A foreign national loan serves a borrower without US credit or residency. Minimum down payment, acceptable identification, whether a US credit score is required at all, and reserve requirements differ sharply by lender.
33 verbatim sections from 4 lenders
· 33 eligibility tables · newest source document 2026-08-25
A&D Mortgage 18 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
CO-BORROWERS WITH DIFFERENT RESIDENCY
§13.5.1 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-2nd-Lien-July-1-2026-pdf.pdf · document dated 2026-07-01
13.5.1. CO-BORROWERS WITH DIFFERENT RESIDENCY Loans to US Citizen and Permanent Resident borrowers with Non-Permanent Resident Alien co- borrowers will be qualified based on Non-Permanent Resident eligibility criteria. Loans to US Citizen and Permanent Resident borrowers with Foreign National co-borrowers will be qualified based on Foreign National eligibility criteria. 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 | 93 13.6. NON-OCCUPANT CO-BORROWERS /CO-SIGNERS / GUARANTORS Non-occupant borrowers are allowed which are owners of the subject property and are obligated to repay a loan on an owner-occupied or second home. Such non-occupant borrowers cannot be the primary income earners and are immediate relatives to one of the occupying borrowers either by family relation or marriage. Non-occupying co-borrowers are ineligible for cash-out transactions. 13.7. FIRST-TIME HOMEBUYER A first-time homebuyer is defined as a borrower who had no ownership interest in a residential or mixed-use properties up to 20 units in the United States (for Foreign National programs property ownership in any country suffice) during the preceding three (3) year period. If one (1) borrower is a first-time homebuyer and the other borrower is not, then first-time homebuyer guidance does not apply. Residential properties owned under business entity are eligible with a minimum 25% entity ownership requirement. The following requirements apply to first-time homebuyer transactions: • The borrower must contribute at 5% own funds for owner occupied transaction and 10% for investment • Max 80 CLTV for Bank statement document type • First-time homebuyer is allowed on DSCR program. Short-term rentals are not allowed. • First-time homebuyers with payment shock exceeding 300% are ineligible. Payment shock measures the increase in a borrower’s monthly housing expense compared to their current housing expense. Payment Shock (%) = ((Proposed Housing Expense – Current Housing Expense) ÷ Current Housing Expense) × 100, if the borrower is rent-free (with no housing expenses), the payment shock is not calculated. 13.8. MULTIPLE FINANCED PROPERTIES AND AD EXPOSURE AD Mortgage exposure may not exceed $5M aggregate with a maximum of 10 loans for each individual borrower in 6 months span counting from 1st loan’s note date to the most recent loan’s note date. Exceptions to this policy may be reviewed on a case-by-case basis. When the subject property is a primary residence, second home or investment property, there are no limitations on the number of other properties the borrower(s) may currently have financed. 13.9. INELIGIBLE BORROWERS The following borrowers are not eligible: • Borrowers with diplomatic immunity or otherwise excluded from U.S. jurisdiction. • Non-occupant co-borrowers are ineligible for cash-out transactions. • Residents of any country not permitted to transact business with US companies are ineligible (as determined by any U.S. government authority). 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 | 94 • Irrevocable Trusts or Land Trusts. • Borrowers less than 18 years old. • If the application, title, or credit documents indicate the borrower is involved in a lawsuit or litigation 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 | 95 Exhibit 1 - “VISA” Visa classifications allowed as Non-Permanent Resident Aliens Visa Valid EAD Card Description B1/A3/G5 C17 Non-i
CO-BORROWERS WITH DIFFERENT RESIDENCY
§13.5.1 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
13.5.1. CO-BORROWERS WITH DIFFERENT RESIDENCY Loans to US Citizen and Permanent Resident borrowers with Non-Permanent Resident Alien co- borrowers will be qualified based on Non-Permanent Resident eligibility criteria. Loans to US Citizen and Permanent Resident borrowers with Foreign National co-borrowers will be qualified based on Foreign National eligibility criteria. 13.6. NON-OCCUPANT CO-BORROWERS /CO-SIGNERS / GUARANTORS Non-occupant borrowers are allowed which are owners of the subject property and are obligated to repay a loan on an owner-occupied or second home. Such non-occupant borrowers cannot be the primary income earners and are immediate relatives to one of the occupying borrowers either by family relation or marriage. Non-occupying co-borrowers are ineligible for cash-out transactions. 13.7. FIRST-TIME HOMEBUYER A first-time homebuyer is defined as a borrower who had no ownership interest in a residential or mixed-use properties up to 20 units in the United States (for Foreign National programs property ownership in any country suffice) during the preceding three (3) year period. If one (1) borrower is a first-time homebuyer and the other borrower is not, then first-time homebuyer guidance does not apply. Residential properties owned under business entity are eligible with a minimum 25% entity ownership requirement. The following requirements apply to first-time homebuyer transactions: • Maximum loan amount of $1,000,000 • Min 660 FICO for Super Prime and Prime, min 680 FICO for DSCR or No FICO (only for FN) • Max DTI 50 • Max 80 CLTV for Bank statement document type • The borrower must contribute at 5% own funds for owner occupied transaction and 10% for investment • First-time homebuyer is allowed on DSCR program with minimum DSCR 1. Short-term rentals are not allowed. • First-time homebuyers with payment shock exceeding 300% are ineligible. For P&L document type payment shock cannot exceed 100%. Payment shock measures the increase in a borrower’s 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 | 111 monthly housing expense compared to their current housing expense. Payment Shock (%) = ((Proposed Housing Expense – Current Housing Expense) ÷ Current Housing Expense) × 100, if the borrower is rent-free (with no housing expenses), the payment shock is not calculated. 13.8. MULTIPLE FINANCED PROPERTIES AND AD EXPOSURE AD Mortgage exposure may not exceed $5M aggregate with a maximum of 10 loans for each individual borrower in 6 months span counting from 1st loan’s note date to the most recent loan’s note date. Exceptions to this policy may be reviewed on a case-by-case basis. When the subject property is a primary residence, second home or investment property, there are no limitations on the number of other properties the borrower(s) may currently have financed. 13.9. INELIGIBLE BORROWERS The following borrowers are not eligible: • Borrowers with diplomatic immunity or otherwise excluded from U.S. jurisdiction. • Non-occupant co-borrowers are ineligible for cash-out transactions. • Residents of any country not permitted to transact business with US companies are ineligible (as determined by any U.S. government authority). • Irrevocable Trusts or Land Trusts. • Borrowers less than 18 years old. 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 | 112 Exhibit 1 - “VISA” Visa classifications allowed as Non-Permanent Resident Aliens Visa Valid EAD Card Description B1/A3/G5 C17 Non-immigrant domestic servant (VISA and Valid EAD Card must be combined) BC-1 N Broadcaster in the US employed by the International Broadcasting Bureau of the Broad
CO-BORROWERS WITH DIFFERENT RESIDENCY
§13.5.1 · admortgage-com-Apex-Prime-Eligibility-Guidelines-June-29-2026-pdf.pdf · document dated 2026-07-01
13.5.1. CO-BORROWERS WITH DIFFERENT RESIDENCY Loans to US Citizen and Permanent Resident borrowers with Non-Permanent Resident Alien co- borrowers will be qualified based on Non-Permanent Resident eligibility criteria. Loans to US Citizen and Permanent Resident borrowers with Foreign National co-borrowers will be ineligible. 13.5. NON-OCCUPANT CO-BORROWERS /CO-SIGNERS / GUARANTORS Non-occupant borrowers are allowed which are owners of the subject property and are obligated to repay a loan on an owner-occupied or second home. Such non-occupant borrowers cannot be the primary income earners and are immediate relatives to one of the occupying borrowers either by family relation or marriage. Non-occupying co-borrowers are ineligible for cash-out transactions. 13.6. FIRST-TIME HOMEBUYER A first-time homebuyer is defined as a borrower who had no ownership interest in a residential or mixed-use properties up to 20 units in the United States during the preceding three (3) year period. If one (1) borrower is a first-time homebuyer and the other borrower is not, then first-time homebuyer guidance does not apply. Residential properties owned under business entity are eligible with a minimum 25% entity ownership requirement. The following requirements apply to first-time homebuyer transactions: • Maximum loan amount of $2,000,000 • Max 80 CLTV for Bank statement document type • The borrower must contribute at 5% own funds for owner occupied transaction and 10% for investment • First-time homebuyers with payment shock exceeding 300% are ineligible. Payment shock measures the increase in a borrower’s monthly housing expense compared to their current 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 | 91 housing expense. Payment Shock (%) = ((Proposed Housing Expense – Current Housing Expense) ÷ Current Housing Expense) × 100, if the borrower is rent-free (with no housing expenses), the payment shock is not calculated. 13.7. MULTIPLE FINANCED PROPERTIES AND AD EXPOSURE AD Mortgage exposure may not exceed $5M aggregate with a maximum of 10 loans for each individual borrower in 6 months span counting from 1st loan’s note date to the most recent loan’s note date. Exceptions to this policy may be reviewed on a case-by-case basis. When the subject property is a primary residence, second home or investment property, there are no limitations on the number of other properties the borrower(s) may currently have financed. 13.8. INELIGIBLE BORROWERS The following borrowers are not eligible: • Borrowers with diplomatic immunity or otherwise excluded from U.S. jurisdiction. • Non-occupant co-borrowers are ineligible for cash-out transactions. • Residents of any country not permitted to transact business with US companies are ineligible (as determined by any U.S. government authority). • Irrevocable Trusts or Land Trusts. • Borrowers less than 18 years old. • FTHB rent-free borrowers • Foreign Nationals • ITIN 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 | 92 Exhibit 1 - “VISA” Visa classifications allowed as Non-Permanent Resident Aliens Visa Valid EAD Card Description B1/A3/G5 C17 Non-immigrant domestic servant (VISA and Valid EAD Card must be combined) BC-1 N Broadcaster in the US employed by the International Broadcasting Bureau of the Broadcasting Board of Governors BC-2,3 y Spouse, child of BC-1 C-5; C-51 N Employment creation C-52-53 C09 Spouse or child of C-5 or C-51 DV- 1,2,3 N Diversity immigrant, spouse, child E-1, 2, or spouse of E-1, 2 (the spouse does not get a different number for this category) A17 Treaty/Trade investor or spouse E-11/EB-1 N Person with ex
CREDIT SCORES
§6.5.1 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-2nd-Lien-July-1-2026-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 lowest qualifying score of all applicants is used to qualify. The qualifying 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 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. When there are multiple borrowers/guarantors, the lowest applicable score (if at least one No FICO - worst case between existing score and no FICO) from the group of borrowers/guarantors is the representative credit score for qualifying (the Representative Loan Score).
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.
CASH FLOW ANALYSIS
§6.6.14 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-2nd-Lien-July-1-2026-pdf.pdf · document dated 2026-07-01
6.6.14. CASH FLOW ANALYSIS A written evaluation must be prepared of the analysis of a self-employed borrower’s personal income, including the business income or loss, reported on the borrower’s federal income tax returns. A copy of the written analysis must be included in the loan file. 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 | 49 6.7. QUALIFYING RATIOS Refer to the Program Matrix for specific qualifying ratios per loan program. Back-End DTI US Citizen, Permanent ; Non-Permanent / Foreign National Debt Ratio 50% / 43% • All programs will be qualified at the greater of the fully indexed rate or the note rate. • Interest Only payments are not eligible. • Transactions resulting in significant payment shock should always be considered by the underwriter. The borrower’s income must clearly support the borrower’s ability to make the higher monthly payment. It is at the underwriter’s discretion to require additional verification of assets or a larger down payment as a compensating factor for a loan with high payment shock. • First-time homebuyers with payment shock exceeding 300% are ineligible. Payment shock measures the increase in a borrower’s monthly housing expense compared to their current housing expense. Payment Shock (%) = ((Proposed Housing Expense – Current Housing Expense) ÷ Current Housing Expense) × 100, if the borrower is rent-free (with no housing expenses), the payment shock is not calculated. • For other properties owned, documentation to confirm the amount and/or presence or absence of liability for P&I, taxes, insurance, HOA dues, lease payments or other property-related expenses must be provided.
BUSINESS FUNDS
§6.8.5 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-2nd-Lien-July-1-2026-pdf.pdf · document dated 2026-07-01
6.8.5. BUSINESS FUNDS • Business funds may be used for down payment, closing costs and reserves. Verification of business ownership is required with minimum borrower’s ownership of 25% or more. • When borrower’s share in the business is less than 100% a written acknowledgment from other owners is required to use business funds. 6.8.6. RESERVES There must be verified PITIA reserves remaining after closing, exclusive of closing costs. Beyond the minimum reserve requirements and in an effort to fully document the borrowers’ ability to meet their obligations, borrowers should disclose all other liquid assets on the 1003. • Reserves can be held in a financial institution outside of the US. • No reserve required for rate/term and Cash out transactions. • Minimum reserves requirements for purchase transactions based on loan amount: o For a loan amount less than or equal to 1,000,000 minimum reserve requirement is 3 months o For a loan amount between 1,000,001 and 2,000,000 minimum reserve requirement is 6 months o For a loan amount more than 2,000,000 minimum reserve requirement is 12 months o The additional requirements apply to the following parameters: o 12 months reserves for Foreign Nationals. • Reserve calculation is based on the PITIA payment at the time of origination.
ASSET VERIFICATION
§13.3.4 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-2nd-Lien-July-1-2026-pdf.pdf · document dated 2026-07-01
13.3.4. ASSET VERIFICATION Non-Permanent Resident Aliens must follow minimum reserves requirements from 6.8.6 RESERVES for the subject property, all programs. The seasoning requirement for purchase, rate/term, and cash out refinance is 30 calendar days. 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. A US bank account is required prior to clear to close for all non-permanent resident borrowers. MIXED OR OVERSEAS ASSETS Will allow overseas business funds into personal accounts. AD will need a letter from the CPA, signed and include the preparation date, covering 12 or 24 months (depending on program) explaining where overseas business is from and nature of business. 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 Investment Property – Full Doc. 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". 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 | 90 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. 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. citize
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
FINANCING POINTS
§2.6.1 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
2.6.1. FINANCING POINTS AD will allow the borrower to finance points and/or closing cost into the loan transaction by increasing loan amount based on the following parameters: • Maximum base CLTV for an owner-occupied property or second home = 75% • Maximum base CLTV for an investment property = 70% 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 | 15 • Maximum base CLTV for DSCR property = 70% • Maximum base CLTV for Foreign National = 65% • Maximum 2% may be financed into the transaction • The financed points will not raise the CLTV for pricing purposes and eligibility criteria. The pricing and eligibility will remain based upon the original base loan amount or CLTV without financing of points. 2.7. EXCEPTIONS Exceptions to published guidelines are considered on a case-by-case basis. Loans with exception requests should exhibit compensating factors. All exception requests must be submitted by the Requestor in writing to the Exceptions Committee via the Exception Form. The fully completed AD Mortgage Exception Request Form along with any supporting documentation is required. AD 's decision to allow or deny any exception request relates only to whether AD will approve a loan. 2.8. ESCROWS – IMPOUND ACCOUNTS Escrow funds/impound accounts are required to be established for all loans originated by AD Mortgage. Escrows may be established for funds collected as required to be paid under the security instrument. Escrow funds include, but are not limited to, taxes, insurance (hazard, flood, and mortgage) premiums, special assessments, ground rents, water, sewer, etc. AD can waive escrow for TILA Non-HPML Loans on primary residence, second homes, and investment properties under Super Prime, Prime, DSCR and Foreign National programs. Please refer to AD Matrix for LTV restrictions and additional criteria. Flood Insurance Escrows can never be waived regardless of loan type or program. 2.9. TEMPORARY BUYDOWN AD Mortgage allows temporary buydown on Owner Occupied properties on Purchase transactions. The note rate without consideration of the bought-down rate will be used for qualifying purposes. The funds for buydown cannot come from the borrower. When the source of the buydown funds is an interested party to the property sale or purchase transaction, interested-party contribution limits apply. 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 | 16
CASH FLOW ANALYSIS
§6.6.15 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
6.6.15. CASH FLOW ANALYSIS A written evaluation must be prepared of the analysis of a self-employed borrower’s personal income, including the business income or loss, reported on the borrower’s federal income tax returns. A copy of the written analysis must be included in the loan file. 6.7. QUALIFYING RATIOS Refer to the Program Matrix for specific qualifying ratios per loan program. Back-End DTI Super Prime, Prime / Foreign National Debt Ratio 55% / 43% • All programs will be qualified at the greater of the fully indexed rate or the note rate. • Interest Only: Qualifying Ratios are based on PITIA payment with the principal and interest payments amortized over the scheduled remaining loan term at the time of recast after the interest only period has expired. For DSCR Interest Only Qualifying Ratios are based on ITIA payment. • Transactions resulting in significant payment shock should always be considered by the underwriter. The borrower’s income must clearly support the borrower’s ability to make the higher 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 | 64 monthly payment. It is at the underwriter’s discretion to require additional verification of assets or a larger down payment as a compensating factor for a loan with high payment shock. • First-time homebuyers with payment shock exceeding 300% are ineligible. For P&L document type payment shock cannot exceed 100%. Payment shock measures the increase in a borrower’s monthly housing expense compared to their current housing expense. Payment Shock (%) = ((Proposed Housing Expense – Current Housing Expense) ÷ Current Housing Expense) × 100, if the borrower is rent-free (with no housing expenses), the payment shock is not calculated. • For other properties owned, documentation to confirm the amount and/or presence or absence of liability for P&I, taxes, insurance, HOA dues, lease payments or other property-related expenses must be provided. • DTI > 50% Eligibility: o Primary Residence and Second Home o Purchase, Rate/Term o Maximum 80% CLTV o Min FICO 680 o Maximum loan amount is 1,000,000 o The borrower must NOT be first time homebuyer
BUSINESS FUNDS
§6.8.5 · admortgage-com-Non-QM-Loan-Eligibility-Guidelines-June-29-July-01-2026-pdf.pdf · document dated 2026-07-01
6.8.5. BUSINESS FUNDS • Business funds may be used for down payment, closing costs and reserves. Verification of business ownership is required with minimum borrower’s ownership of 25% or more. • When borrower’s share in the business is less than 100% a written acknowledgment from all other owners is required to use business funds. 6.8.6. RESERVES There must be verified PITIA reserves remaining after closing, exclusive of closing costs. Beyond the minimum reserve requirements and in an effort to fully document the borrowers’ ability to meet their obligations, borrowers should disclose all other liquid assets on the 1003. • Reserves can be held in a financial institution outside of the US. • Minimum reserves requirements based on loan amount: o For a loan amount less than or equal to 1,000,000 minimum reserve requirement is 3 months o For a loan amount between 1,000,001 and 2,000,000 minimum reserve requirement is 6 months o For a loan amount more than 2,000,000 minimum reserve requirement is 12 months • The additional requirements apply to the following parameters: o Minimum 12 months reserves for Foreign Nationals. • Reserve calculation is based on the PITIA payment at the time of origination. • Cash out proceeds can be used for reserves
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 12 sections
All Carrington Correspondent credit standards →
Documentation
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Program-Matrix.pdf · document dated 2026-08-25 (date inferred — not labelled in the document)
Documentation Borrowers with self-employment earnings may submit 12- or 24-months Profit and Loss (P&L) statements. The following restrictions apply: • Borrowers must be self-employed for at least two (2) years verified by two (2) years of business licenses or a CPA letter. • Business must be in existence for at least two (2) years. • Foreign Nationals are ineligible. Exceptions are not permitted. • Documentation must be provided to show the borrower’s percentage of business ownership. Qualifying income will be multiplied by the percentage of profits that the borrower is entitled to. • Standard Trade Lines are required. • IRS form 4506-C is not required for income documented with profit and loss statements. • The borrower or tax preparer must provide a signed letter of explanation describing the nature of the business, how income is generated, and how long the business has been in existence. • Multiple businesses are permitted, P&L statements must be supplied for each business and each business must have been in existence for at least two (2) years. • Evidence of a decline in earnings will require additional evaluation by the underwriter and may result in disqualification • Profit and Loss statements must be provided for the most recent 12 or 24 months, refer to CFA+ Guidelines for full details. • Bank statements covering the most recent 2 months are required when the qualifying FICO is <600 or evidence of the business can’t be validated. Validation may be supported by a business license, internet search, or acceptable 3rd party verification. The bank statement deposits must support 80% of the monthly average revenue from the P&L. If the most recent 2 months bank statements do not support 80% of the monthly average, continuous bank statements may be added to the analysis until the tolerance is met.
Control
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Program-Underwriting-Guidelines.pdf · document dated 2026-08-25 (date inferred — not labelled in the document)
Control • Revised Condominium Project Review to add 2-4 Unit properties require a full review including review of the budget/ financials. 09/25/19 5.8 • Revised Bank Statement Documentation add Exceptions are not permitted for Non-Permanent Resident Aliens and Foreign Nationals and Foreign sources of income are ineligible. • Revised Bank Statement Documentation > Rental Income requirements. • Revised Foreign Income to add borrower who is self-employed. • Added Royalty Payment Income requirements (mirrors FNMA) • Revised Adjustable Rate Qualifying and Interest Only Payment Qualifying to state qualifying rate is rounded up to the nearest eighth percentage. • Revised Borrowed Funds Secured by an Asset to clarify requirements for using 401(k). • Revised Property Considerations > New Construction to remove calculation for CA and refer to Property Tax Policy for calculation of monthly taxes for qualification. 08/12/19 5.7 • Revised Collections and Charge-Offs Paid through Closing Transaction to require either a payoff demand or credit report or supplement for documentation. • Revised Business Bank Statements to include additional requirements for calculating qualifying Income using Expense Factors and Expense Statements. • Revised Notes Receivable Income to require 12 months history (formerly 2 years). Removed requirement to obtain copy of the note. • Revised Tips and Gratuities documentation requirements. • Revised Unemployment Compensation documentation requirements. • Revised Ineligible Property Types to add Mobile Homes.
Documentation
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Plus-Program-Matrix.pdf · document dated 2026-08-06 (date inferred — not labelled in the document)
Documentation Self-employed borrowers are eligible for either Personal Bank Statement Documentation or Business Bank Statement Documentation. The following restrictions apply to both documentation types: Borrowers must be self-employed for at least 2 years. Business must be in existence for at least 2 years. Standard Tradelines and a 12-month housing history are required. Foreign Nationals are ineligible. Exceptions are not permitted. Foreign sources of income are ineligible. For Personal Bank Statement qualifying, all parties listed on each bank account must be included as borrowers on the loan. For Business Bank Statements where the borrower is not 100% owner of the business or another party appears on the business bank statements, refer to the guidelines for documenting the borrower’s percent ownership of the business. Statements must be consecutive and reflect the most recent months available. Statements must support stable and generally predictable deposits. Unusual deposits must be documented. Evidence of a decline in earnings may result in disqualification. More than 3 NSFs or overdrafts within the most recent 12 months require explanation, supporting documentation, and underwriter analysis for acceptability. Refer to guidelines for additional details. Note: Overdraft Protection Transfers are not considered an NSF. If bank statements provided reflect payments being made on obligations not listed on the credit report, see Undisclosed Debts for additional guidance. PayPal business account statements are ineligible. PayPal earnings must be deposited into a business or personal bank account for consideration. W-2 Wages: Additional income deposited into the bank statements but derived from a source other than the self-employed business may not be included in the bank statement average. W-2 earnings must be documented as per the requirements in Wage-Earners along with a processed 4506-C verifying the W-2 earnings only. W-2 transcripts may be used in lieu of paper W-2s. Rental Income: 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. The following documentation is required: 12 or 24 months complete personal/business bank statements. Bank statements should be from the same account. Multiple bank accounts may be used, but a combination of business and personal is prohibited. Account changes during the review period are acceptable for circumstances such as account closure when the borrower is a victim of fraud or the borrower changes banking institutions, provided there is a clear account transfer date and no deposits are duplicated. Transaction history printouts are not acceptable.
Documentation
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Plus-Program-Matrix.pdf · document dated 2026-08-06 (date inferred — not labelled in the document)
Documentation Self-employed borrowers with non-employee compensation earnings on IRS Form 1099-NEC, such as independent contractors and gig workers, may provide 1 or 2 years 1099-NEC statements. The following restrictions apply: • Borrowers must be self-employed for at least two (2) years verified by two (2) years of business licenses or a CPA letter. • Business must be in existence for at least two (2) years. • This program is designed for self-employed independent contractors with low overhead. If documentation in the file indicates an expense ratio greater than 20%, including (but not limited to) a YTD P&L or bank statements that reflect payroll or rental expenses, income must be qualified using traditional, bank statement, or P&L documentation to account for the higher expenses. Note: automobile payments and leases are not counted towards business expenses if the payments are already considered in the debt ratio as a liability. • Standard Trade Lines are required. • Foreign Nationals are ineligible. Exceptions are not permitted. • IRS form 4506-C must be processed for 1 or 2 years 1099 forms • Multiple 1099 forms from different industries will be reviewed independently as separate businesses. For example, a borrower with earnings from Rideshare and IT Consulting must have a two-year history in each line of work to consider earnings from both sources. • Evidence of a decline in earnings may result in disqualification • Year-to-Date earnings must support the qualifying income calculated per instructions below. YTD earnings must be documented with one of the following, utilizing the most recent documentation available as of the loan application date: o YTD Profit & Loss statement prepared by a licensed or registered CPA or tax preparer. Net monthly earnings on the P&L must not be more than 10% less than qualifying net income of the previous 1 or 2 years. o Earnings Statement with YTD income or Pay Stub with YTD income from the Payer listed on the 1099 forms. Gross earnings on the YTD Earnings Statements must not be more than 10% less than gross monthly 1099 earnings. o Most recent two (2) months bank statements, earnings statements without YTD income, or pay stubs without YTD income. Earnings statements or pay stubs must come from the Payer listed on the 1099 forms. Gross deposits or earnings on bank statements, earnings statements, or pay stubs must not be more than 10% less than gross monthly 1099 earnings. • Expense factor must be considered, refer to Carrington Flexible Advantage Plus (CFA+) Guidelines for full details.
Ineligible Borrowers
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Plus-Program-Matrix.pdf · document dated 2026-08-06 (date inferred — not labelled in the document)
Ineligible Borrowers Foreign Nationals, Deferred Action for Childhood Arrivals (DACA - EAD Category C33), Borrowers with Diplomatic Immunity, Non-Permanent Resident Aliens who do not have a green card or a valid visa, Borrowers without a credit score, Borrowers who are not natural persons (i.e.: Corporation and Partnership), Borrowers holding title in the name of a trust, Borrowers with more than 5 CMS financed properties, including the subject property.
Documentation
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Program-Matrix.pdf · document dated 2026-08-25 (date inferred — not labelled in the document)
Documentation Self-employed borrowers are eligible for either Personal Bank Statement Documentation or Business Bank Statement Documentation. The following restrictions apply to both documentation types: Borrowers must be self-employed for at least 2 years. Business must be in existence for at least 2 years. Standard Tradelines and a 12-month housing history are required. Foreign Nationals are ineligible. Exceptions are not permitted. Foreign sources of income are ineligible. For Personal Bank Statement qualifying, all parties listed on each bank account must be included as borrowers on the loan. For Business Bank Statements where the borrower is not 100% owner of the business or another party appears on the business bank statements, refer to the guidelines for documenting the borrower’s percent ownership of the business. Statements must be consecutive and reflect the most recent months available. Statements must support stable and generally predictable deposits. Unusual deposits must be documented. Evidence of a decline in earnings may result in disqualification. More than 3 NSFs or overdrafts within the most recent 12 months require explanation, supporting documentation, and underwriter analysis for acceptability. Refer to guidelines for additional details. Note: Overdraft Protection Transfers are not considered an NSF. If bank statements provided reflect payments being made on obligations not listed on the credit report, see Undisclosed Debts for additional guidance. PayPal business account statements are ineligible. PayPal earnings must be deposited into a business or personal bank account for consideration. W-2 Wages: Additional income deposited into the bank statements but derived from a source other than the self-employed business may not be included in the bank statement average. W-2 earnings must be documented as per the requirements in Wage-Earners along with a processed 4506-C verifying the W-2 earnings only. W-2 transcripts may be used in lieu of paper W-2s. Rental Income: 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. The following documentation is required: 12 or 24 months complete personal/business bank statements. Bank statements should be from the same account. Multiple bank accounts may be used, but a combination of business and personal is prohibited. Account changes during the review period are acceptable for circumstances such as account closure when the borrower is a victim of fraud or the borrower changes banking institutions, provided there is a clear account transfer date and no deposits are duplicated. Transaction history printouts are not acceptable.
Documentation
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Program-Matrix.pdf · document dated 2026-08-25 (date inferred — not labelled in the document)
Documentation Self-employed borrowers with non-employee compensation earnings on IRS Form 1099-NEC, such as independent contractors and gig workers, may provide 1 or 2 years 1099-NEC statements. The following restrictions apply: • Borrowers must be self-employed for at least two (2) years verified by two (2) years of business licenses or a CPA letter. • Business must be in existence for at least two (2) years. • This program is designed for self-employed independent contractors with low overhead. If documentation in the file indicates an expense ratio greater than 20%, including (but not limited to) a YTD P&L or bank statements that reflect payroll or rental expenses, income must be qualified using traditional, bank statement, or P&L documentation to account for the higher expenses. Note: automobile payments and leases are not counted towards business expenses if the payments are already considered in the debt ratio as a liability. • Standard Trade Lines are required. • Foreign Nationals are ineligible. Exceptions are not permitted. • IRS form 4506-C must be processed for 1 or 2 years 1099 forms • Multiple 1099 forms from different industries will be reviewed independently as separate businesses. For example, a borrower with earnings from Rideshare and IT Consulting must have a two-year history in each line of work to consider earnings from both sources. • Evidence of a decline in earnings may result in disqualification • Year-to-Date earnings must support the qualifying income calculated per instructions below. YTD earnings must be documented with one of the following, utilizing the most recent documentation available as of the loan application date: o YTD Profit & Loss statement prepared by a licensed or registered CPA or tax preparer. Net monthly earnings on the P&L must not be more than 10% less than qualifying net income of the previous 1 or 2 years. o Earnings Statement with YTD income or Pay Stub with YTD income from the Payer listed on the 1099 forms. Gross earnings on the YTD Earnings Statements must not be more than 10% less than gross monthly 1099 earnings. o Most recent two (2) months bank statements, earnings statements without YTD income, or pay stubs without YTD income. Earnings statements or pay stubs must come from the Payer listed on the 1099 forms. Gross deposits or earnings on bank statements, earnings statements, or pay stubs must not be more than 10% less than gross monthly 1099 earnings. • Expense factor must be considered, refer to Carrington Flexible Advantage Plus (CFA+) Guidelines for full details.
Ineligible Borrowers
carringtoncorrespondent.com-Carrington-Flexible-Advantage-Program-Matrix.pdf · document dated 2026-08-25 (date inferred — not labelled in the document)
Ineligible Borrowers Foreign Nationals, Deferred Action for Childhood Arrivals (DACA - EAD Category C33), Borrowers with Diplomatic Immunity, Non-Permanent Resident Aliens who do not have a green card or a valid visa, Borrowers without a credit score, Borrowers who are not natural persons (i.e.: Corporation and Partnership), Borrowers holding title in the name of a trust, Borrowers with more than 5 CMS financed properties, including the subject property.
Ineligible Borrowers
carringtoncorrespondent.com-Carrington-Investor-Advantage-Program-Matrix.pdf · document dated 2026-08-06 (date inferred — not labelled in the document)
Ineligible Borrowers Foreign Nationals, Deferred Action for Childhood Arrivals (DACA - EAD Category C33), Borrowers with Diplomatic Immunity, Non-Permanent Resident Aliens who do not have a green card or a valid visa, Borrowers without a credit score, Borrowers holding title in the name of a trust, Borrowers with more than 5 CMS financed properties, including the subject property.
Documentation
carringtoncorrespondent.com-Carrington-Prime-Advantage-Program-Matrix.pdf · document dated 2026-08-06 (date inferred — not labelled in the document)
Documentation Self-employed borrowers are eligible for either Personal Bank Statement Documentation or Business Bank Statement Documentation. The following restrictions apply to both documentation types: Borrowers must be self-employed for at least 2 years. Business must be in existence for at least 2 years. Standard Tradelines are required. Foreign Nationals are ineligible. Exceptions are not permitted. Foreign sources of income are ineligible. For Personal Bank Statement qualifying, all parties listed on each bank account must be included as borrowers on the loan. For Business Bank Statements where the borrower is not 100% owner of the business or another party appears on the business bank statements, refer to the guidelines for documenting the borrower’s percent ownership of the business. Statements must be consecutive and reflect the most recent months available. Statements must support stable and generally predictable deposits. Unusual deposits must be documented. Evidence of a decline in earnings may result in disqualification. More than 3 NSFs or overdrafts within the most recent 12 months require explanation, supporting documentation, and underwriter analysis for acceptability. Refer to guidelines for additional details. Note: Overdraft Protection Transfers are not considered an NSF. If bank statements provided reflect payments being made on obligations not listed on the credit report, see Undisclosed Debts for additional guidance. PayPal business account statements are ineligible. PayPal earnings must be deposited into a business or personal bank account for consideration. W-2 Wages: Additional income deposited into the bank statements but derived from a source other than the self-employed business may not be included in the bank statement average. W-2 earnings must be documented as per the requirements in Wage-Earners along with a processed 4506-C verifying the W-2 earnings only. W-2 transcripts may be used in lieu of paper W-2s. Rental Income: Borrowers who receive rental income as a secondary income source may utilize Bank Statement Documentation for calculating business income and the most recent lease agreement(s) for rental properties for calculating rental income. Obtain 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. Borrowers whose primary source of income is derived solely from the ownership of rental properties as declared on personal or business tax returns must be calculated using Full Documentation of Income. The following documentation is required: 12 or 24 months complete personal/business bank statements. Bank statements should be from the same account. Multiple bank accounts may be used, but a combination of business and personal is prohibited. Account changes during the review period are acceptable for circumstances such as account closure when the borrower is a victim of fraud or the borrower changes banking institutions, provided there is a clear account transfer date and no deposits are duplicated. Transaction history printouts are not acceptable.
Documentation
carringtoncorrespondent.com-Carrington-Prime-Advantage-Program-Matrix.pdf · document dated 2026-08-06 (date inferred — not labelled in the document)
Documentation Self-employed borrowers with non-employee compensation earnings on IRS Form 1099-NEC, such as independent contractors and gig workers, may provide 1 or 2 years 1099-NEC statements. The following restrictions apply: Borrowers must be self-employed for at least two (2) years verified by two (2) years of business licenses or a CPA letter. Business must be in existence for at least two (2) years. This program is designed for self-employed independent contractors with low overhead. If documentation in the file indicates an expense ratio greater than 20%, including (but not limited to) a YTD P&L or bank statements that reflect payroll or rental expenses, income must be qualified using traditional, bank statement, or P&L documentation to account for the higher expenses. Note: automobile payments and leases are not counted towards business expenses if the payments are already considered in the debt ratio as a liability. Standard Trade Lines are required. Foreign Nationals are ineligible. Exceptions are not permitted. IRS form 4506-C must be processed for 1 or 2 years 1099 forms Multiple 1099 forms from different industries will be reviewed independently as separate businesses. For example, a borrower with earnings from Rideshare and IT Consulting must have a two-year history in each line of work to consider earnings from both sources. Evidence of a decline in earnings may result in disqualification Year-to-Date earnings must support the qualifying income calculated per instructions below. YTD earnings must be documented with one of the following, utilizing the most recent documentation available as of the loan application date: o YTD Profit & Loss statement prepared by a licensed or registered CPA or tax preparer. Net monthly earnings on the P&L must not be more than 10% less than qualifying net income of the previous 1 or 2 years. o Earnings Statement with YTD income or Pay Stub with YTD income from the Payer listed on the 1099 forms. Gross earnings on the YTD Earnings Statements must not be more than 10% less than gross monthly 1099 earnings. o Most recent two (2) months bank statements, earnings statements without YTD income, or pay stubs without YTD income. Earnings statements or pay stubs must come from the Payer listed on the 1099 forms. Gross deposits or earnings on bank statements, earnings statements, or pay stubs must not be more than 10% less than gross monthly 1099 earnings. • Expense factor must be considered, refer to the Carrington Prime Advantage (CPA) Guidelines for full details.
Ineligible Borrowers
carringtoncorrespondent.com-Carrington-Prime-Advantage-Program-Matrix.pdf · document dated 2026-08-06 (date inferred — not labelled in the document)
Ineligible Borrowers Foreign Nationals, Deferred Action for Childhood Arrivals (DACA - EAD Category C33), Borrowers with Diplomatic Immunity, Non-Permanent Resident Aliens who do not have a green card or a valid visa, Borrowers without a credit score, Borrowers who are not natural persons (i.e.: Corporation and Partnership), Borrowers holding title in the name of a trust, Borrowers with more than 5 CMS financed properties, including the subject property.