidence a 12-month yearly income statement of property being in service, including a month by month rental history. Statement may be provided by borrower or third-party rental agency
  • If no rent is received for a month, use zero and continue to average over 12 month period
  • If 12 month average is within a 10% variance from the Single-Family Comparable Rent Schedule (Form 1007/1000) use the rental income calculated in 12 months
  • If the lease is >10% variance, use the rental income shown on the Single-Family Comparable Rent Schedule (Form 1007/1000)

Multiple Financed Properties

· Borrower may own up to 20 financed properties including the subject property, unless the current primary residence is pending sale

· Maximum Financing with Newrez

o Borrower limited to eight loans with Newrez not to exceed $3,000,000 in aggregate

· All real estate owned must be disclosed on the application with the full PITIA

· Properties owned free and clear are not included

· The PITIA must be disclosed for all REO owned

· New multiple loans must be underwritten simultaneously

• Borrower may own an unlimited number of financed properties
• Maximum Financing with Newrez
  • Borrower limited to eight loans with Newrez not to exceed $3,000,000 in aggregate
  • Maximum 10% of properties in a PUD or condo project may have financing with Newrez
  • Projects ≤ 10 total units; borrower may finance one unit with Newrez
  • Newrez financing limited to a maximum concentration of 20% in any Florida condo project (per project not per borrower)
• All real estate owned must be disclosed on the application with the full PITIA
• New multiple loans must be underwritten simultaneously

Florida Condos

New or newly constructed condos located have a maximum 60% LTV/CLTV

No longer required

Florida Condos

New or newly constructed condos located have a maximum 60% LTV/CLTV

No longer required