jumbo Flashcards
What are chase and Goldman’s stance on open tradelines and history?
Chase: 3 active tradelines with 12 mo history on each, at lease 2 year credit history Or:
5 year credit history 4 tradelines with 12 mo review periods but only 1 active in last12 mo’s.
Goldman: Minimum 3 trade lines reporting 24 months or more required; at least 1 must be open/active for last 12 months
JP- 3 tradelines and 2 active for last 12 mo’s.
All Jumbo Lenders require SE analysis that includes analyzing bank statements and profit and loss?
False. Only chase is requring , JP and Goldman only require profit/loss. Chase requires full analysis and also you must seperate each quarter on P/L and the last three mo’s must be broken down individually.
During covid what if trends for 18’ 19’ and YTD were trending downward? would we look at average off of P&L?
No, Depending on how drastic trend is we may not be able to do the deal as it may not appear stable.
How does Goldman Sachs look at use of biz funds?
GS: • Funds from a business account (may be used for down payment and reserves. Loan must meet the FNMA requirements for use of business assets
Fannie:
Business Assets
Business assets may be an acceptable source of funds for the down payment, closing costs, and financial reserves when a borrower is self-employed and the individual federal income tax returns have been evaluated by the lender, including, if applicable, the business federal income tax returns for that particular business (non-Schedule C). The borrower must be listed as an owner of the account and the account must be verified in accordance with B3-4.2-01, Verification of Deposits and Assets. The lender must perform a business cash flow analysis to confirm that the withdrawal of funds for this transaction will not have a negative impact on the business. See Section B3–3.2, Self-Employment Income, for additional information on the analysis of a self-employed borrower.
How do jumbo guides deal with properties that are on a clients personal credit but filed in partnership returns?
Jumbo pretty much follows fnma guides, we cashflow properties and if net is positive then all good for omitting. Chase you could use positive but most no can, and just omit pitia. For negative have to hit.
The negative income goes on page 3 reo section, not page 2 of 1003.
How does chase calculate whether someone can use business funds for closing?
You take the net operating expenses , which is total deductions and total expenses reflected on business tax returns for last year and divide by 12 mo’s. That amount times 6 mo’s must be left over in reserves
How high of a loan amount can you go up to with chase?
Ltv restrictions?
Dti? does it matter if SE or Salary?
up to 3 million, 80% ltv non delegated
delegated is 70% max ltv
Dti for SE is 35% 43% non SE
What is the escrow waiver fee for jumbo loans?
There is no hit for waiving impounds for Jumbo.
If a client has Sched E mtg interest but property isn’t on credit and is under a company, how do jumbo lenders JPM and Goldman handle this?
JPM says if we can show the business makes the payment we don’t have to hit with the payment
-For GS if on personal returns we have to cash flow and proceed accordingly
Can you ever use RSU’s to qualify?
Yes JPM will allow it
How does JPM see Business assets? Will they allow for reserves?
HOw about Funds to close?
Yes currently allow for Reserves and FTC
If client makes enough w’2’ to qualify but has a self employed business , can we just go w’2 and rock jumbo?
No SE income in jumbo rhealm must be qualified with, it will show up on a fraud guard
RATE in house Jumbo, What guidelines does it follow?
For SE do we need to get income stability calc with biz bkstmts?
What are some great benefits of the program?
O/O purch ltv?
refi? cashout refi? ltvs
Follow DU guides, No just need P&L and balance sheet within 90 days of the note date Can do RSU income Rates are strong non perm res alien
oo 80% ltv up to 1.5 mill, refi cashout to 75%
2nd home C/o refi 70% and i think 75% r/t.
Jumbo Distribution setups, What do Rate, Jp and Goldman require?
Rate and JP are 2 months. Unless the distributions were on the tax returns, GS will not allow.
Is there a max to borrower count on Jumbo?
4 for chase, 4 for Goldman, not sure on others
