Programs

The availability of a wide range of multiple programs enables Borrowers and Real-Estate agents to have a broader opportunity of real-estate financing with the objective of providing borrowers & agents programs that will fit their needs maximizing their ability to attain finance with a firm commitment.

One + Program 1% Down Payment No Mortgage Insurance

ONE+ allows you to get a mortgage by putting as little as 1% down. Combined with a 2% grant from Investor, you start with 3% equity. Mortgage insurance is not charged to you

This is available to those qualifying with less than 80% of the area median income level who have qualifying credit scores of 620 or better. You can buy a single-unit primary residence nationwide.

Client will be required to pay a 1% down payment, with the ability to pay a maximum of 3%, and Investor will cover an additional 2% of the client’s purchase price as a down payment. This offer is only available on conventional purchase loans. Primary residence only. Cost of mortgage insurance premium not passed through to client. Offer valid only for home buyers when qualifying income is less than or equal to 80% area median income based on county where property is located. Must lock rate on or after 5/22/2023. Not available with any other discounts or promotions.

Transaction Type Min FICO # of Units Max LTV/CLTV/HCLTV Max DTI1
Purchase2,3 620 1 Unit

Max LTV: 97%

Min LTV: 95%

Max CLTV: 105% with a DPA second lien

 50%
  1. Total qualifying income must be less than 80% of the Area Median Income.
  2. Subordinate financing is not allowed unless it is Second Lien Down Payment Assistance.
  3. The maximum loan amount is $350,000
  4. Manufactured Homes have a max LTV of 95%.

FHA

FHA loans are backed by the Federal Housing Administration (FHA), an agency under the jurisdiction of the Department of Housing and Urban Development (HUD). FHA loans are insured by the FHA, which simply means that the owners of your mortgage are protected against loss if you default on your loan

FHA loans allow home buyers to borrow up to a certain percentage of a home’s value, depending on their credit score. Home buyers who have a credit score over 580 can borrow up to 96.5% of a home’s value with an FHA loan. Home buyers whose credit scores are between 500 – 579 can still qualify for an FHA loan with a 10% down payment. While FHA loans are available with low down payment options and lower minimum credit score limits than other types of home loans, you'll also have to pay mortgage insurance.

  • Purchase: 550 FICO at 90% LTV, 580 FICO at 96.5% LTV
  • Cash Out Refinance: 580 FICO at 80% LTV, Manual U/W: 600 FICO at 80% LTV
  • Max DTI per AUS
  • Manual Underwriting Allowed
  • No Min Credit History with AUS Approval
  • Blended Ratios with Non-occupant Co-borrower
  • W2 Only Available
  • One FICO Score Allowed
  • Min Loan Amount $75,000

Key factors

Transaction Type  Min FICO7  # of Units10 Max LTV  Max CLTV/HCLTV Max DTI
Purchase 580 1-4 Unit 96.5% 100%1 Meet the Sheet 3,4,8
Rate/Term Refinance2,5 580 1-4 Unit 97.75%6 Meet the Sheet 3,4,8
Cash Out Refinance2,5 5809 1-4 Unit 80% Meet the Sheet 3,4,8
  1. For Purchase Transactions using Second Lien Down Payment Assistance, CLTV can go up to 105%.
  2. The total of the new loan amount plus any subordinate financing must meet the FHA County loan limits.
  3. In some states, the max DTI is 50%.
  4. GUS will not issue A/E findings with DTI above 57%
  5. Refinances: New subordinate financing is not allowed.
  6. Rate and Term with FICOs 580-619, max LTV is 96.5%.
  7. Jumbo Only: Minimum FICO 620.
  8. FICO 580 – 619, max DTI is 38%/45%.
  9. Clients using a cash out refinance for the sole purpose of debt consolidation have a minimum FICO of 580 otherwise the minimum FICO is 620. Client may not receive greater than $500 at closing if FICO is 580-619.
  10. For manufactured homes, financing is only allowed for 1 unit properties. See the Manufactured/Mobile Home as the Subject Property page for guidance.

VA

Most home loans require at least a small downpayment. VA loans are an exception. Instead of making a downpayment, the VA lets you finance up to 100% of the purchase price of the home you want to buy.

The list of eligible VA borrowers includes active-duty servicepersons, members of the National Guard, Reservists, surviving spouses of veterans, cadets at the U.S. Military, Air Force or Coast Guard Academy, midshipmen at the U.S. Naval Academy and officers at the National Oceanic & Atmospheric Administration.

In order to show a VA mortgage lender that you are VA-eligible, you’ll need a Certificate of Eligibility (COE), which your lender can acquire for you online, usually in a matter of seconds. The IRRRL is again an exception. For that loan, you won’t need a COE.

You’ll also need to meet standard VA loan requirements including income and employment verifications, and residual income requirements.

A VA loan can be used to buy a detached house, condo, new-built home, manufactured home or duplex, triplex or four-unit property or to refinance an existing loan for those types of properties. The VA also lets you borrow an extra sum to make repairs or improvements to the home; or, make it more energy-efficient.

Having a COE doesn’t guarantee a VA loan approval. Your COE shows the lender you’re eligible for a VA loan, but no one is “guaranteed” VA loan approval. You must still qualify for the loan based on VA mortgage guidelines.

Yes, you can get a VA loan even if you’ve been denied for other financing.

Because the VA loan offers such flexible guidelines, you might be able to qualify even if you’ve been turned down for another type of home loan, including the FHA loan, a Conventional 97 mortgage, or some other type of credit.

Key factors

Transaction Type Min FICO3,11 # of Units10, 13 Max LTV/CLTV/HCLTV2 Max DTI3,5,8,9
Purchase 580 1-4 Unit 100%12 Based on Findings
Rate/Term Refinance1,7 580 1-4 Unit 100% Based on Findings
Cash Out Refinance1 580 1-4 Unit 100%4,6 Based on Findings
  1. A VA Refinance is not allowed on a property that is owned free and clear.
  2. Cash Out and Rate and Term Transactions: The funding fee, if financed, is included in the max LTV.
    • Rate and Term Refinance: Cash to client at close is not allowed. Any funds to cover incidentals will make the loan purpose Cash Out.
  3. If the qualifying FICO is less than 640 and LTV is over 95%, DTI is capped at 45%.
  4. Minimum FICO is 620 if the LTV is greater than 90% and client is receiving greater than $500 cash back.
  5. If the DTI is greater than 41% and the residual income is not at least 120%, the underwriter must enter comments listing the compensating factors on the VA Loan Analysis Form.
  6. Must meet at least one VA Net Tangible Benefits Test requirements.
  7. Fixed to ARM Rate and Term Refinance Only: If the Net Tangible Benefit of rate reduction was achieved solely by discount points, the LTV is capped by the following:
    • If the total amount of the discount point is 1 point or less, the max LTV is 100%.
    • If the total amount of the discount points is greater than 1 point, the max LTV is 90%.
  8. The max DTI is 50% for ARMs and for VA transactions in some states
  9. FICO 580 – 619, max DTI is 38%/45%.
  10. FICO 580-619, 1-2 unit properties only.
  11. VA Jumbos are not allowed with 580-619 FICOs
  12. For Purchase Transactions using Second Lien Down Payment Assistance, CLTV can go up to 105%
  13. For manufactured homes, financing is only allowed for 1 unit properties.

Conventional

Also known as a “conforming” loan, a conventional mortgage loan is any type of home loan that is guaranteed by a private lender or a government-sponsored enterprise like Fannie Mae. These loans are best for borrowers with good credit and an adequate down payment, which could be as little as 3% of the purchase price. Conventional loans can be either fixed rate or adjustable rate.

Sometimes called "FRMs," fixed-rate mortgages are home loans with an interest rate that remains constant throughout the entire length of the loan term. With FRMs, a borrower can plan for an exact base principal plus an interest payment amount for the next 10, 15, 20, or 30 years. They’re a popular alternative to adjustable-rate mortgages, which have interest rates that rise or fall throughout the loan term, causing your payment amount to fluctuate.

An adjustable-rate mortgage (ARM) is a home loan with an interest rate that is flexible and subject to adjustment on specific dates or based on certain market conditions. An ARM can be beneficial for homebuyers looking to keep the loan for a limited period and/or who can afford the potential increase in interest rate over time.

Interest Only Loan, With these loans, borrowers only have to pay interest for the first several years, making the monthly payments lower than they would be with a fixed-rate mortgage. At the end of the interest-only period, borrowers will start to repay both principal and interest. This can be in the form of subsequent monthly payments or in a lump sum, also known as a “balloon payment.” In addition, most interest-only loans are structured as ARMs, meaning the rate and the monthly payment can increase or decrease throughout the life of the loan.

Key Factors

Primary
Transaction Type Min FICO # of Units Max LTV/CLTV/HCLTV Max DTI
First-Time Homebuyer Purchase and DU-to-DU Rate/Term Refinance 620 1 Unit 97%1 50%
Purchase and Rate/Term Refinance 620 1 Unit 95%1 50%
2 Unit
3-4 Unit
Cash Out Refinance 620 1 Unit 80% 50%
2-4 Unit 75%
  1. For Purchase Transactions using Second Lien Down Payment Assistance, CLTV can go up to 105%.
Secondary
Transaction Type Min FICO # of Units Max LTV/CLTV/HCLTV Max DTI
Purchase and Rate/Term Refinance 620 1 Unit 90% 50%
Cash Out Refinance 620 1 Unit 75% 50% 

1  If the client owns 7 or more financed properties, additional guidelines apply.

Investment
Transaction Type Min FICO # of Units Max LTV/CLTV/HCLTV Max DTI
Purchase  680 1 Unit 85% 50%
620 1 Unit 80%
2-4 Unit 75%
Rate/Term Refinance 620 1-4 Unit 75% 50%  
Cash Out Refinance 620 1 Unit 75% 50%  
2-4 Unit 70%

Buy Down Known as Inflation Buster

Applies to FHA, Conventional, VA programs.

This allows them to save money each month and potentially make their dream of homeownership a reality

A temporary buydown gives you the option to reduce your interest rate on a loan for up to two years (by no more than 1% per year). The lender, seller, or builder pays an upfront cost at closing that saves you money by reducing your principal and interest payments during the buydown period. With any luck, you can get your seller to pay the cost of your buydown through seller contributions

Ineligible Products: Home Equity Loan, Jumbo Smart

The following third-parties are eligible to cover temporary buydown:

  • Seller
  • Builder (if the seller or real estate agent)
  • Real Estate Agent
  • Correspondent Lender
  • The funding for the buydown can be split between two sources.

    • Wholesale brokers and clients cannot cover buydowns at this time.

    Options.

    • 1-0 Option: The effective rate is reduced by 1% for the first year of the mortgage.
    • 2-1 Option: The effective rate is reduced by 2% for the first year of the mortgage and 1% for the second year of the mortgage.
    • 3-2-1 Option: The effective rate is reduced by 3% for the first year of the mortgage, 2% for the second year of the mortgage, and 1% for the third year of the mortgage.
    • DTI is based off the Note Rate

      • Occupancy type are eligible for temporary buydowns

    • Primary residences
    • Second Homes
      • Occupancy type are not eligible for temporary buydowns
    • Investment property
    • Manufactured Homes

      • Eligible loan types:

    • Purchase
    • Rate and term Refinance

      • Not Eligible loan types:

    • Adjustable Rate Mortgages (ARMS)
    • Cash Out

    Bank Statement Loans

    If you’re self-employed you can now secure a home loan with bank statements.

    Working for yourself has its advantages, but getting a home loan can be challenging. With a bank statement loan, New Line Mortgage can review 12 to 24 months of bank statements to calculate your qualifying income to warrant a loan approval. This unique loan option does not require personal or business tax returns, W2’s, or paystubs to verify your income.

    Bank statement loans are an excellent option for:

    • Business Owners
    • Independent Contractors
    • Entrepreneurs
    • Consultants
    • Gig Workers
    • Realtors
    • Retirees

    Key factors

    • The Bank Statement Loan Program is remarkably easy. Why? Less documents are required; No tax Returns, Paystubs, or Work History are necessary. Just Bank Statements. This program gives self-employed borrowers the ability to qualify based on a 12 or 24-month deposit fee using their personal or business bank account.
    • Credit scores down to 620
    • Up to 90% LTV
    • DTI - 50%

    Non-QM Programs

    Non-QM loans are aimed at borrowers with financial profiles that don’t meet the requirements of a typical qualified mortgage. This often involves an inconsistent or nontraditional income structure, a major credit event or high debt.

  • Alternative income documentation. Depending on the lender’s requirements, borrowers may demonstrate their ability to repay the loan using tax returns, bank statements, asset qualifiers or 1099s.
  • No waiting period after bankruptcy. Some lenders offer non-QM loans that cater to borrowers with a history of bankruptcy or foreclosure, allowing them to get a mortgage as soon as one day after the event. Comparatively, qualified mortgages may require a waiting period of one to four years after bankruptcy, and two to seven years after a foreclosure.
  • Higher down payment requirements. Non-QM loan borrowers may be required to put a minimum down payment of 10% to 20%.
  • Higher interest rates. Non-QM loans typically have higher interest rates than qualified mortgages.
  • No government backing. Because non-QM loans don’t have to follow CFPB standards, they can’t be purchased by Fannie Mae or Freddie Mac, nor can they be backed by the Department of Veterans Affairs, U.S. Department of Agriculture, or the Federal Housing Administration. So instead, the lender is taking on all the risk of issuing the loan.

    • EXPAND YOUR BUYING POWER

    • Innovative Non-QM programs to broaden our Borrowers Range of Finance availability.
    • Bank Statement / Alt Doc
    • Full Doc
    • DSCR
    • Foreign National
    • 1099 Only
    • VOE
    • 40 Year I/O
    • Bridge Loans
    • Condotels, Short Term Rentals
    • FlexTerm Loan: Customize loans to meet the individual needs of each investor
    • ARV Pro Loan The best short-term solution for acquiring and improving property value
    • Flex I/O Loan A short-term interest-only loan program.Designed for investors seeking short-term financing with no prepay penalties.
    • Fast50 Loan A low LTV loan with easy credit requirements. Designed for investors with derogatory credit issues and high equity seeking quick and easy credit qualification.

    ITIN Loan

    An ITIN Mortgage Loan is designed for people who file taxes with an Individual Tax Identification Number (ITIN) looking to purchase or refinance, a home in the United States.

    Documentation Needed

    • A copy of your most recent Federal Tax Returns filed with your ITIN
    • One year of income documentation (Self-employed borrowers must have operated their business for at least one year)
    • A copy of your ITIN Letter
    • A valid, government-issued photo ID (passport, driver’s license, matrícula consular, etc.)
    • Proof of 6 months housing payment
    • Proof of cash to close using copies of accounts covering the most recent 60 days.

    Key factors

    Home / Mortgage Loans Only
    • Minimum down payment of 15% is required
    • Gift Funds Allowed
    • Quick closings
    • Most property types accepted
    • Purchase or Refinance
    • Borrowers with No Credit are eligible
    • English and Spanish language support throughout the application process

    Home Equity Loan

    The Home Equity Loan allows clients to take cash out of their equity without refinancing their first lien mortgage

    Types of HELOC or Home Equity

    Standalone

    • Tied to a property that has an active mortgage attached to it
    • The HELOC and the active mortgage do not need to be from the same lender

    PiggyBack

    • Also referred to as a 2nd, Simultaneous Close HELOC
    • The HELOC is done at the same time as the first mortgage on the subject property
    • Typically done with a purchase transaction
    • Both transactions will be done by the same investor

    BORROWER ELIGIBILITY CREDIT

    For both Standalone and Piggyback HELOCs, at least two credit scores are required per borrower.

    • The lower of the two scores will be the qualifying FICO
    • Refer to the HELOC Product Matrix for the minimum credit score

    MORTGAGE PAYMENT HISTORY

    For both Standalone and Piggyback HELOCs, all mortgages must be current and no more than 45 days may have passed since the last payment date to the loan application date.

    Key factors

    Minimum Line Amount: $25,000

    Minimum Initial Draw Amount: 75% of the line amount

    OCCUPANCY

    Below are the eligible property types for both Standalone and Piggyback HELOCs:

    • 1-4 unit attached or detached single-family residence (SFR)
    • 1 unit attached or detached PUDs
    • 1 unit attached or detached condos
    • Attached condos must be on the Fannie Mae warrantable condo list

    Minimum Line Amount: $25,000

    Minimum Initial Draw Amount: 75% of the line amount

    PROPERTY TYPES

    Below are the eligible property types for both Standalone and Piggyback HELOCs:

      Primary residences are eligible for the following property types:
    • 1-4 unit SFR, 1 unit PUDs, and 1 unit condos
    • Non-occupying co-borrowers are permitted and will be in the DTI calculation
      • Second Home are eligible for the following property types:
    • 1 unit SFR, 1 unit PUDs, and 1 unit condos
    • Non-occupying co-borrowers are ineligible
      • Investment Property are eligible on 30 year HELOC options for the following property types:
    • 1 unit SFR, 1 unit PUDs, and 1 unit condos
    • Non-occupying co-borrowers are ineligible

      • Investment properties and second home 2-4 units are ineligible