Programs

Velvet Cake.

85% LTV all the way to $3M. Seven ways to document income.
See the limitsMatrix(opens in a new tab)
Score from
660
LTV up to
85%
Loans to
$3M
Velvet Cake

The limits, by paperwork.

Minimum score, maximum LTV, and maximum loan for each way the borrower can document income. A number in red is stricter than Velvet Cake allows elsewhere. Open an income type for how its income is figured.

  • Full docminimum score 660+maximum LTV 85%maximum loan $3M

    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 Matrix, PDF

  • Bank statementsminimum score 660+maximum LTV 85%maximum loan $3M

    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 Matrix, PDF

  • P&L onlyminimum score 700+ (tighter than its best)maximum LTV 80% (tighter than its best)maximum loan $3MNo 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 Matrix, PDF

  • 1099minimum score 660+maximum LTV 85%maximum loan $3M

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

    What the file needs Matrix, PDF

  • Asset utilizationminimum score 660+maximum LTV 80% (tighter than its best)maximum loan $3M

    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 Matrix, PDF

  • DSCR, 1 to 4 unitsminimum score 660+maximum LTV 80% (tighter than its best)maximum loan $3MMinimum 1.0 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%.

    What the file needs Matrix, PDF

  • DSCR, 5 to 8 unitsminimum score 660+maximum LTV 75% (tighter than its best)maximum loan $3MUp 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.

    What the file needs Matrix, PDF

Matrices and guidelines

The other cakes.

Have a Velvet Cake file?

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