Effective June 18, 2012
- Stated Income/Verified Assets Loans
- 12 Month Bank Statement Program
- JUMBO Full Income/Full Assets Verification Loans
- Foreign National Mortgage Loans
- Interest Only Loans
- No Income Check Loans for Investment Properties
- Pledged Assets and Depletion of Assets for High Net Worth Individuals
Stated (NO INCOME CHECK) Income/Verified Assets Loans
If a person cannot verify income (self-employed, for example) but can verify assets with two month bank statements, Great Northern Mortgage will arrange for stated income loan financing on the following terms:
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Type of Transaction
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Purchase, Refinance (Cash out and No cash out)
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Occupancy
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Primary
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Type of Property
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1 – 4 Family, Condo, Coop (case by case)
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Property State
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NYC, Nassau, Suffolk, Westchester, NJ
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Maximum Loan to Value
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70% to $417,000 (max cash out is $100,000)
65% to $750,000
60% to $1,000,000
50% to $3,000,000
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Maximum Loan Amount
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See above
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Type of Documentation
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Stated Income/Verified Assets. Must show 2 months bank statements and verify 6-12 months post closing reserves of Principal, Interest, Tax, and Insurance.
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Expected Interest Rate
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Mid to High 5%
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Minimum Credit Score
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700 (can be > 700)
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Self-Employed or W2
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Yes – depending on the program
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12 MONTH BANK STATEMENT PROGRAM
This program is only for Self Employed or 1099 Income Earners
Type of Transaction |
Purchase, Refinance (Cash out and No cash out) |
Occupancy |
Primary, Second Home, Investment |
Type of Property |
1 – 4 Family, Condo. Coop for Primary only |
Property State |
NYC, Nassau, Westchester |
Maximum LTV Primary
Maximum LTV Primary
Maximum LTV 2nd Home
Maximum LTV Investment
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70% to $1,000,000 (Purchase and No cash out)
50% to $1,000,000 (for max cash out of $200,000)
65% to $750,000 (Purchase and No cash out only)
60% to $750,000 (Purchase and No cash out only) |
Maximum Loan Amount |
See above |
Type of Documentation |
See below |
Expected Interest Rate |
High 4% to Mid 5% |
Prepayment Penalty |
1% in the first 12 months, waived in the event the property is sold |
Minimum Credit Score |
720 |
Self-Employed or W2 |
Self Employed or 1099 only |
Type of Documentation for ALL occupancies:
- Borrower to submit 3 months most recent and consecutive business account statements.
- Borrower to submit 12 months most recent and consecutive personal account statements.
- Borrower to submit their most recent 30 day payroll checks (front/back) evidencing that these funds were drawn down on the business account.
- CPA letter must be procured evidencing the following: length of self employment in current business, percentage of business ownership - minimum of 25% ownership required, length of time that the CPA prepared corporate tax returns on behalf of the borrower (minimum 2 year required), full and registered name of the business entity and the letter must be signed and dated by the CPA.
JUMBO Full Income/Full Assets
If a person need a jumbo loan, and he/she can verify income, assets, and have from 2 to 12 months of reserves for PITI (principal, interest, tax, and insurance), Great Northern Mortgage will arrange financing on the following terms:
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Type of Transaction
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Purchase, Refinance (Cash out and No cash out)
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Occupancy
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Primary, Second Home*
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Type of Property
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1 - 4 Family, Condo, Coop*
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Property State
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New York
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Maximum Loan to
Value (LTV) &
Combined Loan to
Value (CLTV)
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90% to $800,000 (Primary, Purchase & Refi)
85% to $1,500,000 (Primary, Purchase)
80% to $2,000,000 (Primary, Purchase & Refi)
70% to $3,000,000 (Primary, Purchase)
65% to $5,000,000 (Primary, Purchase)
55% to $10,000,000 (Primary, Purchase)
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Maximum Loan Amount
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See above
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Type of Documentation
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Full Income/Full Assets
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Expected Interest Rate
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Mid to High 5%
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Interest Only
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N/A
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Minimum Credit Score
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575 for 45% LTV
720 for Max LTV
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Self-Employed or W2
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Both
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*Occupancy (second home) and Type of Property (multifamily, condo, coop) may reduce LTV and loan amounts. Please call for details.
Foreign National Mortgage Loans, Full Doc Loans
Great Northern Mortgage will arrange Foreign National Mortgage Loans on the following terms:
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Type of Transaction
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Purchase, Refinance (Cash out and No cash out)
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Occupancy
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Second Home, Investment Property
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Type of Property
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1 - 4 Family, Condo, Coop
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Property State
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New York
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Maximum Loan to Value
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60% to $5,000,000
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Maximum Loan Amount
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$10,000,000
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Type of Documentation
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FULL DOC*
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Expected Interest Rate
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5.5% - 6.5% - Second Home
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Expected Interest Rate
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7.25% - 8% - Investment Property (+.5% for Coop)
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Minimum Credit Score
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N/A
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Self-Employed or W2
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N/A
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Different Portfolio Product
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Loan to value can go up to 60%, with the max loan amount of $500,000. In this case the borrower must show 12 months PITI reserves and meet full documentation requirements indicated below. Expected rates are from 10% to 12%. Type of Transaction, Occupancy, Type of Property and Property State are the same as above.
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* For all Non U.S. Citizens, income documentation will need to be translated and currencies must be converted to U.S. dollars.
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Definitions
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Foreign National
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Foreign Nationals, also known as Non-Resident Aliens, are individuals with foreign citizenship allowed to be in the country for personal or business purposes. They do not have "green cards" or other legal documents allowing them to work in the US. Banks will not lend to applicants with Diplomatic Immunity.
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Permanent Resident Alien
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Lawful permanent residents of the US that hold acceptable evidence of permanent residency issued by the INS, including : (A) INS Form I-551 Alien Registration Receipt "green card", or I-751 with an unexpired date or (B) an Unexpired passport with an unexpired stamp reading "processed for I-551". Temporary evidence of Lawful Admission for Permanent Residence. Valid until [date]." Employment Authorized"
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Non-Permanent Resident
Alien
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Foreigners who live in the US on a temporary basis and have work visas. Documentation from the INS must verify that they are legally in this country and have work authorization. Acceptable documentation includes current passport with one of the following unexpired visas: E-1, E-2, H-1, L-1 or TN - NAFTA, if applicable. Note: Non-Permanent Resident Aliens with US Credit and a TN-NAFTA visa or no visa use Foreign National guidelines “With US Credit”.
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Click HERE for more details on Foreign National Loans
Interest Only, Full Income/Full Assets
If a person wants to pay interest only, Great Northern Mortgage will arrange financing on the following terms:
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Type of Transaction
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Purchase, Refinance (No cash out only)
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Occupancy
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Primary, Second Home
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Type of Property
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1 – 2 Family, Condo
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Property State
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New York
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Maximum Loan to Value
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75% to $1,250,000
70% to $2,000,000
65% to $2,500,000
60% to $3,000,000
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Maximum Loan Amount
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See above
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Type of Documentation
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Full Income, Full Assets
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Expected Interest Rate
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Mid 3% - Mid 4%
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Minimum Credit Score
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680
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Loan Product
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5/1, 7/1, 10/1 ARM
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Self-Employed or W2
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Both
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NO INCOME CHECK LOANS FOR 1 TO 4 INVESTMENT PROPERTIES
If a person is self-employed with at least two (2) years in business and cannot verify income but can verify assets, Great Northern Mortgage will arrange no income verification loan with self-employment affidavit on the following terms:
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Type of Transaction
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Purchase, Refinance (Cash out and No cash out)
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Occupancy
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Investment Properties only
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Type of Property
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1 to 4 Family and Condominiums
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Property State
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NYC, Long Island, Westchester, Rockland and Northern NJ
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Maximum Loan to Value
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75% to $1,500,000 (Purchase 1 Family and Condos)
70% to $1,500,000 (Refinance 1 Family and Condo)
75% to $1,750,000 (Purchase 2-4 Family)
70% to $1,750,000 (Purchase 2-4 Family)
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Maximum Loan Amount
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See above
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Type of Documentation
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Self-Employment Affidavit from CPA or attorney. Four months consecutive bank statements (personal) are required that shows monthly deposits sufficient to substantiate income stated. If using business bank statements, the bank can only use the amount paid for personal expenses as income and proof must be provided. Net worth of the applicant(s) must be equal to three to six times the annual income reported on Self-Employment Affidavit (can use net worth of the business, other properties, personal assets and so on). Post closing reserves are minimum 4 months.
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Expected Interest Rate
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Low 4% - Low 6% with 2 Points to Lender
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Interest Only
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N/A
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| Loan Product |
3/1, 5/1, 7/1, 5/25 (rolling), 10/10/5 ARM |
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Minimum Credit Score
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660
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Self-Employed or W2
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Self Employed or 1099 only
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PLEDGED ASSETS AND DEPLETION OF ASSETS FOR HIGH NET WORTH INDIVIDUALS
Pledged Assets Loans
- Pledged Assets Loans - The Pledged Asset Loan Program allows up to 90% financing of the property value (the lesser of the appraised value or the purchase price).
- By pledging Eligible Assets, a borrower eliminates the need to liquidate assets to obtain the cash needed for a down payment, avoids capital gains taxes associated with such liquidation, maintains a more liquid position, and continues to benefit from any future earned interest, dividends, and appreciation in their pledged assets.
- Any family member may pledge assets on behalf of a borrower in lieu of the down payment, second mortgage, or home equity loan.
- Pledged assets may be kept with the new lender, or a brokerage firm of choice (i.e. the applicant does NOT need to move assets from the current brokerage firm), as long as certain pledge account requirements are met.
- Trading is allowed in the pledged account.
- The proceeds from a loan, including cash-out refinances, may not be used to purchase, carry, or trade any assets, or to repay any debt used to purchase, carry or trade assets, pledged under the Pledged Assets Loan Program.
| Type of Transaction |
Purchase, Refinance (Cash out and No cash out) |
| Occupancy |
Primary, Second Home, Investment |
| Type of Property |
1 - 4 Family, Condo, Coop |
| Property State |
New York, New Jersey, Connecticut, Florida |
| Maximum Loan to Value |
90% to $5,000,000 (With Pledged Assets) |
| Maximum Loan Amount |
See above |
| Type of Documentation |
Full Income, Full Assets. The borrower /obligor must execute the Pledge Agreement prior to loan funding.
The securities intermediary must execute the Account
Control Agreement prior to loan funding. |
| Expected Interest Rate |
Low 4% - Low 5% |
| Interest Only |
Yes |
| Loan Product |
Fixed and ARMs available |
| Borrower Requirements |
The obligor (the party that pledges the Eligible Assets) does not have to be the borrower nor does the obligor need to have a family relation to the borrower. However, the lender, at its sole discretion, will determine eligible obligors based on obligor’s relationship to borrower and circumstances. |
| Eligible Assets |
Eligible assets include stocks, bonds, mutual funds, CDs, money market, savings, and others.
Retirement accounts are not eligible. Not eligible Assets are assets bought on margin, options, warrants, IRA assets, 401K assets, annuities, insurance benefits, 529 or other education savings plans. Eligible Assets must be managed by an Investment Broker/Dealer or a new lender.
Eligible Assets must be held in an account based in the US, either by a US entity or the US branch of a foreign entity. |
| Pledged Account |
Pledged accounts may be released after 36 months, at the lender’s discretion, if a new appraisal shows the current LTV is equal to or less than original Effective LTV. Borrower must be current on loan payments with no delinquencies in the last 12 months. |
Pledged Amount Ratios
(See example below) |
The Base Pledge Amount equals the equity requirement percentage multiplied by the property value; minus any equity or down payment.
The Initial Pledge, Amount equals the Base Pledge Amount multiplied by Two hundred percent (200%) if non cash assets (Market Assets) are pledged, if cash assets (Money Accounts) are pledge the Base Pledge Amount is One Hundred percent (100%). If the account value of Market Assets drops below 168%, the borrower must replenish the account or the lender may require the sale of all or a portion of the pledged assets. |
| Minimum Credit Score |
680 – Primary Residence, 700 – Investment Property |
| Self-Employed or W2 |
Self Employed and W2 |
Pledged Asset Example
Purchase Price $1,000,000
Max LTV (per lender’s matrix) 70% = $700,000
Pledged Asset Max LTV 90%= 900,000
Difference $200,000 may come from
Money Accounts 1:1 pledge = $200,000 (i.e. CDs, Savings Accounts)
Market Accounts 2:1 pledge = $400,000 (i.e. Stocks, Bonds)
DEPLETION OF ASSETS FOR INCOME
- Asset depletion is taking assets (not 401K or life insurance or IRA unless retired age and has full access), amortizing to age 85, never more than 30 years, never less than 5 years, at a rate of 5%, and adding that monthly figure to the monthly Full Documentation income.
- Eligible assets include cash equivalents such as CDs, savings, MMAs and public stocks, bonds, mutual funds, etc. (not Real Estate Owned Properties)
- Down payment and 12-months full debt service reserves must be subtracted from Eligible Assets.
- Assets held in a retirement account are eligible when the borrower ≥ 62 years old.
- Works great for high net worth individuals and retirees, self employed, trust fund people, divorcees, and so on.
EXAMPLE:
| Available Assets |
Borrower’s Age |
Additional Monthly Income |
$100,000 |
Less than 55 |
$537 |
$300,000 |
Less than 55 |
$1,610 |
$500,000 |
Less than 55 |
$2,684 |
$1,000,000 |
Less than 55 |
$5,368 |
$1,000,000 |
75 and Over |
$10,607 |
$5,000,000 |
Less than 55 |
$26,841 |
$8,000,000 |
Less than 55 |
$42,946 |
Please be advised that programs and guidelines may be changed without any notice.
Please always call us or complete our secure online application form to see if you would qualify.
* Contact us for more details 888-9LOAN99 or inoble@GetLowRate.com
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