Homebridge is updating the Simple Access program as detailed below.
Cash-Out Improvement
Full Doc, Bank Statement, and 1099 Only (previously limited to a maximum $1,000,000 regardless of LTV):
- LTV ≤ 50%: Unlimited cash-out
- Cash-out > $300,000 requires a minimum 700 credit score
- LTV > 50%: Maximum cash-out $1,000,000
- Cash-out > $300,000 requires a minimum 700 credit score, and
- Cash-out > $500,000 maximum 60% LTV
Investor Cash Flow (previously limited to $500,000 regardless of LTV):
- LTV ≤ 50%: Unlimited cash-out
- Cash-out > $300,000 requires a minimum 700 credit score
- LTV > 50%: Maximum cash-out $500,000
- Cash-out > $300,000 requires a minimum 700 credit score, and
Interest-Only Updates
Full Doc, Bank Statement, and 1099 Only Interest-Only Transactions:
- Interest-only maximum 85% LTV (previously eligible up to 90% if loan amount ≤ $1,500,000)
- Interest-only loans with a 40 year loan term now eligible up to 85% LTV (previously maximum 80% LTV)
NOTE: A minimum 680 credit score or minimum required for the applicable loan amount, whichever greater continues to be required)
Borrower Eligibility
- Added a clarification that if the borrower is an employee of the Broker or owner, they are not eligible on any option except on the Full Doc option. The Broker/employee cannot represent themselves and an LOE is required
Credit Report Re-Score
- Once a credit report is obtained, and it is still within its validity period, a credit re-score will only be permitted when the re-score is due to:
- The removal of a disputed account, or
- New information is obtained to address and correct any item(s) that are erroneous
- Transactions involving a re-score are subject to management review and approval
- A re-score is not allowed when it is due to any of the following:
- Addition of new debt (when used for purposes of potentially increasing the borrower’s credit score), and/or
- The pay down or payoff of existing debt(s)
- The Underwriter is responsible to review the credit report for any new accounts opened within 60 days of the credit report, to determine if a re-score may have occurred
- The credit report is not valid if there is an open derogatory dispute. All derogatory disputes must be resolved, and an updated credit report obtained
- If the original credit score expires and a new report is required, the new report is not considered a re-scored report
Effective Dates
Effective dates vary by topic; carefully review the below for applicable effective date.
- Cash-Out Improvements:
- Effective immediately for new submissions and loans currently in the pipeline underwritten May 3rd and after
- Interest-Only Updates:
- Interest-only improvements eligible for new submissions and loans currently in the pipeline
- Interest-only more restrictive applies to transactions registered June 2nd and after
- Credit Report Re-score and Borrower Eligibility
- Credit report re-score guidance and the borrower eligibility clarification are effective immediately and must be applied to new submissions and loans currently in the pipeline
The Simple Access guidelines have been updated and posted on the Homebridge website at HomebridgeWholesale.com.
If you have any questions, please contact your Account Executive
