Effective July 18th, 2016
REMN Wholesale is pleased to announce we will be offering the Expanded Plus program. Self-employed borrowers using alternative documentation will benefit from the flexibility offered by the Expanded Plus Program.
Highlights of Expanded Plus are provided below.
- Expanded Plus documentation options:
- Full Doc and Alt-Doc Limited are available for wage earner/salaried and self-employed borrowers.
- Alt-Doc 24 and Alt-doc 12 are available for self-employed borrowers with > 25% or more ownership interest in a business. Borrower is qualified using the applicable number of month’s personal bank statements.
- Asset Depletion is eligible as a stand-alone options or to supplement other income to lower DTI.
- Minimum credit score 660
- 1-4 owner-occupied, 1-unit second home, and 1-4 unit investment properties eligible
- SFD, PUD, condo (FNMA warrantable), site/detached condos, and modular properties eligible
- Purchase, rate/term and cash-out allowed
- Permanent resident aliens, first-time homebuyers, and non-occupant co-borrowers eligible (blended ratios allowed for non-occupant c-borrowers)
- Maximum loan amount $2,500,000
- Maximum LTV 75% (determined by documentation option, credit score, and property type; refer to the Expanded Plus program guidelines for details)
- Maximum DTI is determined by LTV:
- > 65% LTV: 50%
- ≤ 65% LTV: 55%
- Maximum DTI for First Time Homebuyer is determined by LTV and Documentation option:
- Full doc
- > 65% LTV: 50%
- ≤ 65% LTV: 55%
- All other documentation options (Alt-doc 24, 12, Alt-Doc Limited)
- Maximum 43% DTI
- Residual Income is required as follows:
- DTI ≤ 43% not required
- DTI > 43% requires residual income:
- Residual income is defined as qualifying income minus total monthly obligations
- The Required amount of residual income is determined by: Subject loan amount multiplied by .45% equals amount of required residual income. (i.e. loan amount x .45% = amount of required residual income)
- Down payment requirement determined by documentation option:
- Full Doc, owner occupied: Minimum 10% borrower own funds
- All others (occupancy and documentation options): minimum 30% borrower own funds
- Gift funds, from an immediate family member, eligible after borrower own funds requirement met
- Mortgage/rental history: 0x30 in previous 12 months (no exceptions)
- Two year employment history in same job or same line of work. Sel-employed borrowers require business to be in existence for a minimum of 2 years
- Borrowers with derogatory credit eligible with 12 months seasoning from event end date to application date
- Borrower may have up to four (4) financed properties, including subject
- No seasoning requirement for refinance transaction
- Reserve requirements determined by loan amount
- An “Approve/Ineligible” or “Refer” AUS finding is required. After AUS submission, REMN WS will manually underwrite the loan
- 5/1 LIBOR ARM only
- Available in all states with the exception of: IL, NE and NY
- The following are ineligible on the Expanded Plus program:
- Inter-vivos trust
- Appraisal Transfers
- Power of Attorney
- Non-permanent resident aliens
- Limited and general partnerships, corporations and LLC entities as the borrower type.
- The Expanded Plus program is not available for Emerging Bankers
- The commitment fee buyout option is not eligible on the Expanded Plus program.
The following have been posted on REMN Wholesale website:
- Expanded Plus Guidelines
- Expanded Plus Documentation Option Comparison
- Updated Loan Submission Form
Expanded Plus loans will require a manual lock. Brokers should complete the REMN Manual Lock Request form, located on the broker portal, under the “current pricing” page.
Email the completed form to email@example.com .
The REMN rate sheet will reflect Expanded Plus pricing effective July 18, 2016.
If you have any questions, please contact your Account Executive.