Non-QM Guideline Updates

• All Non-QM Products
  • Brokers who also act as lenders may transfer appraisals to CMS in their own name when brokering a loan
  • Reduce FICO at which cash-out may be considered for reserves from 700-620
  • Reduce the number of required comparables for accessory dwelling units (ADU)
  • Permit rental income derived from ADUs when local laws permit ADUs to be rented
  • 2nd appraisal may be ordered from the same AMC as the first appraisal

• Carrington Investor Advantage (DSCR)
  • Resales within 6 months ok  (subject to additional requirements)
  • Remove the requirement for the current lease on a leased primary residence when an institutional VOR (verification of rent) is provided
  • Update modification guidelines so that only certain distressed modifications require seasoning as a housing event
  • Permit cash-out down from 640 to 620 FICO
  • Updated 1st-time investor definition to no investment ownership within 36 months (was 12) - LTV benefit

• Carrington Prime Advantage (FICO 660+)
  • Permit 3-4 unit primary residences
  • Multiple bank accounts are permissible when qualifying with business bank statements

• Carrington Flexible Advantage Plus (FICO 620+)  
  • Multiple bank accounts are permissible when qualifying with business bank statements

• Carrington Flexible Aadvantage (FICO 550+)
  • Permit 1099 & P&L income documentation with minimum 620 FICO
  • Multiple bank accounts are permissible when qualifying with business bank statements

• Underwriting Exception Policy:
  • Overall net savings (NTB) for CFA, CFA+, and CPA may be used as a compensating factor  to support exception requests

Please contact your account executive or relationship manager if you have questions.