Non-agency lender Deephaven has announced new income qualification options that are designed to enable brokers and correspondents to compete for more credit-worthy borrowers who are locked out of agency mortgages.
The company’s new asset utilization calculations determine qualifying income based on a broad range of assets – including personally held stocks, bonds, mutual funds, vested amounts of retirement accounts and personal bank accounts.
“These options give loan officers the opportunity to fill a large market gap by providing common-sense solutions to a borrower’s challenges,” explains Shelly Griffin, senior vice president of client development. “For example, if borrowers have sufficient assets to meet the down payment and reserve requirements, make 60 months of monthly debt payments and pay off this mortgage, they are likely to be deserving customers. In this competitive market, Deephaven is bolstering each partner’s ability to capture their business before others do.”
Deephaven says it offers two alternatives:
- Total Asset Calculation: The company will offer mortgages for borrowers whose assets cover the new loan amount, down payment, closing costs, required reserves and five years of current monthly obligations. It is not necessary to disclose their employment or total income on a 1003 Form.
- Debt Ratio Calculation: At minimum, borrowers must have the lesser of (a) 1.5 times the loan balance or (b) $1 million in qualified assets, both of which must be net of down payment, closing costs and required reserves. Monthly income is calculated by dividing net qualified assets by 84 months.