FLORIDA ASSET-BASED MORTGAGE LENDERS QUALIFICATION PROGRAMS

ASSET-BASED FLORIDA MORTGAGE LENDERS QUALIFICATION PROGRAMS
Florida Asset Based Mortgage Lenders offers two Alt Doc programs where the borrower’s assets can be used to assist in qualification, or in some cases as the only qualifying factor. For both programs, assets must be documented and
seasoned for six months as noted in the Assets section of these guidelines.

ASSET BASED FLORIDA MORTGAGE LENDERS 
Asset Based Mortgage Lenders loans allow a quicker qualification based solely on the borrower’s seasoned, liquid
assets. They require the borrower to have a level of seasoned, liquid assets sufficient to satisfy the entire
principal balance of the proposed mortgage, as well as all other expenses for the next 5 years. This
requirement is in addition to any funds required for the down payment, closing costs, as well as any reserves
that may be required by the product type. Asset Based Mortgage Lenders program is only available for loans on properties
which are going to be owner occupied.Income and employment are not verified, and do not need to be disclosed on the borrower’s application. Loans qualified under the Asset Based Mortgage Lenders program are not subject to Residual Income
calculations.

 Eligible Assets – Florida Asset Based Mortgage Lenders
All qualifying assets must be held in a bank or brokerage account. All accounts must be personal accounts
in the borrower’s name or assets held in a revocable inter-vivos trust where the trustee is the borrower and
the trust was established to hold the borrower’s assets. Business accounts that are 100% controlled by the
borrower are acceptable provided that documentation can be provided that the withdrawal of funds will not
impact the business. All parties on shared accounts must be borrowers on the proposed loan. As noted
above, all assets must be seasoned for six months for the Asset Based Mortgage Lenders program.

 Ineligible Assets – Florida Asset Based Mortgage Lenders
• Funds held in trusts other than a revocable inter-vivos trust identified above
• Individual stock certificates
• Individual bearer bonds
• 401(k) or retirement funds designated for distribution
• Cash on hand (mattress money)
• Equity in real estate or privately-owned businesses
• Illiquid or non-financial assets

Offsets for Asset Liquidity – Florida Asset Based Mortgage Lenders
Cash in checking or savings accounts as well as cash equivalents in money market funds will be credited at
100% of the most recent balance. See Assets section for more information regarding documentation
requirements. The below types of accounts will be discounted as noted below, to allow for capital gains
taxes, early withdrawal penalties, or market fluctuations.

• Stocks and bonds (90% of current value acceptable)
• Mutual funds (90% of current value acceptable)
• 401(k) funds not in distribution (70% of current value acceptable)
• Retirement Accounts not in distribution (70% of current value acceptable)

Example Florida Asset Based Mortgage Lenders

$280,000 loan amount

$70,000 down payment required
$5,000 in closing costs
No reserves required at this program / credit grade
$365 Taxes
$80 Insurance
$300 consumer debt
Required funds:
$75,000 to close transaction
$280,000 loan amount
$44,700 to pay all debts for next 60 months
$399,700 in assets required

 Asset Assist – Florida Asset Based Mortgage Lenders
Unlike the Asset Based Mortgage Lenders program, which uses only assets to qualify, the Asset Assist program derives income
from seasoned, liquid assets which can be added to other documented income sources to qualify. Loans in
the Asset Assist program are subject to the DTI limits of the credit grade and program, and must adhere to
residual income minimums.
The funds to be used for Asset Assist qualification will be net of any required down payments, closing costs,
or required reserves.

Eligible Assets – Florida Asset Based Mortgage Lenders
As in the Asset Based Mortgage Lenders program, all qualifying assets must be held in a bank or brokerage account. All
accounts must be personal accounts in the borrower’s name. All parties on shared accounts must be
borrowers on the proposed loan. As noted above, all assets must be seasoned for six months for the Asset
Assist program.

Ineligible Assets – Florida Asset Based Mortgage Lenders
• Funds held in trusts
• Funds in corporate or business accounts
• Individual stock certificates
• Individual bearer bonds
• 401(k) or retirement funds designated for distribution
• Cash on hand (mattress money)
• Equity in real estate or privately-owned businesses
• Illiquid or non-financial assets

Offsets for Asset Liquidity – Florida Asset Based Mortgage Lenders
Cash in checking or savings accounts as well as cash equivalents in money market funds will be credited at
100% of the most recent balance. See Assets section for more information regarding documentation
requirements. The below types of accounts will be discounted as noted below, to allow for capital gains
taxes, early withdrawal penalties, or market fluctuations.
• Stocks and bonds (90% of current value acceptable)
• Mutual funds (90% of current value acceptable)
• 401(k) funds not in distribution (70% of current value acceptable)
• Retirement Accounts not in distribution (70% of current value acceptable)

Income Calculation – Florida Asset Based Mortgage Lenders
The total amount of eligible assets will be divided by 120. This figure will be treated as income for income qualification.

Example- Florida Asset Based Mortgage Lenders

$10,000 in checking account
$40,000 in money market account
$200,000 in stocks and bonds held in a brokerage account ($180,000 eligible)
$230,000 in eligible assets / 120 = $1,916.67 in qualifying income

DEBTS AND LIABILITIES

Borrower’s Debts and Liabilities – Florida Asset Based Mortgage Lenders
The borrower’s debts and liabilities include all revolving charge accounts, installment loans, real estate loans,
and negative income from rental properties, stock pledges, alimony, child support, and all other debts of a
continuing nature. Verification is required for any other liability not reflected on the credit report.

Alimony/Child Support – Florida Asset Based Mortgage Lenders
Monthly payments that extend beyond ten (10) months are included in debt-to-income ratio. A copy of the
complete divorce decree and dissolution of marriage must be provided and included in the loan file.

Business Debt – Florida Asset Based Mortgage Lenders
The monthly payments for business debts are not included in the borrower’s debt-to-income ratio if the
payments have been made in a timely manner by the business entity.
The business debt must be counted in the debt-to-income ratio if:

• Payments by the primary obligor cannot be adequately documented.
• A sufficient payment history has not been established for the debt.
• If the debt has been delinquent greater than 1 x 60 in the last six (6) months.

Contingent Liabilities / Co-Signed Debt
The monthly payments for contingent liabilities are not included in the borrower’s debt-to-income ratio, if the
payments have been made in a timely manner. Canceled checks covering the last six (6) months’ showing
no late payments by the primary obligor will be required.
The contingent liability must be counted in the debt-to-income ratio if:

• Payments by the primary obligor cannot be adequately documented.
• A sufficient payment history has not been established for the debt.
• If the debt has been delinquent greater than 1 x 60 in the last six (6) months.

Installment Accounts – Florida Asset Based Mortgage Lenders
Monthly payments on installment debts extending beyond ten months are included in the borrower’s debtto-income
ratio.
Auto lease contracts provide the consumer with an option to either purchase the automobile or return it to
the dealer at the end of the lease contract. Regardless of the two options, it is likely the consumer will secure
new financing for another automobile once the lease expires. Therefore, monthly auto lease payments are
included in the borrower’s debt-to-income ratio regardless of the number of payments remaining on the lease
contract.
Lines of Credit – Florida Asset Based Mortgage Lenders
Monthly payments must be calculated on revolving lines of credit and included in the applicant’s debt-to-
income ratio. The monthly payment is determined based on the present outstanding balance.

Open Accounts – Florida Asset Based Mortgage Lenders
Open accounts are accounts which require the balance to be paid monthly. Florida Asset Based Mortgage Lenders generally does
not calculate a payment on these accounts nor does it require the borrower to have sufficient reserves to
cover the balance.

Mortgage Payments for Rental Properties- Florida Asset Based Mortgage Lenders
The monthly mortgage payments must be satisfactorily documented on all rental properties owned by the
borrower, if not reported on the credit report.

Property Taxes, Insurance and HOA Fees for Rental Properties Owned by the
Borrower
The monthly payments for taxes, insurance and Homeowner’s Association (HOA) fees (if applicable) will be
taken from the Schedule of Real Estate. If the Schedule of Real Estate is incomplete or blank, the borrower
must provide satisfactory documentation verifying the amount of the monthly payments.
If the monthly payments for taxes and insurance are impounded, the borrower must provide satisfactory
documentation verifying an impound account.

Property Owned Free and Clear – Florida Asset Based Mortgage Lenders
A subject property that is owned free and clear requires proof that the property is free and clear of all
mortgage liens.
A chain of title covering the last twelve (12) months must be obtained and reviewed by the underwriter for
property flipping and / or suspicious or conflicting property transfers.
Any property on the REO section of the 1003 that is shown to be owned free and clear (zero balance
mortgage) must be corroborated with the credit report to show no additional open mortgage account(s).
Revolving Trade Lines of Credit – Florida Asset Based Mortgage Lenders
Monthly payments of all revolving accounts with outstanding balances are included in the calculation of the
debt-to-income ratio calculation. The monthly payments reflected on the credit report are used for the
calculation of debts. When revolving accounts with outstanding balances do not have stated minimum
required payments, the monthly payment calculation is three percent (3%) of the outstanding balance or $10
per month, whichever is greater.
A ninety-day same as cash account is considered a revolving account, the monthly payment is calculated
using three percent (3%) of the outstanding balance.

Student Loans – Florida Asset Based Mortgage Lenders
Payments on student loans will be included in the debt to income ratio, unless the loan repayment is deferred
for a minimum of 3 years. If the payment is deferred, documentation must be provided that clearly
demonstrates the time of the deferral and when payments are expected to begin (note: deferral information
on the credit report is not acceptable). A 1% minimum payment will be used for qualification on all student
loans where a payment is not specified on the credit report.

Timeshares – Florida Asset Based Mortgage Lenders

All timeshare accounts are treated as consumer debt.

Loans Secured by Financial Assets – Florida Asset Based Mortgage Lenders
Loans secured by the Borrower’s Financial Assts, such as 401K loans, margin loans on stock portfolios, loans
secured by bank depository accounts are not included in the borrower’s liabilities. Assets that are being used
as collateral for a loan may not be counted as assets for reserves. If the balance of the asset is greater than
the loan amount against it, the excess may be used as reserves. To calculate the amount available to be
used as reserves, take the applicable percentage for the type of account, then subtract the amount of the
loan. The remaining balance is available for reserves.

Example: A borrower has $100,000 in a 401K account with a $30,000 loan against it. The applicable
percentage for 401K accounts is 70%. $100,000 x 70% = $70,000 less $30,000 loan = $40,000 available for
reserves.

DEBT-TO-INCOME – Florida Asset Based Mortgage Lenders
Rounding Debt-to-Income Ratio
Round the debt-to-income ratio to the nearest hundredths. For example: 45.493% round to 45.49%. While
the maximum DTI ratio for most lending programs is 50%, Florida Asset Based Mortgage Lenders may consider approving loans with
a DTI up to 55% on a case-by-case basis with sufficient compensating factors.

DEBT-TO-INCOME – Florida Asset Based Mortgage Lenders
II.26.1 Rounding Debt-to-Income Ratio
Round the debt-to-income ratio to the nearest hundredths. For example: 45.493% round to 45.49%. While
the maximum DTI ratio for most lending programs is 50%, Florida Asset Based Mortgage Lenders may consider approving loans with
a DTI up to 55% on a case-by-case basis with sufficient compensating factors.

Monthly Housing Expense – Florida Asset Based Mortgage Lenders
1. Principal and Interest Payments:
• For loans that have an initial fixed interest rate, then become adjustable, use the higher of the
start rate or fully indexed rate. 30-year fixed program use the note rate
2. Payments on subordinate financing on the borrower’s principal residence (if applicable)
3. Hazard insurance
4. Flood Insurance (if applicable)
5. Mortgage Insurance (if applicable)
6. Real estate taxes and/or assessments
7. Homeowner’s association fees on the borrower’s principal residence (if applicable)
Other Debts and Obligations – Florida Asset Based Mortgage Lenders
1. A ninety-day same as cash account is considered a revolving account, the monthly payment is
calculated using five (5) percent of the outstanding balance.
2. Monthly payments on all revolving trade lines (does NOT include any type of household utilities
(e.g. gas, water, electric, trash, television house & cell phone or internet, etcetera) that may be
reporting on credit).
3. Alimony, child support or separate maintenance payments (if applicable).
4. Monthly payments on installment debts with maturity dates greater than ten (10) months.
5. Aggregate negative net rental income from all investment properties owned.
6. Monthly mortgage payments (PITIA) for second homes.

Debt Ratio Calculation for Rental Properties OWNER OCCUPIED 2-4 Unit Property – Subject
1. Monthly gross rents from the subject N/O/O units.
2. Add 80% gross rental income to borrower’s monthly income.
3. New PITIA on subject added to borrower’s personal debts divided by total monthly income = debt-
to-income ratio.
INVESTMENT PROPERTY SFR, Condo/PUD, 2-4 Unit -Subject
1. 80% of gross monthly rent.
2. Rent minus new PITIA on subject property = positive or negative rent. (If positive add to income, if
negative include in debt)
3. Monthly payment for borrower’s primary residence added to borrower’s personal debt (include
negative rent for subject, if applicable) divided by total monthly income = debt-to-income ratio.

OTHER RENTAL PROPERTY OWNED by the Borrower (not-subject) – Florida Asset Based Mortgage Lenders
1. 80% of gross monthly rent
2. Rent minus PITIA on rental property = positive or negative rent (if positive add to income, if negative
include in borrower’s debts)

SECOND HOME – Florida Asset Based Mortgage Lenders
The borrower must qualify for the New PITIA on the second home.
1. Monthly payment for borrower’s primary residence added to New PITIA on subject second home and
borrower’s personal debt divided by total monthly income = debt-to-income ratio.

ASSETS / FUNDS – Florida Asset Mortgage Lenders 
Source of Funds
The source of funds on all transactions can be from any of the following sources:
• Borrower’s own funds
• Gift from a relative (refer to Gift Funds)
• Seller or institutional second mortgage

When transactions are closed using gift funds or subordinate financing, a minimum contribution of 5% from
the borrower’s own funds is required when the LTV exceeds 75% on CoreX. PrimeX requires borrowers to
always contribute at least 5% of their own funds on purchase transactions. Management may consider
lesser contributions on a case by case basis.
Contributions by Interested Parties (Seller Contributions) – Florida Asset Mortgage Lenders 
Any closing costs normally paid by the property purchaser are considered contributions if not paid by the
purchaser. Contributions may be paid by the property seller or by any other interested party to the transaction
– such as the builder, the developer, the real estate agent, the lender, or any of their affiliates. On purchase
money transactions contributions by interested parties (i.e.: Realtor, Builder, and Seller) are acceptable and
may be applied towards non-recurring and recurring closing costs, but may not exceed actual costs. For first
mortgage loans, the maximum contribution by interested parties are as follows:
A maximum 6% of the purchase price may be contributed.
A copy of the fully executed sales contract is required. Any excess credit or gift allowance must be deducted
from the lower of the sales price or appraised value when calculating the LTV and CLTV.
Items Not Considered Contributions – Florida Asset Mortgage Lenders 
Items paid by the property seller that are the seller’s responsibility – such as real estate sales commissions,
charges for pest inspections, fees paid to trustees to release a deed of trust, or costs that the property seller
is required to pay under state or local law – are not contributions.
Funds the purchaser receives from a non-participant to the sales transaction – such as the property
purchaser’s employer or a family member – are not considered contributions, even when they are used to
pay closing or settlement costs. For example, funds received from the purchaser’s employer through a
corporate relocation plan are not considered a contribution. Funds received from a relative of the purchaser
would be considered as a gift (not a contribution) and, as such, would have to comply with our requirements
regarding gifts.
Non-recurring Closing Costs – Florida Asset Mortgage Lenders 
• Appraisal
• Appraisal Desk Review
• Appraisal Field Review
• Attorney Fees
• Broker Admin Fee
• Broker Fee
• Courier Fees
• Credit Report
• Discount Fees/Points
• Document Fee Document Redraw Fee
• Endorsement Fees
• Escrow Fee
• Flood Certification Fee
• Inspections
• Lender Points
• MI Premium (Initial or 1
st
Year)
• Notary Fees
• Photos
• Prepaid Interest
• Processing Fee
• Recording/Filing Fees
• Taxes for Govt. Fees
• Tax Service Fee

Verification of Assets / Funds – Florida Asset Mortgage Lenders 
Funds to close are to be properly verified on purchase-money transactions and where applicable on rate /
term refinances. Verification of funds is not required for cash-out refinances.
• The source of funds for closing should be reflected on the loan application.
• Verification of acceptable source of funds is required for all funds paid OUTSIDE of
escrow/closing, which may be reflected as a credit on the purchase contract, escrow instructions
or HUD-1.
• Verification of the seasoning of funds to close is not required on loans of 65% or less.
Source and Seasoning of Funds to Close
The SOURCE of funds must be verified.

When the loan requires the borrower to bring funds to escrow to close the transaction, the following
requirements must be met:

• For loans with an LTV greater than 75%, all funds to close must be sourced and seasoned for 60
days.

• For loans with and LTV of 75.00% and below, funds to close must be sourced.

All funds to close, other than gift funds, must come from a personal account or business account that is
owned by the borrower(s).

Acceptable Assets / Funds to Close – Deposit Accounts – Florida Asset Mortgage Lenders 
Verification of deposit accounts such as checking, savings, certificate of deposit, and money market
accounts may include the following documentation:

• Verification of Deposit
• Copy of the borrower’s most recent bank statement(s) for the account(s) in which the funds for
the down payment are to be withdrawn.

Earnest Money and Deposit – Florida Asset Mortgage Lenders 
Earnest Money and Deposit on Sales Contracts are considered part of the down payment. Earnest money
and deposits exceeding two percent (2%) of the sales price or $1,000.00, whichever is less, requires
verification by one of the following:
• Copy of check (canceled or not canceled) with certified escrow deposit receipt.
• Bank statement showing the check cleared with certified escrow deposit receipt.
Verification of acceptable source of funds on any deposit paid outside of escrow must be satisfactorily
documented.

Gift Funds – Florida Asset Mortgage Lenders 
Gift funds from a family member to assist with the costs to close are permitted on purchase money
transactions for owner occupied residences. Second homes and investment properties may be considered
on a case by case only.
Acceptable Donors may include – Florida Asset Mortgage Lenders 
• Family members (i.e., spouse, parent, brother, sister, child, grandparent, aunt, uncle, nephew,
niece).
• Fiancé, fiancée, or domestic partner.
• Non-profit organizations when given pursuant to an established program (case-by-case, require
corporate underwriting approval).
Gift Letter – Florida Asset Mortgage Lenders – required on all Gifts and must include:
1. Reflect the borrower’s name;
2. Reflect the Donor’s name, address and phone number;
3. Reflect the Donor’s relationship to the borrower;
4. Disclose the source of the gift funds (i.e., name of depository institution, account number);
5. Indicated the dollar amount of the gift; and
6. Include a statement that the person receiving the gift (i.e., borrower) is not obligated to repay the
dollar amount of the gift;
7. Include a statement: “The funds given to <enter borrower(s) name(s)> were not made available to
the donor from any person or entity with an interest in the sale of the property including the seller,
real estate agent or broker, builder, loan officer, or any entity associated with them.”
8. Signed and dated by the Donor and Borrower(s).
Receipt of Gift Funds – Florida Asset Mortgage Lenders 
Evidence (a) that the gift funds have been transferred from the donor’s account to the borrower and (b) that
the gift funds came from an acceptable source, must be documented in the file. Acceptable evidence may
include:
• Copy of the wire receipt from the donor’s account into the borrower’s account; OR
• Copy of the certified check from the donor to the borrower; OR
• If the gift funds were deposited directly in escrow, a copy of the check with a certified
escrow deposit or wire receipt showing funds were from the donor’s account is required.
The documentation evidencing the transfer of funds must match the information on the gift letter (i.e., the
remitter’s name (donor), borrower’s name, dollar amount, date, name of the depository institution, and
account number.
If the documentation for receipt of gift funds does not provide sufficient proof they came from the donor’s
account, the donor must provide account statements covering the most recent two months to establish his or her ability to provide the gift. In addition, the donor’s funds must be seasoned a minimum of 60 days and
proof the funds were withdrawn and/or transferred to the borrower’s account or to escrow will be required.

Gift of Equity (Owner Occupied) Florida Asset Mortgage Lenders 
Gift Equity is allowed provided the following is met:
1. Purchase transactions only. Fully executed purchase agreement is required.
2. The donor of the gift of equity must be from an immediate family member (i.e. grandparent, parent,
sibling, aunt, uncle, spouse, and child).
3. A gift letter signed and dated by the donor and borrower is required. The gift letter must explain the
gift of equity, stating the amount of the gift and that no repayment is expected or implied.
4. Proof the existing mortgage lien(s) secured by the subject property is not currently delinquent.
5. As no cash down payment is made in a gift equity transaction, the borrower must pay all closing
costs from his own funds. Seller credits, broker credits, or gift funds towards closing costs are
considered on a case by case basis only.

IRA, Keogh – Florida Asset Mortgage Lenders 
Only a withdrawal amount may be considered. The loan file must include a copy of the IRA or Keogh Account
Statement and proof of liquidation. A deposit receipt showing the funds on deposit in the borrower’s account
or the funds deposited into escrow is required.
 IRS 1031 Exchange – Florida Asset Mortgage Lenders 
The 1031 Tax Deferred Exchange (1031 Exchange) feature provides Borrowers with an additional means
for obtaining down payment funds. A tax deferred exchange allows a borrower to exchange the “like kind”
investment property as long as the acquired property is of greater or equal Value to the relinquished property.
A 1031 exchange allows the borrower to continue the old property investment into the new replacement
property for delayed tax purposes. The borrower or any related party/parties to the borrower, such as;
spouse, ancestors, descendants, siblings, employees, attorney, accountant, investment banker, broker, or
real estate agent cannot control the funds from the 1031 exchange.
Funds received by the borrower from an IRS 1031 Exchange must meet the following criteria:
• The subject property must be “like kind” non-owner occupied (investment) property with the acquired
property of equal or greater value to the relinquished property.
• A Qualified Intermediary, who acts on behalf of the borrower in accordance with a specific written
contract, must control the funds. The Qualified Intermediary, for a fee, acts to facilitate the deferred
exchange by entering into an agreement to exchange the properties. Under this agreement, the
Qualified Intermediary sells the relinquished property, acquires the replacement property, and
transfers the replacement property to the exchanger (i.e., borrower).
o The exchange must be an arm’s length transaction in which the parties involved are entirely
independent of one another with no reason to collude. Title reports, sales contracts and sales
history must be reviewed on both properties if simultaneous closing to determine property churning
is not occurring.
o The property must be reduced to cash in an arm’s length transaction. If a replacement property is
not available at the time of the relinquishment, the borrower can sell the subject property and place
the proceeds in an escrow account held by the Qualified Intermediary to be applied toward a
replacement property when one becomes available if the replacement property is:
– Identified on or before 45 days of the date the taxpayer transfers the subject property and
– Received within 180 days after the subject property has been transferred or before the
Borrower’s taxes are due for the year of transfer, whichever is first.
o The 1031 Exchange cannot be an exchange of a partnership or limited liability corporation interest.
o The name of the taxpayer on the sale of relinquished property must be the same as the acquirer
of the exchanged property.
o Relinquished property sale must close before or simultaneously with the property acquired.

1. Simultaneous Closing- Florida Asset Mortgage Lenders 
The following documentation is required for BOTH properties in simultaneous closing:
• Sales contract and escrow instructions
• Appraisal
• Preliminary title report
• Exchange agreement identifying the holder of funds, buyer and home seller, expiration date,
agreed upon value, closing date, closing costs, conditions of transfer and repairs, if required
• Statement of borrower’s equity, calculated as the lower of one of the following:
– New trade from the sales contract
– Gross trade value from the sales contract less the sum of the transfer fees, all lien balances
on the currently owned property and transfer fees on the new property
– Appraised value of the borrower’s currently-owned property plus any new transfer fees on
the new property
Relinquished Property and Purchase of New Property- Florida Asset Mortgage Lenders 
The following documentation is required for 1031 Exchange transactions occurring prior to the
purchase of the new property.
• HUD-I for both properties
• Exchange agreement
• Sales contract or escrow instructions for both properties
• Verification of funds from Qualified Intermediary (exchange holder)
Life Insurance Cash Value – Florida Asset Mortgage Lenders 
The cash value must be verified by a letter from the insurance company and a deposit receipt showing
deposit of funds into the borrower’s account.
II.27.9 Loan Secured by Borrower’s Asset(s)
Proceeds from a loan secured by an asset that is owned by the borrower is an acceptable source of funds
for closing provided the following criteria is met:
• The loan must be secured by an asset owned by the borrower such as, certificates of deposit, stocks,
bonds, real estate other than the subject property, life insurance policies, savings accounts, profit
sharing plans, and automobiles.
• The loan must be from an institutional lender and disclosed in the liability section of the loan
application at submission to underwriting, or revised accordingly.
• The borrower must qualify with the payment of the additional debt.
• The terms of the debt must be verified by the institution or by a copy of the loan documentation.
• The closed loan package must contain a copy of the executed note reflecting the same terms as
disclosed in the submission package.
• Proof of receipt of the funds must be provided in the closed loan package.
Unsecured Debt – Florida Asset Mortgage Lenders 
Proceeds from unsecured or revolving debt are acceptable for closing on a case by case basis, provided the
borrower has met any minimum contribution requirements and all payments on the unsecured debt are
included in the DTI calculation.
Relocation Credits and Residence Liquidation – Florida Asset Mortgage Lenders 
A copy of the commitment letter from the employer’s relocation company describing the details and terms of

the relocation package. A receipt showing the deposit of funds into the borrower’s account or escrow/title
must be obtained and included in the loan file.

Sale of Real Property – Florida Asset Mortgage Lenders 
If the source of funds to close is proceeds from the sale of real estate owned by the borrower, the amount of
the net proceeds must be documented as follows:
II.27.12.1 Pending Sale
• If the sale has not closed, a copy of the agreement of sale and Closing Disclosure must be obtained
and reviewed by the underwriter to ensure the net proceeds will be sufficient for closing. The final
Closing Disclosure showing sufficient funds to close must be provided at closing and included in the
loan file.
Closed Sale – Florida Asset Mortgage Lenders 
• If the sale has closed, a copy of the Final Settlement Statement (HUD-1) must be provided.
Verification that the net proceeds from the sale are either held in escrow/title or on deposit in the
borrower’s account must be obtained and included in the loan file.
Subordinate Financing – Florida Asset Mortgage Lenders 
New and existing junior liens secured by the subject property and subordinating to a Florida Asset Based Mortgage Lenders Mortgage
Corp. first mortgage is allowed provided the following is met:
• The combined loan-to-value of the first and subordinating junior lien(s) may not exceed 90.00%.
• The junior lien(s) may be a private party seller second from the original purchase of the property, or
an institutional lender.
• The existing junior lien(s) must have a remaining term of at least five (5) years.
• The terms of the note must provide for regular monthly payments of at least interest only with no
provisions for future advances, or wrap-around terms.
• The principal and/or interest payment must be added to the monthly debt ratio.
• A copy of the executed note on the subordinating junior lien(s) must be obtained and included in the
loan file. The note must be reviewed and approved by the underwriter prior to ordering loan
documents.
A certified copy of the fully executed subordination agreement must be reviewed and approved by the
underwriter prior to funding the loan. The subordination agreement must record concurrently with
Asset Based Mortgage lenders ’S first mortgage / deed of trust.
Home Equity Line of Credit – Florida Asset Mortgage Lenders 
When Secondary or Subordinate financing is a Home Equity Line of Credit the following additional criteria
must be met:
• The property being financed should be owner occupied or second / vacation home.
• The calculation of the CLTV should include the total usable Home Equity Line of Credit.
• A copy of the Note for the Home Equity Line of Credit must be obtained to determine the payment
based on the interest rate in effect for the Line of Credit Loan on the date that the Loan application
is underwritten.
• An executed estoppel agreement is required from the existing line of credit holder, for existing lines
of credit that are being subordinated to a new Florida Asset Based Mortgage Lenders Mortgage loan. The estoppel agreement
must freeze the credit line at the current maximum limit.
Stocks, Bonds, and Other Securities – Florida Asset Mortgage Lenders 
The file must contain proof that the borrower owns the stocks, bonds, or other securities and must document

what they are worth. Proof is required that these securities have been sold if funds are needed to close.
Acceptable evidence of ownership and value include:
• A statement from the brokerage company indicating ownership of the security and verifying the sale.
• Verification from the bank that the security has been sold or redeemed. Copies of the sale
documents proving ownership and that the transaction is complete.
To verify government bond income, a photocopy of the bond, copy of the redemption table to verify the value,
and proof of liquidation is required. If funds are used to satisfy the borrower’s minimum down payment
required for the loan-to-value, the documentation must clearly show the borrower owned the source of the
funds for at least 90 days.
Tax Refunds – Florida Asset Mortgage Lenders 
Tax refund checks from either the Internal Revenue Service or State Revenue are acceptable sources of
funds. Such funds must be documented as follows:
• Copy of the refund check(s) or a copy of the borrower’s income tax returns showing the amount of
the refund.
• Proof of an increase in deposit accounts supported by a copy of the borrower’s income tax returns.
Unacceptable Assets / Funds – Florida Asset Mortgage Lenders 
Unacceptable sources of funds include, but are not limited to:
• Sweat Equity – a contribution to the construction or rehabilitation of a property in the form of labor
or services instead of cash
• Trade Equity (excluding 1031 Exchange)
Please note that the Asset Based Mortgage lenders maintains discretion for interpretation or definition of any
item or situation that is not explicitly addressed in the guidelines.
Reserves – Florida Asset Mortgage Lenders 
Some HomeX programs require reserves. Please consult your rate sheet for program-specific details.
When reserves are required to be verified, they must be seasoned for at least 60 days and verified by a VOD
or 2 months’ bank statements. Acceptable sources of reserves include:
• A borrower’s personal checking, savings, money market, or other depository account
• Business funds are acceptable as reserves. If the Borrower owns 95% or less of the business, funds
may be transferred to a personal account or documentation must be provided stating that the
Borrower has access to the funds and that the withdrawal of funds will not impact the business.
• Stocks, bonds, mutual funds, or other marketable securities.
• Cash value of a life insurance policy. A copy of the policy is required.
• 401(k) or IRA. Due to early withdrawal penalties, only 70% of the value of either of these types of
accounts will be credited as reserves.
When required by the program, cash out on the subject loan may be used to establish reserves on the CoreX
and InvestorX Full/Alt program. Cash out may not be used as reserves on the PrimeX program.

SECTION II COLLATERAL – Florida Asset Mortgage Lenders 
PROPERTY ELIGIBILITY
Asset Based Mortgage lenders funds loan on properties that are secured by residential dwellings in urban,
suburban, or rural areas. Asset Based Mortgage lenders does not reject loans solely on the basis of age of
the property, square footage, number of bedrooms, the location of the property or the ethnic composition of
a neighborhood.
Eligible Property Types – Florida Asset Mortgage Lenders 
Eligible property types include properties as listed below that are situated on fee simple or real property with
a ground lease. (Refer to Ground Lease requirements later in this section.)
• Single Family Residences (attached/detached)
• Condominiums (attached/detached) (low-rise/high rise)
• Planned Unit Developments PUD (attached/detached)
• Two-to-four (2-4) units
• Properties listed for sale within the last six (6) months. Loans on listed properties are made on a
case-by-case basis for rate/term refinances only and may be subject to LTV restrictions.
Ineligible Property Types
Certain property types are not considered to be acceptable collateral:
• Adult Care Facilities
• Agricultural use properties (crops, lumber, animals of any kind)
• Bed and Breakfast, Small Owner Inns or Boarding/Rooming Houses Commercial Properties
• Condotels Multi Family Units (5+)
• Cross Collateralized Properties
• Refinance of Builder Spec Homes where builder is still owner or on title
• Time Shares
• Cooperatives
• Earthberm Homes, Geodesic Domes
• Economic life of property is less than term of the loan
• Highly Unique Properties
• Illegal use of property – Zoning or building code violations
• Log Cabins
• Manufactured Homes
• Mixed use properties; excluding personal in-home business (exceptions are made on a case by case
basis with Senior Management approval)
• Mobile Homes
• Mobile Home Parks or Converted Mobile Home Parks
• Own Your Own Apartments
• Properties in less than average condition
• Properties with no permanent heat source (except for areas where not required by code)
• Properties that are not suitable for year-round use
• Properties zoned: commercial, industrial, manufacturing, exclusive farm use (EFU), forest
commercial (FC)
• Properties with interim use or properties reported to have a different highest and best use than the present use
Properties in areas built up “under 25%”
Properties with deferred maintenance, deterioration or structural damage that may seriously affect
the structural integrity or pose a health and safety hazard to the occupant(s). Properties that are
condemned or deemed uninhabitable by local municipalities. Properties displaying significant
disrepair that it is prohibitive and not feasible to restore the structure to a habitable condition.
Refinance of vacant properties
Vacant land
Working Farms or Ranches (crops, cattle, horse, dairy, etc.)

Property Marketability Factors – Florida Asset Mortgage Lenders 
Properties that have unique physical features, are physically deteriorated, or exposed to value and
marketability issues may result in a reduction of value or be ineligible for financing.
Examples of marketability factors that could adversely affect the acceptability of the property are:
• Atypical physical characteristics and construction type / quality
• Economic changes in market conditions
• Environmental risk hazards (toxic)
• External or functional obsolescence
• Geological conditions – Properties currently or potentially suffering from significant site distress or
erosion due to local geological conditions
• Inadequate ingress and egress
• Public utilities or services – Properties that lack typical city or county services and necessary utilities,
including water electricity, heating and sewage disposal
• Properties in remote locations
• Unique properties that do not conform to the local market and require longer marketing times such
as over-improved or super-adequacy properties
• Zoning changes – Identified recent or pending zoning changes which would have a short-term
negative or de-stabilizing impact on residential market values
Florida Asset Mortgage Lenders Approved Properties
Condominium
A condominium project is one in which individual owners hold title to units in the project along with an
undivided interest in the real estate that is designated as the common area for the project. The units in the
project must be owned in fee simple and the unit owners must have the sole ownership interest in and rights
to the use of, the project’s facilities, common elements, and limited common elements.
A condotel project is located in a resort area with a rental management company that provides occupancy
on an interim basis (daily, weekly, etcetera). Condotel projects are typically not eligible for financing.
To qualify as an acceptable condominium unit, the condominium project must be common for the area and
demonstrate good marketability.
Asset Based Mortgage lenders will not lend on more than 20% of the units in a condominium project.

Condominium Eligibility Requirements
All Condominium Projects must meet the following criteria:
• The maximum number of total units in the project owned by the same entity or individual may not
exceed 30%.
• All common areas and facilities must be complete.
• Non-warrantable condominium projects will be reviewed on a case by case basis only, subject to the
criteria listed below. A pricing add may apply.
Condominium – Established Projects
• 90% of the total units in the project must be sold and conveyed to the unit owners.
• 50% of the total units in the project must be owner occupied.
• All phases are complete.
• HOA must be conveyed to the unit owners – no developer or builder-controlled projects allowed.
• All comparable sales may be from within the subject’s project if the project is established and
consists of 100 or more units. Recent sales of model match units, if available, must be utilized in the
appraisal report.
Condominium – Newer Projects
• 60% of the total units in the project or subject’s phase must be sold and conveyed to the unit owners
AND at least 60% of the units must be owner occupied.
• Project may be subject to additional phasing.
• HOA should be in control – project under Developer or Builder control will be considered on a caseby-case
basis only.Comparable sales must include at a minimum:
o One (1) from inside the project; and
o Two (2) from outside the project.
• Budget Analysis (Addendum B) and a Project Analysis (Addendum A) are required.
Condominium – Smaller Projects (less than 20 units)
• 100% of the total units in the project must be sold and conveyed to the unit owners.
• 50% of the total units in the project must be owner occupied.
• All phases are complete.
• HOA is conveyed to the unit owners – project may not be under developer or builder control.
• Smaller projects that are common for the area are acceptable with like comps from the subject’s
market area.
• Smaller projects with no HOA will be considered case-by-case basis.
• Projects consisting of three (3) units or less require proof of an arbitration agreement in the Articles
and By-laws.
• Comparable sales must include at a minimum:
– One (1) from inside the project; and
– Two (2) from outside the project.
Condominium Conversions
• 100% of the total units in the project must be sold and conveyed to the unit owners.
• 50% of the total units in the project must be owner occupied.
• All phases must be complete.
• HOA must be conveyed to the unit owners – no developer or builder-controlled projects allowed.
• Converted condominium projects must be common for the area and demonstrate market acceptance
as evidenced by comparable sales of other apartment conversions in the area.

Condominium Eligibility Requirements
All Condominium Projects must meet the following criteria:
• The maximum number of total units in the project owned by the same entity or individual may not
exceed 30%.
• All common areas and facilities must be complete.
• Non-warrantable condominium projects will be reviewed on a case by case basis only, subject to the
criteria listed below. A pricing add may apply.
Condominium – Established Projects
• 90% of the total units in the project must be sold and conveyed to the unit owners.
• 50% of the total units in the project must be owner occupied.
• All phases are complete.
• HOA must be conveyed to the unit owners – no developer or builder-controlled projects allowed.
• All comparable sales may be from within the subject’s project if the project is established and
consists of 100 or more units. Recent sales of model match units, if available, must be utilized in the
appraisal report.
Condominium – Newer Projects
• 60% of the total units in the project or subject’s phase must be sold and conveyed to the unit owners
AND at least 60% of the units must be owner occupied.
• Project may be subject to additional phasing.
• HOA should be in control – project under Developer or Builder control will be considered on a caseby-case
basis
only

Comparable sales must include at a minimum:
o One (1) from inside the project; and
o Two (2) from outside the project.
• Budget Analysis (Addendum B) and a Project Analysis (Addendum A) are required.
Condominium – Smaller Projects (less than 20 units)
• 100% of the total units in the project must be sold and conveyed to the unit owners.
• 50% of the total units in the project must be owner occupied.
• All phases are complete.
• HOA is conveyed to the unit owners – project may not be under developer or builder control.
• Smaller projects that are common for the area are acceptable with like comps from the subject’s
market area.
• Smaller projects with no HOA will be considered case-by-case basis.
• Projects consisting of three (3) units or less require proof of an arbitration agreement in the Articles
and By-laws.
• Comparable sales must include at a minimum:
– One (1) from inside the project; and
– Two (2) from outside the project.
Condominium Conversions
• 100% of the total units in the project must be sold and conveyed to the unit owners.
• 50% of the total units in the project must be owner occupied.
• All phases must be complete.
• HOA must be conveyed to the unit owners – no developer or builder-controlled projects allowed.
• Converted condominium projects must be common for the area and demonstrate market acceptance
as evidenced by comparable sales of other apartment conversions in the area.

• 80% LTV maximum

Ground Lease Properties
A ground lease is a condition; whereby the persons listed on the title owns the dwelling, but leases the land
on which the dwelling exists. The appraisal report must include comparable sales that are leasehold
properties, unless the leasehold fee interest is being purchased through the subject transaction. The terms
of the leasehold must be referenced in the appraisal report. All Leaseholds are subject to approval by
Asset Based Mortgage lenders ’s legal counsel. All requests for approval must include the following items:
• Copy of the recorded ground lease agreement,
• Copy of all sub-lease agreements, and
• Copy of the appraisal report.
Ground lease agreements must meet the following:
1. The lease and any sub-lease must be recorded in the appropriate public land records.
2. The use of leasehold or ground rents must be an accepted practice in the area and properties with
them must be readily marketable.
3. The original term of the lease does not terminate earlier than five (5) years after the maturity date of
the mortgage.
4. The mortgage must cover the improvements and the mortgagor’s leasehold interest in the land.
5. An ALTA Leasehold Loan Policy must insure the leasehold estate and the improvements.
6. The lease does not contain provisions for termination in the event of damage to or destruction of the
premises as long as the leasehold exists.
7. For sub-leasehold mortgages, the sublease payments are at least equal to the amount of the lease
payments. The sublease payments are not due less frequently than the lease payments.
8. A ground lease must give the leasehold mortgagee standard protections necessary to protect the
security of a leasehold mortgagee including the right to receive notice, at least 30-days, of the
lessee’s default under the ground lease. The mortgagee must have the right, with adequate time, to
cure such default, and in the case of incurable defaults of the lessee, the right to enter into a new
ground lease with the lessor on terms financially identical and otherwise substantially identical to the
existing ground lease.
Log Style Homes
Log style homes (excluding log cabins) are acceptable collateral provided the following is met:
• Minimum of two (2) comparable sales that are log style homes with similar property characteristics
as the subject property.
• The two comparable sales must be recent sales (one (1) year or less) and must be located in close
proximity to the subject property.
• The Appraiser must comment if log style homes are typical for the area.
Modular Homes
A modular home is a pre-fabricated dwelling, which is principally factory built off-site. The dwelling is
delivered to the site in sections or modules. Upon delivery to the site, the home is assembled and attached
to a permanent foundation and assumes the appearance and characteristics of a site-built residence.
Portions of the dwelling may be built on site.
If the subject is modular construction, the comparable sales must include at least one (1) resale of a modular
constructed home. For lending purposes, a modular home is treated as a single-family residence including
loan-to-value limits. An ALTA 7 Endorsement is required from Title.

Mixed Use Properties
A mixed-use property as defined by Asset Based Mortgage lenders is a one-to-four (1-4) unit residential
property with a home- based business. The following requirements must be met:
1. The borrower must be both the owner and the operator of the business.
2. The business cannot interfere or conflict with the residential use of the property.
3. The property cannot have been altered in any way that would indicate any use, design, or appeal
other than residential.
4. There must be no hazardous material being used or stored at the subject property.
5. The market value of the property must be solely a function of its residential characteristics, rather
than of the business use.
III.2.2.14 Multi-Family Residences
A two-to-four (2-4) unit dwelling is eligible for financing. The property must be appraised on a 1025 form and
be typical for the area. Multi-family dwellings containing in excess of 4 units are not eligible for financing.
III.2.2.15 Planned Unit Developments (PUD’s)
A Planned Unit Development (PUD) is a project or subdivision that consists of common property and
improvements that are owned and maintained by a Home Owners Association for the benefit and use of the
individual PUD units. The common property enhances the enjoyment of the premises and the value of the
property that secures a PUD unit mortgage. Asset Based Mortgage lenders will purchase single family
properties attached or detached that are located in a PUD project, provided the following criteria is met:
• The project must be in an established market.
• Detached PUD’s do not require any additional documentation for the HOA, phase or project
completion or insurance documentation, unless it is a refinance which will require a recent HOA
statement.
Deed Restricted Developments
A deed restricted development is a community where use of the land is governed and restricted by a
Homeowner’s Association. Restrictions may vary from fencing and landscaping requirements to limitations
on the age of potential owners.

Any property in a deed restricted development is subject to review and approval by Florida Asset Based Mortgage Lenders . Restrictions
that have a potential negative impact on marketability will be considered on a case by case basis, and may
result in a reduced LTV.
III.2.2.17 PUD – Manufactured Home Developments
Asset Based Mortgage lenders will not lend on manufactured homes.
III.2.2.18 Row Housing
A row house property is a site-built dwelling for one family only and built on land owned by the borrower. The
dwelling is an attached housing unit that is not classified as a condominium or PUD and does not share any
common areas or pay HOA fees.
• Adjoining row homes typically fill an entire block and were primarily built in the 1930s and 1940s.

• Row homes are typically located in communities of row homes with similar construction type,
appearance, and value.
• Row homes are typically two (2) or more stories with a front and rear entrance only. The rear
entrance is accessible from an alley at the rear of the property, which runs the length of the city
block.
• The dwelling may include an attached carport typically accessible from the alley.
Rural Properties
1. Asset Based Mortgage lenders will consider properties that are classified as “rural” and built up “under
25%” under a case-by-case basis.
2. All rural properties to be considered would require a minimum 10% LTV reduction
3. Rural properties with a marketing time in excess of six (6) months may be subject to an additional
LTV reduction.
he determination of a rural property will be made based on the review of the appraisal by Florida Asset Based Mortgage Lenders
Mortgage. A property may be considered rural if any of the below conditions exist:
• On a gravel road and does not have adequate utilities available in service,
• On more than five (5) acres of land,
• In a neighborhood under 25 percent “built-up”,
• Appraiser classifies the property as rural, or
• In a remote or isolated area.
NOTE: Generally, comparable sales used by the appraiser that exceed a distance of five (5) miles or more
om the subject property is also a good indicator the property may be located in a rural area.
Single Family Residence
A single-family residence is a site-built dwelling designed for one (1) family use only, normally detached and
generally built on land owned by the homeowner.
he dwelling may share one (1) wall (“Party Wall”) with a residence owned by another party. Therefore, the
nits are either detached or attached in groupings of two (2) (“Twin Home”). The dwelling may include an
attached or detached garage. Properties that share one (1) wall require a party wall agreement. The party
wall agreement should be recorded and reflected on the preliminary title report / title commitment.
III.2.2.21 Single Family Residence New Tract / Development
or purchase transactions of new construction, the sales contract must indicate the base price and detail
any and all upgrades with the cost breakdown. The allowable percentage for upgrades above the standard
package must be supportable within the local market.
he appraisal report must be current with two (2) comps in the project and two (2) comps outside the project
to support the Fair Market Value (FMV) and the marketability. The appraisal must be made either “as is” if
omplete or “subject to” which would require a Form 1004D and photos upon completion.
the improvements are not completed at the time of the appraisal an estimate of percentage complete
hould be noted within the report. Interior photos are recommended. For properties valued over $500,000
nterior photos are required.
III.2.2.22 Townhomes
A town home is a style of construction designed for one (1) family use only and can be built as a PUD,
Condo, or Site Built home (no common area). The unit may be detached or attached in groupings of two (2)
or more.
Unique Properties Unique Property Features
A dwelling with an unusual layout, peculiar floor plan or inadequate equipment or amenities usually has limited market appeal and should not be considered for maximum financing. The appraiser should comment
on any functional obsolescence, negative impact on the marketability, or buyer resistance as a result of the
unique property features.
Unique Properties
Asset Based Mortgage lenders finances unique properties on a case-by-case basis only with the following
stipulations:
1. Appraisal Field Review is required, regardless of LTV,
2. Unique properties must be compared with other unique properties in the area,
3. The property must be in average or better condition,
4. The property must have adequate heating and water sources,
5. The appraised value must be based on a marketing time of no more than six (6) months, and
6. The property must meet all other Asset Based Mortgage lenders property requirements and may
be subject to an LTV reduction.
Vacant Properties
Vacant properties are generally unacceptable collateral for rate and term or cash out refinances, unless the
property is vacant pending the completion of renovation or remodeling. All work performed on the subject
property must be noted by the appraiser, documented with contractors’ bids, and be completed by closing.
Vacant properties are eligible for purchase financing. The file must contain a newly executed lease / rental
agreement for subject property and the appraiser must note comparable rents in the area.

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