Prime Plus ProgramFill the Void for High Value Homes
Prime Plus opens the door to more borrowers whose mortgage amounts range above conventional limits. This A-paper loan delivers competitive rates and flexible terms for borrowers in more affluent neighborhoods. It fills a void in the restrictions around mortgages for higher value homes related to guidelines set by Fannie Mae and Freddie Mac.
- The minimum FICOs for Primary Residence purchases have been decreased:
- 720 for a 90% LTV purchase up to $2,000,000 (prior was 740)
- 700 for an 85% LTV primary purchase up to $2,500,000 (prior was 720)
- 660 for an 80% LTV primary purchase up to $3,500,000 (prior was 680)
- The minimum FICO for a Second Home purchase up to $2,500,000 has been decreased:
- 700 for a 70% LTV purchase up to $2,500,000 (prior was 720)
- The minimum FICO for an Investment Property purchase up to $2,500,000 has been decreased:
- 700 for a 65% LTV purchase up to $2,500,000 (prior was 720)
- Delayed Financing option is now treated and priced as a Rate & Term Refinance transaction
- All transactions with a LTV ≤ 60% now require only 3 months reserves
- Appraisal age is limited to 120 days max – Recerts of value are no longer permitted.
- Borrowers who have had a recent forbearance are now eligible as long as they now meet FNMA forbearance reinstatement requirements
- Cash Out transactions – the max cash in hand has been increased to $3,000,000
- Non-Permanent Resident Aliens: the Visa expiration date has been revised from 3 years to 1 year with additional overlays – see guidelines for specifics.
- Vested Retirement accounts can now be qualified at 80% of the value for closing/reserves.
- Business Funds – guidance has been updated to no longer require a minimum percentage of ownership in order to utilize the funds as qualifying assets towards closing/reserves.
- Cash out proceeds can now be used towards the reserve requirement
- Cryptocurrency is eligible to be used for closing funds and reserves as long as FNMA requirements are met.
Borrowers who struggle to meet conventional
*Based on reserves, payment history, and credit depth