1. For NON-QM loan, the cash out requirement is following:
● Cash out seasoning, AAA Capital defines cash-out seasoning as the difference between application date of the new loan and prior financing note date or date of purchase.
① For properties owned twelve (12) months or longer, the LTV/CLTV is based upon the appraised value.
② If the property has been owned from six (6) to twelve (12) months, the property value is limited to the lower of the current appraised value or the property’s purchase price plus documented improvements.
● The borrower must be on the vesting at least 6 month. (Delay financing except)
● Properties previously listed for sale are to seasoned at least 6 months from the listing contract expiration date to the Note date.
2. NON-QM loan advantage
● If the LTV is lower than 70%, the cash out refinance doesn’t adjust the rate, the rate of cash out refinance is the same as the No cash out refinance.
● Net cash out proceeds from the subject transaction can be used for required reserves.
Post time: Jan-21-2022