ZUMA NON-QM Guideline Updates

ZUMA Prime

  • Simplified the LTV/Loan matrix by removing the separate 12-month income documentation columns, the max LTV for 12-month now displayed under Program Restrictions.

  • WVOE – max 80% LTV Purchase & Rate/Term, max 70% LTV cash out, use 24-month LTV/Loan matrix.

  • Under the 95% LTV restrictions, increased the max DTI to 43%.

 

ZUMA Credit Flex

  • Simplified the LTV/Loan matrix by removing the separate 12-month income documentation columns, the max LTV for 12-month now displayed under Program Restrictions.

  • WVOE – max 80% LTV Purchase & Rate/Term, max 70% LTV cash out, use 24-month LTV/Loan matrix.

ZUMA Prime and Credit Flex

  • Interested Party Contributions – increased LTV tier from 75% to 80%.

  • Appraisal Review - Added the ARA product from Computershare as an eligible review option.

  • Ineligible Property Types – Added properties involved with the sale of banned federal substance.

  • Property Flipping – Decreased the time period for defining a flip transaction from 12-months to 6-months.

Non-Warrantable Condos

  • Increased max single owner concentration to 25%.

  • Increased max allowable commercial space to 50%.

 Cash-Out

  • Defined cash-out to include any transaction on a property owned free and clear.

  • Clarified the payoff of delinquent real estate taxes is considered cash out.

  • A letter of explanation required for cash out exceeding $250,000.

  • Cash-out proceeds eligible for reserve requirements.

 Additional changes:

  • Changed of Fico from 580 to 620 on Credit Flex and Investor Solutions;

  • Cut off to close out current loans in pipeline is by November 30th.  

  • Non-Occupant Co-borrower – increased max DTI for occupying borrower to 60%.

  • Housing History – borrower living rent free, expanded eligible income documentation types and removed additional reserve requirements.

  • Consumer Credit – clarified the treatment of charge-offed 2nd lien.

  • Reserves

  • Clarified for an ARM loan, reserves are based on the initial PITIA.

  • Cash-out proceeds eligible for reserve requirements.

  • Full Income Documentation – Self-employed borrowers, removed the requirement for business tax transcripts and a balance sheet.

  • Written Verification of Employment – added an income documentation option utilizing a WVOE.

Self-Employed Solutions

  • Business bank statements now eligible for 12-month bank statement option.

  • Combined the 24-month and 12-month business bank statement qualifying options.

  • Personal Bank Accounts – reduced the minimum ownership percentage to 20% for eligibility.

  • Business Bank Accounts – reduced the minimum ownership percentage to 50% for eligibility.

  • Added clarification on how to document ownership percentage.

Asset Utilization – Added an option to determination loan qualification based upon total assets (No DTI calculation).

Investor Solutions

  • For Business Purpose transactions:

  • ARM qualifying based upon note rate.

  • Loans with an interest only feature qualified using interest only payment.

 CHECK OUT THE COMPLETE ZUMA NON-QM GUIDELINES