+ InvestorPrograms
Sponge Cake.
Clean credit: 90% to $1.5M. Eight ways to document income. Its Lite version takes a credit event seasoned 12 months.
- 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 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.
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.
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.
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.
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.
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.
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%.
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.
Matrices and guidelines
- Sponge Cake Super Prime matrix(PDF, opens in a new tab)
- Sponge Cake Foreign National matrix(PDF, opens in a new tab)
- Sponge Cake DSCR matrix(PDF, opens in a new tab)
- Sponge Cake Lite Non-QM matrix(PDF, opens in a new tab)
- Non-QM guidelinesVersion 5.0(PDF, opens in a new tab)
- DSCR guidelinesVersion 5.0(PDF, opens in a new tab)
The other cakes.
- + Investor
+ Lite
+ Investor
+ Lite
+ Lite
Have a Sponge 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)