Employment-Related Assets as Qualifying Income
All of the following loan parameters must be met in order for employment-related assets to be used as qualifying income:
| Loan Parameter | Requirement |
|---|---|
| Maximum LTV, CLTV, and HCLTV Ratio |
70% 80% if the owner of the asset(s) being used to qualify is at least 62 years old at the time of closing. If the asset(s) is jointly owned, all owners must be borrowers on the loan and the borrower whose employment-related asset is being used as income must be at least 62 years old at the time of closing. |
| Minimum Credit Score |
DU: 620 Manual: Higher of 620 or minimum Credit Score per the Eligibility Matrix |
| Loan Purpose | Purchase and limited cash-out refinance only |
| Occupancy | Principal residence and second home only |
| Number of Units | As permitted by occupancy type |
| Income Calculation/Payout Stream | Divide “Net Documented Assets” by the amortization term of the mortgage loan (in months). |
For additional information, see B3-3.1-09, Other Sources of Income.