AIO Program Highlights
Eligible Borrowers: U.S. Citizens, Revocable trusts, Permanent Resident Aliens, Non-permanent Aliens with certain documentation.
Structure: First lien, 30-year draw HELOC.
Loan Amounts: Primary & Second Homes up to $3M; Investment Homes up to $1M.
Minimum: Initial Draw $100k+.
Draw: Maximum Draw of 99% of line of credit.
Minimum Payment: Interest only.
Ratios: Maximum 40%, possible as high as 43% with 15% reserves
Credit: 700-719 requires 20% down; 720+ allows only 10% Down (with MI).
Down Payment:
Depends on Credit Scores.
Primary Residence minimum 10%+, 2nd Homes 20%, Investments 25%.
First 10% of the down payment must be from the borrower’s own funds.
Gift and grant funds are eligible for the remainder of funds needed for closing.
Reserves Required:
10% minimum of loan amount is required for all transactions.
15% minimum of loan amount required, loans DTI greater than 40%.
Two months’ statements or most recent quarterly statement required.
Reserves cannot be gifted.
Non-U.S. dollar assets are ineligible.
Marketable securities or vested stocks are an acceptable source of reserves, as well as retirement accounts.
The borrower must be able to liquidate funds used to meet the reserve requirement. Accounts that cannot be liquidated are not eligible to be used as reserves.
Debt-To-Income Ratios:
Max debt ratio is 40% with 10% of the LOC in reserves.
Max debt ratio is 43% with 15% of the LOC in reserves.
Qualifying payment is calculated at the qualifying rate at the full loan amount amortized for 30-years.
Interested Party Contribution: 3% maximum
Occupancy:
Primary residence: 1-4 unit, SFRs, PUDs (attached or detached), Condos.
Second homes: 1-unit only, SFRs, PUDs (attached or detached), Condos.
Investment properties: 1-4 unit, SFRs, PUDs (attached or detached), Condos.
Eligible Property Types:
SFRs, including modular (manufactured not permitted), 2-4 units properties.
10-acre maximum (greater than 10 acres requires investor approval), Condos - no litigation permitted
Appraisal: Over $1.5M requires second appraisal. May be transfered with conditions.
Ineligible
Borrowers:
Non-permanent resident aliens that do not meet the eligibility requirements, Diplomats, Irrevocable trusts, Land trusts, Limited and/or general partnerships, corporations, LLCs, and Non-occupant co-borrowers.
Property Types:
Mixed use, Property on tribal land, Cooperatives, Leaseholds, Manufactured housing, Unique such as log, dome, earth, and geothermal homes, Condotels.
Properties exceeding 10 acres.