+ InvestorPrograms
Funnel Cake.
90% LTV with a 55% DTI. Eight ways to document income. Its Lite version takes a recent credit event or a 60-day late.
- Score from
- 620
- LTV up to
- 90%
- Loans to
- $3M
The limits, by paperwork.
Minimum score, maximum LTV, and maximum loan for each way the borrower can document income, for every version of Funnel 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 660+ (tighter than its best)maximum LTV 90%maximum loan $3MLiteminimum score 620+maximum LTV 80%maximum loan $2M
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 660+ (tighter than its best)maximum LTV 90%maximum loan $3MLiteminimum score 620+maximum LTV 80%maximum loan $2M
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 onlyStandardminimum score 660+ (tighter than its best)maximum LTV 80% (tighter than its best)maximum loan $3MLiteminimum score 660+ (tighter than its best)maximum LTV 80%maximum loan $2M2 months 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.
1099Standardminimum score 660+ (tighter than its best)maximum LTV 90%maximum loan $3MLiteminimum score 620+maximum LTV 80%maximum loan $2M
The 12 or 24 month average of total 1099 income, less a 10% expense factor.
Asset utilizationStandardminimum score 660+ (tighter than its best)maximum LTV 80% (tighter than its best)maximum loan $3MLiteNot offered
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% (tighter than its best)maximum loan $2.5M (tighter than its best)LiteNot offeredMinimum 0.75 ratio required
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%.
Foreign nationalStandardminimum score 660+ (tighter than its best)maximum LTV 70% (tighter than its best)maximum loan $1.5M (tighter than its best)LiteNot offeredMinimum 1.0 ratio required
The DSCR test on the property’s rent. No US credit or housing history is required.
Closed-end secondStandardminimum score 660+ (tighter than its best)maximum LTV 90%maximum loan $1M (tighter than its best)LiteNot offeredAll income types available
Qualified on the same income documentation as the first lien: full doc, bank statements, 1099, WVOE, 12-month P&L, or DSCR.
Matrices and guidelines
- Funnel Cake Closed-end second matrix(PDF, opens in a new tab)
- Funnel Cake DSCR matrix(PDF, opens in a new tab)
- Funnel Cake Alt Doc matrix(PDF, opens in a new tab)
- Funnel Cake Lite Alt Doc matrix(PDF, opens in a new tab)
- Closed-end second guidelinesVersion 2.1(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
+ Lite
+ Investor
+ Lite
+ Lite
Have a Funnel Cake file?
Approved partners submit in TPO Connect. New to Cake? Apply and an account executive calls within 24 hours. Questions on a scenario go to (833) 717-0401.
Already approved? Log in to TPO Connect (opens in a new tab)