Updated Non-QM Product Underwriting Guidelines

The following accounts may remain open:

• Collections and charge-offs < 24 months old with a maximum cumulative balance of $2,000
• Collections and charge-offs ≥ 24 months old with a maximum of $2,500 per occurrence
• Collections and charge-offs that have passed beyond the statute of limitation for that state (supporting documentation required)
• All medical collections

Collection and charge-off balances exceeding the amounts listed above must be paid in full.

The following accounts may remain open:

• Collections and unsecured charge-offs < 24 months old with a maximum cumulative balance of $2,000
• Collections and charge-offs ≥ 24 months old with a maximum of $2,500 per occurrence
• Unsecured charge offs ≥ 24 months old
• Collections and charge-offs that have passed beyond the statute of limitation for that state (supporting documentation required)
• All medical collections

Collection and charge-off balances exceeding the amounts listed above must be paid in full. Charge offs secured by real estate must be paid in full.

Standard guidelines apply for verifying income and employment of Non-Permanent Resident Aliens.

Note: Non-Permanent Resident Aliens are not eligible for income qualification using bank statement documentation (personal or business).

Standard guidelines apply for verifying income and employment of Non-Permanent Resident Aliens.

Self-employed borrowers are eligible for either Personal Bank Statement Documentation or Business Bank Statement Documentation. The following restriction applies to both documentation types:

Non-Permanent Resident Aliens and Foreign Nationals are ineligible. Exceptions are not permitted.

Self-employed borrowers are eligible for either Personal Bank Statement Documentation or Business Bank Statement Documentation. The following restriction applies to both documentation types:

Foreign Nationals are ineligible. Exceptions are not permitted.

1099 Income Documentation is permitted under the Carrington Flexible Advantage (CFA) and Carrington Flexible Advantage Plus (CFA+) program. Refer to matrix for FICO and reserve requirements.

Self-employed borrowers with earnings on IRS Form 1099, such as independent contractors and gig workers, may submit 1 or 2 years 1099 forms, subject to the following requirements:

Non-Permanent Resident Aliens and Foreign Nationals are ineligible. Exceptions are not permitted.

1099 Income Documentation is permitted under the Carrington Flexible Advantage (CFA) and Carrington Flexible Advantage Plus (CFA+) program. Refer to matrix for FICO and reserve requirements.

Self-employed borrowers with earnings on IRS Form 1099, such as independent contractors and gig workers, may submit 1 or 2 years 1099 forms, subject to the following requirements:

Foreign Nationals are ineligible. Exceptions are not permitted.

Profit and Loss Income Documentation is permitted under the Carrington Advantage programs. Refer to matrix for FICO and reserve requirements.

Self-employed borrowers may submit Profit and Loss (P&L) statements covering 12 or 24 months, subject to the following requirement.

Documenting Business Ownership

Non-Permanent Resident Aliens and Foreign Nationals are ineligible.  Exceptions are not permitted.

Profit and Loss Income Documentation is permitted under the Carrington Advantage programs. Refer to matrix for FICO and reserve requirements.

Self-employed borrowers may submit Profit and Loss (P&L) statements covering 12 or 24 months, subject to the following requirement.

Documenting Business Ownership

Foreign Nationals are ineligible.  Exceptions are not permitted.