1) Basic Eligibility
Who can apply
U.S. citizens and permanent resident aliens • up to 4 borrowers.
Minimum credit score
640+ (no-score borrowers may be eligible but are treated like the 640–659 tier).
Max DTI
45% (higher only in limited “pending sale” scenarios).
Mortgage late policy
0×30 in the most recent 24 months.
Loan amount range
$50,000 minimum • up to $750,000 depending on credit and LTV.
2) Property Requirements
- Occupancy: Primary • Second home • Investment.
- Property types: 1–4 units (ADU allowed on 1–2 unit) • PUD • townhome • warrantable condos • NYC warrantable co-ops (primary only).
- Not allowed: Manufactured homes • leasehold properties.
- State notes: Not available in Texas. Florida/Nevada condos may have tighter LTV caps; declining-market rules can reduce max LTV.
3) How You Qualify (Payment & DTI)
- Important: Even though the draw period payment is interest-only, qualification uses a 20-year principal & interest payment at the prevailing rate (amortized over 20 years) to calculate DTI.
- DTI considers housing (PITI) and other debts per agency-style rules and lender overlays.
- High unsecured debt use can be a risk factor.
Client tip: If you’re using this to consolidate debt, the lender will still look closely at your credit use patterns and whether debts are being paid down just to qualify.
4) LTV / Equity Basics (What Drives Approval)
- LTV (loan-to-value) limits depend on credit score, occupancy, and number of units.
- Top tiers can go as high as 90% LTV for many primary/second homes (1–2 units) with strong credit.
- Investment properties typically cap lower (often 80% on 1-unit and 65% on 2-unit).
- Declining market flags can cap LTV to 65% in certain cases.
5) Income Documentation Options
- Standard income: Agency-style verification (paystubs/W-2, VOE, tax returns for self-employed, etc.).
- Self-employed: Typically 1–2 years returns required; must be self-employed for 2+ years (extensions can trigger 2-year requirement).
- Alternative options (if eligible):
- Bank statement income (self-employed only): higher score and lower LTV caps apply; max loan amount may be lower.
- Asset depletion: qualifying income may be derived from eligible assets; lower max LTV applies.
6) Reserves & Other Key Rules
- Reserves: May be required (measured in months of PITI). Investment properties generally require more reserves.
- Seasoning: Typically 6 months; if owned less than 6 months, value may be the lower of purchase price or appraisal.
- Tax liens: Must be paid prior to/at closing.
- POA: Not permitted.
- Trusts: Allowed under standard guidelines (irrevocable trusts not permitted).
- Valuation: AVM may be used for smaller balances; higher balances or certain properties require a full appraisal.
Next Steps
Want to see if a First-Lien HELOC makes sense for you? Use any of the options below to get started or connect directly.
