Private lender credit standards
Asset depletion loan credit standards, compared across 7 lenders
An asset depletion (asset utilisation) loan converts liquid assets into qualifying income. The divisor, which accounts count, what haircut applies to retirement and equity holdings, and seasoning requirements differ by lender.
25 verbatim sections from 7 lenders
· 27 eligibility tables · newest source document 2026-08-25
Read this before relying on any line below. These are private
guidelines, not regulation. Lenders revise them in place at the same URL with no
announcement and no version number, so a document read last month may already be
superseded. Every quote here names its source file and that file’s own date. Confirm
against the lender’s current matrix before you place a loan.
By lender
A&D Mortgage 13 sections
All A&D Mortgage credit standards →
GENERAL PROGRAM INFORMATION
§2 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
2. GENERAL PROGRAM INFORMATION 2.1. PROGRAMS AD offers the loan programs below. See the appropriate AD Matrices for additional details and criteria: • AD Owner Occupied / Second Home / Investment Program Mortgage History Min FICO Credit Event (CE) Seasoning Tradelines Residual Income Super Prime 0x30x12 and 0x90x24 620 48 months Standard $2,000 Prime 0x60x12 620 12 months Standard / Limited $1,500 • AD Investment Property / DSCR Program Mortgage History Min FICO Credit Event (CE) Seasoning Tradelines Ownership Requirement DSCR (No DTI) 0x30x12 and 0x90x24 620 48 months Standard Not Required • AD Second Home / Investment Property Foreign National Program Mortgage History Min FICO Credit Event (CE) Seasoning Tradelines Ownership Requirement Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 13 Foreign National Full Doc 0x30x12 and 0x90x24 660 48 Months Not Required Not Required Foreign National Asset Utilization 0x30x12 and 0x90x24 660 48 Months Not Required Not Required Foreign National DSCR 0x30x12 and 0x90x24 660 48 Months Not Required Not Required 2.2. PRODUCTS See latest applicable AD Matrix. 2.3. LOAN AMOUNTS AND LOAN-TO-VALUES See latest applicable AD Matrix. The lesser of the purchase price or appraised value of the subject property is the original value used to calculate the loan-to-value, with consideration to the value derived from the secondary valuation waterfall. 2.4. DOCUMENTATION Documentation types include: • Full Documentation • Asset Utilization • Personal Bank Statement Documentation • Business Bank Statement Documentation • Written Verification of Employment (WVOE) • Profit and Loss Statement • 1099 Income 2.5. LOAN AGE The period between the note date and the AD Mortgage funding date cannot exceed 90 days for correspondent loans. AD will consider longer periods on a case-by case basis. 2.6. PREPAYMENT PENALTIES, POINTS, AND FEES Total points, fees, and APR may not exceed current state and federal high-cost thresholds. Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 14 Prepayment penalties are allowed on investment property transactions - see applicable AD Matrices for details. Prepayment penalties on primary residence and second home transactions are prohibited. Where permitted by applicable laws and regulations on an investment property, a prepayment charge may be assessed in the period between six (6) months and five (5) years following the execution date of the Note. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that pay off due to sale or refinance, or curtailments that exceed 20% of the original principal balance in each 12-month time period. See rate sheet for further detail. The prepayment penalty can be disclosed within the body of the Note or in a separate rider. The following state restrictions apply: • Prepayment penalties are not allowed in AK, AR, KS, MI, MN, NM, OH (1-2 units with loan amount less than or equal to 116,356) and RI. Prepayment penalty buydown is required. • Prepayment penalties are not allowed on loans vested to individuals in IL, NJ and VT. Prepayment penalty buydown required or close in LLC (maximum prepayment penalty period is 3 years in IL). • Maximum prepayment penalty period is 2 years in MS. • Maximum prepayment penalty period is 3 years in ID and MA. • Maximum prepayment penalty period is 3 years in DC and MD. The prepayment charge will be equal to 2 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. • Virginia a
GENERAL CLOSED-END SECOND LIEN PROGRAM INFORMATION
§2 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-2nd-Lien-July-1-2026-pdf.pdf · document dated 2026-07-01
2. GENERAL CLOSED-END SECOND LIEN PROGRAM INFORMATION 2.1. PROGRAMS AD offers the loan programs below. See the appropriate AD Matrices for additional details and criteria: • AD Owner Occupied / Second Home Program Mortgage History Min FICO Credit Event (CE) Seasoning Tradelines Residual Income US Citizens / Permanent Residents / Non-Perm Residents / Alt-Income 0x30x12 and 0x90x24 680 48 months Standard $2,000 • AD Investment Property / DSCR / Foreign National Program Mortgage History Min FICO Credit Event (CE) Seasoning Tradelines Residual Income US Citizens / Permanent Residents / Non-Perm Residents / Alt-Income / DSCR (No DTI) 0x30x12 and 0x90x24 680 48 months Standard $2,000 / DSCR Not Required Foreign National 0x30x12 and 0x90x24 680 (No Fico) 48 Months Not Required Not Required Maximum Combined Loan Amount for both first and second liens is $4,000,000. 2.2. PRODUCTS See latest applicable AD Matrix. 2.3. LOAN AMOUNTS AND LOAN-TO-VALUES See latest applicable AD Matrix. Title Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 13 The lesser of the purchase price or appraised value of the subject property is the original value used to calculate the loan-to-value, with consideration to the value derived from the secondary valuation waterfall. 2.4. DOCUMENTATION Documentation types include: • Full Documentation • Asset Utilization • Personal Bank Statement Documentation • Business Bank Statement Documentation • Written Verification of Employment (WVOE) • 1099 Income 2.5. LOAN AGE The period between the note date and the AD Mortgage funding date cannot exceed 90 days for correspondent loans. AD will consider longer periods on a case-by case basis. 2.6. PREPAYMENT PENALTIES, POINTS, AND FEES Total points, fees, and APR may not exceed current state and federal high-cost thresholds. Prepayment penalties are allowed on investment property transactions - see applicable AD Matrices for details. Prepayment penalties on primary residence and second home transactions are prohibited. Where permitted by applicable laws and regulations on an investment property, a prepayment charge may be assessed in the period between six (6) months and five (5) years following the execution date of the Note. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that pay off due to sale or refinance, or curtailments that exceed 20% of the original principal balance in each 12-month time period. DSCR loans require a minimum 1-year prepayment penalty where allowable by state law. See rate sheet for further detail. The prepayment penalty can be disclosed within the body of the Note or in a separate rider. The following state restrictions apply: • Prepayment penalties are not allowed in AK, AR, KS, MI, MN, NM, OH (1-2 units with loan amount less than or equal to 116,356), RI and TX. Prepayment penalty buydown is required. • Prepayment penalties are not allowed on loans vested to individuals in IL, NJ and VT. Prepayment penalty buydown required or close in LLC (maximum prepayment penalty period is 3 years in IL). • Maximum prepayment penalty period is 2 years in MS. Title Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 14 • Maximum prepayment penalty period is 3 years in ID and MA. • Maximum prepayment penalty period is 3 years in DC and MD. The prepayment charge will be equal to 2 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. • Virginia and Maryland - Prepayment penalties are not allowed on loan balances l
GENERAL PROGRAM INFORMATION
§2 · admortgage-com-Apex-Prime-Eligibility-Guidelines-June-29-2026-pdf.pdf · document dated 2026-07-01
2. GENERAL PROGRAM INFORMATION 2.1. PROGRAMS AD offers the loan programs below. See the appropriate AD Matrices for additional details and criteria: • AD Owner Occupied / Second Home / Investment Program Mortgage History Min FICO Credit Event (CE) Seasoning Tradelines Residual Income Apex Prime 0x30x24 680 48 months Standard $2,000 2.2. PRODUCTS See latest applicable AD Matrix. 2.3. LOAN AMOUNTS AND LOAN-TO-VALUES See latest applicable AD Matrix. The lesser of the purchase price or appraised value of the subject property is the original value used to calculate the loan-to-value, with consideration to the value derived from the secondary valuation waterfall. 2.4. DOCUMENTATION Documentation types include: • Full Documentation • Asset Utilization • Personal Bank Statement Documentation • Business Bank Statement Documentation • 1099 Income 2.5. LOAN AGE The period between the note date and the AD Mortgage funding date cannot exceed 90 days for correspondent loans. AD will consider longer periods on a case-by case basis. 2.6. PREPAYMENT PENALTIES, POINTS, AND FEES Total points, fees, and APR may not exceed current state and federal high-cost thresholds. Prepayment penalties are allowed on investment property transactions - see applicable AD Matrices for details. Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 13 Prepayment penalties on primary residence and second home transactions are prohibited. Where permitted by applicable laws and regulations on an investment property, a prepayment charge may be assessed in the period between six (6) months and five (5) years following the execution date of the Note. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that pay off due to sale or refinance, or curtailments that exceed 20% of the original principal balance in each 12-month time period. See rate sheet for further detail. The prepayment penalty can be disclosed within the body of the Note or in a separate rider. The following state restrictions apply: • Prepayment penalties are not allowed in AK, AR, KS, MI, MN, NM, OH (1-2 units with loan amount less than or equal to 116,356) and RI. Prepayment penalty buydown is required. • Prepayment penalties are not allowed on loans vested to individuals in IL, NJ and VT. Prepayment penalty buydown required or close in LLC (maximum prepayment penalty period is 3 years in IL). • Maximum prepayment penalty period is 2 years in MS. • Maximum prepayment penalty period is 3 years in ID and MA. • Maximum prepayment penalty period is 3 years in DC and MD. The prepayment charge will be equal to 2 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. • Virginia and Maryland - Prepayment penalties are not allowed on loan balances less $75,000. • Pennsylvania - Prepayment penalties are not allowed on loan balances less than an adjusted value as determined by the Dept of Banking & Securities for 1-2 units. For calendar year 2026 the amount is $329,411. Note: States may impose different definitions of points and fees, rate/APR, or prepayment penalties that apply under HOEPA. States may also use different triggers in each category for determining whether a loan will be a "high-cost mortgage" (or equivalent terms) under state law. As a matter of policy, AD does not fund loans defined as high-cost mortgages (or equivalent terms) under Federal or state law, regardless of the basis for the loan's treatment as such.
GIFT FUNDS
§6.8.2 · admortgage-com-Apex-Prime-Eligibility-Guidelines-June-29-2026-pdf.pdf · document dated 2026-07-01
6.8.2. GIFT FUNDS • Gift funds are acceptable on rate/term refinance transactions and no minimum borrower contribution is required. Gift funds are allowed for primary or second home purchase transactions with 80% CLTV without any contribution from the borrower. For CLTV above 80% CLTV, borrower must contribute at least 5% from their own funds. For investment transaction, the borrower must contribute at least 10% from their own funds with maximum 80% CLTV. Gift funds are not allowed for CLTV above 80% on Investment property. Other parameters can affect minimum borrower’s contribution requirements, please, refer to the list below the matrix. See below matrix: • Asset Utilization, the borrower must contribute at least 20% from their own funds with maximum 80% CLTV. Gift funds are not allowed for CLTV above 80%. • The first-time homebuyers must contribute at least 5% from their own funds on Primary Residence and Second Homes and at least 10% on Investment. Gift funds are not allowed for CLTV above 80% on Investment property. • Gift funds are allowed for down payment and closing costs. Gift funds are not allowed to be used for reserves. • The donor must be an a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, legal guardianship, future spouse, or domestic partner residing with the borrower. The donor may not have any affiliation with a party to the transaction, unless transaction is gift of equity (the donor can be a seller). • An executed gift letter with the gift amount, donor’s name, address, and telephone number and relationship is required. • Proof of transfer and receipt of funds. Acceptable documentation includes the following: o A copy of the donor’s check and the borrower’s deposit slip, or o A copy of the donor’s withdrawal slip and the borrower’s deposit slip, or Minimum Borrower Contribution per Occupancy <=80% CLTV >80% CLTV Primary Residence and Second Homes 0% 5% Investment 10% Not available Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 61 o A copy of the donor’s check to the closing agent, or o A settlement statement showing receipt of the donor’s check. When the funds are not transferred prior to settlement, the lender must document that the donor gave the closing agent the gift funds in the form of a certified check, cashier’s check, other official check or wire. • Gift of Equity is allowed following the below requirements: o Primary Residence only. o Maximum 75% CLTV. o Must meet all other guidelines for Gift Funds. o Gift of Equity requires a gift letter, and the equity gift credit is to be shown on the CD. o Original Note and payment history for the seller’s mortgage on the subject property must be obtained and show no pattern of delinquency within the past 12 months (if applicable). Foreclosure bailout is not allowed. o Private mortgages on the property are not allowed, the grantor’s soft-pulled credit report is required.
GIFT FUNDS
§6.8.2 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-2nd-Lien-July-1-2026-pdf.pdf · document dated 2026-07-01
6.8.2. GIFT FUNDS • Gift funds are acceptable on rate/term refinance transactions and no minimum borrower contribution is required. Gift funds are allowed for primary or second home purchase transactions with 80% CLTV without any contribution from the borrower. For CLTV above 80% CLTV, borrower must contribute at least 5% from their own funds. For investment transaction, the borrower must contribute at least 10% from their own funds with maximum 80% CLTV. Gift funds are not allowed for CLTV above 80% on Investment property. Other parameters can affect borrower’s contribution requirements, please, refer to the list below the matrix. See below matrix: • For WVOE and Asset Utilization, the borrower must contribute at least 20% from their own funds with maximum 80% CLTV. Gift funds are not allowed for CLTV above 80%. • The first-time home buyers must contribute at least 5% from their own funds on Primary Residence and Second Homes and at least 10% on Investment. Gift funds are not allowed for CLTV above 80% on Investment property. • Gift funds are allowed for down payment and closing costs. Gift funds are not allowed to be used Minimum Borrower Contribution per Occupancy <=80% CLTV >80% CLTV Primary Residence and Second Homes 0% 5% Investment 10% Not available DSCR and Foreign National 10% Not available Title Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 53 for reserves. • The donor must be an a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, legal guardianship, future spouse, or domestic partner residing with the borrower. The donor may not have any affiliation with a party to the transaction, unless transaction is gift of equity (the donor can be a seller). • An executed gift letter with the gift amount, donor’s name, address, and telephone number and relationship is required. • Gift of equity is allowed following the requirements below: o Primary Residence only. o Maximum 75% CLTV. o Must meet all other guidelines for Gift Funds. o Gift of Equity requires a gift letter, and the equity gift credit is to be shown on the CD. o Original Note and payment history for the seller’s mortgage on the subject property must be obtained and show no pattern of delinquency within the past 12 months (if applicable). Foreclosure bailout is not allowed. o Private mortgages on the property are not allowed, the grantor’s soft-pulled credit report is required. • Proof of transfer and receipt of funds. Acceptable documentation includes the following: o A copy of the donor’s check and the borrower’s deposit slip, or o A copy of the donor’s withdrawal slip and the borrower’s deposit slip, or o A copy of the donor’s check to the closing agent, or o A settlement statement showing receipt of the donor’s check. When the funds are not transferred prior to settlement, the lender must document that the donor gave the closing agent the gift funds in the form of a certified check, cashier’s check, other official check or wire.
CREDIT SCORES
§6.5.1 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
6.5.1. CREDIT SCORES US Citizens, Permanent Residents or Non-Permanent Residents residing in United States, the representative credit score is used to qualify. The representative credit score is defined as the lower of 2 or middle of 3 scores for each borrower. Borrowers with 1 available credit score reviewed on a case- by-case basis. Borrowers with no available credit score which contain no evidence of prior adverse or negative credit history within last 48 months are eligible for financing on the Prime program. For pricing and eligibility purposes refer to Eligibility Matrix with “No Fico” bucket. If the score is available, the loan may be priced using the actual Representative Loan Score. Borrowers with no credit scores may be considered for DSCR program on a case-by-case basis. Foreign Nationals are not subject to credit score requirements unless Credit Score history is available. Foreign Nationals with active credit scores, will use middle of 3 or lowest for 2 or 1 if only 1 score available for FICO/LTV eligibility criteria and worst-case pricing. For all programs, the applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will be used. For loan files with multiple borrowers/guarantors: • Super Prime, Prime and Foreign National Full Documentation/Asset Utilization: The borrower with the highest monthly income is considered the primary wage earner and their credit score will be used as the representative credit score. • DSCR and Foreign DSCR: the highest representative credit score amongst all borrowers/guarantors is used. Additionally, all non-foreign national borrowers on the loan must have a representative credit score of 620 or greater. Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 38
GIFT FUNDS
§6.8.2 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
6.8.2. GIFT FUNDS • Gift funds are acceptable on rate/term refinance transactions and no minimum borrower contribution is required. Gift funds are allowed for primary or second home purchase transactions with 80% CLTV without any contribution from the borrower. For CLTV above 80% CLTV, borrower must contribute at least 5% from their own funds. For investment transaction, the borrower must contribute at least 10% from their own funds with maximum 80% CLTV. Gift funds are not allowed for CLTV above 80% on Investment property. Other parameters can affect minimum borrower’s contribution requirements, please, refer to the list below the matrix. See below matrix: • For WVOE, P&L and Asset Utilization, the borrower must contribute at least 20% from their own funds with maximum 80% CLTV. Gift funds are not allowed for CLTV above 80%. • The ITIN borrower(s) must contribute at least 5% from their own funds on Primary Residence and Second Homes and at least 10% on Investment. Gift funds are not allowed for CLTV above 80% on Investment property. • The first-time homebuyers must contribute at least 5% from their own funds on Primary Minimum Borrower Contribution per Occupancy <=80% CLTV >80% CLTV Primary Residence and Second Homes 0% 5% Investment 10% Not available DSCR and Foreign National 10% Not available Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 68 Residence and Second Homes and at least 10% on Investment. Gift funds are not allowed for CLTV above 80% on Investment property. • Gift funds are allowed for down payment and closing costs. Gift funds are not allowed to be used for reserves. • The donor must be an a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, legal guardianship, future spouse, or domestic partner residing with the borrower. The donor may not have any affiliation with a party to the transaction, unless transaction is gift of equity (the donor can be a seller). • An executed gift letter with the gift amount, donor’s name, address, and telephone number and relationship is required. • Proof of transfer and receipt of funds. Acceptable documentation includes the following: o A copy of the donor’s check and the borrower’s deposit slip, or o A copy of the donor’s withdrawal slip and the borrower’s deposit slip, or o A copy of the donor’s check to the closing agent, or o A settlement statement showing receipt of the donor’s check. When the funds are not transferred prior to settlement, the lender must document that the donor gave the closing agent the gift funds in the form of a certified check, cashier’s check, other official check or wire. • Gift of Equity is allowed following the below requirements: o Primary Residence only. o Maximum 75% CLTV. o Must meet all other guidelines for Gift Funds. o Gift of Equity requires a gift letter, and the equity gift credit is to be shown on the CD. o Original Note and payment history for the seller’s mortgage on the subject property must be obtained and show no pattern of delinquency within the past 12 months (if applicable). Foreclosure bailout is not allowed. o Private mortgages on the property are not allowed, the grantor’s soft-pulled credit report is required.
ASSET UTILIZATION
§6.6.10 · admortgage-com-Apex-Prime-Eligibility-Guidelines-June-29-2026-pdf.pdf · document dated 2026-07-01
6.6.10. ASSET UTILIZATION Asset Utilization may be used to determine qualifying income as the sole source of income or to supplement other income sources. See the applicable AD Product Matrix for credit score and CLTV restrictions, in the case of income combination the stricter guidelines and higher LLPAs will be applied. Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 53 Gift funds are allowed, the borrower must contribute at least 20% from their own funds with maximum 80% CLTV. Gift funds are not allowed for CLTV above 80%. Qualified Assets can be comprised of stocks, bonds, mutual funds, vested amount of retirement accounts and bank accounts. If a portion of the qualified assets are being used for down payment, closing costs, or reserves, those amounts must be excluded from the balance before analyzing a portfolio for income determination. Funds from foreign accounts in a verifiable financial institution along with translation and proper currency conversion rate are acceptable. Business assets are not permitted. The following assets are considered Qualified Assets and can be utilized to calculate income: • 100% of checking, savings, money market accounts, and Certificate of deposit (CD) • 100% of the remaining value of public traded stocks, bonds, and mutual funds • 80% of retirement assets • 3-month seasoning of assets required • Proceeds from cash-out excluded from Qualifying assets The income calculation is as follows: Monthly Income = Net Qualified Assets / 60 Months* *60 months used to assume a standard rate of return and income received for 5 years Eligible trust assets include: • Assets held in a revocable trust where the trustee to the trust is the borrower. • Assets in an irrevocable trust where the borrower is the beneficiary, and the borrower has immediate access to the assets of the trust. • Based upon the assets held in the trust, the above asset percentages apply. Borrowers must have the lesser of (a) 1.1 times the loan balance or (b) $1mm in Qualified Assets, both of which must be net of down payment, loan costs and required reserves to qualify. When borrowers are not the only holder of the account, the letter from other parties on the account must be provided stating that 100% of the account funds can be used by the borrower. When asset utilization is used to supplement other income sources, such income must represent less than 50% of the total qualifying income, the minimum asset requirements are waived, the stricter eligibility and worse pricing will be applied.
ASSET UTILIZATION
§6.6.9 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-2nd-Lien-July-1-2026-pdf.pdf · document dated 2026-07-01
6.6.9. ASSET UTILIZATION Asset Utilization may be used to determine qualifying income as the sole source of income or to supplement other income sources. See the applicable AD Product Matrix for credit score and CLTV restrictions, in the case of income combination the stricter guidelines and higher LLPAs will be applied. Gift funds are allowed, the borrower must contribute at least 20% from their own funds with maximum 80% CLTV. Gift funds are not allowed for CLTV above 80%. Qualified Assets can be comprised of stocks, bonds, mutual funds, vested amount of retirement accounts and bank accounts. If a portion of the qualified assets are being used for down payment, closing costs, or reserves, those amounts must be excluded from the balance before analyzing a portfolio for income determination. Funds from foreign accounts in a verifiable financial Title Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 44 institution along with translation and proper currency conversion rate are acceptable. Business assets are not permitted. The following assets are considered Qualified Assets and can be utilized to calculate income: • 100% of checking, savings, money market accounts, and Certificate of deposit (CD) • 100% of the remaining value of public traded stocks, bonds, and mutual funds • 80% of retirement assets • 3-month seasoning of assets required • Proceeds from cash-out excluded from Qualifying assets The income calculation is as follows: Monthly Income = Net Qualified Assets / 60 Months* *60 months used to assume a standard rate of return and income received for 5 years Eligible trust assets include: • Assets held in a revocable trust where the trustee to the trust is the borrower. • Assets in an irrevocable trust where the borrower is the beneficiary, and the borrower has immediate access to the assets of the trust. • Based upon the assets held in the trust, the above asset percentages apply. Borrowers must have the lesser of (a) 1.1 times the loan balance or (b) $1mm in Qualified Assets, both of which must be net of down payment, loan costs and required reserves to qualify. When borrowers are not the only holder of the account, the letter from other parties on the account must be provided stating that 100% of the account funds can be used by the borrower. When asset utilization is used to supplement other income sources, such income must represent less than 50% of the total qualifying income, the minimum asset requirements are waived, the stricter eligibility and worse pricing will be applied.
EMPLOYMENT/INCOME REQUIREMENTS FOR FOREIGN NATIONAL FULL DOC
§13.4.3 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
13.4.3. EMPLOYMENT/INCOME REQUIREMENTS FOR FOREIGN NATIONAL FULL DOC PROGRAM .................................................................................................. 108 13.4.4. FOREIGN NATIONAL ASSET UTILIZATION ......................................................... 108 13.4.5. ASSETS & RESERVES ........................................................................................ 109 Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 6 13.5. CO-BORROWERS .................................................................................... 110 13.5.1. CO-BORROWERS WITH DIFFERENT RESIDENCY ............................................... 110 13.6. NON-OCCUPANT CO-BORROWERS /CO-SIGNERS / GUARANTORS .......... 110 13.7. FIRST-TIME HOMEBUYER ....................................................................... 110 13.8. MULTIPLE FINANCED PROPERTIES AND AD EXPOSURE .......................... 111 13.9. INELIGIBLE BORROWERS ....................................................................... 111 EXHIBIT 1 - “VISA” .......................................................................................................................... 112
ASSET UTILIZATION
§6.6.10 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
6.6.10. ASSET UTILIZATION Asset Utilization may be used to determine qualifying income as the sole source of income or to supplement other income sources. See the applicable AD Product Matrix for credit score and CLTV restrictions, in the case of income combination the stricter guidelines and higher LLPAs will be applied. Gift funds are allowed, the borrower must contribute at least 20% from their own funds with maximum 80% CLTV. Gift funds are not allowed for CLTV above 80%. Qualified Assets can be comprised of stocks, bonds, mutual funds, vested amount of retirement accounts and bank accounts. If a portion of the qualified assets are being used for down payment, closing costs, or reserves, those amounts must be excluded from the balance before analyzing a portfolio for income determination. Funds from foreign accounts in a verifiable financial institution along with translation and proper currency conversion rate are acceptable. Business assets are not permitted. The following assets are considered Qualified Assets and can be utilized to calculate income: • 100% of checking, savings, money market accounts, and Certificate of deposit (CD) • 100% of the remaining value of public traded stocks, bonds, and mutual funds • 80% of retirement assets • 3-month seasoning of assets required Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 59 • Proceeds from cash-out excluded from Qualifying assets The income calculation is as follows: Monthly Income = Net Qualified Assets / 60 Months* *60 months used to assume a standard rate of return and income received for 5 years Eligible trust assets include: • Assets held in a revocable trust where the trustee to the trust is the borrower. • Assets in an irrevocable trust where the borrower is the beneficiary, and the borrower has immediate access to the assets of the trust. • Based upon the assets held in the trust, the above asset percentages apply. Borrowers must have the lesser of (a) 1.1 times the loan balance or (b) $1mm in Qualified Assets, both of which must be net of down payment, loan costs and required reserves to qualify. When borrowers are not the only holder of the account, the letter from other parties on the account must be provided stating that 100% of the account funds can be used by the borrower. When asset utilization is used to supplement other income sources, such income must represent less than 50% of the total qualifying income, the minimum asset requirements are waived, the stricter eligibility and worse pricing will be applied.
FOREIGN NATIONAL
§13.4 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
13.4. FOREIGN NATIONAL A Foreign National is a non-U.S. citizen authorized to live in the U.S. on a temporary basis but does not meet the definition of a Non-Permanent Resident Alien. Foreign National Borrower qualify under Investment Property - DSCR program with foreign national pricing/LTV grid and the Second Home and Investment Property – Full Doc and Asset Utilization. EAD card is not required if visa is active. All purchase transactions in Florida made to foreign principals, persons, and entities must have the signed Buyer’s Affidavit published by the Florida Land Title Association. 13.4.1. VERIFICATION OF RESIDENCY STATUS The visa types considered as Foreign Nationals listed in “Exhibit 1 – VISA. Visa types considered as Foreign Nationals". VISA EXPIRATION REQUIREMENTS Borrower has to have active visa as of the note date or be legally present in the US. Copies of the borrower’s passport and unexpired visa must be obtained. Acceptable alternative documentation to verify visa classification is an I-797 form (Notice of Action) with valid extension dates and an I-94 form (Arrival/Departure Record). Borrowers unable to provide evidence of lawful residency status in the U.S. are not eligible for financing. VISA WAIVER PROGRAM AND CITIZENS OF CANADA OR BERMUDA Borrowers who are residents of countries which participate in the State Department’s Visa Waiver Program (VWP) will not be required to provide a valid visa. Participating countries can be verified through the U.S. Department of State website at https://travel.state.gov/content/travel/en/us- visas/tourism-visit/visa-waiver-program.html Following document required to confirm valid VWP status - Unexpired ESTA Authorization from U.S. Customs Border and Protection https://esta.cbp.dhs.gov/esta/ , if authorization expires in 60 days from the application date updated authorization required to be provided prior to closing. Citizens of Canada and Bermuda do not require ESTA. Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 107 13.4.2. CREDIT REQUIREMENTS A U.S. credit report should be obtained for each Foreign National borrower with a valid Social Security number. The credit report should provide merged credit information from the 3 major national credit repositories. For borrowers without a valid Social Security number, an Individual Taxpayer Identification Number (ITIN) is also allowed. A traditional U.S. credit report is not required for borrowers without a valid SSN, however, would be obtained and taken into consideration if exists. Foreign National borrowers who do not have a SSN or ITIN may still proceed under the Foreign National Program. All other program requirements still apply. QUALIFYING U.S. CREDIT The Qualifying U.S. Credit designation refers to non-U.S. citizen borrowers who meet Standard Tradelines or have a minimum of one active tradeline opened for 24 months with no derogatory history. A Qualifying U.S. Credit borrower is eligible for all investment property products and programs reflected on the AD Investment Property Matrix. If non-U.S. citizen borrower has qualifying U.S. Credit the bank reference letter requirement may be waived. QUALIFYING FOREIGN CREDIT If the borrower has at least one U.S. credit score it will be used for qualifying and pricing purposes even if the Qualifying U.S. Credit designation is not met. Bank reference letter must be provided in that case. If the borrower has the foreign credit score, it cannot be used for pricing and eligibility purposes and the loan will be priced as 0 (No Score) in case the borrower does not have the Qualifying U.S. Credit. AD will accept a bank reference letter or other financial institution letter (e.g., mortgage company, credit card company), required for all borrowers who do not meet the Qualifying U.S. Credit design
FOREIGN NATIONAL ASSET UTILIZATION
§13.4.4 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
13.4.4. FOREIGN NATIONAL ASSET UTILIZATION Asset Utilization may be used to determine qualifying income as the sole source of income or to supplement other income sources. Qualified Assets can be comprised of stocks, bonds, mutual funds, vested amount of retirement accounts and bank accounts. If a portion of the qualified assets are being used for down payment, closing costs, or reserves, those amounts must be excluded from the balance before analyzing a portfolio for income determination. Funds from foreign accounts in a verifiable Canadian financial institution along with translation and proper currency conversion rate are acceptable. Business assets are not permitted. The following assets are considered Qualified Assets and can be utilized to calculate income: • 100% of checking, savings, money market accounts, and Certificate of deposit (CD) • 100% of the remaining value of public traded stocks, bonds, and mutual funds • 80% of retirement assets • 3-month seasoning of assets required • Proceeds from cash-out excluded from Qualifying assets The income calculation is as follows: Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED. For internal use only. No part of this work may be used, reproduced or transmitted in any form or by any means, by or to any party outside of AD Mortgage LLC. Created: 07-01-2026 P a g e | 109 Monthly Income = Net Qualified Assets / 60 Months* *60 months used to assume a standard rate of return and income received for 5 years Eligible trust assets include: • Assets held in a revocable trust where the trustee to the trust is the borrower. • Assets in an irrevocable trust where the borrower is the beneficiary, and the borrower has immediate access to the assets of the trust. • Based upon the assets held in the trust, the above asset percentages apply. Borrowers must have the lesser of (a) 1.1 times the loan balance or (b) $1mm in Qualified Assets, both of which must be net of down payment, loan costs and required reserves to qualify. When borrowers are not the only holder of the account, the letter from other parties on the account must be provided stating that 100% of the account funds can be used by the borrower. When asset utilization is used to supplement other income sources, such income must represent less than 50% of the total qualifying income, the minimum asset requirements are waived, the stricter eligibility and worse pricing will be applied. 13.4.5. ASSETS & RESERVES The seasoning requirement for all funds is 30 calendar days. If cash out proceeds are used for reserves most recent 1 month’s bank statement must be provided prior to closing where funds will be disbursed. Assets used for down payment and closing costs can be wired directly to title company or escrow agent and must be OFAC cleared by title agent’s or escrow company’s bank to be considered assets/funds/cash for closing: • Special consideration for purchases with escrow deposits made >12 months from date of application - ADM will accept Escrow deposit confirmation – Escrow letter, from a non- builder related/owned title agent holding the funds for closing. • Business assets acceptable in general, when borrower’s share in the business is less than 100% a written acknowledgment from all other owners is required to use business funds. Foreign National borrowers must have 12 months PITIA reserves for the subject property. A US bank account is required prior to clear to close for all foreign national borrowers. Assets held in foreign accounts are eligible for reserves and cash to close. Assets must be verified in U.S. Dollar equivalency at the current exchange rate via either www.xe.com or the Wall Street Journal conversion table. VENEZUELA SPECIFIC Assets located in Venezuelan financial institutions are ineligible for purposes of qualification or to complete a mortgage loan transaction. Assets/Cash/funds to close plus required reserves must be verified outside of Venezuela. Copyright © 2026 AD Mortgage LLC - ALL RIGHTS RESERVED.
Carrington Correspondent 5 sections
All Carrington Correspondent credit standards →
Date
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Program-Underwriting-Guidelines.pdf · document dated 2026-08-25 (date inferred — not labelled in the document)
Date Version Description of Change 12/03/18 4.2 • Revised Occupancy > Primary Residence to add additional requirement that Borrower shall occupy the property as a principal residence within 60 days after closing and continue to occupy the property as a principal residence for at least one year after the date of occupancy, • Revised Non-Occupant Co-Borrowers/ Co-Signers/ Guarantors to add Note: if a non-occupant co-borrower is the primary wage earner, their credit score will be used for qualifying purposes. • Revised Credit Score Requirements to clarify the primary wage-earner may be an occupying or non-occupying co-borrower. • Revised Disputed Tradelines to clarify disputed account may not be waived. • Revised Past Due Accounts to clarify debts may be more than 30 past due as long as they will be paid off at closing. • Added new Qualifying Reserves on ARM Loans requirements. 11/20/18 4.1 • Added new Payoff in Less than 12 Months requirements. • Revised Properties Listed for Sale to include submission date in addition to application date • Revised Cash-Out Refinance > Seasoning requirements and added reference to Continuity of Obligation. • Revised Flip Transactions to clarify newly constructed properties require a second appraisal • Revised Asset Depletion to clarify retirement assets may go up to 70% for borrowers of retirement age that do not have a 10% withdrawal penalty. • Revised Appraisal Review Process to clarify newly constructed properties require a second appraisal. • Revised Gifts of Equity to add definition of family member. 11/09/18 4.0 • Revised Bank Statement Documentation to clarify Overdraft Protection Transfers are not considered an NSF. • Revised Bank Statement Documentation > Rental Income to “Obtain the most recent lease agreement(s) for rental properties and proof of receipt at the current lease rate using a cancelled check or bank statement. Calculate the qualifying rents by using 75% of the current lease minus the full PITIA.”
Updated Cash-out Limits
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Program-Underwriting-Guidelines.pdf · document dated 2026-08-25 (date inferred — not labelled in the document)
Updated Cash-out Limits • Revised Appraisal Review Process to $2.0M 06/29/18 3.1 • Rebranded Guidelines to Carrington Flexible Advantage Program (formerly Non- Prime) and Carrington Flexible Advantage Plus Program (formerly Near Prime) • Removed Near-Prime 95% LTV requirements. 06/21/18 3.0 Revised OPTION 1: BORROWER PREPARED P&L STATEMENT to add Bank Statement average income per Bank Statement Calculator and remove Net income using the Bank Statements and Income indicated on the initial signed 1003. 06/19/18 2.5 • Revised OPTION 1: BORROWER PREPARED P&L STATEMENT to add Net income using the Bank Statements. • Updated Investment Property requirements throughout. • Deleted Investor Advantage requirements throughout. 05/17/18 2.4 • Revised Cash-Out Refinance > Seasoning section to remove property acquired through inheritance • Revised Inherited Properties and Property Buyouts section to add “For inherited properties, a minimum of six (6) months must have elapsed since the most recent mortgage transaction on the subject property (either the original purchase transaction or subsequent refinance). Note date to note date is used to calculate the six (6) months.” • Updated Tradeline Requirements to add Disputed Tradelines requirements • Added Temporary/Contract Income requirements. • Revised Asset Depletion to add restricted stock and margined accounts are not considered qualified assets and are not eligible. 05/03/18 2.3 • Added Near-Prime Program requirements throughout. • Added 1-Year Alternative Income Documentation requirements. • Added Asset Depletion requirements to the Sources of Income section.
Date
carringtoncorrespondent.com-Carrington-Prime-Advantage-Program-Underwriting-Guidelines.pdf · document dated 2026-08-06 (date inferred — not labelled in the document)
Date Version Description of Change 04/28/22 3.8 Revised Asset Documentation to add “Asset statements must be dated within 90 days of closing”. 04/18/22 3.7 • Revised 1-Year Alternative Income Documentation to add Self-Employed 1099: 1 Year IRS Form 1099 Statements and 12 and 24 months Profit & Loss Statements. • Added 1099 Income Documentation and P&L Income Documentation requirements (Permitted under the Carrington Flexible Advantage Plus (CFA+) program.) • Revised Self-Employed Income to add “Borrowers who receive self-employed 1099 earnings may be qualified under the Sole Proprietorship guidelines by providing IRS Form 1040 tax returns for the most recent 1 or 2 years, or under the 1099 Income Documentation guidelines by providing IRS Form 1099 for the most recent 1 or 2 years.” 02/02/22 3.6 Revised Exceptions to remove rural properties and align with UW Exception Policy. 12/13/21 3.5 Revised Business Assets requirements to require 50% and add business assets must be multiplied by the borrower’s ownership percentage of the business. 10/12/21 3.4 Revised Business Assets to add “Note: The requested information shall not be interpreted as an assurance of solvency.” 09/02/21 3.3 Updated Asset Depletion requirements. 08/11/21 3.2 • Revised Exceptions requirements. • Revised First Time Investor requirements. • Revised Soft Pull Credit Report requirement to 14 days. • Revised Asset Depletion requirements. • Revised Ineligible Property Types to add illegally zoned properties. • Revised Appraisal Review Process. • Revised Rural Properties requirements. 06/23/21 3.1 • Revised Higher Priced Mortgage Loan Requirements to add second appraisal must be “from a different AMC.” • Updated references to Letters of Explanation to clarify “Borrower(s) must write, sign, and date all Letters of Explanation themselves. The Lender or Broker may identify the subject matter only and not contribute to the letter’s content.” • Updated Flood Insurance with SFHA zones. 06/10/21 3.0 • Added Appraisal Re-Use requirements. 05/24/21 2.9 • Revised General Refinance Requirements > Determining Loan-to-Value to 6 months seasoning. • Revised Forbearance due to Presidentially Declared Disasters, including COVID-19 payment requirements. • Revised Age of Loan Documentation seasoning requirements. • Revised Personal Bank Statements / Business Bank Statements documentation requirements. • Revised 50% Expanded Debt Ratio requirements.
Date
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Program-Underwriting-Guidelines.pdf · document dated 2026-08-25 (date inferred — not labelled in the document)
Date Version Description of Change 01/19/21 6.4 • Revised Points and Fees to add Texas Conversion loans are excluded from the 2.00% fee limitation. • Revised Bank Statement Documentation to clarify requirements for money transfer service business account statements. • Revised Rural Properties to remove exceptions are not permitted. 11/06/20 6.3 Updated Documenting Business Bank Account Ownership. 09/29/20 6.2 Updated Rural Properties requirements. 09/23/20 6.1 Updated Forbearance Due to a Disaster requirements. 09/10/20 6.0 • Revised Programs to remove Investment Property Programs. • Removed Expanded Loan to Values requirements. • Revised Occupancy > Investment Property to state “Investment properties are permitted on the Carrington Flexible Advantage Plus program only.” • Revised Purchase to state “Assignment of the sales contract is not permitted.” • Updated Cash-Out Refinance > Cash-Out Limits LTV requirements. • Revised Higher Priced Mortgage Loan Requirements to add HPML requirements. • Revised Flip Transactions to remove assignments requirement. • Revised Land Contract /Contract for Deed to clarify Cash-out and non-arm’s length transactions are ineligible for both Land Contracts and Contracts for Deed. • Revised Credit Report > Age of Credit Report to 60 days (was 120 days). • Revised Carrington Flexible Advantage Housing Verification to remove Investment Property Program requirements. • Revised Credit Analysis > Housing Events to remove Investment Property Program requirements. • Revised Age of Loan Documentation seasoning requirements. • Revised Personal Bank Statements remove Investment Property Program requirements and update business bank statements requirements. • Revised Business Bank Statements to update the types of bank statements to be used for qualification • Updated Annuity Income 1099 requirements. • Revised Asset Depletion to not permitted and removed requirements. • Revised Pension / Retirement 1099 requirements. • Revised Unemployment Compensation 1099 requirements. • Revised Ratios and Qualifying to update FICO requirement and remove 55% expanded ratio requirements. • Revised Residual Income to remove 55% expanded ratio requirements. • Revised Asset Analysis > Reserves requirements. • Revised Concessions and Contributions LTV requirements. • Revised Minimum Borrower Contribution to clarify loan amount used is FHFA 1-unit Conforming Loan Limit.
Date
carringtoncorrespondent.com-Carrington-Prime-Advantage-Program-Underwriting-Guidelines.pdf · document dated 2026-08-06 (date inferred — not labelled in the document)
Date Version Description of Change 09/10/20 2.0 • Updated New York Loans to remove restriction that “Loans require a minimum loan size of “Conforming Balance plus $1”.” Added NY subprime loans are not permitted. • Revised Prepayment Penalties, Points, and Fees requirements. • Updated Occupancy > Second Home requirements to not permitted. • Updated Benefit to Borrower requirements. • Revised Cash-Out Limits Occupancy and LTV requirements. • Revised Higher Priced Mortgage Loans (HPML) to remove exemptions. • Revised Texas Home Equity Loans > General Requirements for LTV. • Revised Foreign Borrowers requirements to state “Borrowers living primarily overseas are not eligible.” • Revised First Time Home Buyers requirements. • Revised Multiple Financed Properties requirements. • Revised Age of Credit Report/Credit Documentation seasoning to 60 days (was 120 days). • Revised Tradeline Requirements to remove Second Homes. • Updated Age of Loan Documentation seasoning requirements. • Revised Employment History > Gaps in Employment to clarify recent graduates with evidence of post-secondary education from a college, university, community college, Junior college, Career school, technical school, or vocational/trade school are allowed. • Revised Asset Depletion to not permitted and removed requirements. • Revised Rental Income requirements. • Revised Ratios and Qualifying for expanded 50% ratio. • Revised Residual Income to remove Second Homes. • Revised Asset Analysis > Reserves to clarify reserve requirements. • Revised Financing Concessions/Seller Contributions occupancy and LTV requirements. • Revised Relocation and Employer Assistance requirements. • Revised Secondary / Subordinate Financing CLTV requirement and Seller-held requirement. • Revised Eligible Property Types to remove Rural Properties. • Revised Ineligible Property Types to add Non-Warrantable Condominiums and Rural Properties. • Revised Rural Properties requirements. 12/05/19 1.0 New document.
Champions Funding TPO 2 sections
All Champions Funding TPO credit standards →
BK/FCL/SS/DIL
championstpo.com-Accelerator-Activator-Alt-Doc.pdf · document dated 2026-06-16 (date inferred — not labelled in the document)
BK/FCL/SS/DIL Min of 30-days asset verification required Cash out may be used to satisfy requirement 6% Max • Asset Utilization: 100% of checking, savings, money market accounts and stock/bonds. 100% of retirement assets eligible retirement age/70% under eligible age. 100% Trust Account (Refer to guidelines for requirements)
Geographic Restrictions
championstpo.com-Accelerator-Activator-Alt-Doc.pdf · document dated 2026-06-16 (date inferred — not labelled in the document)
Geographic Restrictions Ineligible States: Refer to State Licensing Ineligible Locations: Hawaii lava zones 1 & 2| Puerto Rico, Guam| The US Virgin Islands| Baltimore MD| Philadelphia, PA (NOO only) Federal and State Specific Restrictions: Federal and State or Local High Cost not permitted. Federal High Cost applies to Owner Occupied only. Alt Doc: Bank Statement, P&L, WVOE, 1099, Asset Utilization Accelerator (Investor) / Activator (Primary & 2nd Home)
Luxury Mortgage Wholesale 2 sections
All Luxury Mortgage Wholesale credit standards →
Passive Asset Utilization
luxurymortgagewholesale.com-GraduateProgram.pdf · document dated 2026-07-31 (date inferred — not labelled in the document)
Passive Asset Utilization Applicants may supplement income disclosed via traditional sources by depleting assets available over a 5 year term with no rate of return imputed. All assets necessary to complete the transaction, including post-closing reserves, must be deducted in order to complete the calculation. Verify current balance within 60 days of the note date. To meet asset requirements up to 10% of assets utilized may Luxury Mortgage Corp Simple Access® Product Suite Graduate Program Highlight-Wholesale v 9.2 July 31, 2026 Page 5 of 7 come from cash out proceeds. Technical Refinance funds can be used for up to 10% of the eligible assets being utilized. Standard asset haircuts are utilized-see Underwriting Guidelines.
Asset Depletion
luxurymortgagewholesale.com-GraduateProgram.pdf · document dated 2026-07-31 (date inferred — not labelled in the document)
Asset Depletion Applicants may supplement income disclosed via traditional income sources by annuitizing their assets. They may set up a monthly distribution and document receipt of at least one monthly distribution prior to closing. The distribution must have at least 7 years of continuance based on the face value of the asset as of the distribution commencement. Verify current balance within 120 days of the note date. Retirement accounts are ineligible if Applicant is under 59.5-see Underwriting
Acra Lending 1 section
All Acra Lending credit standards →
Income Documentation & Debt Ratio Requirements Eligible Income Documenta on Types
§table-p1-3 · acralending.com-acra-ws-ratematrix-platinum-np-summary.pdf · document dated 2026-08-17 (date inferred — not labelled in the document)
Full Documentation (12 or 24 Mo)2: W2 or signed 1040s for most recent one (1) or two (2) years & current pay stub reflecting year-to-date earnings. Self-employed borrowers require additional applicable supporting documentation (i.e. 1120s, K-1s, etc.). Alternative Documentation – Bank Statements (12 or 24 Mo)2 Personal Bank Statements: 12-month or 24-month personal bank statements. Calculate qualifying income by dividing the total income by the number of bank statements. Business Bank Statements: 12-month or 24-month business statements. The minimum allowable percentage of ownership is 25% per applicant utilizing the account. Alternative Documentation – 1099 Only (12 or 24 Mo, available for self-employed Borrowers only)2: IRS Form(s) 1099 to document prior one (1) year income; and Bank Statements for the most recent 60 days to document the current year to date, which should reflect gross deposits consistent with the 1099s. Alternative Documentation – Asset Depletion: Divide asset amount by 60 and add the result to qualifying income. Note: funds used for asset depletion may not be used as reserves. Max CLTV: 80% Purchase & 75% Refi R/T, Refi C/O Maximum Debt-to-Income (DTI) Wholesale 43%: Correspondent 40%
LoanStream Wholesale 1 section
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LoanStream Non-QM Matrix
loanstreamwholesale.com-LSM-NQM-Matrix-08.05.26.pdf · document dated 2026-08-05
LoanStream Non-QM Matrix Select Non-QM and Core Non-QM Income Types: Full Doc - 12, 24 months | Alt Doc - 1099, WVOE, Asset Utilization, Bank Statements, P&L w/3 mos Bank Stmts, P&L Only, One Yr Self-Employment, Assets as Blended Income *Investment and Non-TRID (Business Purpose): All subject properties located in Baltimore City, MD (and it's neighborhoods) are temporarily suspended*
NewRez Correspondent 1 section
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Medical Professional Home Loan
newrezcorrespondent.com-medical_professional_home_loan.pdf · document dated 2026-07-15
Medical Professional Home Loan pg. 16 Effective 07.15.2026 Normal administrative requirements, such as background checks, drug testing, and fingerprinting. Housing Allowance for Residents and Fellows: For borrowers currently in/will be in residency, or currently in/will be in training in a medical clinical fellowship program, housing allowance may be included in qualifying income with < 12 months history provided all the following requirements are met: The housing allowance is paid in cash (not a rent credit) directly to the borrower (not to a landlord or third party). Current employment: The housing allowance is clearly reflected on the borrower’s paystubs and verified with VOE. Projected employment: The employment contract or offer letter confirms the housing allowance is guaranteed. Current and projected employment: There is no indication the housing allowance will terminate prior to the end of the borrower’s employment term. For borrowers who are out of residency/fellowship and employed as a licensed practitioner, follow FNMA Selling Guide for Housing Allowance. Asset depletion: Supplemental income only and may not be used as the sole source of qualifying income. • Eligible assets must be held in US account • Calculate the depletion of assets using a 3% rate of return over the life of the loan; the same as calculating a P & I payment for a mortgage. For borrowers > 59 1/2, all post-closing retirement and liquid assets may be used in the calculation if the assets are fully vested and unrestricted. For borrowers < 59 ½, all post-closing liquid (non-retirement) assets can be included in the calculation. Minimum liquid post-closing assets of $500,000 required to include asset depletion for qualifying income. Business funds are not allowed for income calculation.