+ InvestorPrograms
Coffee Cake.
Bank statements; DSCR $3.5M. Nine ways to document income. Its Lite version takes P&L only, WVOE, and asset utilization.
- Score from
- 620
- LTV up to
- 90%
- Loans to
- $4M
The limits, by paperwork.
Minimum score, maximum LTV, and maximum loan for each way the borrower can document income, for every version of Coffee Cake. A number in red is stricter than that version allows elsewhere. Open an income type for how its income is figured.
Full docStandardminimum score 680+ (tighter than its best)maximum LTV 80%maximum loan $2.5M (tighter than its best)Liteminimum score 620+maximum LTV 90%maximum loan $4M
Paystubs and W-2s, or one or two years of personal and business tax returns. Depreciation, depletion, amortization, and documented one-time expenses may be added back.
Bank statementsStandardminimum score 680+ (tighter than its best)maximum LTV 80%maximum loan $2.5M (tighter than its best)Liteminimum score 620+maximum LTV 90%maximum loan $4M
Deposits from 12 or 24 months of statements, less a 50% fixed expense ratio, or a lower ratio from a CPA, EA, CTEC preparer, PTIN holder, or tax attorney, with a 10% minimum.
P&L onlyStandardNot offeredLiteminimum score 680+ (tighter than its best)maximum LTV 80% (tighter than its best)maximum loan $3M (tighter than its best)No bank statements required
Net income from the P&L, divided by the months it covers, times the borrower’s ownership share. Depreciation, depletion, and amortization may be added back.
WVOE onlyStandardNot offeredLiteminimum score 680+ (tighter than its best)maximum LTV 80% (tighter than its best)maximum loan $3M (tighter than its best)
Income as the employer states it on FNMA Form 1005. Bonus, commission, and overtime count when most income is base pay.
1099StandardNot offeredLiteminimum score 620+maximum LTV 90%maximum loan $4M
The 12 or 24 month average of total 1099 income, less a 10% expense factor.
Asset utilizationStandardNot offeredLiteminimum score 680+ (tighter than its best)maximum LTV 80% (tighter than its best)maximum loan $3M (tighter than its best)
Net qualified assets divided by 60 months. Cash counts at 100%, stocks and bonds at 70%, retirement at 70% from age 59½ and 50% before.
DSCR, 1 to 4 unitsStandardminimum score 640+maximum LTV 80%maximum loan $3.5MLiteNot offeredNo ratio allowed
Gross rent divided by the qualifying payment: PITIA, or ITIA on interest-only. Rent is the higher of the lease or the 1007/1025 market rent when they are within 20%.
DSCR, 5 to 8 unitsStandardminimum score 700+ (tighter than its best)maximum LTV 75% (tighter than its best)maximum loan $3M (tighter than its best)LiteNot offeredUp to 8 units allowed
The same DSCR test, with a 1.00 minimum. Loans of $2 million and up also need a 9% debt yield: net operating income over the loan amount.
Foreign nationalStandardminimum score 680+ (tighter than its best)maximum LTV 75% (tighter than its best)maximum loan $2.5M (tighter than its best)LiteNot offeredNo ratio allowed
The DSCR test on the property’s rent. No US credit or housing history is required.
Matrices and guidelines
- Coffee Cake DSCR 5-8 Units matrix(PDF, opens in a new tab)
- Coffee Cake DSCR Foreign National matrix(PDF, opens in a new tab)
- Coffee Cake DSCR matrix(PDF, opens in a new tab)
- Coffee Cake Alt Doc matrix(PDF, opens in a new tab)
- Coffee Cake Full Doc matrix(PDF, opens in a new tab)
- Coffee Cake Lite Alt Doc matrix(PDF, opens in a new tab)
- Coffee Cake Lite Bank Statements matrix(PDF, opens in a new tab)
- Coffee Cake Lite Full Doc matrix(PDF, opens in a new tab)
- DSCR guidelinesVersion 5.0(PDF, opens in a new tab)
- Non-QM guidelinesVersion 5.0(PDF, opens in a new tab)
The other cakes.
- + Investor
+ Investor
+ Lite
+ Lite
+ Lite
Have a Coffee Cake file?
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