Enhancements and Updates to the Access (Non-QM) Program



Homebridge is making enhancements and updates to the Access (Non-QM) program as detailed below.

Investor Cash Flow (DSCR)

  • The maximum loan amount restriction for an interest-only transaction has been removed when the LTV is 60% or less (previously capped at $2,000,000 regardless of LTV)
  • Loans submitted by an MLO who is not currently licensed in the subject property state:
    • The maximum LTV is 75% (previously no LTV restriction)
    • Iowa has been added as a restricted state for loans submitted by an unlicensed MLO (i.e. the property cannot be located in Iowa)

Bank Statement

  • Maximum NSFs allowed have been increased as follows:
    • 12 month’s bank statements: Maximum 6 instances within past 12 months (previously 3)
    • 24 month’s bank statements:  Maximum 12 instances within the past 24 months (previously 6)
  • Income trend requirements have been improved as follow for 24 Month Bank Statements:
  • If eligible deposits have declined year over year up to 15%:
    • A 24 month average will be utilized (previously 5%)
  • If eligible deposits have declined by > 15% up to 50% year over year:
    • A 12 month average of the most recent years eligible deposits may be used (previously restricted up to a 15% decline)
  • If eligible deposits have declined by > 50%:
    • The loan is ineligible (previously ineligible with deposits that declined > 15%)

P&L Only

  • Removed the requirement for 2 months business bank statements to support the P&Ls

Foreign National Borrowers:  Investor Cash Flow (DSCR) Only

  • 75% LTV now available with $2,000,00 loan amount, minimum 700 credit score, and minimum 1.15 DSCR
  • 70% LTV now available with $2,000,000 loan amount, minimum 700 credit score, and minimum 1.00 DSCR
  • Borrowers without a U.S. credit score maximum 65% LTV
  • Cash-out transactions with an LTV of 70.01% to 75% cannot use cash-out proceeds to satisfy reserve requirements

General Enhancements

  • Cash-out transactions (Full Doc, Bank Statement, 1099 Only, P&L Only, and ICF)
  • Unlimited cash-out now eligible with ≤ 65% LTV (previously 60%)
  • LTV > 65% maximum cash-out proceeds $1,000,000 (previously 60%) except ICF:
    • ICF Option: Maximum cash-out proceeds $750,000 (previously $500,000)
  • Appraisal requirements have been enhanced as follows:
    • One full appraisal now required for loan amounts up to $2,000,000 (previously $1,500,00)
    • Two full appraisals now required for loan amounts > $2,000,000 (previously > 1,500,000)
  • Non-warrantable condominium project requirements have been updated for the following
  • The restriction that the transaction can have only one non-warrantable feature has been removed
  • Reduced the presale requirement on new projects to 50% (previously 70%)
  • The topic has been re-formatted to provide more clarity
  • Investment transactions secured by a property located in the state of New Jersey may now offer a prepayment penalty option subject to the property closing in an LLC
    • NJ PPP options are ineligible for transactions that are not closing in an LLC
    • Homebridge will provide a Guaranty Agreement in the closing documents which must be signed by the borrower
    • The loan documents will be required to be signed by the borrower as a managing member only, not as an individual on the Note, Security Instrument, and CD. The personal guarantor/borrower will not sign the Note, Security Instrument, or CD.

General Updates

Investment Property Cash-Out Transactions:  All Documentation Options

  • All investment property cash-out transactions require cash-out to be used for business purposes ONLY; cash-out proceeds cannot include consolidation of personal consumer debt
  • Homebridge will require the borrower to sign a specific Affidavit at loan closing to confirm cash-out proceeds will be used for business purposes only.
  • The Affidavit will be required on Full Doc, Bank Statement, 1099 Only, and P & L Only Access investment cash-out transactions and Homebridge will include in the loan document package

NOTE:  The new Affidavit is not required on ICF transactions since the existing affidavit

already includes language confirming proceeds are used for business purposes only

Transactions Closing in an LLC

  • Transactions closing in an LLC will have the debt reported on the borrower’s individual credit report

The Access (Non-QM) program guidelines have been updated and posted on the Homebridge website at www.HomebridgeWholesale.com

These updates apply immediately to both new submissions and pipeline transactions except as noted below:

  • Investment Cash-Out Clarification:
    • Applies immediately to all files that are CTC and new submissions
  • NJ PPP Improvement:
    • Apples immediately to pipeline transactions with a COC and new submissions
  • ICF Transactions: Unlicensed MLO New LTV Restriction
    • Applies to loans locked on or after December 7, 2023

NOTE:  Transactions taking advantage of improved LTVs will require manual locks.  To request a manual lock, email the Homebridge lock desk at locks@homebridge.com

If you have any questions, please contact your Account Executive