HomeBridge is pleased to announce enhancements to the Expanded Plus program.
The maximum LTVs allowed on the Full Doc, Alt-Doc 24, Alt-Doc 12, and Alt-Doc Limited programs have been enhanced for all transaction types including improvements to the maximum LTV allowed for loans secured by condominiums. Highlights of the LTV enhancements include:
- Maximum 80% LTV/CLTV on purchase and rate/term refinance transactions with a $1,000,000 loan amount on the Full and Alt-Doc 24 programs (owner-occupied and second home 1-unit SFR/PUD and condos)
- Maximum 75% LTV/CLTV on purchase and rate term refinance transactions with a $1,000,000 loan amount on the Alt-Doc 12 and Alt-Doc Limited programs (owner-occupied and second home 1-unit SFR/PUD and condos)
- Maximum 75% LTV/CLTV on cash-out transactions with a $1,000,000 loan amount on the Full Doc, Alt-Doc 24 and 12 and Alt-Doc Limited programs (owner-occupied and second home 1-unit SFR/PUD)
Refer to the attached updated matrices to view all of the updated LTVs and the applicable credit score requirements. The Asset Depletion option maximum LTVs remain unchanged.
Maximum Number of Financed Properties Calculation
The Financed Properties topic has been updated to follow Fannie Mae policy when calculating the number of financed properties owned by the borrower. As a reminder, the maximum number of financed property is 10, including the subject. There are no changes to the reserve requirements.
Included in the Calculation
- All 1-4 unit residential properties where the borrower is personally obligated on the loan, and
- The borrower’s principal residence if it is financed
Not Included in the Calculation
- Properties owned in the name of an LLC are not included in the calculation unless the borrower is personally obligated on the loan.
- The following property types are not included in the calculation even when the borrower is personally obligated on the mortgage:
- Commercial real estate,
- Multifamily property consisting of 5 or more units,
- Ownership in a timeshare,
- Ownership of a vacant lot (residential or commercial), or
- Ownership of a manufactured home on a leasehold estate not titled as real property
The Expanded Plus guidelines have been updated and posted on the HomeBridge website at www.HomeBridgeWholesale.com
The enhanced LTVs are eligible for loans submitted on or after August 24, 2016.
The new financed property calculation guidance is eligible for new submissions and loans currently in the pipeline.
If you have any questions, please contact your Account Executive.