specialty lending matrices...2017/07/17 · tradelines: 3 tradelines reporting for 12+ months with...

SPECIALTY LENDING MATRICES

CONTACT INFORMATION: Pricing: [email protected] Loan Registration: [email protected] Guideline Support: [email protected] Wholesale Support Desk: [email protected]

Revised 7.17.2017

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Specialty Lending Matrices Index

BANK STATEMENT FULL DOC – HOUSING EVENT/NON-PRIME PROGRAM CODE PROGRAM DESCRIPTION PG # PROGRAM CODE PROGRAM DESCRIPTIONS PG #

5000-24BS PLUS

Gbox 24 Months Bank Statements PLUS

1-8

5000-NP PLUS

Gbox Non-Prime – PLUS - Full Doc

1-6 ● 85% LTV Purchase/RT up to $999,999 ● 90% LTV Purchase up to $999,999

● Interest Only Available ● Interest Only Available

● 680 Min FICO ● 660 Min FICO

5000-24BS

Gbox 24 Months Bank Statements

1-8

5000-NP

Gbox Non-Prime Full Doc

1-7 ● 90% LTV Purchase up to $650,000 ● 90% LTV Purchase up to $1 Million

● Interest Only Available ● 12 Months From Foreclosure, Short Sale & BK


5000-24BS-NP

Gbox Non-Prime 24 Months Bank Statements

1-8

5000-RH

Gbox Non-Prime – Recent Housing - Full Doc

1-7 ● 80% LTV Purchase up to $1 Million ● 80% LTV Purchase up to $750,000

● 24 Months From Housing Event ● One Day Out of Foreclosure


5000-12BS PLUS

Gbox 12 Months Bank Statements PLUS

1-8

5000-1YR

Gbox Non-Prime – 1 Year Tax Returns - Full Doc

1-8 ● 80% LTV Purchase up to $1.5 Million ● 80% LTV Purchase up to $2 Million

● Interest Only Available ● Interest Only Available


INVESTOR FOREIGN NATIONAL PROGRAM CODE PROGRAM DESCRIPTION PG # PROGRAM CODE PROGRAM DESCRIPTIONS PG #

5000-INV-PP

Gbox No Ratio Program

1-9

5000-FN

Gbox Foreign National Program

1-8 ● 75% LTV up to $1 Million ● 70% LTV Purchase up to $1 Million

● Interest Only Available ● Interest Only Available ● 640 MIN FICO ● Credit Score Not Required

5000-INV-DTI-PP

Gbox Qualify on Rental Survey Program

1-10

5000-INV-FN-PP

Gbox Foreign National No Ratio Program

1-9 ● 75% LTV Purchase up to $650,000 ● 70% LTV up to $1 Million

● Own Unlimited Properties ● Interest Only Available

● 620 MIN FICO ● Credit Score Not Required

ITIN JUMBO-A

PROGRAM CODE PROGRAM DESCRIPTION PG # PROGRAM CODE PROGRAM DESCRIPTION PG #

5000-ITIN Gbox No Social Security Plan Program

1-8

5000-JUMBO ELITE Gbox Jumbo Full Doc Program

1-8 ● 90% LTV Purchase up to $300,000 ● 80% LTV up to $2 Million

● 620 MIN FICO & Trade Lines on LTV>75% ● 700 MIN FICO

Revised 7.17.2017

5000-24BS PLUS

PRODUCT DESCRIPTION

24 MONTH BANK STATEMENTS PLUS

48 Months From Housing Event • 48 Months From Bankruptcy • $2,500,000 Max Loan

Owner Occupied, Second Homes, Minimum Loan Amount $100,000

Owner Occupied

Loan Amount FICO Purchase Rate / Term Cash Out Reserves

< $1,000,000 700 85% 85% 80%

6 Months

680 80% 80% 80%

$1,000,000 - $1,500,000 680 80% 80% 75% 12 Months

> $1,500,000 680 75% 75% 70% 12 Months

Interest Only 80% Max LTV; Not available for 30 Year Fixed

Second Home 80% Max LTV

Non-Owner Occupied Not Available

2-4 Units Allowed as Owner Occupied 80% Max LTV

Use of Business Bank Statements / Co-mingled (for business & personal use): 5% Reduction to LTV

Cash Out Amount Matrix

< = $250,000 80% Maximum LTV

$250,001 - $500,000 5% LTV Reduction

$500,001 - $1,000,000 10% LTV Reduction

Revised 5.30.2017 Page 1 of 8

5000-24BS PLUS

Adjustable Rate Details

Interest Rate Adjustment Caps - See rate sheet

Margin - See rate sheet

Index - 1-Year LIBOR (London Interbank Offer Rate)

Index Establish Date - 45 days prior to the change date (aka “look back period”)

Interest Rate Floor - Note Start Rate

Conversion Option - None

Assumption – Yes, subject to investor approval (ARMs Only)

Negative Amortization - None

Interest Only Option - Available for LTVs <= 80%. Interest Only period is 120 months

Age of Documents

Credit Report/Credit Documentation: 90 days old at the time of closing

Income and Asset Documentation: Dated within 90 days of closing

Title Report/Title Commitment: Dated no later than 60 days prior to closing

Appraisal

Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection.

The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet

Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation.

APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox’s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions “Appraised Value” will be the lower of the two appraisals.

A second appraisal is required on loan amounts => $1,000,000

Assets – Documentation Assets sourced and seasoned for 60 days. Gift funds allowed (see Gift Funds)

Bankruptcy Chapter 7, Chapter 11 and Chapter 13 bankruptcies must be discharged for a minimum of 48 months from closing date. Seasoning is

measured from the month and year of discharge.


5000-24BS PLUS

Borrowers

Eligible: U.S. Citizens • Permanent Resident Aliens (A permanent resident alien is a non-U.S. citizen authorized to live and work in the U.S. on

a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent residency must be

documented and meet one of the following criteria: I-151 – Permanent Resident Card (Green Card) that does not have an expiration date; I-

551 – Permanent Resident Card (Green Card) issued for 10 years that has not expired; I-551 – Conditional Permanent Resident Card (Green

Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of USCIS form I-751 requesting removal of the

conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows: “Processed for I-551 Temporary Evidence of Lawful

Admission for Permanent Residence. Valid until mm-dd-yy. Employment Authorized.”)

Ineligible: Co-signer(s) • Non-occupant co-borrowers • Borrowers not on title • Foreign Nationals • Corporations • partnerships • LLCs •

Irrevocable and Inter-Vivos trusts • Non-Permanent Resident Aliens • First Time Home Buyers

Cash Out - Refinance

For all cash-out refinance transactions, a minimum of 6 months must have elapsed since the most recent mortgage transaction on the subject property (either the original purchase transaction or subsequent refinance). Note date to note date is used to calculate the 6 months.

If the property was acquired < 12 months from application date, the lesser of the current appraisal value or previous purchase price plus documented improvements (if any) must be used. The purchase settlement statement and any invoices for materials/labor will be required.

Cash Out cannot be used for reserve requirements

Collections And Charge-Offs • No accounts with collections and charge-offs may remain open

• No collections and charge-offs within 12 months

Compliance Fully documented ability-to-repay • No section 32 or state high cost • Compliance with all applicable Federal and State regulations

TradeLines: 3 tradelines reporting for 12+ months with activity in last 12 months; Limited Tradelines N/A

Consumer Lates Maximum: Most Recent 12 Months - May not exceed 2x30 and 0x60; Most Recent 13-24 Months - May not exceed 1x60

Credit 5000-24BS PLUS Matrix

Minimum FICO 680 Mortgage History 0x30x12

Bankruptcy Seasoning (all chapters) 48 Months

Foreclosure 48 Months

Short Sale / Deed In-Lieu 48 Months


5000-24BS PLUS

Credit Scores

The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will be

used. When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the representative credit

score for qualifying.

Delayed Financing

Cash-out on properties purchased by the borrower with cash and owned less than 6 months is allowed. The following requirements apply:

• Original transaction was an arm’s-length transaction

• Settlement statement from purchase confirms no mortgage financing used to acquire subject

• Source of funds used for purchase documented (gift funds may not be included)

• New loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus thefinancing of closing costs, prepaid fees, and points on the new mortgage loan

• All other cash-out refinance eligibility requirements must be met

Eligible States See GreenBox Loans, Inc.'s "Location" on web page; Texas (Purchase only)

Escrow Holdbacks Not Allowed

Escrow Waiver Impounds are required

First Time Home Buyer

Not Eligible

A First-Time Home Buyer is defined as a borrower who had no ownership interest in a residential property in the United States during the

preceding 3-year period.

Gift Funds

Gift funds are allowed after the borrower has made the minimum required contribution (see Minimum Borrower Contribution) towards the

down payment. Gift funds can be used for down payment and closing cost but are not allowed to meet the reserve requirement. When the

funds are not transferred prior to closing, the originator must document that the donor gave the closing agent the gift funds in the form of a

certified check, a cashier’s check, money order, or wire transfer


http://www.greenboxloans.com/Licensing

5000-24BS PLUS

Income Calculation / Documentation

BORROWERS MUST BE SELF-EMPLOYED TO QUALIFY FOR THIS PROGRAM.

Borrowers with Separated Business and Personal Accounts

Using Personal Bank Statements to Qualify • Business license (if available – depending on nature of business)• Letter from a Licensed Tax Professional certifying profession & self-employment in same line of business for a min of 2 years & ownership percentage • Most recent 24 months personal bank statements - Utilize 24 months average deposits to qualify (minus disqualified/unrelated deposits)• Most recent 3 months business bank statements – Demonstrate transfers from business to personal bank account statements provided• Borrowers must own a minimum of 25% of business to be considered Self-Employed, for use of personal of personal bank statements.• Qualifying income may not exceed the income indicated on the initial 1003.

Using Business Bank Statements to Qualify • Business license (if available – depending on nature of business)• Letter from a licensed tax professional certifying profession & self-employment in same line of business for a min of 2 years and that the borrower is

100% owner of the business. • Most recent 24 months business bank statements.• 24 month Profit and Loss Statement (P&L) prepared by a Licensed Tax Professional – Net Income on P&L will be used for qualifying (Net Income/24)

Gross Income must be supported by the total deposits of bank statements provided (variance of 5% allowed for deposits compared to Gross Revenue) Borrower to provide business expenses for Licensed Tax Professional – must be reasonable for the nature of the business

P&L is not Audited by Licensed Tax Professional • Qualifying income may not exceed the income indicated on the initial 1003.

Borrowers with Personal Accounts (Co-mingled for business & personal use) • Business license (if available – depending on nature of business)• Letter from a licensed tax professional certifying profession & self-employment in same line of business for a min of 2 years and that the borrower is

100% owner of the business. • Most recent 24 months personal bank statements.• 24 month Profit and Loss Statement (P&L) prepared by a Licensed Tax Professional – Net Income on P&L will be used for qualifying (Net Income/24)



Other sources of income

• Other sources of income must be verified in accordance with Appendix Q of Regulation Z regarding income


5000-24BS PLUS

Income – Misc.

Joint borrowers with one wage earner and one self-employed business owner can verify income separately, with the self-employed borrower utilizing

above (Income Calculation / Documentation) and the wage earner providing paystubs/W-2s. The wage earner 4506T should include W-2 transcripts

only.

Limitations on Other Real Estate Owned

When the subject property is a primary residence, there are no limitations on the number of other properties the borrower(s) may currently have

financed.

If the new mortgage is secured by a second home, the borrower(s) may be obligated on up to 20 financed properties (including his or her primary

residence). GB exposure may not exceed $2.5M aggregate with a maximum of five loans for each individual borrower.

Minimum Borrower Contribution Borrowers must contribute a minimum of 10% of their own funds towards the down payment on purchase transactions.

Minimum Loan Amount $100,000

Mortgage And Rental

Payment Verification

Mortgage and rental payments not reflected on the original credit report must be documented via an institutional Verification of Rent or

Verification of Mortgage (VOR/VOM). A combined total of all late mortgage and rental payments in the past 12 months must be used to

determine the housing history rating. If the borrower is making payments to an individual or interested party, 12 months of cancelled checks or

bank statements must be obtained. A VOR/VOM is not required but may be requested for clarification. All mortgages and rental payments

should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated documentation is required to verify

the account is current. • Borrowers must have a complete 12-month housing history

NSF/Over Draft Up to 3 NSF checks and overdraft protection transfers in the most recent 12-month period are allowed with explanation from the borrower.

Occupancy Owner Occupied, Second Homes Only

Points & Fees Total points and fees must be less than 5%

Property Types

Eligible: Single Family Residences, PUDs, Townhouses, Condominiums (Warrantable Only), 2-4 Units (Owner Occupied Only)

Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) • Agricultural zoned property • Condo hotel • Co-ops • Hobby Farms • Income producing properties with acreage • Leaseholds • Log Homes • Manufactured housing • Mixed use properties • Modular homes • Properties subject to oil and/or gas leases •Unique properties • Working farms, ranches or orchards


5000-24BS PLUS

Property Types – All Condos

A valid project review is required for all condominium transactions, along with a completed GreenBox Mortgage Homeowners’ Association

Certification. The HOA certification may not be greater than 120 days old at the time of closing.

The project review methods below should be utilized to determine the acceptability of a condominium project: PERS (Project Eligibility Review

Service) • FHA Approved Condominiums

For all established condominium projects without valid PERS or FHA approvals, or for projects that do not meet all the requirements of the

various project review methods, an HOA Certification Review is required. A completed GreenBox Homeowners’ Association Certification is

required to ensure compliance with the following requirements: Project must meet the definition of an established condo. • At least 50% of the

total units in the project must be conveyed to purchasers as primary or second homes. • No more than 15% of the total units in a project may be

60 days or more past due on their HOA dues. • No single entity, the same individual, investor group, partnership, or corporation may own more

than 10% of the total units in the project. For projects with 1-4 total units, single entity ownership may not exceed 1 unit. For 5-20 unit projects,

single entity ownership may not exceed 2 units. • No more than 25% of the total square footage of the project may be used for commercial

purposes. • Mortgagee may not be responsible for more than the greater of 6 months or the maximum amount permitted under applicable state

law of delinquent HOA dues. For condos in Florida, the first mortgagee’s liability for dues assessed prior to its acquisition of title is limited to the

lesser of 12 months’ assessments or 1%o of the original mortgage debt. • All facilities related to the project must be owned by the unit owners or

the HOA cannot be subject to a lease between the unit owners or HOA and another party. • HOA certification reflects the funding of replacement

reserves for capital expenditures and deferred maintenance that is at least 10% of the budget.

Property Types – Non

Warrantable

Condos

Not Eligible

Qualifying Rate and Ratios


• ARMs – Qualify at the greater of the fully-indexed rate or Note rate

• Fixed Rate – Qualify at the Note rate

• Qualifying ratios are based on a fully amortizing principal and interest payment

• Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (240 Months) at the

time of recast after the interest only period has expired

Ratios 43% DTI; No exception allowed


5000-24BS PLUS

Reserves

See Program’ Matrix; Two months of additional reserves for each financed property is required for 2nd homes.

On Cash Out transactions - Cash Out cannot be used for reserve requirements

Residual Income $2,500 plus an additional $150 per dependent is required

Seller Concessions For primary residence and second home transactions, the property seller and/or interested parties may contribute up to 6% of the lesser of the

property's sales price or appraised value toward the buyer's closing costs, prepaid expenses, discount points, and other financing concessions.

Spousal Accounts Accounts held solely in the name of a non-borrowing spouse may be used for down payment, closing costs and reserves and are subject to the

seasoning requirements. Accounts held solely in the name of a non-borrowing spouse may be used with 100% full access letter.

Subordinate Financing Not Allowed


5000-24BS

PRODUCT DESCRIPTION

24 MONTHS BANK STATEMENTS

90% LTV PURCHASE UP TO $650,000

* Purchase Only, 18 Months of reserves, max DTI 36% & No FTHB

Second Homes – Reduce LTV/CLTV by 5% (Max LTV 80%) Investment Property – Reduce LTV/CLTV by 10% (Max LTV 75%) 2-4 Units Properties – Reduce LTV/CLTV by 5%, (Max LTV 80%) Condo Properties – Reduce LTV/CLTV by 5% (Max LTV 80%; Non-Warrantable Max LTV 75%)

Primary Residence – Purchase & R/T Refinance

Property Credit Score LTV/CLTV Maximum Loan Amount

SFR/PUD

740 90%* $650,000*

680 85% $1,000,000

680 80% $1,500,000

680 75% $2,000,000

660 80% $1,000,000

660 75% $1,500,000

660 65% $2,000,000

Primary Residence - Cash-Out Refinance

Units Credit Score LTV/CLTV Max LA Max Cash Out

SFR/PUD

680 80% $1,000,000

See Cash-Out Amount Section

680 75% $1,500,000

680 70% $2,000,000

660 75% $1,000,000

660 70% $1,500,000

660 60% $2,000,000


5000-24BS


Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka “look back period”) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption – Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option – Available for LTVs <= 80%. Interest Only period is 120 months

Age of Documents

Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 60 days prior to closing

Appraisal







5000-24BS

Assets

Funds for down payment, closing and reserves must be verified, sourced and seasoned for 2 months. Net proceeds from cash-out transactions cannot be used to meet the reserve requirements unless there is a net benefit to the borrower, see worksheet.

Additional reserves for each NOO property (regardless of financing); 2 months for each property. • Funds in the borrower’s business account(s) ≤ 50% of account balance may be counted towardreserves so long as borrower is 100% owner of business (e.g., Sole Proprietor, S Corp, Corporation, LLC) or has written permission in file from other business co-owner(s) regarding use of these business funds (up to 50% of account balance) for reserves. • Gift funds from immediate family members are allowed.

Loan Amt Reserves

Max DTI 43% Reserves

Max DTI 50%

≤ $1,000,000 6 months 12 months

≤ $1,500,000 9 months 15 months

≤ $2,000,000 12 months 18 months

Loan Amt LTV Reserves

Max DTI 36%

≤ $650,000 85.01-90 18 months

Borrower Eligibility

Eligible: U.S. Citizen • Permanent Resident Alien: is a non-U.S. citizen authorized to live and work in the U.S. on a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent residency must be documented and meet one of the following criteria: I-151 – Permanent Resident Card (Green Card) that does not have an expiration date; I-551 – Permanent Resident Card (Green Card) issued for 10 years that has not expired; I-551 – Conditional Permanent Resident Card (Green Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of USCIS form I-751 requesting removal of the conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows: “Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until mm-dd-yy. Employment Authorized.” • A Limited Power of Attorney (POA) is acceptable when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney • Vesting in the name of an LLC is acceptable (NOO ONLY): The following standards apply: Allowed on investment properties only, Purpose of the LLC is for the ownership and management of real estate, All owners of the LLC (no more than 2) are borrowers on the transaction and Loan must be disclosed to all borrowers; The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing

In-Eligible: Non-Permanent Resident Alien • Foreign national • Non-Occupant Co-Borrowers • Co-Signers • Guarantors • Irrevocable and Inter-Vivos trusts

Cash Out Amount Limit %

Owner Occupied Loan Amount

<= $1m

Loan Amount

> $1m Second Home & NOO

SFR 75% 70% SFR 65%

Condo / 2-4 Units 70% 65% Condo / 2-4 Units 60%

Loan Bal < $150k 70% N/A Loan Bal < $150k 60%

Cash-Out Requirements

If borrower has held title to the property less than 6 months, the LTV is based on the lesser of purchase price or appraised value. •Note: The following

items may be paid off with proceeds from a Rate/Term refinance: •Non-purchase money seconds with 12 month seasoning. •HELOCs (Home Equity Line

of Credit) with total withdrawals not exceeding $2,000 in the last twelve (12) months. • Borrowers requesting a cash-out loan on an investment property

must provide a letter of explanation (aka “cash-out letter”) regarding the use of the cash-out proceeds.


5000-24BS

Credit

• Borrowers must have a minimum of 5 active trade lines on the credit report with a minimum of 3 trade lines with at least 24 months history (open date 24months or more). With at least one seasoned trade line having at least a $5,000 high credit limit with 24 months history. Authorized user trade lines are not eligible for any portion of the credit requirement. • Judgment/Tax Lien/Collections/Charge-Offs – Must be paid. New items with a cumulative total > $5,000 in the last 24 months will exclude the borrower fromthis program.

Matrix 5000-24BS

Minimum FICO 660

Housing 0x30x12

BK (Chap 13 Discharge) 12 Mo

BK (Other) 24 Mo

Foreclosure 24 Mo

Short Sale / DIL 24 Mo

Credit Scores

The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will be used.

When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the representative credit score for

qualifying.


Escrow Waivers Impounds are required.

First Time Home Buyers

• Not Allowed on LTVs > 85%

• Primary residence only

• Minimum 660 credit score

• Minimum 6 months reserves

• 12 month rental history required reflecting 0x30.

• Payment shock limited as follows:

>36% DTI <=36 DTI

Credit Score >= 660: 3x current housing Payment shock not applicable

FTHB with gift funds: 1.5x current housing Payment shock not applicable

Income/Asset Verification

All borrowers must be qualified using current verifiable income, not projected income.

A borrower with a 25% or greater ownership interest in a business is considered self-employed and must be evaluated as a self-employed borrower. Borrower

must document two years current continuous self-employment with business license (if available for nature of business) and statement from corporate

accountant/CPA confirming the same. Borrowers whose self-employment cannot be independently verified are not eligible.



5000-24BS




Using Personal Bank Statements to Qualify • Business license (if available – depending on nature of business)• Letter from a Licensed Tax Professional certifying profession & self-employment in same line of business for a min of 2 years & ownership percentage• Most recent 24 months personal bank statements - Utilize 24 months average deposits to qualify (minus disqualified/unrelated deposits)• Most recent 3 months business bank statements – Demonstrate transfers from business to personal bank account statements provided• Borrowers must own a minimum of 25% of business to be considered Self-Employed, for use of personal of personal bank statements.• Qualifying income may not exceed the income indicated on the initial 1003.

Using Business Bank Statements to Qualify • Business license (if available – depending on nature of business)• Letter from a licensed tax professional certifying profession & self-employment in same line of business for a min of 2 years and that the borrower is 100%owner of the business -For use of Business Bank Statements/P&L for borrowers who own less than 100% but more than or equal to 80%, a letter is required

from each other owner of the business stating the borrower has full access to the business funds. Less than 80% ownership will require exception approval for use of Business Bank Statements/P&L • Most recent 24 months business bank statements.• 24 month Profit and Loss Statement (P&L) prepared by a Licensed Tax Professional – Net Income on P&L will be used for qualifying (Net Income/24)



Borrowers with Personal Accounts (Co-mingled for business & personal use) • Business license (if available – depending on nature of business)• Letter from a licensed tax professional certifying profession & self-employment in same line of business for a min of 2 years and that the borrower is 100%owner of the business - For use of Business Bank Statements/P&L for borrowers who own less than 100% but more than or equal to 80%, a letter is required

from each other owner of the business stating the borrower has full access to the business funds. Less than 80% ownership will require exception approval for use of Business Bank Statements/P&L • Most recent 24 months personal bank statements.• 24 month Profit and Loss Statement (P&L) prepared by a Licensed Tax Professional – Net Income on P&L will be used for qualifying (Net Income/24)



Other sources of income • Other sources of income must be verified in accordance with Appendix Q of Regulation Z regarding income


5000-24BS


Borrowers are not limited in the number of properties owned however borrower with > 20 financed properties are limited to Owner Occupied or 2nd Home transactions only.


NSF/Over Draft

Non-sufficient funds: Non-sufficient funds (NSF) is a term used to indicate that a demand for payment (a check) cannot be honored because insufficient funds are available in the account on which the instrument was drawn. In simplified terms, a check has been presented for clearance, but the amount written on the check exceeds the available balance in the account. An NSF will be counted against the borrower when the borrower’s account is overdrawn. This is the same for “non-sufficient funds” as “over-drafting,” whether or not such “overdraft protection” is enabled. Borrower generally may have no more than 3 instances of non-sufficient funds (NSFs) in a 12 month period.

Instances can be within a single month or spread out over the 12 month period. Borrower explanation letter is required. Exception: Underwriter may approve > 3 NSFs in certain instances on a case by case basis so long as it is an isolated situation. Exception must be reviewed and signed off by the underwriter. Returned check situations (e.g., from borrower’s accounts receivable) that cause NSFs will be considered separately from above NSF limits. Returned checks that do not result in a negative balance are not considered NSFs. The bank statements should show a trend of ending balances that are stable or increasing over the 12 month (or other examination) period. Decreasing income trends must be explained; additional documentation may be required. Low ending balances must be explained; additional documentation may be required. Net deposits must not reflect any other income sources already taken into consideration.

Points and Fees Total points and fees must be less than 5%

Prepayment Penalty

Investment Properties require a prepayment penalty. Prepayment penalties on primary residence and second home transactions are prohibited.

Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period.

Property Types

Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details)

Ineligible: • Acreage greater than 10 acres (appraisal must include total acreage) • Agricultural zoned property • Condo hotel • Co-ops • Hobby Farms • Income producing properties with acreage • Leaseholds • Log Homes • Manufactured housing • Mixed use properties • Modular homes • Properties subject to oil and/or gas leases •Unique properties • Working farms, ranches or orchards.

Property Types – All

Condos

Fannie Mae eligible projects and Non-Warrantable projects allowed • GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower • Borrower project/Unit concentration limit: two (2) units • Project meets all FNMA Insurance requirements for property, liability and fidelity coverage • Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit • The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire .• All projects are subject to full review and approval.


5000-24BS


Warrantable Condos

Maximum LTV/CLTV: 75% Maximum Loan Amount: $1,000,000 Require Project Approval by GreenBox Loans, Inc.

Maximum of 20% of project owned by any Single Owner / Investor Entity. Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units.

Qualifying Rate

and Ratios

Qualifying Rate and Ratios • ARMs – Qualify at the greater of the fully-indexed rate or Note rate• Fixed Rate – Qualify at the Note rate• Qualifying ratios are based on a fully amortizing principal and interest payment• Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (240 Months) at the time of recastafter the interest only period has expired.

DTI Ratio • Maximum DTI is 50% (applies to both fully amortizing and interest only), Primary residence only• Maximum DTI is 43% for second home and investment properties• For loans with DTI > 43% require additional reserves

Seller Concessions

• LTV equal to or greater than 75%: max 4%• LTV less than 75%: max 6%

All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law.

Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction.

Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower’s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations.


5000-24BS

Vesting & Ownership

Ownership must be fee simple. Title must be in the Borrower’s name (whether individual or entity) at time of application for refinance transactions and on closing date for all transactions. Acceptable forms of vesting are: • Individuals • Joint tenants • Tenants in common • Limited Liability Companies, Partnerships, Corporations, and S Corporations (each, an “Entity”) in accordance with the requirements listed below To vest a loan in an Entity, the following requirements must be met: ○ Purpose and activities are limited to ownership and management of subject property. ○ All members, partners, or shareholders of the Entity, as the case may be, (each, a “Member”, and no more than two per Entity) must provide personalguarantees of the obligations of the Entity in a form satisfactory to GB. ○ Entity must complete Form 1003, signed by a person authorized to sign on behalf of the Entity. ○ Each Entity Member must complete a Form 1003 or similar credit application indicating clearly that such document is being provided in the capacity of guarantor. The application of each Member and such person’s credit score and creditworthiness will also be used to determine qualification and pricing. ○ No correspondent lender shall suggest or encourage the formation of an Entity for the purpose of obtaining a mortgage loan. Such structures shall be initiated and arranged by the Members of the Entity. ○ Each Member of the Entity must receive notice of the loan and its terms prior to closing. ○ The following Entity documentation must be provided: ▪ Entity Articles of Organization, Partnership, and Operating Agreements, if any ▪ Tax Identification Number ▪ Certificate of Good Standing ▪ Certificate of Authorization for the person executing all documents on behalf of the Entity


5000-24BS-NP

PRODUCT DESCRIPTION

24 MONTHS BANK STATEMENTS

BANK STATEMENTS W/ 580 FICO • 24 MONTHS FROM HOUSING EVENT

* DTI Limited to 43%

Second Homes – Reduce LTV/CLTV by 5% (Max LTV 75%) Investment Property – Reduce LTV/CLTV by 10% (Max LTV 70%) 2-4 Units Properties – Reduce LTV/CLTV by 5%, (Max LTV 75%) Condo Properties – Reduce LTV/CLTV by 5% (Max LTV 75%; Non-Warrantable Max LTV 70%)

Primary Residence – Purchase & Rate and Term Refinance


SFR/PUD

620 70% $1,500,000

600 80% $1,000,000

580* 80% $750,000


Units Credit Score LTV/CLTV Maximum Loan Amount Maximum Cash Out

SFR/PUD

640 75% $750,000 $200,000

640 65% $1,500,000 $200,000

600 70% $1,000,000 $200,000

580* 70% $750,000 $200,000


5000-24BS-NP


Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka “look back period”) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption – Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option - None

Age of Documents


Appraisal






Assets

Funds for down payment, closing and reserves must be verified, sourced and seasoned for 2 months. Net proceeds from cash-out transactions cannot be used to meet the reserve requirements unless there is a net benefit to the borrower, see worksheet.

Additional reserves for each NOO property (regardless of financing); 2 months for each property. • Funds in the borrower’s business account(s) ≤ 50% of account balance may be counted towardreserves so long as borrower is 100% owner of business (e.g., Sole Proprietor, S Corp, Corporation, LLC) or has written permission in file from other business co-owner(s) regarding use of these business funds (up to 50% of account balance) for reserves. • Gift funds from immediate family members are allowed.

Loan Amt Reserves Max DTI 43%

Reserves Max DTI 50%

≤ $750,000 6 months 12 months

≤ $1,000,000 9 months 15 months

≤ $1,500,000 12 months 18 months


5000-24BS-NP

Bankruptcy

Chapter 7 and Chapter 11 bankruptcies must be discharged for a minimum of 12 months from closing date. Seasoning is measured from the month and year of discharge.

There is no seasoning requirement for Chapter 13 bankruptcies when the bankruptcy is discharged prior to closing. If the Chapter 13 bankruptcy was dismissed, 12-months’ seasoning is required from the date of the dismissal. A Chapter 13 bankruptcy may remain open after loan closing when all of the following requirements are met:

• A minimum 12-month repayment period in the bankruptcy has elapsed.• All required bankruptcy plan payments have been made on time.• The borrower has received written permission from bankruptcy court to enter into the mortgage transaction.• Full bankruptcy papers may be required.

A cash-out refinance to pay off the remaining balance of a Chapter 13 bankruptcy is allowed. In addition to meeting the requirements listed above, the transaction must provide an overall reduction in monthly obligations for the borrower.




Cash-Out Requirements

If borrower has held title to the property less than 6 months, the LTV is based on the lesser of purchase price or appraised value. •Note: The following

items may be paid off with proceeds from a Rate/Term refinance: •Non-purchase money seconds with 12 month seasoning. •HELOCs (Home Equity Line

of Credit) with total withdrawals not exceeding $2,000 in the last twelve (12) months. • Borrowers requesting a cash-out loan on an investment property

must provide a letter of explanation (aka “cash-out letter”) regarding the use of the cash-out proceeds.


5000-24BS-NP

Credit

• Standard: 3 tradelines reporting for 12+ months or 2 tradelines reporting for 24+ months with activity in the last 12 months• Judgment/Tax Lien/Collections/Charge-Offs – Must be paid. New items with a cumulative total > $5,000 in the last 24 months will exclude the borrower fromthis program.

Matrix 5000-24BS-NP

Minimum FICO 580

Housing 0x90x12

BK (Chap 13 Discharge) Settled

BK (Other) 12 Mo

Foreclosure 12 Mo

Short Sale / DIL Settled

Credit Scores



qualifying.



Foreclosure/Short Sale/Deed In Lieu/Notice

Of Default

A ‘Housing Event’ is a completed foreclosure, short sale, deed in lieu or notice of default (or similar notice required under state law as an initial phase of the foreclosure process). A severe delinquency (90 days or greater) is also considered a Housing Event. Housing Events must be seasoned for a minimum of 24 months from loan closing. Seasoning is measured from the date of completed sale or final property transfer. The foreclosure action must be completed prior to loan closing with no outstanding deficiency balance remaining. If the property was surrendered in a Chapter 7 bankruptcy, the bankruptcy discharge date is used for seasoning. The foreclosure action is not required to be fully complete.



5000-24BS-NP


• Primary residence only

• Minimum 580 credit score

• Minimum 6 months reserves

• 12 month rental history required reflecting 0x30.

• Payment shock limited as follows:

>36% DTI <=36 DTI

Credit Score >= 620: 3x current housing Payment shock not applicable

Credit Score < 620: 2x current housing Payment shock not applicable

FTHB with gift funds: 1.5x current housing Payment shock not applicable

Income/Asset Verification

All borrowers must be qualified using current verifiable income, not projected income.

A borrower with a 25% or greater ownership interest in a business is considered self-employed and must be evaluated as a self-employed borrower. Borrower

must document two years current continuous self-employment with business license (if available for nature of business) and statement from corporate

accountant/CPA confirming the same. Borrowers whose self-employment cannot be independently verified are not eligible.


5000-24BS-NP




Using Personal Bank Statements to Qualify • Business license (if available – depending on nature of business)• Letter from a Licensed Tax Professional certifying profession & self-employment in same line of business for a min of 2 years & ownership percentage• Most recent 24 months personal bank statements - Utilize 24 months average deposits to qualify (minus disqualified/unrelated deposits)• Most recent 3 months business bank statements – Demonstrate transfers from business to personal bank account statements provided• Borrowers must own a minimum of 25% of business to be considered Self-Employed, for use of personal of personal bank statements.• Qualifying income may not exceed the income indicated on the initial 1003.

Using Business Bank Statements to Qualify • Business license (if available – depending on nature of business)• Letter from a licensed tax professional certifying profession & self-employment in same line of business for a min of 2 years and that the borrower is 100%owner of the business - For use of Business Bank Statements/P&L for borrowers who own less than 100% but more than or equal to 80%, a letter is required

from each other owner of the business stating the borrower has full access to the business funds. Less than 80% ownership will require exception approval for use of Business Bank Statements/P&L • Most recent 24 months business bank statements.• 24 month Profit and Loss Statement (P&L) prepared by a Licensed Tax Professional – Net Income on P&L will be used for qualifying (Net Income/24)



Borrowers with Personal Accounts (Co-mingled for business & personal use) • Business license (if available – depending on nature of business)• Letter from a licensed tax professional certifying profession & self-employment in same line of business for a min of 2 years and that the borrower is 100%owner of the business - For use of Business Bank Statements/P&L for borrowers who own less than 100% but more than or equal to 80%, a letter is required

from each other owner of the business stating the borrower has full access to the business funds. Less than 80% ownership will require exception approval for use of Business Bank Statements/P&L • Most recent 24 months personal bank statements.• 24 month Profit and Loss Statement (P&L) prepared by a Licensed Tax Professional – Net Income on P&L will be used for qualifying (Net Income/24)



Other sources of income • Other sources of income must be verified in accordance with Appendix Q of Regulation Z regarding income


5000-24BS-NP


Borrowers are not limited in the number of properties owned however borrower with > 20 financed properties are limited to Owner Occupied or 2nd Home transactions only.

Minimum Loan Size $100,000

NSF/Over Draft

Non-sufficient funds: Non-sufficient funds (NSF) is a term used to indicate that a demand for payment (a check) cannot be honored because insufficient funds are available in the account on which the instrument was drawn. In simplified terms, a check has been presented for clearance, but the amount written on the check exceeds the available balance in the account. An NSF will be counted against the borrower when the borrower’s account is overdrawn. This is the same for “non-sufficient funds” as “over-drafting,” whether or not such “overdraft protection” is enabled. Borrower generally may have no more than 3 instances of non-sufficient funds (NSFs) in a 12 month period.

Instances can be within a single month or spread out over the 12 month period. Borrower explanation letter is required. Exception: Underwriter may approve > 3 NSFs in certain instances on a case by case basis so long as it is an isolated situation. Exception must be reviewed and signed off by the underwriter. Returned check situations (e.g., from borrower’s accounts receivable) that cause NSFs will be considered separately from above NSF limits. Returned checks that do not result in a negative balance are not considered NSFs. The bank statements should show a trend of ending balances that are stable or increasing over the 12 month (or other examination) period. Decreasing income trends must be explained; additional documentation may be required. Low ending balances must be explained; additional documentation may be required. Net deposits must not reflect any other income sources already taken into consideration.


Prepayment Penalty


Where permitted by applicable laws and regulations, a prepayment charge may be assessed within the first 24 months following the execution date of the note. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period.

Property Types




Condos



5000-24BS-NP


Warrantable Condos

Maximum LTV/CLTV: 75% Maximum Loan Amount: $1,000,000 Require Project Approval by GreenBox Loans, Inc.

Maximum of 20% of project owned by any Single Owner / Investor Entity. Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units.

Qualifying Rate

and Ratios

Qualifying Rate and Ratios • ARMs – Qualify at the greater of the fully-indexed rate or Note rate• Fixed Rate – Qualify at the Note rate• Qualifying ratios are based on a fully amortizing principal and interest payment

DTI Ratio • Maximum DTI is 50% (applies to both fully amortizing and interest only), Primary residence only• Maximum DTI is 43% for second home and investment properties• Maximum DTI is 43% for FICOs under 600• For loans with DTI > 43% require additional reserves

Seller Concessions





Vesting/Seasoning Borrower may hold title under an LLC and or Corporation as long as he/she is 100% owner/member and the subject property is an investment. 6 months Seasoning does not apply in cases whereby borrower may hold title in the name of their LLC/Corporation and pursuing refinancing.


5000-12BS PLUS

PRODUCT DESCRIPTION

12 MONTH BANK STATEMENTS PLUS

7 Years From Housing Event • 7 Years From Bankruptcy • $2,500,000 Max Loan

Owner Occupied, Second Homes, Minimum Loan Amount $100,000

Owner Occupied


< $1,000,000 720 80% 80% 80%

6 Months

680 70% 70% 70%

$1,000,000 - $1,500,000 720 80% 75% 75%

12 Months

680 70% 70% 70%

> $1,500,000

720 75% 70% 70%

12 Months

680 70% 70% 70%

Interest Only 80% Max LTV; Not available for 30 Year Fixed




Use of Business Bank Statements / Co-mingled (for business & personal use): 5% Reduction to LTV; 75% Max LTV


< = $250,000 80% Maximum LTV

$250,001 - $500,000 5% LTV Reduction

$500,001 - $1,000,000 10% LTV Reduction


5000-12BS PLUS











Age of Documents

Credit Report/Credit Documentation: 90 days old at the time of closing

Income and Asset Documentation: Dated within 90 days of closing


Appraisal





A second appraisal is required on loan amounts greater than $1,000,000


Bankruptcy Chapter 7, Chapter 11 and Chapter 13 bankruptcies must be discharged for a minimum of 84 months from closing date. Seasoning is

measured from the month and year of discharge.


5000-12BS PLUS

Borrowers

Eligible: U.S. Citizens • Permanent Resident Aliens (A permanent resident alien is a non-U.S. citizen authorized to live and work in the U.S. on

a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent residency must be

documented and meet one of the following criteria: I-151 – Permanent Resident Card (Green Card) that does not have an expiration date; I-

551 – Permanent Resident Card (Green Card) issued for 10 years that has not expired; I-551 – Conditional Permanent Resident Card (Green

Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of USCIS form I-751 requesting removal of the

conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows: “Processed for I-551 Temporary Evidence of Lawful

Admission for Permanent Residence. Valid until mm-dd-yy. Employment Authorized.”)

Ineligible: Co-signer(s) • Non-occupant co-borrowers • Borrowers not on title • Foreign Nationals • Corporations • partnerships • LLCs •

Irrevocable and Inter-Vivos trusts • Non-Permanent Resident Aliens • First Time Home Buyers

Cash Out - Refinance

For all cash-out refinance transactions, a minimum of 6 months must have elapsed since the most recent mortgage transaction on the subject property (either the original purchase transaction or subsequent refinance). Note date to note date is used to calculate the 6 months.

If the property was acquired < 12 months from application date, the lesser of the current appraisal value or previous purchase price plus documented improvements (if any) must be used. The purchase settlement statement and any invoices for materials/labor will be required.

Cash Out cannot be used for reserve requirements

Collections And Charge-Offs • No accounts with collections and charge-offs may remain open

• No collections and charge-offs within 12 months




Credit 5000-12BS PLUS Matrix






5000-12BS PLUS

Credit Scores

The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will be

used. When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the representative credit

score for qualifying.

Delayed Financing

Cash-out on properties purchased by the borrower with cash and owned less than 6 months is allowed. The following requirements apply:

• Original transaction was an arm’s-length transaction

• Settlement statement from purchase confirms no mortgage financing used to acquire subject

• Source of funds used for purchase documented (gift funds may not be included)

• New loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus thefinancing of closing costs, prepaid fees, and points on the new mortgage loan

• All other cash-out refinance eligibility requirements must be met


Escrow Holdbacks Not Allowed


First Time Home Buyer

Not Eligible

A First-Time Home Buyer is defined as a borrower who had no ownership interest in a residential property in the United States during the

preceding 3-year period.

Gift Funds

Gift funds are allowed after the borrower has made the minimum required contribution (see Minimum Borrower Contribution) towards the

down payment. Gift funds can be used for down payment and closing cost but are not allowed to meet the reserve requirement. When the

funds are not transferred prior to closing, the originator must document that the donor gave the closing agent the gift funds in the form of a

certified check, a cashier’s check, money order, or wire transfer



5000-12BS PLUS




Using Personal Bank Statements to Qualify • Business license (if available – depending on nature of business)• Letter from a Licensed Tax Professional certifying profession & self-employment in same line of business for a min of 2 years & ownership percentage • Most recent 12 months personal bank statements - Utilize 12 months average deposits to qualify (minus disqualified/unrelated deposits)• Most recent 3 months business bank statements – Demonstrate transfers from business to personal bank account statements provided• Borrowers must own a minimum of 25% of business to be considered Self-Employed, for use of personal of personal bank statements.• Qualifying income may not exceed the income indicated on the initial 1003.

Using Business Bank Statements to Qualify • Business license (if available – depending on nature of business)• Letter from a licensed tax professional certifying profession & self-employment in same line of business for a min of 2 years and that the borrower is

100% owner of the business. • Most recent 12 months business bank statements.• 12 month Profit and Loss Statement (P&L) prepared by a Licensed Tax Professional – Net Income on P&L will be used for qualifying (Net Income/12)



Borrowers with Personal Accounts (Co-mingled for business & personal use) • Business license (if available – depending on nature of business)• Letter from a licensed tax professional certifying profession & self-employment in same line of business for a min of 2 years and that the borrower is

100% owner of the business. • Most recent 12 months personal bank statements.• 12 month Profit and Loss Statement (P&L) prepared by a Licensed Tax Professional – Net Income on P&L will be used for qualifying (Net Income/12)



Other sources of income

• Other sources of income must be verified in accordance with Appendix Q of Regulation Z regarding income


5000-12BS PLUS

Income – Misc.

Joint borrowers with one wage earner and one self-employed business owner can verify income separately, with the self-employed borrower utilizing

above (Income Calculation / Documentation) and the wage earner providing paystubs/W-2s. The wage earner 4506T should include W-2 transcripts

only.


When the subject property is a primary residence, there are no limitations on the number of other properties the borrower(s) may currently have

financed.

If the new mortgage is secured by a second home, the borrower(s) may be obligated on up to 20 financed properties (including his or her primary

residence). GB exposure may not exceed $2.5M aggregate with a maximum of five loans for each individual borrower.

Minimum Borrower Contribution Borrowers must contribute a minimum of 10% of their own funds towards the down payment on purchase transactions.


Mortgage And Rental



Verification of Mortgage (VOR/VOM). A combined total of all late mortgage and rental payments in the past 12 months must be used to

determine the housing history rating. If the borrower is making payments to an individual or interested party, 12 months of cancelled checks or

bank statements must be obtained. A VOR/VOM is not required but may be requested for clarification. All mortgages and rental payments

should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated documentation is required to verify

the account is current. • Borrowers must have a complete 12-month housing history

NSF/Over Draft Up to 3 NSF checks and overdraft protection transfers in the most recent 12-month period are allowed with explanation from the borrower.



Property Types

Eligible: Single Family Residences, PUDs, Townhouses, Condominiums (Warrantable Only), 2-4 Units (Owner Occupied Only)



5000-12BS PLUS


A valid project review is required for all condominium transactions, along with a completed GreenBox Mortgage Homeowners’ Association

Certification. The HOA certification may not be greater than 120 days old at the time of closing.

The project review methods below should be utilized to determine the acceptability of a condominium project: PERS (Project Eligibility Review

Service) • FHA Approved Condominiums

For all established condominium projects without valid PERS or FHA approvals, or for projects that do not meet all the requirements of the

various project review methods, an HOA Certification Review is required. A completed GreenBox Homeowners’ Association Certification is

required to ensure compliance with the following requirements: Project must meet the definition of an established condo. • At least 50% of the

total units in the project must be conveyed to purchasers as primary or second homes. • No more than 15% of the total units in a project may be

60 days or more past due on their HOA dues. • No single entity, the same individual, investor group, partnership, or corporation may own more

than 10% of the total units in the project. For projects with 1-4 total units, single entity ownership may not exceed 1 unit. For 5-20 unit projects,

single entity ownership may not exceed 2 units. • No more than 25% of the total square footage of the project may be used for commercial

purposes. • Mortgagee may not be responsible for more than the greater of 6 months or the maximum amount permitted under applicable state

law of delinquent HOA dues. For condos in Florida, the first mortgagee’s liability for dues assessed prior to its acquisition of title is limited to the

lesser of 12 months’ assessments or 1%o of the original mortgage debt. • All facilities related to the project must be owned by the unit owners or

the HOA cannot be subject to a lease between the unit owners or HOA and another party. • HOA certification reflects the funding of replacement

reserves for capital expenditures and deferred maintenance that is at least 10% of the budget.


Warrantable Condos Not Eligible








Ratios 43% DTI; No exception allowed


5000-12BS PLUS

Reserves



Residual Income $2,500 plus an additional $150 per dependent is required

Seller Concessions For primary residence and second home transactions, the property seller and/or interested parties may contribute up to 6% of the lesser of the

property's sales price or appraised value toward the buyer's closing costs, prepaid expenses, discount points, and other financing concessions.

Spousal Accounts Accounts held solely in the name of a non-borrowing spouse may be used for down payment, closing costs and reserves and are subject to the

seasoning requirements. Accounts held solely in the name of a non-borrowing spouse may be used with 100% full access letter.



5000-INV-PP

5000-INV-FN-PP

PRODUCT DESCRIPTION

INVESTOR PROPERTY $2,000,000 MAX LOAN AMOUNT • NON-OWNER OCCUPIED • NO RESERVES • NO RATIOS

Maximum LTVs

FICO Purchase Rate / Term Cash Out

700+ 75% 75% 70%

640 70% 70% 65%

Foreign National 70% 65% 60%

Additional Program Requirements

Program LTV

Loan Size > $1,000,000 5% reduction

First Time Investors 5% reduction

2-4 Units 70% Max

Non Warrantable Condos 65% Max

Unleased Property (Refi only): Max LTV 65% for loan balances <=$1mm;

Unleased Property (Refi only): Max LTV 60% for loan balances >$1mm

Maximum cumulative LTV adjustments, shall not go below 60%


5000-INV-PP

5000-INV-FN-PP

Accounts

Funds held in a checking, savings, money market, certificate of deposit, or other depository accounts can be used for down payment, closing costs, and reserves.

Business Accounts:

Borrowing entity business accounts may be used.

Non-borrowing entity business account will only be permitted if the guarantor(s) constitute 100% ownership of the business.











Age of Documents Credit Report/Credit Documentation: 90 days old at the time of

closing Asset Documentation: Dated within 90 days of closing



5000-INV-PP

5000-INV-FN-PP

Appraisal

Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie

Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser

selection.

The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 day period, a new appraisal is required. Re-

certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet

Not eligible: Properties for which the appraisal indicates condition ratings of C4,C5 or C6 or a quality rating of Q6, each as determined under the

Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation.

APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a

GreenBox Approved AMC is required on all transactions.

In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox’s AMC is acceptable.

If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required.

When a second appraisal is provided, the transactions “Appraised Value” will be the lower of the two appraisals.



Investment 5000-INV

SFR 65%

Condo / 2-4 Units 60%

Loan Bal < $150k 60%

Compliance Compliance with all applicable Federal and State regulations

Credit – Borrower

3 tradelines reporting for 12+ months or 2 tradelines reporting for 24+ months with activity in the last 12

months 24 months seasoning for bankruptcy • 24 months seasoning for foreclosure, short sale, or

deed-in-lieu Evidence of current property ownership required

1x30 last 12 months for primary residence

1x60 last 12 months for investment properties; purchases only with a 5% reduction in

LTV 1x60 last 12 months for non-mortgage history


5000-INV-PP

5000-INV-FN-PP

Credit - Scores

The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two

will be used. When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the

representative credit score for qualifying.

• Foreign Nationals without an ITN are not subject to FICO requirements

Credit History - Bankruptcy (all Chapters) All bankruptcies must be discharged at least 24 months prior to closing.

Credit History - Collections & Charge-Offs

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

Credit History - Foreclosure/Short

Sale/Deed In Lieu/Notice Of Default The housing events must be completed at least 24 months prior to closing.

Credit History - Late Payments

Rolling late payments are not permitted. Each occurrence of a contractual delinquency is considered individually for loan

eligibility. Recent late payments on all consumer debt may not exceed the following:

• Non-mortgage history may not exceed 1X60 over prior 12 months

Credit History - Judgements & Tax Liens All judgments and tax liens must be paid prior to closing.

Credit History - Mortgage & Rental


• Evidence of current home ownership required.

• Primary housing history may not exceed 1X30 over prior 12 months.

• Investment property mortgage history may not exceed 1X60 over prior 12 months (purchase only with a 5% LTV reduction).

• All mortgages and rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated

documentation is required to verify the account is current.

Credit - Tradeline Requirements 3 trade lines reporting for 12+ months with activity within the last 12 month, or 2 trade lines reporting for 24+ months with activity within the last 12

months; Limited Trade lines not allowed.

Documentation - Assets Assets sourced or seasoned for 60 days • Gift funds not allowed


5000-INV-PP

5000-INV-FN-PP

Eligible States See GreenBox Loans, Inc.'s "Location" on web page

Employment / Income Analysis The Employment section of the Initial Application (1003) is required to be completed by the borrower(s), income should be left blank. There is no

employment verification or income analysis.

Escrows Waivers Impounds are required

First Time Investors / Experienced Investor

• First Time Investor - Anyone who has not owned an investment property during the last 12 months. Borrower does not need to currently own

an investment property (could have been sold) as long as there is evidence that the borrower was an “Experienced Investor” within the last 12

months.

• An Experienced Investor - A borrower who has owned two (2) or more properties (including primary residence), residential or commercial,

within the most recent twelve (12) months, with one (1) having documented rental income by a signed lease agreement or twelve (12) months

cancelled checks

• Borrower must own a primary residence (Does not apply to Foreign National program) but does not need to be

financed. US Borrowers renting their primary residence do not qualify for this program.

Foreign National

• Max LTV 70%

• Bank statements must be translated in to English language and must be shown in US currency.

• Funds required for down payment and closing costs must be held in a US bank.

• UK (United Kingdom) Borrowers Only: Use of specific foreign exchange services such as MoneyCorp https://www.moneycorp.com/uk/, Halo

Financial https://www.halofinancial.com/, Currencies Direct http://www.currenciesdirect.com/en/us or TransferWise

https://transferwise.com/us/ in order to transfer funds directly to the closing agent directly. Borrower must have and maintain a US Bank

Account regardless of transferring closing funds directly to the closing agent.



http://www.moneycorp.com/uk/

http://www.halofinancial.com/

http://www.currenciesdirect.com/en/us%20or%20TransferWise%20https:/transferwise.com/us/

http://www.currenciesdirect.com/en/us%20or%20TransferWise%20https:/transferwise.com/us/

5000-INV-PP

5000-INV-FN-PP

Foreign National - Borrower Eligibility

FOREIGN NATIONAL PROGRAM SPECIFIC DOCUMENTATION REQUIREMENTS

• Visa types allowed: B-1, B-2, H-2, H-3, I, J-1, J-2, 0-2, P-1, P-2, TN NAFTA, Laser Visa

• The following are required as evidence the borrower is in the U.S legally

o Copy of the borrowers valid and unexpired passport (including photograph)

o Copy of the borrower’s valid and unexpired visa (including photograph) OR an I-797 form with valid extension dates and I-94.

Borrowers from countries participating in the State Department’s Visa Waiver Program (VWP) are not required to provide a valid

visa. Participating countries can be found at http://travel.state.gov/content/visas/en/visit/visa-waiver-program.html

• If a non-U.S. citizen is borrowing with a U.S. citizen, Foreign National documentation requirements still apply.

• All parties involved on transaction must be screened through exclusionary lists, must be cleared through OFAC's SND list, search of Specially

Designated Nationals & Blocked Persons List may be completed via US Department of Treasury: http://sdnsearch.ofac.treas.gov/.

• Borrowers from OFAC sanctioned countries are ineligible http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx

• Individuals with Diplomatic immunity not eligible http://www.state.gov/s/cpr/rls

• All borrowers must complete IRS form W-8BEN

Foreign National - Credit matrix

Credit Matrix

Credit Score 620 if available; qualifying score is the middle of 3 or lower of

2 scores

Trades 3 trades minimum, all with 24 months credit history

Mortgage History 0 x 30 last 24 months

Bankruptcy/Foreclosure None within 7 years

Judgment/Tax Lien/Collections/Charge-Offs Must be paid. New non-medical items with a cumulative total > $5,000 in the last 24 months will exclude the borrower from

this program.


http://travel.state.gov/content/visas/en/visit/visa-waiver-program.html

http://sdnsearch.ofac.treas.gov/

http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx

http://www.state.gov/s/cpr/rls

5000-INV-PP

5000-INV-FN-PP

Foreign National - Credit

Foreign National Borrowers without Qualifying U.S. Credit (Including borrowers without a valid Social Security Number and borrowers with or without an Individual Tax Identification Number) must provide the following: An International Credit Report and three (3) credit reference letters from verified financial institutions in the country of origin. In lieu of credit reference letters, a full credit report from the borrower’s country of origin from a reputable credit service such as Experian, Trans Union and Equifax, can be provided with evidence of three (3) active and open tradelines with a two year history. No derogatory credit history is permitted.

International Credit Report:

Click here for the International Credit Report submission form or visit GreenBoxloans.com/Forms

The form to be completed and submitted via email PRIOR to OR at Full File Submission. This is a requirement for all loan submissions. The loan

will not proceed to processing from File Setup if the order form has not been submitted.

As identified on the instructions, the order form must be completed and submitted via email to [email protected] along with:

• Completed 1003 - Does not need to be signed

• Signed Borrowers Credit Authorization Disclosure Form

• Copy of Borrowers Visa or Passport

• Completed Credit Card Authorization form signed by Borrower

Credit Reference Letters:

• Must be from an internationally known financial institutions.

• Each letter of reference must state the type and length of the relationship, how the account is held, payment amount, outstanding balance

and status of account including a minimum 12 month payment history.

• A single reference source may provide verification of multiple accounts. Individual account detail must be provided.

• The letter must mention the borrower by name.

• Name, title & contact information of the person signing the letter must be included.

• Currency must be converted to U.S. Dollars and signed and dated by certified translator.

• All documents must be translated into English.

• For Refinances, existing loan must be with a US financial institution

All Foreign National borrowers are required to complete an ACH Form and voided check from a U.S. Bank for auto withdrawal of mortgage.


https://files.acrobat.com/a/preview/4e725c5d-2520-46cf-a51c-148d69c57abc

http://wholesale.greenboxloans.com/forms/


5000-INV-PP

5000-INV-FN-PP

Gift Funds No gift funds of any kind (cash or equity).

Ineligible Borrowers Irrevocable Trusts; Land Trusts; First Time Home Buyers; Borrowers with diplomatic immunity or otherwise excluded from U.S. jurisdiction

Late Payments Rolling late payments are not permitted. Each occurrence of a contractual delinquency is considered individually for loan

eligibility. Recent late payments on all consumer debt may not exceed the following:

• Non-mortgage history may not exceed 1X60 over prior 12 months

Loan Purpose

Borrower is financing the properties solely for commercial purposes and is required to sign a Certification of Business Purpose/Non-Owner

Occupied disclosure at closing attesting that the subject property is not owner occupied and is owned solely for commercial investment purposes.

Additionally, the borrower is required to execute a business purpose and occupancy affidavit at loan application acknowledging that the loan is

being obtained for a business purpose only and the subject property is not to be occupied.


Mortgage and Rental Payment Verification

Evidence of current home ownership required.

Primary housing history may not exceed 1X30 over prior 12 months.

Investment property mortgage history may not exceed 1X60 over prior 12 months (purchase only with a 5% LTV reduction).

All mortgages and rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated


Occupancy Non-Owner Occupied Only

Personal Guarantee Personal Guarantee required for loans to LLC's or Corporations

Points and Fees Maximum of 5% on investment transactions.


5000-INV-PP

5000-INV-FN-PP

Prepayment Penalty

Required on Investment properties where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment

charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge

applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period.

Property Types

Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section

for additional details)

Ineligible: • Acreage greater than 10 acres (appraisal must include total acreage) • Agricultural zoned property • Condo hotel • Co-ops • Hobby

Farms • Income producing properties with acreage • Leaseholds • Log Homes • Manufactured housing • Mixed use properties • Modular homes •

Properties subject to oil and/or gas leases •Unique properties • Working farms, ranches or orchards.


Fannie Mae eligible projects and Non-Warrantable projects allowed • GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15%

of the project whichever is lower • Borrower project/Unit concentration limit: two (2) units • Project meets all FNMA Insurance requirements for

property, liability and fidelity coverage • Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets,

fixtures, built-ins and any improvements made to the unit • The Condo Project Questionnaire must be completed, including all the required

documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA

questionnaire .• All projects are subject to full review and approval.

Property Types – Non Warrantable Condos

Maximum LTV/CLTV: 65%

Maximum Loan Amount:

$1,000,000

Require Project Approval by GreenBox Loans, Inc.

Maximum of 20% of project owned by any Single Owner / Investor Entity.

Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units.

Property Ownership / GB Exposure

There is no limit on the number of financed properties a borrower can own. GreenBox Loans, Inc. will not finance more than an aggregate of

$2,000,000 or a more than 10 Properties at any one time to the same borrower/guarantor. Exceptions to this policy will be reviewed on a case-by-

case basis.

Ratios There is no Debt-to-Income (DTI) requirement

Refinance Unleased Property (Refi only): Max LTV 65% for loan balances <=$1mm; Max LTV 60% for loan balances >$1mm


5000-INV-PP

5000-INV-FN-PP

Reserves There is no reserve requirement

Seller Concessions

May not exceed 3%

All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and

local law.

Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates,

or any other party with an interest in the real estate transaction.

Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down

payment or contributed to the borrower’s financial reserve requirements. If a seller concession is present, both the appraised value and sales price

must be reduced by the concession amount for LTV/CLTV calculations.


Title Vesting & Ownership

Ownership must be fee simple. Title must be in the Borrower’s name (whether individual or entity) at time of application for refinance transactions and on closing date for all transactions. Acceptable forms of vesting are: • Individuals • Joint tenants • Tenants in common • Limited Liability Companies, Partnerships, Corporations, and S Corporations (each, an “Entity”) in accordance with the requirements listed below

To vest a loan in an Entity, the following requirements must be met: ○ Purpose and activities are limited to ownership and management of subject property. ○ All members, partners, or shareholders of the Entity, as the case may be, (each, a “Member”, and no more than two per Entity) must provide personal guarantees of the obligations of the Entity in a form satisfactory to GB. ○ Entity must complete Form 1003, signed by a person authorized to sign on behalf of the Entity. ○ Each Entity Member must complete a Form 1003 or similar credit application indicating clearly that such document is being provided in the capacity of guarantor. The application of each Member and such person’s credit score and creditworthiness will also be used to determine qualification and pricing. ○ No correspondent lender shall suggest or encourage the formation of an Entity for the purpose of obtaining a mortgage loan. Such structures shall be initiated and arranged by the Members of the Entity. ○ Each Member of the Entity must receive notice of the loan and its terms prior to closing. ○ The following Entity documentation must be provided: ▪ Entity Articles of Organization, Partnership, and Operating Agreements, if any ▪ Tax Identification Number ▪ Certificate of Good Standing ▪ Certificate of Authorization for the person executing all documents on behalf of the Entity


5000-INV-DTI-PP

PRODUCT DESCRIPTION

INVESTOR PROPERTY

$2,000,000 MAX LOAN AMOUNT • NON-OWNER OCCUPIED • QUALIFY ON RENTAL SURVEY

INVESTMENT

Property Credit Score Purchase / R/T LTV/CLTV*

Rate & Term LTV/CLTV

Cash Out LTV/CLTV

Reserves Maximum Loan Amount DTI

SFR/PUD

720+

80% 75% 70%

6 Months $1,000,000

80%

75% None

75% 75% 70% 6 Months $1,500,000

70% 70% 65% None

70% 70% 65% 6 Months $2,000,000

700 - 719

75% 75% 70% 6 Months

$1,000,000 None

75% 70% 65%

6 Months $1,500,000

70% None

70% 70% 65% 6 Months $2,000,000

640 - 699

70% 70% 65% 6 Months

$1,000,000 None

65% 65% 65% 6 Months

$1,500,000 60% None

620 - 639 65% 65% 60% 12 Months $500,000 70%

Unleased Property (Refi only): Max LTV 65% for loan balances <=$1mm; Max LTV 60% for loan balances >$1mm 2-4 Units & Condos 70% Max LTV Loan Balances < $150,000: 70% Max LTV First Time Investors 65% Max LTV


5000-INV-DTI-PP











Age of Documents Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing


Appraisal

Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie

Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser

selection.

The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 day period, a new appraisal is required. Re-

certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet

Not eligible: Properties for which the appraisal indicates condition ratings of C4, C5 or C6 or a quality rating of Q6, each as determined under

the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper

documentation.

APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital),

from a GreenBox Approved AMC is required on all transactions.

In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox’s AMC is acceptable.

If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required.

When a second appraisal is provided, the transactions “Appraised Value” will be the lower of the two appraisals.



5000-INV-DTI-PP

Assets

The types of assets that can be used for down payment, cash to close and reserves and the value of those funds are as follows, all of which

must be verified with documentation: Checking/Savings/Money Market accounts – 100%. •Publicly traded stocks, bonds and mutual funds –

70% of value may be used •Non- vested or restricted stock accounts are not eligible for use as down payment or reserve. •Individual Retirement

Accounts (IRAs), SEP or Keogh accounts – 70% of vested value may be used, if the Borrower is not retirement age (59½) an additional 10%

withdrawal penalty must be applied(unless confirmed otherwise) for a total discount of 40%. For Borrowers aged ≥ 59½, 100% of retirement

assets can be used, except for retirement assets in the form of stocks, bonds, or mutual funds must be discounted 30% to account for market

volatility. The additional 10% penalty does not need to be applied. •Annuities – 70% of vested value may be used, if the Borrower is not

retirement age (59½) an additional 10% withdrawal penalty must be applied (unless confirmed otherwise) for a total discount of 40%.For

Borrowers aged ≥ 59½, 100% of retirement assets can be used, except for retirement assets in the form of stocks, bonds, or mutual funds must

be discounted 30% to account for market volatility. The additional 10% penalty does not need to be applied. •401(K) plans – 70% of the vested

amount, after reduction of any outstanding loans. The terms and conditions under which funds may be withdrawn or borrowed must be verified.

•Trust Assets – borrower/co-borrower must have full access to consider; Copy of complete trust or trustee letter is required. •Business funds

may be used for down payment, closing costs and reserves. Cash flow analysis required using 3 months business bank statements to

determine no negative impact to business based on withdrawal of funds. •Borrower must have access to funds. •The borrower must be the sole

proprietor or 100% owner of the business (or all borrowers combined own 100%). •CPA letter must be included in the file confirming that the

withdrawal will not harm the financial strength of the business. • Sale of Assets – 100% of the net proceeds from the sale of a residence or

other personal assets. Cash Value of Life Insurance – 100% of the cash value. •Borrowed Funds by an Asset - Borrowed funds secured by an

asset are an acceptable source of funds for the down payment, closing costs, and reserves, since borrowed funds secured by an asset

represent a return of equity. Assets that may be used to secure funds include automobiles, artwork, collectibles, real estate or financial assets

such as saving accounts certificates of deposit, stocks, bonds and 401(k) accounts.

•Secured Loans as Debt - When qualifying the borrower, the monthly payments for secured loans must be counted as a debt. If a secured

loan does not require monthly payments, the underwriter must calculate an equivalent amount and consider that amount as recurring debt.

When loans are secured by the borrower’s financial assets, monthly payments for the loan do not have to be considered as long-term debt.

Reducing the Asset by the Amount Borrowed- If the borrower uses the same financial assets as reserves; the value of the asset must be

reduced by the amount of proceeds and related fees for the secured loan.

•Documentation Requirements. •The terms of the secured loan. •Evidence that the party providing the secured loan is not a party to the sale.

•Evidence that the funds have been transferred to the borrower. Note: Unless specifically stated otherwise, assets must be documented in

accordance with Fannie Mae guidelines. Asset types which are not specifically mentioned above are not permitted


5000-INV-DTI-PP Eligible Borrowers: U.S. citizens • Permanent resident aliens • Limited Liability Company, in combination with all members of the LLC (in their

individual capacity).

Ineligible Borrowers - Irrevocable and Inter-Vivos trusts. • Land trusts, except for Illinois Land Trusts. • Limited partnerships, general partners,

and corporations. •Series LLC (identified in LLC documents) • First time homebuyers defined as anyone who has not owned a home for three

(3) years. For loans with more than one borrower where at least one borrower has owned a home in the past three (3) years, first-time

homebuyer requirements do not apply.

• Borrowers party to any transaction where there is a relationship or business affiliation between the buyer, seller, loan agent, or originator that

GBL determines to result in a non-arm’s length transaction. Refer to Section for non-arm’s length transactions that may be considered. •

Borrowers with only an individual taxpayer identification number (ITIN) • Self- Directed IRA’s • Non-Permanent Resident Aliens



NOO 5000-INV-DTI

SFR 65%

Condo / 2-4 Units 60%

Loan Bal < $150k 60%

Credit

A minimum of 3 trade lines open for at least 24 months is required. •At least 2 of the trade lines must show activity within the past 12 months;

•Borrowers who rent their primary residence must provide satisfactory 24 month rental verification. This can be verified by direct written

verification (VOR), canceled checks and/or bank statements. •Authorized user accounts and non-traditional credit are not considered as

acceptable trade lines

Credit - Adverse History

The following credit standards apply: •No mortgage lates in the past 24 months on any mortgage reported on the credit report; •For borrowers

renting their primary residence, the verification of rent must evidence no late payments in the past 24 months. •No bankruptcies or foreclosures,

short sales or deed in lieu within the last 3 years. •Modifications due to adverse circumstances are not permitted within the last 3 years.

Modifications that are not the result of adverse circumstances are permitted, including: •Modification due to a principal pay down with recast may

be considered on a case by case basis, •Modification as part of a previous single-close construction-to-permanent financing transaction.

•Generally, no public records are permitted within the past 24 months; •Public records of di minimis amounts which occurred as isolated events

may be permitted. Documentation must be provided describing the cause of the event and the extenuating circumstances that illustrate the

borrower’s inability to resolve the problems. Patterns of continuous or repetitive derogatory events are not acceptable. All public records with

outstanding debt obligations must be paid off prior to or at closing as noted below: •Open judgments, garnishments and all outstanding liens

must be paid. •In general, outstanding collections and charge-offs must be paid off. Collections and charge-offs with minor outstanding balances

may remain open. •No significant derogatory ratings on any trade line activity within the last 36 months (including installment or revolving

accounts)


5000-INV-DTI-PP

Credit Scores The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will

be used. When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the

representative credit score for qualifying.

Cost Basis and Maximum Loan Amount

Maximum Loan Amount: •For properties owned 90 DAYS, the Maximum Loan Amount is limited to the lesser of (i) 75% of Cost Basis (defined

below) and (ii) as calculated by all other terms of the product matrix. •For properties owned 91-180 DAYS, the Maximum Loan Amount is limited

to the lesser of (i) 80% of Cost Basis (defined below) and (ii) as calculated by all other terms of the product matrix. •For properties owned 181-

365 DAYS, the Maximum Loan Amount is limited to the lesser of (i) 90% of Cost Basis (defined below) and (ii) as calculated by all other terms of

the product matrix. •Cost Basis: •The “Cost Basis” for the subject property is defined as the original acquisition cost plus verifiable rehabilitation

costs. Eligible rehabilitation costs may include both “Soft” and “Hard” costs. Hard costs include direct construction costs (lumber, paint, nails,

concrete, etc.). Soft costs are defined as indirect construction costs that include architectural plans, engineering, legal, and permits. Closing costs,

contingency reserves, builder overhead, and like costs may not be included in the Cost Basis. •Acceptable Verification Documents: Borrower

shall be required to provide evidence of their Cost Basis. Documentation shall include but not be limited to: •For all properties, in order of priority,

(i) HUD-1 statement; (ii) settlement statement; (iii) Purchase contract or (iv) other (e.g. recorded deed). •Renovation or rehabilitation

documentation (e.g. contracts, invoice, cancelled check / bank statements) for all properties. Length of ownership shall be measured from the

date of the acquisition of the property to the date of the subject loan application.

Disclosure of Employment and Income The borrower must disclose their employment information on the application (Form 1003). However, only rental income for the subject property

is used in qualifying. Therefore income derived from regular employment, retirement or other investments should not be disclosed. The

application should otherwise be completed including the Schedule of Real Estate Owned listing all properties financed under this program.

Documentation Requirements

•All borrower funds must be documented with two (2) most recent months’ asset statements or VOD covering a minimum of 60 consecutive

days. •A written VOD may only be used as supporting documentation and cannot be used in lieu of asset statements. •All unusual large deposits

must be explained and the source must be documented. The borrower’s receipt of the funds realized from sale or liquidation when non-liquid

assets are used for any part of the down- payment or required cash to close must be verified. •For reserve calculation, the minimum

documentation to correctly verify the full PITIA payment should be from one or more of the following sources: current monthly mortgage

statement, copies of homeowners’ insurance policy; copy of recent tax bill or web search to taxing authority; copy of mortgage note, etc.


5000-INV-DTI-PP

DTI Ratio for Property

For this product, the debt-to-income ratio is only calculated on the subject property. The Debt-to-Income Ratio is calculated for the subject

property as follows: PITIA ÷ Monthly Rental Income. •The “Monthly Payment (PITIA)” is equal to the (a) the monthly principal and interest due

on the loan and (b) monthly real estate taxes, insurance and HOA dues (if applicable) for the property collateralizing the loan. • On purchases,

the “Monthly Rental Income” is based on the market rent survey documented on the appraisal; refinances (R/T or C/O) with Vacant Units or

Properties, the “Monthly Rental Income” is based on the market rent documented on the appraisal. refinances (R/T or C/O) with Units or

Properties which are leased (remaining term of the lease must be = > than 3 months), the “Monthly Rental Income” is the lesser of (i) the

monthly rental amount reflected on the lease or (ii) the monthly market rent survey documented on the appraisal.

Unleased Property (Refi only): Max LTV 65% for loan balances <=$1mm; Max LTV 60% for loan balances >$1mm

Escrow Holdbacks Escrow holdbacks are not permitted.


Financing and Sales Concessions

Financing and sales concessions are defined as interested party contributions beyond the stated limits in Interested Party Contributions or any

amounts not being used for closing costs or prepaid items. If financing or sales concessions are present, both the appraised value and sales

price must be reduced by the concession amount for purposes of calculating the LTV.

First Time Investor / Experienced Investor

• First Time Investor - Anyone who has not owned an investor property for at least 12 months.

• An Experienced Investor - A borrower who has owned two (2) or more properties, residential or commercial, within the most recent twelve (12)

months, with one (1) having documented rental income by a signed lease agreement or twelve (12) months cancelled checks.

• Borrower must own a primary residence

Gift Funds Gift funds are acceptable only if a 20% down payment has been made by the borrower from their own resources.

• Fannie Mae guidelines should be used for donor relationship to borrower(s), documentation, proof of funds, and evidence of receipt;

• Gift funds may not be used to meet reserve requirements.

(Rental) Income Calculation

On purchases, the “Monthly Rental Income” is based on the market rent survey documented on the appraisal; refinances (R/T or C/O) with

Vacant Units or Properties, are In-Eligible; refinances (R/T or C/O) with Units or Properties which are leased (remaining term of the lease must

be = > than 3 months), the “Monthly Rental Income” is the lesser of (i) the monthly rental amount reflected on the lease or (ii) the monthly

market rent survey documented on the appraisal.

Interested Party Contributions Interested parties for the transaction may include the property seller, builder, real estate agent/broker, mortgage lender or their affiliates, or any

other party with an interest in the transaction. Interested parties may only contribute funds used for closing costs or for prepaid items. Interested

party contributions may not exceed six percent (6%) of the loan amount.


5000-INV-DTI-PP

Limited Liability Company Requirements

Title must be in the name of the Limited Liability Company (“LLC”) at the time of application for refinance transactions and at the time of closing

for all transactions.

•The borrower is defined collectively as the LLC and the individual members of the LLC (“Individuals”). •The LLC must be wholly owned directly

by the Individuals.

•The loan application must be completed by the Individuals, who will be qualified according to the guidelines set forth in this Seller Guide.

•Series LLC- not eligible.

•Provide the following documentation for the LLC. •Copy of the filed articles of organization to evidence existence of the LLC. •Copy of the fully

executed operating agreement specifying authorized signatories on behalf of the LLC and who have the power to mortgage the security property

for the purpose of securing a loan. •Executed Member Consent. •Certificate of Good Standing. •Documents must be completed and signed as

follows: •Loan Application (1003).

•Completed for each Individual. •Section labelled “Title will be held in what Name(s)” should be completed with only the LLC name. •Signed byIndividuals.

•Disclosures (GFE, TIL, Notice of Intent to Proceed, Servicing Disclosure, etc.) •Completed and signed by Individual(s) •HUD-1. •Completed

and signed by Individual(s). •Other Closing Documents (Final TIL, Borrower Certification of Business Purpose, etc.) •Completed and signed by

Individual(s). •Note, Deed of Trust/Mortgage, and all Riders. “Borrower” in form, if applicable, to be completed with name of each Individual and

the LLC and the LLC collectively as Borrower.

LTV Calculation

Purchases: Loan to value ratios are calculated based on the lesser of the purchase price or the appraised value of the subject property.

•Refinances, Rate & Term and Cash-Out. •Property owned > 3 months; the LTV is calculated using the appraised value. •Property owned ≤ 3

months; the LTV is calculated using the lesser of the appraised value or the cost basis of the subject property. • The maximum LTV as listed in

the product matrix is available for purchase transactions or refinances with all of the units in the subject property are leased and occupied. If any

of the units are unleased unoccupied on refinance transactions, a 5% reduction to Max LTV is required.


Multiple Properties Maximum of ten (10) properties financed with any GB program. •No limit on the number of financed properties the borrower may own.


5000-INV-DTI-PP

Non-Arms Length Transactions

Non-arms length transactions involve a personal relationship or business relationship (outside the subject transaction) between the borrower

and any interested party to the transaction. These transactions must be fully disclosed as non-arms length. Examples of non-arms length

transactions include, but are not limited to:

•Family sales or transfers. •Trading properties with the seller. •Purchasing a property from a builder/developer who, in turn, is purchasing the

borrower’s existing property. •Borrower is related in some manner to a party to the transaction (loan broker, real estate brokers, appraiser, etc.)

•Renters buying from a landlord

•Employer to employee sales or transfers. •Generally, non-arms length transactions are not eligible. The following may be considered with

appropriate documentation: •Family sales or transfers. •Borrower is an employee of the originating lender and the lender has an established

employee loan program.

•Renter buying from landlord, with at least 24 months cancelled checks evidencing satisfactory pay history. •Sellers or Buyers representing

themselves as agent in the real estate transaction.

Occupancy Eligible property types include. •Non-owner occupied (investment) properties with 1 to 4 units. •Ineligible property types include: Primary

residences.& Second home residences

Ownership Interest

Title must be in the borrower’s name(s) at the time of application for refinance transactions, and at the time of closing for all transactions. Title

may be held as follows:

Fee Simple with Title Vesting as: •Individual •Joint Tenants •Tenants in Common •Limited Liability Company (See Section below for more detail).

Leasehold Estates: In areas where leasehold estates are commonly accepted, loans secured by leasehold estates are eligible for purchase. The

mortgage must be secured by the property improvements and the borrower’s leasehold interest in the land. The leasehold estate and the

improvements must constitute real property, must be subject to the mortgage lien, and must be insured by the lender’s title policy.


Prepayment Penalty


Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be equal to 6 months

of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to

sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period

Property Ownership / GB Exposure There is no limit on the number of financed properties a borrower can own. Greenbox Loans, Inc. will not finance more than an aggregate of

$2,000,000 or a more than 10 Properties at any one time to the same borrower/guarantor. Exceptions to this policy will be reviewed on a case-

by-case basis.


5000-INV-DTI-PP

Property Types

Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section

for additional details)

Ineligible: • Acreage greater than 10 acres (appraisal must include total acreage) • Agricultural zoned property • Condo hotel • Co-ops • Hobby

Farms • Income producing properties with acreage • Leaseholds • Log Homes • Manufactured housing • Mixed use properties • Modular homes

• Properties subject to oil and/or gas leases •Unique properties • Working farms, ranches or orchards.


Fannie Mae eligible projects and Non-Warrantable projects allowed • Greenbox Loans, Inc. project exposure maximum shall be $3,000,000 or

15% of the project whichever is lower • Borrower project/Unit concentration limit: two (2) units • Project meets all FNMA Insurance requirements

for property, liability and fidelity coverage • Borrower must carry H06 coverage for replacement of such items as flooring, wall covering,

cabinets, fixtures, built-ins and any improvements made to the unit • The Condo Project Questionnaire must be completed, including all the

required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance

Sheet & HOA questionnaire .• All projects are subject to full review and approval • Maximum LTV/CLTV: 70%

Property Types – Non Warrantable Condos


Maximum Loan Amount:

$1,000,000

Require Project Approval by Greenbox Loans, Inc.



Qualifying Rate



• • Fixed Rate – Qualify at the Note rate




Rent Loss Insurance Rent loss insurance with coverage equal to at least six (6) months of gross monthly rent must be obtained and maintained on each investment

property financed under this program. All other insurance per Fannie Mae guidelines.

REO All properties financed under this program, or in the process of being financed under this program, must be listed on the 1003 Schedule of Real Estate Owned.


5000-INV-DTI-PP

Reserves

• Each financed property, in addition to the subject property, will increase the applicable reserve requirement by two (2) months PITI on the

subject property to a maximum requirement of 24 months. The additional reserves are based upon the PITI of the subject property.

• Reserves must be sourced and seasoned according to Fannie Mae guidelines.

• Proceeds from 1031 Exchange cannot be used to meet reserve requirements.

Seller Concessions

May not exceed 3%



Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down

payment or contributed to the borrower’s financial reserve requirements. If a seller concession is present, both the appraised value and sales

price must be reduced by the concession amount for LTV/CLTV calculations.

Transaction Types

This product is intended to assist Borrowers in financing residential properties solely for commercial purposes, including, but not limited to,

for (i) retaining properties as a stabilized rental, and (ii) monetizing the investment for capital gains purposes. Borrower is required to sign a

certification at closing that the properties are not (and will not be) occupied by the borrower (or any affiliate of the borrower) and are owned

solely for commercial investment purposes.

• Purchase Transactions. • Refinance Transactions Generally. • Unless stated otherwise in the following sections, all refinance transactions must

meet Continuity of Obligation requirement as described in the Fannie Mae Single Family Selling Guide. •Rate/Term Refinances. •The new loan

amount is limited to •The payoff of the present first lien mortgage;

•The payoff of any seasoned non-first lien mortgages: A seasoned non-first lien mortgage is a purchase money mortgage or a mortgage that has

been in place for a minimum of 12 months. A seasoned equity line is defined as not having any draws greater than $2,000 in the past 12

months. Withdrawal activity must be documented with a transaction history for the Line of Credit. •Closing costs and prepaid items. •Cash to the

borrower(s) is limited to the lesser of 2% of the principal amount of the new loan or $2,000. •The property cannot be listed for sale at the time of

the date of the loan application. •Inherited properties are eligible. •Cash Out Refinance: •Cash proceeds: no limit. •Proceeds may be disbursed

directly to the Mortgagor or any other payee and may be used to pay related closing costs, financing costs, and prepaid items. •Properties that

have been listed for sale within six (6) months of the loan application are not eligible.

•Inherited properties are eligible. •Construction to Permanent Financing: Ineligible.


5000-NP PLUS

PRODUCT DESCRIPTION

NON-PRIME PLUS FULL DOC


Owner Occupied, Second Homes Non-Warrantable Condos available w/Exception, Minimum Ln Amt $150,000

Owner Occupied


720 90% 85% 80%

6 Months < $1,000,000 680 90% 85% 80%

660 85% 85% 80%

720 85% 85% 75%

12 Months $1,000,000 - $1,500,000 680 85% 85% 75%

660 80% 80% 75%

720 80% 80% 70%

12 Months > $1,500,000 680 80% 80% 70%

660 75% 75% 70%

Interest Only 80% Max LTV; Not Available for 30 Yr Fxd





< = $250,000 Program's LTV

$250,001 - $500,000 5% Reduction to LTV

$500,001 - $1,000,000 10% Reduction to LTV


5000-NP PLUS










Interest Only Option - Available for LTVs <= 80%. Interest Only period is 120 months; Not Available for 30 Year Fixed

Age of Documents

Credit Report/Credit Documentation: 90 days old at the time of

closing Income and Asset Documentation: Dated within 90 days

of closing


Appraisal








5000-NP PLUS

Bankruptcy Chapter 7, Chapter 11 and Chapter 13 bankruptcies must be discharged for a minimum of 24 months from closing date.

Seasoning is measured from the month and year of discharge.

Borrowers

Eligible: U.S. Citizens • Permanent Resident Aliens (A permanent resident alien is a non-U.S. citizen authorized to live and work in

the U.S. on a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent

residency must be documented and meet one of the following criteria: I-151 – Permanent Resident Card (Green Card) that does not

have an expiration date; I-551 – Permanent Resident Card (Green Card) issued for 10 years that has not expired; I-551 – Conditional

Permanent Resident Card (Green Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of

USCIS form I-751 requesting removal of the conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows:

“Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until mm-dd-yy. Employment

Authorized.”)

Ineligible: Co-signer(s) • Non-occupant co-borrowers • Borrowers not on title • Foreign Nationals • Corporations, partnerships, or

LLCs • Irrevocable and Inter-Vivos trusts • Non-Permanent Resident Aliens

Collections And Charge-Offs

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

For the PLUS Program, collection and charge-off balances exceeding the amounts listed above must be paid in full.




Credit 5000-NP PLUS Matrix






5000-NP PLUS

Credit Scores

The primary wage-earner score is used as the Representative Credit Score for each loan. Additional borrowers on the loan must have

at least one valid score of 500 or greater.

To determine the Representative Credit Score for the primary wage-earner, select the middle score when 3 agency scores are

provided and the lower score when only 2 agency scores are provided.



First Time Home Buyer Allowed

Gift Funds

Gift funds are allowed after the borrower has made the minimum required contribution towards the down payment. Gift funds can be

used for down payment and closing cost but are not allowed to meet the reserve requirement. When the funds are not transferred

prior to closing, the originator must document that the donor gave the closing agent the gift funds in the form of a certified check, a

cashier’s check, money order, or wire transfer

Income - Documentation Full Doc

Minimum Borrower Contribution

Borrowers must contribute a minimum of 5% of their own funds towards the down payment on purchase transactions;

A minimum borrower contribution of 10% is required on the following transactions (above waiver does not apply): • Primary residence

with unverifiable housing history • Loan amounts over $424,100 • Second home


Mortgage And Rental Payment

Verification


Verification of Mortgage (VOR/VOM). A combined total of all late mortgage and rental payments in the past 12 months must be used

to determine the housing history rating. If the borrower is making payments to an individual or interested party, 12 months of cancelled

checks or bank statements must be obtained. A VOR/VOM is not required but may be requested for clarification. All mortgages and

rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated




Property Types

Eligible: Single Family Residences, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details), 2-4 Units




5000-NP PLUS


Max LTV is 85%

A valid project review is required for all condominium transactions, along with a completed GreenBox Mortgage Homeowners’

Association Certification. The HOA certification may not be greater than 120 days old at the time of closing.

The project review methods below should be utilized to determine the acceptability of a condominium project: PERS (Project Eligibility

Review Service) • FHA Approved Condominiums

For all established condominium projects without valid PERS or FHA approvals, or for projects that do not meet all the requirements of

the various project review methods, an HOA Certification Review is required. A completed GreenBox Homeowners’ Association

Certification is required to ensure compliance with the following requirements: Project must meet the definition of an established

condo. • At least 50% of the total units in the project must be conveyed to purchasers as primary or second homes. • No more than

15% of the total units in a project may be 60 days or more past due on their HOA dues. • No single entity, the same individual, investor

group, partnership, or corporation may own more than 10% of the total units in the project. For projects with 1-4 total units, single entity

ownership may not exceed 1 unit. For 5-20 unit projects, single entity ownership may not exceed 2 units. • No more than 25% of the

total square footage of the project may be used for commercial purposes. • Mortgagee may not be responsible for more than the

greater of 6 months or the maximum amount permitted under applicable state law of delinquent HOA dues. For condos in Florida, the

first mortgagee’s liability for dues assessed prior to its acquisition of title is limited to the lesser of 12 months’ assessments or 1%o of

the original mortgage debt. • All facilities related to the project must be owned by the unit owners or the HOA cannot be subject to a

lease between the unit owners or HOA and another party. • HOA certification reflects the funding of replacement reserves for capital

expenditures and deferred maintenance that is at least 10% of the budget.

Property Types – Non Warrantable

Condos On an exception basis






• Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (240

Months) at the time of recast after the interest only period has expired

Ratios

35% / 43%

• No Housing Ratio required for FICO => 660 & LTV <= 70% or FICO => 680 & LTV <= 80%

• Exceptions to 50% available if 12 months reserves after closing


5000-NP PLUS

Reserves



Residual Income

Residual income is required for all primary residence and second home transactions using the following calculation:

Residual Income = Gross Monthly Income * (1 - Borrower’s Debt-to-Income Ratio)

Residual Income of $2,500 is required for the PLUS Program. An additional $150 per dependent must also be included for all

programs. The initial 1003 should reflect the number of dependents for all borrowers on the transaction.

Seller Concessions For primary residence and second home transactions, the property seller and/or interested parties may contribute up to 6% of the

lesser of the property's sales price or appraised value toward the buyer's closing costs, prepaid expenses, discount points, and other

financing concessions.

Spousal Accounts

Accounts held solely in the name of a non-borrowing spouse may be used for down payment and closing costs only and are subject to

the seasoning requirements. Accounts held solely in the name of a non-borrowing spouse may not be used to meet reserve

requirements.

Subordinate Financing Max 90% CLTV (Institutional seconds only)


5000-NP

PRODUCT DESCRIPTION

NON-PRIME FULL DOC


Max LTVs Additional Program Requirements

12 month mtg. history FICO Purchase Rate/Term Cash Out Program LTV FICO Reserves

0 x 30 680 90% 90% 80%

Loan Amount <= $1,000,000 - - 3 months

1 x 30

(no rolling lates)

680 90% 85% 80%

660 85% 80% 80%

620 80% 80% 80% Loan Amount > $1,000,000 5% reduction - 6 months

580 80% 80% 75%

540 75% 75% 70% Loan Amount > $1,500,000 10% reduction - 6 months

500 70% 70% 70% First Time Home Buyers - 560 minimum 6 months

0 x 60

660 80% 80% 75%

Second Homes 5% reduction 560 minimum 6 months

Non-Owner Occupied 10% Reduction

(Max 80%) 540 minimum 6 months

Condos & Multi-Units Max 80% - -

620 80% 75% 75% Limited tradelines Qualify at 580 FICO maximum 6 months

LTVs > 85% See Matrix 6 months

580 80% 70% 70%

Cash Out Amount See below -

540 75% 70% 70%

500 70% 70% 70%

0 x 90 620 75% 75% 70%

500 70% 70% 65%


5000-NP



Age of Documents


Appraisal







AUS If owner-occupied or second home, the file must also include one of the following as evidence the borrower is not eligible for financing through a GSE or Government loan program an AUS Findings with a “Refer” or “Approve/Ineligible” response


5000-NP

Bankruptcy

Chapter 7 and 11: Chapter 7 and Chapter 11 bankruptcies must be discharged for a minimum of 12 months from closing date. Seasoning is measured from the month and year of discharge. Chapter 13: There is no seasoning requirement for Chapter 13 bankruptcies when the bankruptcy is discharged prior to closing. If the Chapter 13 bankruptcy was dismissed, 12-months’ seasoning is required from the date of the dismissal. A Chapter 13 bankruptcy may remain open after loan closing when all of the following requirements are met:

• A minimum 12-month repayment period in the bankruptcy has elapsed.• Bankruptcy plan payments for the last 12 months have been made on time.• The borrower has received written permission from bankruptcy court to enter into the mortgage transaction.• Full bankruptcy papers may be required.


Borrowers – Eligibility




Owner Occupied Loan Amount

<= $1m

Loan Amount

> $1m Second Home & NOO

SFR 75% 70% SFR 65%

Condo / 2-4 Units 70% 65% Condo / 2-4 Units 60%

Loan Bal < $150k 60% N/A Loan Bal < $150k 60%


5000-NP


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 account balances remaining after the exclusions listed above may remain open when one of the following is met: •Borrower has sufficient reserves to cover remaining collection and charge-off balances (in addition to the published reserve requirement); or •Payment for remaining collections and charge-offs included in DTI results in final DTI ≤ 50% (payment calculated at 5% of balance of remaining unpaid collections and charge-offs). A combination of the 2 options above is allowed. A portion of the unpaid collection balance can be included in the DTI while the remainder is covered by excess reserves. Collections and charge-offs that cannot be factored into DTI or reserves must be paid off.


Credit

Standard: 3 tradelines reporting for 12+ mo's or 2 tradelines reporting for 24+ mo's with activity in the last 12 mo's; Limited: No minimum tradeline requirements

The primary wage-earner must meet the minimum tradeline requirements listed above. To qualify as an acceptable tradeline, the credit line must be reflected on the borrower’s credit report. The account must have activity in the past 12 months and may be open or closed. Accounts with delinquencies are allowed when the account is no more than 30-days past due at time of application. An acceptable 12- or 24-month housing history not reporting on credit may also be used as a tradeline. Credit lines on which the borrower is not obligated to make payments are not acceptable for establishing a minimum history. Examples of unacceptable tradelines include loans in a deferment period, collection or charged-off accounts, accounts discharged through bankruptcy, and authorized user accounts. Student loans can be counted as tradelines as long as they are in repayment and are not deferred. Tradelines: Borrowers qualifying with Standard Tradelines are eligible for all occupancy types and programs. Limited Tradelines: The following requirements apply when qualifying with Limited Tradelines:

• Primary residence• 10% minimum borrower contribution• Minimum 6 months reserves after closing• Full documentation of income

When qualifying with Limited Tradelines, the lower of either the Representative Loan Score or a 580 score is used to qualify the borrower on the Matrix, The loan may be priced, however, using the actual Representative Loan Score.

Matrix 5000-NP

Minimum FICO 500

Housing 0x90x12


BK (Other) 12 Mo

Foreclosure 12 Mo



5000-NP

Credit Scores

The primary wage-earner score is used as the Representative Credit Score for each loan. Additional borrowers on the loan must have at least one valid score of 500 or greater. To determine the Representative Credit Score for the primary wage-earner, select the middle score when 3 agency scores are provided and the lower score when only 2 agency scores are provided.


Escrow Waiver Impounds are required.

Gift Funds

Gift funds are allowed after the borrower has made the minimum required contribution towards the down payment. Gift funds can be used for down payment and closing cost but are not allowed to meet the reserve requirement. Gift funds are not allowed on foreign national transactions. When the funds are not transferred prior to closing, the originator must document that the donor gave the closing agent the gift funds in the form of a certified check, a cashier’s check, money order, or wire transfer. . • Not allowed for Non-Owner Occupied Transactions

Income - Documentation Full Doc: • Wage Earner: 2 years W-2, Paystubs • Self-Employed: 2 years personal & business returns, P&L, and Balance Sheet


Borrowers must contribute a minimum of 5% of their own funds towards the down payment on purchase transactions. The minimum 5% requirement can be waived and gift funds used for the entire down payment. Either of the following requirements may be met: • LTV is ≥ 5% below max; or • Borrower has an additional 3 months of reserves (non-gift funds); A minimum borrower contribution of 10% is required on the following transactions (above waiver does not apply): • Primary residence with unverifiable housing history • Loan amounts over $424,100 • Second home • Limited tradelines


Mortgage And Rental Payment Verification

Mortgage and rental payments not reflected on the original credit report must be documented via an institutional Verification of Rent or Verification of Mortgage (VOR/VOM). A combined total of all late mortgage and rental payments in the past 12 months must be used to determine the housing history rating. If the borrower is making payments to an individual or interested party, 12 months of cancelled checks or bank statements must be obtained. A VOR/VOM is not required but may be requested for clarification. All mortgages and rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated documentation is required to verify the account is current.

Occupancy Owner Occupied, Second Homes and Investment


Prepayment Penalty





5000-NP

Property Types






Warrantable Condos


Maximum Loan Amount: $1,000,000




Qualifying Rate


Ratios

** COMPENSATING FACTORS TO EXCEED MAX RATIOS: Debt-to-income ratios up to 50% can be approved by the originator on primary and second home transactions. One of the following compensating factors must be present and noted in the file:• High Discretionary Income: Residual income of at least $2,500 • Minimal Housing Expense Increase: Payment shock less than 125%• Low Housing Ratio: Housing ratio of 25% or less • Documented Ability to Save: Reserves exceed minimum required by at least 3 months (see Reserves Section), Borrowers’ own funds contribution exceeds minimum required by at least 5% •Strong Consumer Credit: All consumer credit paid as agreed in the most recent 12 months. Maximum 40%housing ratio with compensating factors and exception approval. . • Non-Owner Occupied transactions with DTIs > 43% Require 12 months of reserves

LTV > 85% Max DTI 43%

Ratio Requirements

Occupancy Housing Ratio DTI

Primary 35% 43% **50%

Second Home

N/A 43% **50%

Non-Owner Occupied

N/A 50%


5000-NP

Reserves A minimum of 3 months reserves are required; additional reserves may be required, see matrix. Net Proceeds from cash-out transactions can be used to meet the reserve requirement. Gift funds may not be considered. Add 2 months of reserves for each additional financed property (including departure residence). Total reserve requirement is not to exceed 24 months.

Seller Concessions





Spousal Accounts Accounts held solely in the name of a non-borrowing spouse may be used for down payment and closing costs only and are subject to the seasoning requirements. Accounts held solely in the name of a non-borrowing spouse may not be used to meet reserve requirements.

Subordinate Financing Max CLTV = The Lower of 90% Or the Max Available LTV + 5% (Institutional seconds only)


5000-RH

PRODUCT DESCRIPTION NON-PRIME – RECENT HOUSING - FULL DOC

One Day Out of Foreclosure • $2,000,000 Max Loan

Max LTVs

FICO Purchase Rate / Term Cash Out

620 80% 80% 75%

580 80% 80% 70%

540 75% 75% 70%

500 70% 70% 70%

Additional Program Requirements

Program LTV FICO Reserves

Loan Amount <= $424,100 - - 3 months

Loan Amount > $750,000 5% reduction - 6 months

Loan Amount > $1,000,000 10% reduction - 9 months

Second Home 5% Reduction 560 Minimum 6 months

Non-Owner Occupied 10% Reduction

(Max 70%) 540 Minimum 6 months

Limited Tradelines Qualify at 580 FICO Maximum 6 months

Cash Out > $100,000+ see below -


5000-RH



Age of Documents


Appraisal






Assets Assets sourced and seasoned for 60 days • Gift funds allowed - see Gift Funds for details

AUS If owner-occupied or second home, the file must also include one of the following as evidence the borrower is not eligible for financing through a GSE or Government loan program an AUS Findings with a “Refer” or “Approve/Ineligible” response


5000-RH

Bankruptcy

Chapter 7 and Chapter 11 bankruptcies must be discharged for a minimum of 12 months from closing date. Seasoning is measured from the month and year of discharge.

There is no seasoning requirement for Chapter 13 bankruptcies when the bankruptcy is discharged prior to closing. If the Chapter 13 bankruptcy was dismissed, 12-months’ seasoning is required from the date of the dismissal. A Chapter 13 bankruptcy may remain open after loan closing when all of the following requirements are met:

• A minimum 12-month repayment period in the bankruptcy has elapsed.• All required bankruptcy plan payments have been made on time.• The borrower has received written permission from bankruptcy court to enter into the mortgage transaction.• Full bankruptcy papers may be required.


Matrix 5000-RH

Minimum FICO 500

Housing 0x90x12


BK (Other) 12 Mo

Foreclosure Settled


Borrowers – Eligibility



Cash Out $100,000 to program LTV's; $300,000 with 5% LTV reduction; $500,000 with 10% LTV reduction


5000-RH


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 account balances remaining after the exclusions listed above may remain open when one of the following is met: •Borrower has sufficient reserves to cover remaining collection and charge-off balances (in addition to the published reserve requirement); or •Payment for remaining collections and charge-offs included in DTI results in final DTI ≤ 50% (payment calculated at 5% of balance of remaining unpaid collections and charge-offs). A combination of the 2 options above is allowed. A portion of the unpaid collection balance can be included in the DTI while the remainder is covered by excess reserves. Collections and charge-offs that cannot be factored into DTI or reserves must be paid off.


Credit

Clean housing history since housing event; Limited consumer lates; Standard: 3 tradelines reporting for 12+ mo's or 2 tradelines reporting for 24+ mo's with activity in the last 12 mo's Limited: No minimum tradeline requirements; Non-U.S.: email scenario desk for details on Nonpermanent Resident Aliens.

Only the primary wage-earner must meet the minimum tradeline requirements listed above. To qualify as an acceptable tradeline, the credit line must be reflected on the borrower’s credit report. The account must have activity in the past 12 months and may be open or closed. Accounts with delinquencies are allowed when the account is no more than 30-days past due at time of application. An acceptable 12- or 24-month housing history not reporting on credit may also be used as a tradeline. Credit lines on which the borrower is not obligated to make payments are not acceptable for establishing a minimum history. Examples of unacceptable tradelines include loans in a deferment period, collection or charged-off accounts, accounts discharged through bankruptcy, and authorized user accounts. Student loans can be counted as tradelines as long as they are in repayment and are not deferred. Standard Tradelines: Borrowers qualifying with Standard Tradelines are eligible for all occupancy types and programs. Limited Tradelines: The following requirements apply when qualifying with Limited Tradelines: •10% minimum borrower contribution •Minimum 6 months reserves after closing •Full documentation of income. When qualifying with Limited Tradelines, the lower of either the Representative Loan Score or a 580 score is used to qualify the borrower on the Non-Prime Matrix and Recent Housing Event Matrix. The loan may be priced, however, using the actual Representative Loan Score. • Primary residence only

Credit Scores

The primary wage-earner score is used as the Representative Credit Score for each loan. Additional borrowers on the loan must have at least one valid

score of 500 or greater.

To determine the Representative Credit Score for the primary wage-earner, select the middle score when 3 agency scores are provided and the lower

score when only 2 agency scores are provided.





5000-RH

Foreclosure/Short Sale/Deed In Lieu/Notice Of Default

A ‘Housing Event’ is a completed foreclosure, short sale, deed in lieu or notice of default (or similar notice required under state law as an initial phase of the foreclosure process). A severe delinquency (90 days or greater) is also considered a Housing Event. There is no seasoning requirement for a Housing Event. It must be completed prior to loan closing with no outstanding deficiency balance remaining. If the property was surrendered in a Chapter 7 bankruptcy, the foreclosure action is not required to be fully complete. A signed, detailed letter of explanation from the borrower providing the reason for the Housing Event must be obtained. If the explanation indicates an inability to make prior housing payments, the originator must consider the reasonableness of the new housing payment in comparison to the prior housing payment. To be eligible for the Recent Housing Event Program, all transactions must have a Housing Event occurrence within 24 months of closing date.

Gift Funds

Gift funds are allowed after the borrower has made the minimum required contribution towards the down payment. When the funds are not transferred prior to closing, the originator must document that the donor gave the closing agent the gift funds in the form of a certified check, a cashier’s check, money order, or wire transfer. • Not allowed for Non-Owner Occupied Transactions

Income Full Doc: • Wage Earner: 2 years W-2, Paystubs • Self-Employed: 2 years personal & business returns, P&L and Balance Sheet


Borrowers must contribute a minimum of 5% of their own funds towards the down payment on purchase transactions. The minimum 5% requirement can be waived and gift funds used for the entire down payment. Either of the following requirements may be met: • LTV is ≥ 5% below max; or • Borrower has an additional 3 months of reserves (non-gift funds) A minimum borrower contribution of 10% is required on the following transactions: Primary residence with unverifiable housing history • Loan amounts over $424,100 • Second home



Mortgage and rental payments not reflected on the original credit report must be documented via an institutional Verification of Rent or Verification of Mortgage (VOR/VOM). A combined total of all late mortgage and rental payments in the past 12 months must be used to determine the housing history rating. If the borrower is making payments to an individual or interested party, 12 months of cancelled checks or bank statements must be obtained. A VOR/VOM is not required but may be requested for clarification. All mortgages and rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated documentation is required to verify the account is current. All mortgages and rental payments must be paid as agreed for the last 12 months, or since the date the Housing Event was cured (if Housing Event occurred less than 12 months ago). Mortgage and rental lates prior to the Housing Event are disregarded.

Occupancy Owner Occupied, Second Homes and Investment


Prepayment Penalty




5000-RH

Property Types






Warrantable Condos






Qualifying Rate


Ratios

** COMPENSATING FACTORS TO EXCEED MAX RATIOS: Debt-to-income ratios up to 50% can be approved by the originator on primary and second home transactions. One of the following compensating factors must be present and noted in the file:• High Discretionary Income: Residual income of at least $2,500 • Minimal Housing Expense Increase: Payment shock less than 125%• Low Housing Ratio: Housing ratio of 25% or less • Documented Ability to Save: Reserves exceed minimum required by at least 3 months (see Reserves Section), Borrowers’ own funds contribution exceeds minimum required by at least 5% •Strong Consumer Credit: All consumer credit paid as agreed in the most recent 12 months. Maximum 40% housing ratio with compensating factors and exception approval. • Non-Owner Occupied transactions with DTIs > 43% Require 12 months of reserves

Ratio Requirements

Occupancy Housing Ratio DTI

Primary 35% 43%

**50%

Second Home

N/A 43%

**50%

Non-Owner Occupied

N/A 50%

Reserves A minimum of 3 months reserves are required; additional reserves may be required, see matrix. Net proceeds from cash-out transactions can be used to meet the reserve requirement. Gift funds may not be considered. Add 2 months of reserves for each additional financed property (including departure residence). Total reserve requirement is not to exceed 24 months.


5000-RH

Seller Concessions

• LTV equal to or greater than 75%: max 4%

• LTV less than 75%: max 6%




Spousal Accounts Accounts held solely in the name of a non-borrowing spouse may be used for down payment and closing costs only and are subject to the seasoning requirements. Accounts held solely in the name of a non-borrowing spouse may not be used to meet reserve requirements.

Subordinate Financing Max CLTV = Max Available LTV + 5% (Institutional seconds only)


5000-1YR

PRODUCT DESCRIPTION

1 YEAR TAX RETURNS

80% LTV PURCHASE / RATE & TERM REFINANCES UP TO $2,000,000

Cash-Out Transactions are not allowed on 2nd Homes or NOO. * Cash Out unlimited if subject property is own free and clear; * Cash Out unlimited if LTV is no greater than 50% Second Home – 1 Unit dwelling only



SF, Condo, Townhouse, PUD, 2-4 Unit

660 80% $2,000,000


Units Credit Score LTV/CLTV Max LA Max Cash Out


660 70% $2,000,000 Cash Out cannot exceed 50% of loan balance *

Second Home – Purchase & R/T Refinance


SF, Condo, Townhouse, PUD

680 75% $1,000,000

65% $1,500,000

Non-Owner Occupied – Purchase & R/T Refinance

Units Credit Score LTV/CLTV Maximum Loan Amount


680 75% $1,000,000

Minimum Loan Amount: $150,000


5000-1YR


Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka “look back period”) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption – Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option – Available for LTVs <= 80%, O/O, ARMs Only; Fixed rate, 2nd Home & NOO: N/A; Interest Only period is 120 months;

Age of Documents


Appraisal

Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox’s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions “Appraised Value” will be the lower of the two appraisals. A second appraisal is required on loan amounts => $1,000,


5000-1YR

Assets

• Full Asset Documentation is required for both funds to close and reserves. For most asset types, this would include all pages of the most recent two months statements or the most recent quarterly statement. All Assets from the borrower(s) must be disclosed and verified by the lender. • Assets used in Asset Utilization income calculations are not eligible to meet reserve requirements. • No business accounts may be used to meet reserve or down payment requirements unless the borrower(s) are 100% owners of the business. A letter from the businesses accountant or cash flow analysis (Per FNMA) must be obtained to confirm that the withdrawal will not negatively impact the business. • Stocks/Bonds/Mutual Funds - 70% may be used for reserves. o Must be publically traded and liquid accounts • Vested Retirement Accounts – 60% may be considered for reserves (certain eligible plans can use 70% if borrower > 59 ½ - i.e. 401k) • Assets being used for interest/dividend income may not be used to meet reserve requirements • If needed to close, verification that funds have been liquidated (if applicable) is required. • Grant funds, Pooled funds are not allowed. • Gift of Equity is not allowed. • No employer assistance assets are allowed. • Interested Party Contributions permitted up to 3% for LTV >75%, 6% for LTV<=75%. Non-Owner Occupied maximum is 3%.

Bankruptcy

Chapter 7 and 11: Chapter 7 and Chapter 11 bankruptcies must be discharged for a minimum of 84 months from closing date. Seasoning is measured from the month and year of discharge. Chapter 13: Chapter 13 bankruptcies must be discharged for a minimum of 84 months from closing date. Seasoning is measured from the month and year of discharge. If the Chapter 13 bankruptcy was dismissed, 84 months’ seasoning is required from the date of the dismissal.


Eligible: • US Citizen • Permanent Resident Aliens • Non-Permanent Resident Aliens • First Time Home Buyers • Non-Occupant Co-Borrowers • Limited partnerships, general partnerships, corporations

o Personal guarantor required In-Eligible: • Foreign Nationals • Irrevocable or Blind Trusts • Inter-Vivos Revocable Trust



5000-1YR

Credit

• Each Borrower’s credit profile must include a minimum of 3 open trade lines that have a 24 month history. • Current housing not reporting on credit can be considered an open trade if supported by bank records (cancelled checks/debits). • Borrower(s) not using income to qualify and showing $0 earned or is not employed; don’t need to meet the minimum tradeline requirements listed above. • All tradelines with delinquency history in the past 12 months requires a written explanation.• Any derogatory history must be fully explained • No prior bankruptcies of any type allowed within 7 years of application. • No prior foreclosure, short-sale, deed-in-lieu or modifications due to the borrower’s inability to pay or continue to satisfy their monthly payment in its entirety by the borrower are allowed within 7 years of application • All Judgments or liens affecting title must be paid • Non-title charge-offs and collections exceeding $1,000 (individually or in aggregate) must be paid • All past due accounts must be brought current prior to closing. • Borrowers with a history of collection accounts should be required to pay off derogatory accounts • No authorized user accounts will be used to satisfy minimum trade requirements • Disputed accounts require a LOE per Fannie Mae. An updated credit report not required.

Matrix 5000-1YR

Minimum FICO 660

Housing 0x30x24


BK (Other) 84 Mo

Foreclosure 84 Mo


Credit Scores



qualifying.




First Time Homebuyers (“FTHB”) are individuals that have not owned a home or had a residential mortgage in the last 3 years. FTHBs must meet the following

requirements:

• Maximum LTV/CLTV 75%

• Primary Residence Only

• Max Loan Amount of $1MM

• Max DTI of 43%

• Minimum of 12 months PITI reserves required.

• Minimum FICO 700

• Interest Only not eligible.



5000-1YR

Gift Funds

• Gifts from family members, as defined by FNMA, are allowed. • The borrower(s) must have a minimum of 5% of own funds available, (but may elect not to use own funds for the transaction if sufficient gift funds are available). • Gift funds cannot be counted towards reserves. • Purchase transaction only

Income Documentation


One year personal and business tax returns (along with all schedules and K-1’s) and YTD P&L/Balance Sheet from any businesses being used for qualification where the borrower has 25% or more ownership interest. Year-to-date P&L (can be borrower prepared), along with the most recent (i) 6 months personal bank statements (deposits must be no less than 90% of P&L net income), or (ii) 6 months Business bank statements (deposits must be no less than 90% of P&L gross income). Borrowers must also provide a letter from a CPA or tax preparer , or evidence from regulatory agency or applicable licensing bureau, stating the business has been in existence for 2 years.* Borrower will be qualified on the average of the tax return and P&L (P&L monthly income limited to + 10% of the monthly tax return income) *Self-employed borrower income in a licensed profession (i.e. Medical, Legal, Accounting) will be considered from a business that’s been in existence for less than 2 years, but greater than 1 year per the following: The individual must have at least 2 years of documented previous experience in the same profession, or evidence of formal education in a related field. Additional requirements • In addition, Verbal Verification of Employment required for all wage earners and must be completed within 10 calendar days of the funding date. o Wage Earners VVOE should include name of contact at place of employment, phone number and title along with company name, address and

borrower’s job description and title. o Self-Employed Borrowers should include verification of a phone listing and address for the borrower’s business AND verification through a third party

such as a CPA. If contact is made verbally, the loan file must be documented to identify both the source of the information obtained and the name & title of the person who obtained the information.

• All borrowers - IRS Form 4506T is required to be executed and all transcript documentation obtained for the most recent year. o For self- employed borrowers, this is required for both personal returns and business returns where borrower has 25% or more ownership of a business

and is being used for qualification. • In the case where taxes have been filed and the tax transcripts are not available from the IRS, the IRS response to the request must reflect “No

Record Found” and be present in the loan file. • Evidence of any IRS filing extensions


The maximum number of financed properties to any one borrower is limited to ten (10). Additional reserves are required for borrowers with greater than 2 financed properties; please see reserves section for requirements.


5000-1YR



• Mortgage or Rental history must be 0x30 over prior 24 months • Rental history evidenced by Institutional VOR or 24 months proof of payment

Non-Occupant Co-Borrower

Non-occupant co-borrowers are credit applicants who do not occupy the subject property as a principal residence. Non-Occupant Co-Borrowers must meet the following requirements: • Do not occupy the subject property as a principal residence • Must be an immediate relative, proof of relationship is required • Must sign the mortgage or deed of trust • Must not have an interest in the property sales transaction, such as the property seller, builder, or real estate broker • Maximum LTV/CLTV 70% • Single unit only • Maximum DTI 43% • Occupying borrower must have documented income equal to 75% of the required PITI • An additional 4 months reserves is required

Non-Permanent Resident Aliens

Non-Permanent Resident Aliens must meet the following requirements: • Must have an unexpired passport from their country of citizenship containing INS form I-94 which must be stamped Employment Authorized • An Employment Authorization Card along with a copy of the Petition for Non-Immigrant Worker (form I-140) in file • The borrower(s) must have a minimum of 2 years residency, with the likelihood of employment continuance for at least 2 years. • Primary Residence only • A valid Visa with a minimum remaining duration of 1 year is required. • Borrowers with diplomatic immunity are ineligible • 70% LTV/CLTV Maximum • Single unit only • Maximum 43% DTI • An additional 6 months reserves is required

Payment Shock

Payment shock is limited to 175% on primary residence transactions. The underwriter may approve payment shock up to 250% when one of the following factors is present: • Debt ratio is 38% or less; or • Representative Credit Score is 700 or greater For borrowers who do not have a current housing payment, or own a home free and clear, payment is shock is not considered


Occupancy Owner Occupied, Second Homes (one-unit dwelling only) and Investment

Prepayment Penalty N/A


5000-1YR

Property Types

Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details) Ineligible: • Acreage greater than 10 acres (appraisal must include total acreage) • Agricultural zoned property • Condo hotel • Co-ops • Hobby Farms • Income producing properties with acreage • Leaseholds • Log Homes • Manufactured housing • Mixed use properties • Modular homes • Properties subject to oil and/or gas leases •Unique properties • Working farms, ranches or orchards.


Condos



Warrantable Condos

Non Warrantable Condos (Requires Condo Questionnaire) • Maximum LTV of 75% • Minimum of 12 months reserves are required • Primary Residence Only • Minimum Unit size of 500 square feet • Maximum Exposure of 25% • Must meet Fannie Mae warrantability requirements, with the exception of permitted variances • Require Project Approval by GreenBox Loans, Inc.

Qualifying Rate

and Ratios

Qualifying Rate and Ratios • 5/1 ARMs - Qualify at the greater of the fully-indexed rate or Note rate • 7/1 ARMs – Qualify at the greater of the fully-indexed rate or Note rate • Fixed Rate – Qualify at the Note rate DTI Ratio – 43%


5000-1YR

Refinance

• If the property is owned less than 6 months, the LTV/CLTV will be based on the lesser of the original purchase price plus improvements or current appraised value. The prior HUD-1 will be required for proof of purchase price. Proof of improvements is required. • Properties that have been listed for sale within the past 6 months from the loan application date are not eligible for a rate/term refinance transaction. Inherited properties may not be refinanced prior to 12 months of ownership C/O: • To be eligible for a Cash Out Refinance the borrower must have owned the property for a minimum of six months prior to the application date. Properties listed for sale within the last 12 months are ineligible for cash out. • If the property is owned less than 12 months but greater than 6 months, the LTV/CLTV will be based on the lesser of the original purchase price plus improvements or current appraised value. The prior HUD-1 will be required for proof of purchase price. Proof of improvements is required. • Maximum DTI of 50%

Reserves

I/O: Minimum of 18 months reserves Non-Permanent Resident Aliens: An additional 6 months reserves is required Non-Occupant Co-Borrower: An additional 4 months reserves is required First Time Home Buyers: Minimum of 12 months PITI reserves required

Occupancy Maximum Loan Amount Reserves

O/O

$500,000 6 Months

$1,000,000 9 months

$1,500,000 12 Months

$2,000,000 18 Months

• Borrowers with greater than 2 financed properties require 12 months or otherwise stated higher reserve amount above and an additional 3 months of reserves for each additional financed property. The 3 months additional reserves are based on the PITI plus HOA fees of the other financed properties. • Interest Only Loans require a minimum of 18 months reserves


Second Home $1,000,000 12 Months

$1,500,000 18 Months

• Borrowers with greater than 2 financed properties require an additional 3 months of reserves for each additional financed property. The 3 months additional reserves are based on the PITI plus HOA fees of the other financed properties.


Non-Owner $1,000,000 18 Months

• Borrowers with greater than 2 financed properties require an additional 3 months of reserves for each additional financed property. The 3 months additional reserves are based on the PITI plus HOA fees of the other financed properties.

Residual Income Borrowers must have a minimum monthly residual income that is 2X the requirement of the VA. (Not required for non-owner occupied properties)

Seller Concessions Interested Party Contributions permitted up to 3% for LTV >75%, 6% for LTV<=75%. Non-Owner Occupied maximum is 3%.


5000-FN

PRODUCT DESCRIPTION

FOREIGN NATIONAL Traditional Income Documentation from Country of Origin

Second Home Units Credit Score LTV / CLTV Min Loan Amt Max Loan Amt

Purchase/Rate & Term 1-4 Units 620

70%

$100,000

$1,000,000

65% $2,000,000

Second Home Units Credit Score LTV / CLTV Min Loan Amt Max Loan Amt Max Cash Out

Cash-Out Refinance 1-Unit 620

65%

$100,000

$1,500,000 $500,000

55% $2,000,000 $1,100,000

Investment Units Credit Score LTV / CLTV Min Loan Amt Max Loan Amt

Purchase and Rate & Term Refinance 1-4 Units 620

65%

$100,000

$1,500,000

55% $2,000,000

Investment Units Credit Score LTV / CLTV Min Loan Amt Max Loan Amt Max Cash Out

Cash-Out Refi 1-4 Units 620

65%

$100,000

$750,000 $500,000

60% $1,500,000 $500,000

50% $2,000,000 $1,000,000


5000-FN


Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka “look back period”) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption – Yes, subject to investor approval (ARMs Only) Negative Amortization - None


Age of Documents


Appraisal







5000-FN

Assets

Full Asset Documentation is required for both funds to close and reserves This program requires minimum 12 months total reserves at loan closing. Additional reserve requirements for; • If borrower owns > 4 properties then 2 months for each property.• If borrower owns ≤ 4 properties then 1 months for each property.• Limited to a maximum of 36 total months of reserves (use properties with the highest monthly expenses are counted first).

The down payment, closing costs, and reserves must be verified with a VOD or computer bank statement as deposited in a U.S. bank prior to closing. Seasoning of funds is not required. • The borrower must provide the last 2 bank statements or most current quarterly statement, together with a copy of the Wall Street Journal’sconversion table as of the same date as the bank statements, for the purpose of converting the borrower’s foreign currency to U.S. dollars. Large deposits are handled per FNMA guidelines. • Cash out from the subject transaction may be used toward the reserve requirement.• UK (United Kingdom) Borrowers Only: Use of specific foreign exchange services such as MoneyCorp https://www.moneycorp.com/uk/, HaloFinancial https://www.halofinancial.com/, Currencies Direct http://www.currenciesdirect.com/en/us or TransferWise https://transferwise.com/us/ in order to transfer funds directly to the closing agent directly. Borrower must have and maintain a US Bank Account regardless of transferring closing funds directly to the closing agent.

All Foreign National borrowers are required to complete an ACH Form and voided check from a U.S. Bank for auto withdrawal of mortgage payments.


5000-FN


FOREIGN NATIONAL PROGRAM SPECIFIC DOCUMENTATION REQUIREMENTS

• Visa types allowed: B-1, B-2, H-2, H-3, I, J-1, J-2, 0-2, P-1, P-2, TN NAFTA, Laser Visa• The following are required as evidence the borrower is in the U.S legally

o Copy of the borrowers valid and unexpired passport (including photograph)o Copy of the borrower’s valid and unexpired visa (including photograph) OR an I-797 form with valid extension dates and I-94. Borrowers from

Countries participating in the State Department’s Visa Waiver Program (VWP) are not required to provide a valid visa. Participating countriescan be found at http://travel.state.gov/content/visas/en/visit/visa-waiver-program.html

• If a non-U.S. citizen is borrowing with a U.S. citizen, Foreign National documentation requirements still apply.

• All parties involved on transaction must be screened through exclusionary lists, must be cleared through OFAC's SND list, search of SpeciallyDesignated Nationals & Blocked Persons List may be completed via US Department of Treasury: http://sdnsearch.ofac.treas.gov/.

• Borrowers from OFAC sanctioned countries are ineligible http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx. • Individuals with Diplomatic immunity not eligible http://www.state.gov/s/cpr/rls

• All borrowers must complete IRS form W-8BEN

Cash-Out Requirements If Borrower has held title to the property less than 12 months, the LTV is based on the lessor of purchase price or appraised value. Cash-Out allowed to borrowers who own up to 10 financed properties. Borrowers requesting a cash-out loan on an investment property must provide a letter of explanation regarding the use of the cash-out proceeds.

Co-Borrowers Non-occupant co-borrowers not permitted.


http://travel.state.gov/content/visas/en/visit/visa-waiver-program.html

http://sdnsearch.ofac.treas.gov/

http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx

http://www.state.gov/s/cpr/rls

5000-FN

Credit

• Each of the following credit components impacts the borrower’s ability to repay the loan.

Foreign National Borrowers without Qualifying U.S. Credit (Including borrowers without a valid Social Security Number and borrowers with or without an Individual Tax Identification Number) must provide the following: An International Credit Report and three (3) credit reference letters from verified financial institutions in the country of origin. In lieu of credit reference letters, a full credit report from the borrower’s country of origin from a reputable credit service such as Experian, Trans Union and Equifax, can be provided with evidence of three (3) active and open tradelines with a two year history. No derogatory credit history is permitted.

International Credit Report: Click here for the International Credit Report submission form or visit GreenBoxloans.com/Forms The form to be completed and submitted via email PRIOR to OR at Full File Submission. This is a requirement for all loan submissions.

The loan will not proceed to processing from File Setup if the order form has not been submitted.

As identified on the instructions, the order form must be completed and submitted via email to [email protected] along with: • Completed 1003 - Does not need to be signed• Signed Borrowers Credit Authorization Disclosure Form• Copy of Borrowers Visa or Passport• Completed Credit Card Authorization form signed by Borrower

Credit Reference Letters: • Must be from an internationally known financial institutions.• Each letter of reference must state the type and length of the relationship, how the account is held, payment amount, outstanding balance andstatus of account including a minimum 12 month payment history. • A single reference source may provide verification of multiple accounts. Individual account detail must be provided.• The letter must mention the borrower by name.• Name, title & contact information of the person signing the letter must be included.• Currency must be converted to U.S. Dollars and signed and dated by certified translator.

• All documents must be translated into English.

Credit Score 620 if available; qualifying score is the middle of 3 or lower of 2 scores

Trades 3 trades minimum, all with 24 months credit history

Mortgage 0 x 30 last 24 months

Bankruptcy/Foreclosure None within 7 years

Judgment/Tax Lien/Collections/Charge-Offs

Must be paid. New non-medical items with a cumulative total > $5,000 in the last 24 months will exclude the borrower from this program.


5000-FN

Documentation

Documents signed by Borrowers outside of the United States must be notarized by a U.S. embassy or consular official. The certificate of acknowledgment must meet the standard notarial requirements and must include the embassy or consular seal. If the U.S. embassy or consular official is unavailable, a notary is acceptable if the country, where signing is taking place, is part of the Hague Convention and the signed documents are accompanied by an Apostille. https://travel.state.gov/content/travel/en/legal-considerations/judicial/authentication-of-documents/notarial-and-authentication-apostille.html

Power of Attorney (POA) is not allowed. All borrowers must have a history of renting or owning within the past 2 years. 12 months cancelled rent checks will be required or recent mortgage history must be reflected on the borrower’s credit report.



Financing Types Rate/Term Refinance may include the payoff of a non-purchase money second seasoned at least 12 months. If HELOC, no draws >$2,000 in past 12 months.

Gift Funds Gift funds and Gift of Equity not allowed.

Housing History Evidence of 2 year housing history (mortgage and/or rental) with 0x30x24 is required. Housing history may be included as 1 of the required tradelines for a Qualifying U.S. Credit transaction if it is included on the U.S. credit report or may be used as 1 of the required tradelines for a Qualifying Foreign Credit transaction if it is included on the U.S. credit report, the international credit report, or verified in accordance with credit reference letter


https://travel.state.gov/content/travel/en/legal-considerations/judicial/authentication-of-documents/notarial-and-authentication-apostille.html


5000-FN

Income

Self Employed Borrowers: • Two (2) years foreign tax returns are required from borrower’s resident country (if available based on tax reporting laws of country of origin), P&L andBalance Sheet. • Self-employed – A letter from an independent accountant and or attorney that is not related to borrower’s business in any way.

• The letter shall indicate name and description of the borrower’s business, approximate market value of the company, borrower’s personal incomefor each of the prior two years, and year to date income for current year.

• Letter must be on the accountant’s/ attorney’s letterhead and must reflect telephone number and address for the independent verification.• Letter should be written in English and reflect income in national currency as well as conversion to US Dollars.

Salaried Borrowers: • Two (2) years foreign tax returns are required from borrower’s resident country (if available based on tax reporting laws of country of origin)• Most recent paystub with year to date income (if available)• Letter from borrower’s employer written in English to confirm income in National Currency and US Dollars.• The letter shall indicate position/title, length of employment, gross income for each of the prior two years, year to date income for current year, andprobability of continued employment. • The letter must be on the employer’s company letterhead and must reflect the employer’s telephone number, address, and website.• Letter should be written in English and reflect income in national currency as well as conversion to US Dollars.

Limitations Real Estate Owned

Borrower limited to two (2) loans with Greenbox Loans, Inc. not to exceed $2,000,000 total.


Prepayment Penalty

Prepayment penalties on primary residence and second home transactions are prohibited.


Property Types




5000-FN


Condos



Warrantable Condos







Qualifying Rate and Ratios • ARMs – Qualify at the greater of the fully-indexed rate or Note rate• Fixed Rate – Qualify at the Note rate• Qualifying ratios are based on a fully amortizing principal and interest payment• Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (240 Months) at the time ofrecast after the interest only period has expired.

DTI Ratio

• Maximum DTI is 50%

• For loans with DTI > 43% require additional six (6) months reserves.

• For loans with DTI > 46% require a reduction in maximum LTV/CLTV of 5%


5000-FN

Rental Income, Subject Property

When the subject property will generate rental income, one of the following Fannie Mae forms must be used to support the income-earning potential of the property: • For one-unit properties: Single-Family Comparable Rent Schedule (Form 1007) (provided in conjunction with the applicable appraisal report), or• For two- to four-unit properties: Small Residential Income Property Appraisal Report (Form 1025).• Fully executed lease agreement(s) to determine the gross rental income to be used in the net rental income (or loss) calculation.

• Lease Agreements. When current lease agreements are used, the lender must calculate the rental income by multiplying the gross rent(s) by 75%. The remaining 25% of the gross rent will be absorbed by vacancy losses and ongoing maintenance expenses. • If the monthly qualifying rental income (as defined above) minus the full PITIA is positive, it must be added to the borrower’s total monthly income.• If the monthly qualifying rental income minus PITIA is negative, the monthly net rental loss must be added to the borrower’s total monthly obligations.• The full PITIA for the rental property is factored into the amount of the net rental income (or loss); therefore, it should not be counted as a monthly

obligation. • The full monthly payment for the borrower's principal residence (full PITIA or monthly rent) must be counted as a monthly obligation.

Seller Concessions





Title/Vesting Borrower may take Title /Vesting as an LLC or Corporation however 100% ownership is required.


5000-ITIN

PRODUCT DESCRIPTION

ITIN - No Social Security Number

90% LTV PURCHASE / RATE & TERM REFINANCES UP TO $600,000

No Second Homes No Non-Owner Occupied No Cash Out Non-Occupant Co-Borrower not allowed * LTV > 75% - Minimum FICO 620 and Traditional Trade Lines Required (see Credit Section)


Credit Score LTV/CLTV Maximum Loan Amount Reserves

N/A - See Credit Section *

90% $300,000 6 Months

80% $400,000

3 Months 70% $500,000

60% $600,000

Minimum Loan Amount: $150,000


5000-ITIN

Age of Documents


Appraisal

Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An Appraisal Desktop Review (ARA) from ComputerShare is required on all transactions.


5000-ITIN

Assets

Checking and Savings Accounts • The two (2) most recent, consecutive months’ statements for each account are required. • Large deposits inconsistent with monthly income or other deposits must be verified.

Marketable Securities • Two (2) most recent, consecutive months stock/securities account statements are required. • 70% of stock accounts can be considered in the calculation of assets for closing and reserves. • Non-vested or restricted stock accounts are not eligible for use as down payment or reserves.

Earnest Money Deposit (EMD) Earnest money deposit (EMD) must be sourced and verified on all loans

Retirement Accounts • Most recent retirement account statement covering a minimum two (2) month period. • Evidence of liquidation is required when funds are used for down payment or closing cost • 60% of the vested value of retirement accounts, after reduction of any outstanding loans, may be considered toward the required reserves. • Excluding 401k’s & IRA’s, verification of the terms of liquidation if funds are used for reserves • Retirement accounts that do not allow any type of withdrawal are ineligible for use as reserves.

Business Funds • The borrower’s withdrawal of cash from a business may not have a severe negative impact on the business’ ability to continue operating. If a borrower is trying to use business funds for closing/down payment or reserves, an analysis must be completed by the Seller’s underwriter to ensure the cash withdraw will not impact the business.

Borrower(s) must be 100% owner and the following is required: • Cash flow analysis required using 3 months business bank statements to determine no negative impact to business based on withdrawal of funds • A letter from the borrower(s) accountant must include the following statements or comments: • The borrower has access to the funds. • The funds are not a loan. • The accountant may not be related to the borrower or be an interested party to the transaction.

Ineligible Assets: • Gift of Equity • Grant Funds • Pooled Funds • Builder Profits • Cash on Hand • Unsecured loans • No Employer Assistance Assets • Sale of an asset other than real property or publicly traded securities

All financed properties, other than the subject property, require an additional six (6) months PITI in reserves for each property.


5000-ITIN

Bankruptcy

Chapter 7 and 11: Chapter 7 and Chapter 11 bankruptcies must be discharged for a minimum of 36 months from closing date. Seasoning is measured from the month and year of discharge. Chapter 13: Chapter 13 bankruptcies must be discharged for a minimum of 36 months from closing date. Seasoning is measured from the month and year of discharge. If the Chapter 13 bankruptcy was dismissed, 36 months’ seasoning is required from the date of the dismissal.


Eligible: • Must have a Valid ITIN

In-Eligible: • Irrevocable or Blind Trusts • Inter-Vivos Revocable Trust • Borrower(s) with more than five (5) financed properties, including the Borrower’s primary residence and subject property • Limited partnerships, general partnerships, corporations


Credit

• All accounts must be current at time of closing except as noted below. • Consumer Debt - Max 1x30 on non mortgage debt, no rolling lates* & no open collections, no charge offs within the last 24-months • Collections/Charge Offs - Charge offs must be seasoned at least 24 months and collections must be paid in full • LOE(s) required for all adverse credit and must reflect extenuating circumstances that have been cured Tradeline Requirements:

• 2 tradelines reporting for 12+ months with activity in last 12 months or 1 tradeline reporting for 24+ months with activity in last 12 months; Required for loans with a LTV > 75% • Non-Traditional Credit Accepted for LTVs <= 75% – See Non Traditional Credit section

Matrix 5000-1YR

Minimum FICO N/A LTV <=75%; 620 LTV > 75%

Housing 0x30x12


BK (Other) 36 Mo

Foreclosure 36 Mo


Credit Scores See Credit section; Minimum 620 for LTV > 75%; No Minimum FICO for LTV <= 75%


5000-ITIN



First Time Home Buyers Available

Gift Funds

• Allowed for purchase transactions after minimum contribution of 5% from borrower’s own funds • Gift funds must not be used to meet reserve requirements. • Donor must be an immediate family member, spouse, or domestic partner living with borrower. • An executed gift letter with the gift amount, donor’s name, address, and telephone number and relationship is required. • Proof of donor’s ability to cover the gift funds • Transfer of funds or evidence of receipt must be documented


Full Documentation

A minimum of two (2) years employment and income history

• Gaps in employment in excess of 30 days during the past two (2) years require a satisfactory letter of explanation and the borrower must be employed with their current employer for a minimum of six (6) months to qualify. • For a Borrower who has less than a two-year employment and income history, the Borrower's income may be qualifying income if the Mortgage file

contains documentation to support that the Borrower was either attending school or in a training program immediately prior to their current employment history. School transcripts must be provided to document.

IRS Form 4506‐T / Tax Transcripts • A completed, signed, and dated IRS form 4506-T must be completed for all borrowers at closing whose income is used to qualify for the mortgage. • The 4506-T must be processed and tax transcripts obtained (for each year requested) to validate against all tax returns used for qualifying and/or W-

2 forms. For self-employed borrowers, this applies to both personal and business returns (for businesses where borrower(s) has 25% or more ownership) regardless of whether or not income is used to qualify, a separate form must be filled out for each business entity.

Documentation requirements:

• Pay Stub - 1 full month with YTD earnings • W-2’s and/or 1099’s - prior two (2) years for all borrowers • 1040’s - prior two years, including all pages, schedules, statements • Year to date Profit and Loss Statements and Balance Sheets are required for all self-employed borrowers (in addition to two years of tax returns) • K-1’s on all corporations and Schedule E business entities prior two years • Business returns on all Corporations and Schedule E business entities prior two years if ownership is > 25%, including all pages, schedules,

statements • 1120S, 1120 and 1065’s – prior two (2) years if General Partner and/or percentage of ownership is > 25%, including all pages, schedules,

statements


No other property ownership allowed



5000-ITIN



10% minimum borrower contribution (can include gift funds)


• 24 months housing payment history required on all loans. • 0X30 in the past 24 months’ mortgage/rental • If 24-month housing history is not available due to borrowers owning their current residence Free and Clear, proof of Taxes and Insurance (and HOA – if applicable) can be provided in lieu of mortgage history. Note: If the source of verification for a borrower’s rental housing payments is a party other than a professional management company, 24 months of canceled checks and copy of the Lease is required. Private mortgages require canceled checks and VOM.

Non-Occupant Co-Borrower Not Allowed

Non-Permanent Resident Aliens

• Can provide acceptable documentation to verify that a non-U.S. citizen borrower is legally present in this U.S • Must be employed in the United States for the past 24 months

Non-Traditional Credit

Only allowed for LTVs <=75% The credit history must include three (3) credit references, including at least one from Group I (below) covering the most recent 12 months activity from date of application. Group I references should be exhausted prior to considering Group II (below) for eligibility purposes, as Group I is considered more indicative of a borrower’s future housing payment performance. Group I:

- Rental housing payments. This includes payments made to a landlord or management company. Also included are payments made on a privately-held mortgage loan that is not reported to the credit bureaus, contract for deed payments and other similar arrangements, provided the payments are related to the borrower’s housing - Utilities, such as electricity, gas, water, telephone service, television, and internet service providers. If utilities are included in the rental housing payment, they cannot be considered a separate source of nontraditional credit. Utilities can be considered a source of nontraditional credit only if the payment history can be separately documented.

Group II: - Insurance coverage, i.e., medical (excluding payroll deductions), auto, life or renter's insurance; payment to child care providers; school tuition; retail stores -- department, furniture, appliance stores or specialty stores; rent-to-own; payment of medical bills not covered by insurance; Internet/cell phone services; a documented 12-month history of saving by regular deposits, resulting in an increasing balance to the account; automobile leases, or a personal loan from an individual with repayment terms in writing and supported by canceled checks.


5000-ITIN

Payment Shock Payment shock is 150% Payment Shock Calculation: Payment shock is a function of the percentage of the payment increase of a new payment when compared to a prior payment.

Permanent Resident Aliens • Can provide acceptable documentation to verify that a non-U.S. citizen borrower is legally present in this U.S • Must be employed in the United States for the past 24 months


Occupancy Owner Occupied Only

Prepayment Penalty N/A

Property Types

Eligible: Single Family Residences, PUDs, Townhouses, Condominiums (warrantable only) Ineligible: 2-4 Units • Non-Warrantable condos • Acreage greater than 10 acres (appraisal must include total acreage) • Agricultural zoned property • Condo hotel • Co-ops • Hobby Farms • Income producing properties with acreage • Leaseholds • Log Homes • Manufactured housing • Mixed use properties • Modular homes • Properties subject to oil and/or gas leases •Unique properties • Working farms, ranches or orchards.


Condos

FNMA Warrantable Only; Warrantable Types S, T or U • New condominium projects (Type R) with Condo Project Manager (“CPM”) or PERS approval • Site (detached) Condos • Limited Review is not eligible


Warrantable Condos Not available

Qualifying Rate

and Ratios

Qualifying Rate and Ratios • Fixed Rate – Qualify at the Note rate DTI Ratio – 43%

Refinance

• If the property was purchased within 12 months of the application date, Property Value is equal to the lower of sales price or appraised value. If the property was purchased more than 12 months prior to the application date, property value is equal to appraised value. • For homes where capital improvements have been made to the property after purchase, LTV/CLTV/HCLTV can be based on the lesser of the current appraised value or original purchase price plus the documented improvements. Receipts are required to document cost of improvements.


5000-ITIN

Reserves

See Program matrix • Non-vested or restricted stock accounts are not eligible for use as down payment or reserves. Retirement Accounts:

• 60% of the vested value of retirement accounts, after reduction of any outstanding loans, may be considered toward the required reserves. • Excluding 401k’s & IRA’s, verification of the terms of liquidation if funds are used for reserves • Retirement accounts that do not allow any type of withdrawal are ineligible for use as reserves.

• Gift funds must not be used to meet reserve requirements.

Seller Concessions

All seller concessions must be addressed in the sales contract, appraisal and Closing Disclosure, as applicable, and be compliant with applicable federal and local state law. A seller concession is defined as any interested party contribution beyond the stated limits, in the above section, or any amounts not being used for closing costs or prepaid expenses (i.e. funds for repairs not completed prior to closing is a seller concession). If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for purposes of calculating the LTV/CLTV/HCLTV.


5000-JUMBO ELITE

PRODUCT DESCRIPTION

JUMBO FULL DOC

LOAN AMOUNTS UP TO $2,500,000

2 Units Properties – Maximum loan is $2,000,000; O/O Only Condo Properties – Max LTV 75%; High rise condos reduce LTV/CLTV by additional 5%; Non-Warrantable: N/A Max cash out for > 65% ≤ 70% LTV/CLTV is $300,000 Max cash out for ≤ 65% LTV/CLTV is $500,000



SFR, Condo, Townhouse, PUD, 2-Units

700 75% $1,000,000

720 80% $2,000,000

760 65% $2,500,000

Primary Residence – Cash Out

SFR, Condo, Townhouse, PUD, 2-Units

700 70% $1,000,000

720 70% $1,500,000

Second Home – Purchase & R/T Refinance

Units Credit Score LTV/CLTV Maximum Loan Amount

SFR, Condo, Townhouse, PUD

700 70% $1,000,000

720 75% $1,000,000

70% $2,000,000

Non Owner Occupancy – Purchase & R/T Refinance

SFR, Condo, Townhouse, PUD 760 60% $1,000,000


5000-JUMBO ELITE


Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka “look back period”) Interest Rate Floor - Margin Conversion Option - None Assumption – Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option – N/A

Age of Documents


Appraisal







5000-JUMBO ELITE

Assets

• Full Asset Documentation is required for both funds to close and reserves. For most asset types, this would include all pages of the most recent two months

statements or the most recent quarterly statement. All Assets from the borrower(s) must be disclosed and verified by the lender.

• No business accounts may be used to meet reserve and down payment requirements unless the borrower(s) are 100% owners of the business. A letter from

the businesses accountant or cash flow analysis (Per FNMA) must be obtained to confirm that the withdrawal will not negatively impact the business.

• Stocks/Bonds/Mutual Funds - 70% may be used for reserves.

o Must be publically traded and liquid accounts

• Vested Retirement Accounts - 60% may be considered for reserves (certain eligible plans can use 70% if borrower > 59 ½ - i.e. 401k)

• Assets being used for income may not be used to meet reserve requirements

• If needed to close, verification that funds have been liquidated (if applicable) is required.

• Grant funds, Pooled funds are not allowed.

• Gift of Equity is not allowed.

• Builder profits are not allowed.

• No employer assistance assets are allowed.

• Interested Party Contributions permitted up to 3%.

Borrower Eligibility Eligible: U.S Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens

In-Eligible: Foreign Nationals, Any Trusts, • Limited partnerships, general partnerships, corporations

Credit

• Each Borrower’s credit profile must include a minimum of 3 open trade lines that have a 24 month history • Current housing not reporting on credit can beconsidered an open trade if supported by bank records (cancelled checks/debits). • Any Borrower not employed, or employed but not using their income to qualify does not need to meet the minimum tradeline requirements listed above. • All tradelines with delinquency history in the past 12 months requires a written explanation. • No prior bankruptcies, foreclosure, short-sale, deed-in-lieu or modifications are allowed within 7 years of application date. • All Judgments or liens affecting title must be paid. • Non-title charge-offs and collections exceeding $1,000 (individually or in aggregate) must be paid. • All past due accounts must be brought current prior to closing. • Borrowers with a history of collection accounts should be required to pay off derogatory accounts. • No authorized user accounts will be used to satisfy minimum trade line requirements • Disputed accounts require a LOE per Fannie Mae. An updated credit report not required. • Delinquent tax IRS payment plans are ineligible

• Rental history evidenced by Institutional VOR or 24 months proof of payment

Matrix 5000-Jumbo

Minimum FICO 700

Housing 0x30x24

BK (Chap 13 Discharge) 7 Years

BK (Other) 7 Years

Foreclosure 7 Years

Short Sale / DIL 7 Years


5000-JUMBO ELITE

Credit Scores



qualifying.


Escrow Waivers Optional with LTV’s <= 80%.


• First Time Homebuyers are individuals that have not owned a home or had a residential mortgage in the last 3 years.

• First Time Homebuyer must meet the following requirements:

o 30 year fixed & 10/1 ARM and 7/1 ARM eligible

o 720 Minimum FICO

o Maximum loan amount $1,000,000

o Primary Residence only

o Minimum of 12 months reserves required

Gift Funds

• Gifts from family members, as defined by FNMA, are allowed.

• The borrower(s) must have a minimum of 5% of own funds available, (but may elect not to use own funds for the transaction if sufficient gift funds are

available).

• Gift funds cannot be counted towards reserves.

• Purchase transaction only

• Gifts not permitted on loans on loans exceeding $1,000,000

• Gift not permitted on second homes and investment properties



5000-JUMBO ELITE


MUST MEET ALL REQUIREMENTS OF APPENDIX Q

• Wage Earners: Most Recent Paystub including year-to-date earnings (covering minimum of 30 days), two years W2's and a Written Verification of Employment(if needed for the analysis of overtime, bonus or commission). • Self-Employed Borrowers: Two years personal returns (along with all schedules, including K-1’s) and business tax returns from any businesses where borrowerhas 25% or more ownership interest. Year to date P&L and balance sheet. Self-employed borrowers income will be considered only from a business that’s been in existence for more than 2 years, unless otherwise stated by Appendix Q. • In addition, Verbal Verification of Employment required for all wage earner borrowers and must be completed within 10 calendar days prior to the disbursementdate.

o Wage Earners VVOE should include name of contact at place of employment, phone number and title along with company name, address andborrower’s job description and title. o Self-Employed Borrowers should include verification of a phone listing and address for the borrower’s business AND verification through a third partysuch as a CPA, regulatory agency or applicable licensing bureau. If contact is made verbally, the loan file must be documented to identify both the source of the information obtained and the name & title of the person who obtained the information.

• All borrowers - IRS Form 4506T is required to be executed and all transcript documentation (W-2 and/or 1040 transcripts, as applicable) obtained directly orindirectly (stamped by IRS) for the most recent two years, and must be provided in the closed loan file for review. For self- employed borrowers, this is required for both personal returns and business returns where borrower has 25% or more ownership of a business.

o In the case where taxes have been filed and the tax transcripts are not available from the IRS, the IRS response to the request must reflect “No RecordFound” and be present in the loan file.

o Evidence of any IRS filing extensions must also be present in the loan file.


The maximum number of financed residential 1-4 family properties to any one borrower is limited to four (4). Additional reserves are required for borrowers with greater than 2 financed residential properties; please see reserves section for requirements.

Minimum Loan Amount $424,101 or $1 over the conforming limit (or FHFA High Cost County Limit, if applicable) based on the number of units.

Non-Permanent Resident Alien

Non-Permanent Resident Aliens must meet the following requirements: o Must have an unexpired passport from their country of citizenship containing INS form I-94 which must be stamped Employment Authorizedo The borrower(s) must have a minimum of 2 years residency, with the likelihood of employment continuance for at least 2 years.o Primary Residence onlyo A valid Visa with a minimum remaining duration of 1 year is required.o Borrowers with diplomatic immunity are ineligibleo 75% LTV/CLTV Maximumo Single unit onlyo An additional 6 months reserves is required.


5000-JUMBO ELITE

Non-Occupant Co-Borrower

Non-occupant co-borrowers are credit applicants who do not occupy the subject property as a principal residence. Non-Occupant Co-Borrowers must meet the following requirements:

o Do not occupy the subject property as a principal residenceo Must be an immediate relative, proof of relationship is requiredo Must sign the mortgage or deed of trusto Must not have an interest in the property sales transaction, such as the property seller, builder, or real estate brokero Maximum LTV/CLTV 75%o Primary Residence onlyo Single unit onlyo Maximum DTI 40%o An additional 6 months reserves is requiredo Fixed Rate Mortgage Onlyo Cash-Out not permittedo Occupying borrower must have documented income equal to 75% of the required PITI

Permanent Resident Alien Permanent Resident Aliens are individuals who permanently reside in the United States.

o A legible front and back copy of the borrower(s) valid Green Card.

Points and Fees Must meet QM Points and Fees (3.00%)

Property Types

Eligible: • One Unit Single Family Residences (Attached and Detached) • PUDs (Attached and Detached) • Warrantable Condominiums • Townhouse • 2-Unit Properties (within matrix parameters)

Ineligible: • Non Warrantable Condominiums • Co-ops • Manufactured Homes • Properties exceeding 15 acres • Log Homes • Condotels • Unique Properties • 3-4 units • Mixed Use properties • Agriculturally Zoned • Working Farms

Purchase • No property flipping, prior owners must have owned the property greater than 6 months. (Bank owned REO are eligible and not considered a flip transaction)• Interested Party Contributions permitted up to 3%


5000-JUMBO ELITE

Qualifying Rate

and Ratios

Qualifying Rate and Ratios • 7/1 & 10/1 ARMs - qualified at the Note Rate• Fixed Rate – Qualify at the Note rate

DTI Ratio • Primary - 43% Maximum DTI• Secondary Residence - 40% Maximum DTI• Investment Property – 38% Maximum DTI

Paying down debt to qualify is not permitted. Debt must be paid off and the account closed for the obligation to be excluded from DTI. If debts are being paid off, the source of funds must be documented and verified. If an installment debt is paid off at closing, the creditor must provide a payoff statement which same balance must be reflected as the payoff amount on the Closing Disclosure. If a revolving account is not closed, the debt must be included in the debt-to-income ratio.

Refinance – Rate & Term

• A Rate/Term Refinance transaction is when the new loan amount is limited to the payoff of the present first lien mortgage, any seasoned non-first lienmortgages, closing costs and prepays • A seasoned non-first lien mortgage is a purchase money mortgage or a closed end or HELOC mortgage that has been in place for more than 12 months andnot having any draws greater than $2,000 in the past 12 months for HELOC’s. Withdrawal activity must be documented with a transaction history from the HELOC. • Limited cash to the borrower must not be greater than 1% or $5,000 of the principal amount of the new mortgage to be considered a Rate/Term refinance(Delayed Financing is permitted in accordance with Fannie Mae) • If the property is owned less than 12 months, the LTV/CLTV will be based on the lesser of the original purchase price plus improvements or currentappraised value. The prior HUD-1 will be required for proof of purchase price. Proof of improvements is required. • Properties that have been listed for sale within the past 6 months from the loan application date are not eligible for a rate/term refinance transaction.Inherited properties may not be refinanced prior to 12 months of ownership • The rate/term refinance of a construction loan is eligible with the following conditions:

• If the lot was acquired 12 or more months before applying for the subject loan, the LTV/CLTV/HCLTV is based on the current appraised value of theproperty. • If the lot was acquired less than 12 months before applying for the subject loan, the LTV/CLTV/HCLTV is based on the lesser of i) the currentappraised value of the property and ii) the total acquisition costs.

Refinance – Cash Out

• A Cash-Out Refinance transaction allows the borrower to pay off the existing mortgage by obtaining new financing secured by the same property or allowsthe property owner obtain a mortgage on a property that is currently owned free and clear. The borrower can receive funds at closing as long as they do not exceed the program requirements. • To be eligible for a Cash-Out Refinance the borrower must have owned the property for a minimum of six months prior to the application date. Propertieslisted for sale within the last 12 months are ineligible for cash out. • If the property is owned less than 12 months but greater than 6 months, the LTV/CLTV will be based on the lesser of the original purchase price plusimprovements or current appraised value. The prior HUD-1 will be required for proof of purchase price. Proof of improvements is required.


5000-JUMBO ELITE

Reserves

Occupancy Loan Purpose Property Type Maximum Loan Amount Reserves

Primary Residence Purchase, Rate & Term and

Cash-Out SFR, Condo, Townhouse,

PUD, 2-Units

$1,000,000 6 Months

$2,000,000 12 Months

$2,500,000 24 Months


Second Home Purchase, Rate & Term SFR, Condo, Townhouse,

PUD

$1,000,000 12 Months

$1,500,000 18 Months


Non-Owner Purchase, Rate & Term SFR, Condo, Townhouse,

PUD $1,000,000 18 Months

• Borrowers with additional financed properties require 2 months of PITIA reserves for each additional financed property.• 2 First Time Homebuyers require a minimum of 12 months reserves.

Subordinate Financing

New subordinate financing (institutional) allowed for purchase transactions only • Primary residences only• If a HELOC is present the CLTV must be calculated by dividing the sum of the original loan amount of the first mortgage, the amount of the HELOC (whetheror not there have been any draws), and the unpaid principal balance of all other subordinate financing by the lower of the property’s sales price or appraised value. • All subordinate loan obligations must be considered, verified, and taken into account when calculating the Borrower’s DTI.• If the subordinate financing is a HELOC secured by the subject property, monthly payments equal to the minimum payment required under the HELOC termsconsidering all draws made on or before closing of the subject transaction. • For closed-end fixed rate, fully amortizing simultaneous loans, the qualifying payment is the monthly payment
