NewLeaf Oak Series Brings Additional QM / Non QM Versatility

Jennifer Grivetto All Entries, NewLeaf Products, NewLeaf Wholesale

Per Broker Bulletin 2017-50

Product Newsflash:
NEW NewLeaf Oak Series
Release Date:  October 31, 2017
Effective Date:  October 31, 2017
Broker Bulletin #:  2017-50

 

Overview

NewLeaf is pleased to announce the release of the NewLeaf Oak QM & Non-QM Products that are available on October 31st.  Click Here To Review The New Oak QM & Non-QM Product Matrices

Details

Below are the new NewLeaf Oak Products:
  • NewLeaf Oak Select QM
  • NewLeaf Oak Select 90% QM
  • NewLeaf Oak Select Non-QM
  • NewLeaf Oak Choice QM
  • NewLeaf Oak Choice Non-QM
NewLeaf Oak Select QM:
  • Available up to 85% LTV with No MI
  • Minimum credit score for the program is 700
  • 15 & 30 Year Fixed & 5/1, 7/1 & 10/1 ARMs Fully Amortizing
  • 1-2 Unit Owner Occupied Properties, 1 Unit Second Homes, 1-4 Unit Investment properties, PUDs & Warrantable Condominiums
  • Purchase, Rate/Term & Cash-Out Transactions
  • Delayed financing allowed
  • Maximum DTI is 43% for LTVs up to 80% & 36% for LTVs > 80%
  • Minimum loan amount is $424,101 for 1 unit properties or $1 above the conforming loan limit for 2-4 units properties for up to 80% LTV; > 80% to 85% LTVs, the minimum loan amount is $1 above agency high balance limits per county
  • Maximum loan amount is $2,500,000
  • First Time Homebuyers allowed up to 80% LTV
  • Non-Occupant Co-Borrowers not allowed
  • Maximum 4 financed properties including the subject property regardless of occupancy type
  • Landlord history is not required when using rental income to qualify
  • Gift funds are allowed up to 80% LTV
  • Up to 40 acres allowed
NewLeaf Oak Select 90% QM:
  • Available up to 90% LTV with No MI
  • Minimum credit score is 720
  • 30 Year Fixed Only
  • 1 Unit Owner Occupied Properties, PUDs & Warrantable Condominiums
  • Purchase &  Rate/Term Transactions (Cash-Out not allowed)
  • Maximum DTI is 43% DTI for Non-First Time Homebuyers; Maximum 38% DTI for First Time Homebuyers
  • Minimum loan amount is $1 over the current agency high balance limits; high balance loan amounts are ineligible
  • Maximum loan amount is $1,500,000
  • First Time Homebuyers allowed up to 90% LTV
  • Non-Occupant Co-Borrowers not allowed
  • Maximum 2 financed properties including the subject property
  • Landlord history is not required when using rental income to qualify
  • Residual income calculation is required
  • Gift funds are not allowed
  • Up to 20 acres allowed
NewLeaf Oak Select Non-QM:
  • Asset Depletion Allowed
  • Projected Income allowed
  • Investment purchase transactions allowed using rental income with no lease agreement
  • Departing residence excluded from DTI when the property is not listed for sale or leased to rent at the time of the subject transaction
  • Available up to 80% LTV
  • Minimum credit score for the program is 700
  • 30 year fixed only Fully Amortizing
  • 1-2 Unit Owner Occupied Properties, 1 Unit Second Homes, 1-4 Unit Investment properties, PUDs & Warrantable & Non-Warrantable Condominiums
  • Purchase, Rate/Term & Cash-Out Transactions
  • Delayed financing allowed
  • Maximum DTI is 49.99%
  • Minimum loan amount is $300,000
  • Maximum loan amount is $2,000,000
  • First Time Homebuyers allowed
  • Non-Occupant Co-Borrowers not allowed
  • Maximum 4 financed properties including the subject property regardless of occupancy type
  • Landlord history is not required when using rental income to qualify
  • Residual income calculation is required
  • Gift funds are allowed
  • Up to 40 acres allowed
NewLeaf Oak Choice QM:
  • Available up to 90% LTV with No MI
  • Minimum credit score for the program is 661
  • 15 & 30 Year Fixed & 5/1, 7/1 & 10/1 ARMs Fully Amortizing
  • 1-4 Unit Owner Occupied Properties, 1 Unit Second Homes, 1-4 Unit Investment properties, PUDs & Warrantable & Non-Warrantable Condominiums
  • Purchase, Rate/Term & Cash-Out Transactions
  • Delayed financing allowed
  • Maximum DTI is 43% up to 80% LTV; 38% > 80% LTV
  • Minimum loan amount is $1 above the agency high balance limits
  • Maximum loan amount is $2,000,000
  • First Time Homebuyers allowed up to 80% LTV
  • Non-Occupant Co-Borrowers allowed with blended ratios up to 43%
  • Maximum 10 financed properties including the subject property regardless of occupancy type
  • Landlord history is not required when using rental income to qualify
  • Residual income calculation is required
  • Gift funds are allowed up to 80% LTV
  • Up to 40 acres allowed
NewLeaf Oak Choice Non-QM:
  • Asset Depletion Allowed
  • Projected Income allowed without a guaranteed non-revocable contract
  • Investment purchase transactions allowed using rental income with no lease agreement
  • Departing residence excluded from DTI when the property is not listed for sale or leased to rent at the time of the subject transaction
  • Available up to 90% LTV with No MI
  • Minimum credit score for the program is 661
  • 15 & 30 year fixed, 5/1, 7/1 & 10/1 ARMs Fully Amortizing
  • 30 year fixed, 5/1 & 7/1 ARMs Interest Only
  • 1-4 Unit Owner Occupied Properties, 1 Unit Second Homes, 1-4 Unit Investment properties, PUDs & Warrantable & Non-Warrantable Condominiums
  • Purchase, Rate/Term & Cash-Out Transactions
  • Delayed financing allowed
  • Maximum DTI is 49.99% for Fixed Rate & 47% for ARM
  • Minimum loan amount $1 over the current agency high balance limits
  • Maximum loan amount is $2,000,000
  • First Time Homebuyers allowed
  • Non-Occupant Co-Borrowers with blended ratios up to 43%
  • Maximum 10 financed properties including the subject property regardless of occupancy type
  • Landlord history is not required when using rental income to qualify
  • Residual income calculation is required
  • Gift funds are allowed
  • Up to 40 acres allowed
Non-Warrantable Condominiums:
  • NewLeaf Oak Choice QM & Non-QM Only
  • Commercial Space – Commercial space includes space above and below grade. Commercial space must be compatible with the residential use of the project. For example, restaurants, small shops, business offices, small market/grocery store that complement the neighborhood.
    • Maximum 35% commercial space or
    • Maximum >35%-50% allowed if the commercial space is owned and controlled by an HOA that is separate from the subject project HOA.
  • Maximum ownership by one (1) entity – 25% for projects with more than ten (10) units.
    • Units owned by the developer, sponsor, or succeeding developer that are vacant and being actively marketed for sale are not included in the calculation.
    • Units currently leased must be included in the calculation.
    • For projects with ten (10) units or less, Fannie Mae guidelines apply for the number of units owned by one (1) entity and would not be considered non-warrantable
  • Presale – New projects or converted projects (as defined by Fannie Mae) must have at least 30% of the units sold or under contract to owner occupants or second home purchasers for the subject phase; common areas/amenities must be complete for the subject phase.
  • Budget – for projects with line item for replacement reserves of less than 10%;
    • Less than 10% but greater than 7% replacement reserves allowed if current reserve balance exceeds 10% of operating expenses
    • Less than 7% replacement reserves allowed if current reserve balance exceeds 20% operating expenses
    • Project balance sheet must be provided and within 120 days of the Note date.
  • Only 1 non-warrantable feature is allowed and LTV/CLTV must be reduced by 10% below product/program maximum
NewLeaf Oak QM & Non-QM Product Names/Product Codes:
 
NewLeaf Oak Select QM 30 Year Fixed
W644
NewLeaf Oak Select QM 15 Year Fixed
W645
NewLeaf Oak Select QM 5/1 LIBOR ARM
W646
NewLeaf Oak Select QM 7/1 LIBOR ARM
W647
NewLeaf Oak Select QM 10/1 LIBOR ARM
W648
NewLeaf Oak Select 90 QM 30 Year Fixed
W649
NewLeaf Oak Choice QM 30 Year Fixed
W650
NewLeaf Oak Choice QM 15 Year Fixed
W651
NewLeaf Oak Choice QM 5/1 LIBOR ARM
W652
NewLeaf Oak Choice QM 7/1 LIBOR ARM
W653
NewLeaf Oak Choice QM 10/1 LIBOR ARM
W654
NewLeaf Oak Choice Non-QM 30 Year Fixed
W655
NewLeaf Oak Choice Non-QM 15 Year Fixed
W656
NewLeaf Oak Choice Non-QM 30 Year Fixed IO
W657
NewLeaf Oak Choice Non-QM 5/1 ARM
W658
NewLeaf Oak Choice Non-QM 7/1 ARM
W659
NewLeaf Oak Choice Non-QM 10/1 ARM
W660
NewLeaf Oak Choice Non-QM 5/1 ARM IO
W661
NewLeaf Oak Choice Non-QM 7/1 ARM IO
W662
NewLeaf Oak Select Non-QM 30 Year Fixed
W663