Plaza Home Mortgage® has made updates to our Solutions Non-QM 1,3 & 4, DSCR Investor Solutions 1, 3 & 4, and Closed-End Seconds loan programs. These updates include guideline revisions and clarifications which are effective immediately for all new locks.
Solutions Non-QM 1
- Program Matrix: Minimum FICO for LTV > 80% updated to 700 for Full Doc and 720 for Alt doc.
- Construction loan payoff refinance: Appraised value used after 6 months’ ownership (was 12 months). Clarified flip guidelines may apply.
- Non-permanent Resident: Doc type is no longer limited to 24-months, and gift funds are now allowed.
- Housing History: VOR from a private party may be allowed.
- Income Doc, Full Doc 401(k)/IRA: 12-month history of withdrawal requirement removed, and documentation options added.
- Income Doc, Full Doc Pension/Retirement: 1-year 1099 is allowed (was 2-years) and documentation options clarified.
- Alt Doc 1099: 1099s issued to an LLC are allowed if additional requirements are met.
- Alt Doc Bank Statements:
- Large deposits are defined as deposits exceeding 100% of sales/revenue (was 50%).
- NSF definitions clarified. No change to number of occurrences allowed.
- Reserves: Reserves waiver for Rate/Term P&I reduction removed.
- Interested Party Contributions: Increased to 6% for investment property (was 3%).
- Property – Condos: Fannie Mae CPM approval is allowed and review requirements clarified for site condos and 2–4-unit projects.
- Construction loan payoff refinance: Appraised value used after 6 months’ ownership (was 12 months). Clarified flip guidelines may apply.
- Non-permanent Resident: Doc type is no longer limited to 24-months, and gift funds are now allowed.
- Housing History: VOR from a private party may be allowed.
- Income Doc, Full Doc 401(k)/IRA: 12-month history of withdrawal requirement removed, and documentation options added.
- Income Doc, Full Doc Pension/Retirement: 1-year 1099 is allowed (was 2-years) and documentation options clarified.
- Alt Doc 1099: 1099s issued to an LLC are allowed if additional requirements are met.
- Alt Doc Bank Statements:
- Large deposits defined as deposits exceeding 100% of sales/revenue (was 50%).
- NSF definitions clarified. No change to number of occurrences allowed.
- Property – Condos: Fannie Mae CPM approval is allowed and review requirements clarified for site condos and 2–4-unit projects.
- Construction loan payoff refinance: Appraised value used after 6 months’ ownership (was 12 months). Clarified flip guidelines may apply.
- Non-permanent Resident: Doc type is no longer limited to 24-months.
- Housing History: VOR from a private party may be allowed.
- Income Doc, Full Doc 401(k)/IRA: 12-month history of withdrawal requirement removed, and documentation options added.
- Income Doc, Full Doc Pension/Retirement: 1-year 1099 is allowed (was 2-years) and documentation options clarified.
- Alt Doc 1099: 1099s issued to an LLC are allowed if additional requirements are met.
- Alt Doc Bank Statements:
- Large deposits defined as deposits exceeding 100% of sales/revenue (was 50%).
- NSF definitions clarified. No change to number of occurrences allowed.
- Interested Party Contributions: Increased to 6% for investment property (was 3%).
- Property – Condos: Fannie Mae CPM approval is allowed and review requirements clarified for site condos and 2–4-unit projects.
- Refinance: Construction loan payoff refinance: Appraised value used after 6 months ownership (was 12 months).
- First-Time Investor:
- Mortgage history requirement 12 months (was 36).
- Cash-out is allowed.
- Non-Permanent Resident: Gift funds are allowed.
- Housing History:
- Clarified housing history not required for non-primary residence and non-subject property not listed on the credit report.
- Clarified mortgage rating must be current through the month prior to the note date (same as Non-QM).
- VOR from private party may be allowed.
- Leased Properties vs Vacant Properties: Clarified all leased properties require a lease.
- Short-Term Rent Calculation: AirDNA maximum occupancy limit of 2 people per room removed.
- Interested Party Contributions increased to 6% (was 3%).
- Reserves waiver for Rate/Term P&I reduction removed.
- Property – Condos: Fannie Mae CPM approval is allowed and review requirements clarified for site condos and 2-4 unit projects.
- Refinance: Construction loan payoff refinance: Appraised value used after 6 months ownership (was 12 months).
- First-Time Investor:
- Mortgage history requirement 12 months (was 36).
- Cash-out is allowed.
- Non-Permanent Resident: Gift funds are allowed.
- Housing History:
- Clarified housing history not required for non-primary residence and non-subject property not listed on the credit report.
- Clarified mortgage rating must be current through the month prior to the note date (same as Non-QM).
- VOR from private party may be allowed.
- Leased Properties vs Vacant Properties: Clarified all leased properties require a lease.
- Short-Term Rent Calculation: AirDNA maximum occupancy limit of 2 people per room removed.
- Interested Party Contributions increased to 6% (was 3%).
- Property – Condos: Fannie Mae CPM approval is allowed and review requirements clarified for site condos and 2–4-unit projects.
- Refinance: Construction loan payoff refinance: Appraised value used after 6 months ownership (was 12 months).
- Non-Permanent Resident: EAD no longer allowed, must verify with a VISA.
- Housing History:
- Clarified housing history not required for non-primary residence and non-subject property not listed on the credit report.
- Clarified mortgage rating must be current through the month prior to the note date (same as Non-QM).
- VOR from private party may be allowed.
- Short-Term Rent Calculation: AirDNA maximum occupancy limit of 2 people per room removed.
- Interested Party Contributions increased to 6% (was 3%).
- Property – Condos: Fannie Mae CPM approval is allowed and review requirements clarified for site condos and 2–4-unit projects.
- Seasoning: Note date is used for seasoning (was the application date).
- Loan Limit: Maximum combined liens $2.5M (was $3M).
- Eligible First Liens: A copy of the first lien note is required.
- Alt Doc Bank Statements:
- Large deposits defined as deposits exceeding 100% of sales/revenue (was 50%).
- NSF definitions clarified. No change to number of occurrences allowed.
- Property – Condos: Clarified review requirements.
- Geographic Restrictions: Updated state fee eligibility for IN, NC, PA and VT.
Plaza’s DSCR Investor Solutions and Solutions Non-QM program comparisons have been updated to reflect these changes.
