HomeBridge is updating the Jumbo and Jumbo Flex programs as detailed below.
Jumbo and Jumbo Flex
The following updates apply to both the Jumbo and Jumbo Flex programs:
When using rental income to qualify, a copy of the executed lease agreement will be required (previously not required).
Collateral Desktop Analysis (CDA)
A CDA will no longer be required when the transaction type requires two appraisals (purchase transactions with > $2M loan amount or refinance transactions with > $1.5 loan amount). The LTV will be determined by the lower of the two appraised values.
NOTE: HomeBridge will continue to require a CDA when the transaction only requires one appraisal. Refer to HomeBridge Bulletin 16-13 for CDA details.
When business funds are used for down payment and/or closing costs HomeBridge requires a cash flow analysis using three months bank statements to determine the withdrawal of the funds will not have a negative impact on the business.
The bank statements used for the cash flow analysis cannot reflect any instances of non-sufficient funds or overdraft (previously not required).
Medical collections may remain outstanding as long as the cumulative total of all medical collection accounts is < $10,000 (new guidance).
Judgments/Tax Liens/Charge-offs/Past-due Accounts
Charge-offs and past-due accounts are now subject to the same requirements as judgments and tax liens. Past-due accounts must be brought current or paid in full and charge-offs must be paid in full prior to or at closing (new guidance).
Cash-out proceeds from the subject transaction may not be used to satisfy these accounts.
The following applies to the Jumbo program only:
Second Home Cash-Out
- The borrower may now own four financed properties, including the subject (previously the borrower was only allowed to own the subject and a primary residence on a second home cash-out transaction).
- The requirement that no rental income for the subject property is shown on Schedule E has been removed.
The Jumbo and Jumbo Flex guidelines have been updated with this information and posted on the HomeBridge website at www.homebridgewholesale.com
These updates are effective immediately and apply to new submissions and loans currently in the pipeline.
If you have any questions, please contact your Account Executive.