STATED GEORGIA MORTGAGE LENDERS – PRIMARY HOMES!

STATED GEORGIA MORTGAGE LENDERS

Florida Mortgage Lenders seeks to approve investment non-owner occupied loans that will be designated for business purposes only. All borrowers will be required to sign a Business Purpose & Occupancy Statement prior to close to declare that the property is, or will be, for commercial business or investment purpose only.

STATED GEORGIA MORTGAGE LOAN PURPOSE

Borrower is financing the Florida properties solely for commercial purposes and is required to sign a Certification of Business Purpose/Non-Owner Occupied disclosure at closing attesting that the subject Florida property is not owner occupied and is owned solely for Florida investment purposes.

Additionally, the Stated Georgia Mortgage is required to execute a business purpose and occupancy affidavit at loan application acknowledging that the loan is being obtained for a Florida business purpose only and the subject property is not to be occupied.

NO INCOME NO EMPLOYMENT/INCOME ANALYSIS

There is no employment verification or income analysis required for the Investor No-Income Program.

 STATED INVESTOR DOWN PAYMENT AND FICO

FICO         Purchase Rate            Term Cash out 

700+              25% Down              75%           70%

640+              30% Down              70%           65%

Foreign         30% Down              60%           60%

ELIGIBLE PROPERTY TYPES FOR STATED FLORIDA MORTGAGE LOANS

  • Single Family Residences, 1-4 units (Attached and Detached)
  • PUDs (Attached and Detached)
  • Warrantable and Non Warrantable Condos
  • Townhouse

INELIGIBLE PROPERTY TYPES

  • Manufactured Homes
  • Condotels
  • Log Home
  • Hobby Farms
  • Mixed Use properties
  • Agriculturally Zoned
  • Rent Controlled
  • Section 8
  • Co-ops
  • Unique Properties
  • Properties with greater than 2 acres

DOWN PAYMENT REQUIRED BY STATED INVESTOR GEORIGA MORTGAGE LENDERS

Full Asset Documentation is required for purchase transactions to evidence sufficient funds to close. Assets must

be sourced or seasoned for 60 days.  For most asset types, this would include the most recent two months

statements or the most recent quarterly statement.

DEPOSITORY ACCOUNTS

Funds held in a checking, savings, money market, certificate of deposit, or other depository accounts can

be used for down payment, closing costs, and reserves.

BUSINESS ACCOUNTS

  • Borrowing entity business accounts may be used.
  • Non-borrowing entity business account will only be permitted if the guarantor(s) constitute 100%

ownership of the business.

STOCKS, BONDS, AND MUTUAL FUNDS

Stocks/Bonds/Mutual Funds – 70% of the balance can be considered towards the borrower’s reserves.

RETIREMENT ACCOUNTS

  • Vested Retirement Accounts – 60% of the balance can be considered towards the borrower’s

reserves.

  • If needed to close, verification that funds have been liquidated (if applicable) is required.

CONCESSIONS AND CONTRIBUTIONS

Interested Party Contributions permitted up to 2%.

GIFT FUNDS

No gift funds of any kind (cash or equity).

RESERVES

There is no reserve requirement for the Investor No-Income Program.

STATED GEORGIA MORTGAGE LENDERS LOAN OPTIONS

The following loan products are available:

  • First Mortgage Lien
  • Non-Owner Occupied Only
  • 3/1 & 5/1 LIBOR: (2/2/5 Cap Structure)

o Qualifying Rate: Qualify borrower(s) at the greater of the fully-indexed rate or Note Rate

o Interest-Only Period:  10 Year Interest-Only Period 60 months

  • 7/1 LIBOR: (5/2/5 Cap Structure)

o Qualifying Rate: Qualify borrower(s) at the greater of the fully-indexed rate or Note Rate

o Interest-Only Period:  10 Year Interest-Only Period 120 months

  • 30 Year Fixed Rate

o Qualifying Rate: Qualify borrower(s) at the Note Rate

o Interest-Only Period:  10 Year Interest-Only Period 120 months

GEORGIA STATED INVESTOR LOAN TO VALUE AND FICO

FICO         Purchase Rate/Term Cash out 

700+          75%               75%           70%

640+          70%               70%           65%

Foreign     70%               60%           60%

GEORGIA STATED INVESTOR LOAN AMOUNTS

  • Minimum – $100,000
  • Maximum – $2,000,000

Higher/lower loan amounts may be considered on a case-by-case basis.

GEORGIA STATED PURCHASE LOANS

  • No Florida property flipping, prior owners must have owned the Florida property greater than 4 months (bank owned REO not considered a flip).
  • Interested Party Contributions permitted up to 2% maximum.
  • Non-Arm’s Length transactions are not permitted.
  • No Gifts of any kind (cash or equity).

GEORGIA STATED RATE AND TERM REFINANCE FOR INVESTOR LOANS OK!

  • A Rate/Term Refinance restricts cash to the borrower in an amount not to exceed the lower of (i)

2% of the principal amount of the new mortgage, or (ii) $2,000.

  • If the property is owned less than 6 months at the time appraisal, the LTV/CLTV will be based on the

lesser of (i) the original purchase price plus documented improvements (if any) or (ii) current

appraised value. The purchase HUD-1 and any invoices for materials/labor will be required.

  • For properties owned greater than 7 months but less than 12 months, the maximum LTV cannot

exceed 65% based on a current appraisal.

  • Refinances in accordance with Fannie Mae Delayed Financing will be considered. Rate/Term and

will require the following:

o Purchase HUD-1

o Preliminary Title confirming no liens

o Source of purchase funds must be documented

GEORGIA STATED CASH OUT REFINANCE INVESTOR LENDERS

  • If the Florida property is owned less than 6 months at time of appraisal, the LTV/CLTV will be based on the lesser of (i) the original purchase price plus documented improvements (if any) or (ii) current

appraised value. The purchase HUD-1 and any invoices for materials/labor will be required.

  • For Florida properties owned greater than 7 months but less than 12 months, the maximum LTV cannot

exceed 65% based on a current appraisal.

  • No limit on the amount of Cash Out.
  • Cash Out >$200,000 max LTV is 60%.
  • Max LTV for Cash-Out properties cannot exceed 70%.

GEORGIA STATED INVESTOR LOANS MUST HAVE A PERSONAL GURANTY REQUIRED

Florida Mortgage lenders requires all its entity Florida borrowers to submit their loan application with a

guarantor subject to the following requirements:

  • The guarantor must be an individual person and not an entity.
  • A guarantor is required to be a manager or majority owner (25% or greater) of the entity and

is subject to the same FICO and fraud checks as individual borrowers.

ENTITY IDENTITY REVIEW PROCESS FOR GEORGIA INVESTORS

Loan Stream Mortgage will review all entity documents to ensure the borrowing entity is duly formed with

full authority to conduct real estate transactional and borrowing activity as stated in their organizational

documents. Furthermore, Loan Stream Mortgage will ensure the individual signing on behalf of the borrowing

entity has the authority to bind the entity. Confirmation of good standing status must be reviewed on state

websites to ensure borrowing counterparties are current on all state taxes and fees. Any entity must be in

good standing and provide proper formation.

CREDIT REPORT REQUIREMENT FOR STATED GEORGIA MORTGAGE  LOANS

A tri-merged in file credit report from all three repositories is required for guarantor(s) and any majority

member of the borrowing entity.

  • 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 from the group of

borrowers/guarantors is the representative credit score for qualifying.

  • Foreign Nationals without an ITN are not subject to FICO requirements.

MORTGAGE AND RENTAL PAYMENT VERIFICATION FOR STATED GEORGIA MORTGAGE APPLICANTS

  • Evidence of current home ownership required.
  • Primary housing history may not exceed 1X30 over prior 12 months.
  • Investment property mortgage history may not exceed 1X60 over prior 12 months (purchase only

with a 5% LTV reduction).

  • All mortgages and rental payments should be current at time of closing. If the credit report or

VOR/VOM reflects a past-due status, updated documentation is required to verify the account is

current.

COLLECTIONS AND CHARGE-OFFS FOR STATED GEORGIA MORTGAGE APPLICANTS

The following accounts may remain open:

  • Collections and charge-offs < 24 months old with a maximum cumulative balance of $2,000
  • Collections and charge-offs = 24 months old with a maximum of $2,500 per occurrence
  • Collections and charge-offs that have passed beyond the statute of limitation for that state

(supporting documentation required)

  • All medical collections

JUDGMENT AND TAX LIENS FOR STATED GEORGIA MORTGAGE APPLICANTS

  • All judgments or liens affecting title must be paid prior to closing.
  • Judgements and tax liens not affecting title may remain open.

BANKRUPTCY (ALL CHAPTERS)

  • All bankruptcies must be discharged at least 24 months prior to closing.

FORECLOSURE/SHORT SALE/DEED IN LIEU/NOTICE OF DEFAULT

  • The above housing events must be completed at least 24 months prior to closing.

EMPLOYMENT/INCOME ANALYSIS

There is no employment verification or income analysis required for the Investor No-Income Program.

RATIOS AND QUALIFYING 

There is no Debt-to-Income (DTI) requirement for the Investor No-Income Program.