Income types
Closed-end second mortgages.
Borrowers who want cash from their equity without touching a good first mortgage, on a primary, second home, or investment property.
2 cakes take closed-end second.
Every cake with a published matrix for this income type, largest loan first. Open one for its limits and matrix.
What the file needs.
Qualified on the same income documentation as the first lien: full doc, bank statements, 1099, WVOE, 12-month P&L, or DSCR.
- Stand-alone, or piggy-back with a new first lien using the same documentation
- Fixed terms of 10, 15, 20, or 30 years, and 30/15 or 40/15 balloons
- The current first mortgage statement and note
- First liens in forbearance, with negative amortization, or reverse mortgages are not eligible
From the Closed-end second guidelines, version 2.1, section 2.1 to 2.3. The guidelines and matrix govern every file.
Read the guidelines (PDF, opens in a new tab)Check a scenario.
Move the score, LTV, and loan amount. The cakes that take it line up.
One change away
Limits from the published matrices. The guidelines govern every file.
Other ways to document income
Have one of these files?
Talk it through with an account executive at (833) 717-0401 before you submit, or apply to become a partner and submit in TPO Connect.
Already approved? Log in to TPO Connect (opens in a new tab)
