Programs

Sponge Cake.

Clean credit: 90% to $1.5M. Eight ways to document income. Its Lite version takes WVOE only, asset utilization, P&L only, 1099, bank statements, and full doc.
See the limitsSee matricesGuideline PDFsGet pricing
Score from
620
LTV up to
90%
Loans to
$3M
Sponge Cake

The limits, by paperwork.

Minimum score, maximum LTV, and maximum loan for each way the borrower can document income, for every version of Sponge 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 620+maximum LTV 90%maximum loan $3MLiteminimum score 620+maximum LTV 80%maximum loan $1.5M

    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.

    What the file needs Standard matrix, PDF Lite matrix, PDF

  • Bank statementsStandardminimum score 620+maximum LTV 90%maximum loan $3MLiteminimum score 620+maximum LTV 80%maximum loan $1.5M

    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.

    What the file needs Standard matrix, PDF Lite matrix, PDF

  • P&L onlyStandardminimum score 660+ (tighter than its best)maximum LTV 80% (tighter than its best)maximum loan $2.5M (tighter than its best)Liteminimum score 660+ (tighter than its best)maximum LTV 80%maximum loan $1.5MNo 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.

    What the file needs Standard matrix, PDF Lite matrix, PDF

  • WVOE onlyStandardminimum score 620+maximum LTV 80% (tighter than its best)maximum loan $3MLiteminimum score 620+maximum LTV 80%maximum loan $1.5M

    Income as the employer states it on FNMA Form 1005. Bonus, commission, and overtime count when most income is base pay.

    What the file needs Standard matrix, PDF Lite matrix, PDF

  • 1099Standardminimum score 620+maximum LTV 85% (tighter than its best)maximum loan $3MLiteminimum score 620+maximum LTV 80%maximum loan $1.5M

    The 12 or 24 month average of total 1099 income, less a 10% expense factor.

    What the file needs Standard matrix, PDF Lite matrix, PDF

  • Asset utilizationStandardminimum score 620+maximum LTV 80% (tighter than its best)maximum loan $3MLiteminimum score 620+maximum LTV 80%maximum loan $1.5M

    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.

    What the file needs Standard matrix, PDF Lite matrix, PDF

  • DSCR, 1 to 4 unitsStandardminimum score 620+maximum LTV 80% (tighter than its best)maximum loan $3MLiteNot 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%.

    What the file needs Standard matrix, PDF

  • Foreign nationalStandardminimum score 660+ (tighter than its best)maximum LTV 75% (tighter than its best)maximum loan $3MLiteNot offered

    The DSCR test on the property’s rent. No US credit or housing history is required.

    What the file needs Standard matrix, PDF

The other cakes.

Have a Sponge Cake file?

Approved partners submit in TPO Connect. New to Cake? Request a callback and an account executive calls within 24 hours. Questions on a scenario go to (833) 717-0401.

Become a partner(833) 717-0401

Already approved? Broker login (opens in a new tab)