The Ultimate Mortgage Reference Guide.
Explore this comprehensive and valuable mortgage program information and criteria all summarized and brought to you by Jason J. Sarji and AAA Capital Funding, Inc.
The Ultimate Mortgage Eligibility Matrix & Reference Guide
This is the Ultimate Cheat Sheet. A complete, detailed reference for every major loan program's eligibility criteria, perfect for quick review and underwriting guidance.
I. Quick Loan Comparison Overview
CRITERIA
TRADITIONAL LOAN (Conv/FHA/VA)
JUMBO LOAN
DSCR LOAN (Investment Only)
FLORIDA HOMETOWN HEROES
Loan Purpose
Primary Residence (Owner-Occupied)
Primary or Investment (High Balance)
Investment Property Only
Primary Residence (Owner-Occupied)
Loan Limit
Conforming Limit ($766,550 in most areas)
Exceeds Conforming Limits ($1M - $5M+)
No set limit, depends on property cash flow
Must meet FHFA/FHA/VA/USDA limits
Income Verification
Full Income Verification (W-2s, Tax Returns)
Full Income Verification (Stricter scrutiny)
NO Personal Income (Uses Property DSCR)
Full Income Verification required (DTI Check)
Min. Credit Score
580 (FHA/VA) - 640+ (Conv)
700 - 740+
640 - 680+
640+
Min. Down Payment / LTV
3% (Conv), 3.5% (FHA), 0% (VA/USDA)
10% - 20%
20% - 25%
0% - 3.5% (Down Payment Assisted)
II. Detailed Program Eligibility Matrices (The Underwriter's Cheat Sheet)
Conventional Loans (Fannie Mae / Freddie Mac)
Min. Credit Score
620 FICO. Higher scores required for lower down payments (LTVs > 95%) and for investment properties.
Max DTI Ratio
Up to 50% (max cap, typically lower for manual underwriting or cash-out refinances).
Max LTV by Transaction Type
- Purchase (Primary): 97% LTV (3% down)
- Rate & Term Refinance (Primary): 95% LTV
- Cash-Out Refinance (Primary): 80% LTV
- Investment Property: Max LTV is 75% for all transactions.
Property Unit Eligibility
- Primary/Second Home: 1-4 Units
- Investment: 1-4 Units (LTV subject to adjustment)
Required Reserves (PITI)
Generally 2-6 months required for 2-4 unit properties, and more for investment properties.
Bankruptcy Chapter 7 Seasoning
4 Years from discharge date.
Foreclosure Seasoning
7 Years from completion date.
Key Feature / PMI
PMI is automatically removed once 20% equity is established (LTV reaches 80%).
FHA Loans (Federal Housing Administration)
Min. Credit Score
580 FICO for 3.5% down payment. 500-579 requires 10% down. (Lender overlays may require 620+).
Max DTI Ratio
Highly flexible, often up to 56.99% with strong AUS findings and compensating factors.
Max LTV by Transaction Type
- Purchase: 96.5% LTV (3.5% down)
- Rate & Term Refinance: 97.75% LTV (based on FHA-to-FHA limits)
- Cash-Out Refinance: 80% LTV
Property Unit Eligibility
1-4 Units allowed, but all must be Owner-Occupied Primary Residence Only.
MIP Structure (Insurance)
- Upfront MIP (UFMIP): 1.75% (added to loan).
- Annual MIP: Typically 0.55% - 0.95% (paid monthly).
Bankruptcy Chapter 7 Seasoning
2 Years from discharge date.
Foreclosure Seasoning
3 Years from completion date.
Key Feature / MIP Duration
MIP is lifetime for most loans with LTV > 90%. Must refinance to conventional to remove it.
VA Loans (Department of Veterans Affairs)
Min. Credit Score
No VA-set minimum. Lenders often use an internal overlay, but the agency allows scores as low as 580 for purchase/refinance.
Max DTI Ratio
Flexible DTI (often up to 60%+) based on Residual Income. No hard DTI cap if residual income is strong.
Max LTV by Transaction Type
- Purchase: 100% LTV (0% down)
- Rate & Term Refinance: 100% LTV
- Cash-Out Refinance: 100% LTV (allows full equity extraction up to appraised value).
Property Unit Eligibility
1-4 Units allowed, but the veteran must occupy one unit as the primary residence.
VA Funding Fee
- Varies from 1.25% to 3.3% of the loan amount.
- Waived for veterans with a service-connected disability.
Bankruptcy Chapter 7 Seasoning
2 Years from discharge date.
Foreclosure/Short Sale Seasoning
2 Years from the date of completion.
Key Feature / Mortgage Insurance
NO Monthly PMI/MIP. This is the biggest cost advantage.
USDA Loans (United States Department of Agriculture)
Min. Credit Score
Typically 640 FICO required for automatic underwriting approval.
Max DTI Ratio
Strict ratios: 29% (Housing) / 41% (Total). Exceptions require strong compensating factors.
Max LTV by Transaction Type
- Purchase: 100% LTV (of value + guarantee fee)
- Rate & Term Refinance: 100% LTV (of value + guarantee fee)
- Cash-Out Refinance: NOT PERMITTED
Property Unit Eligibility
Only 1 Unit Properties (SFR, PUDs, approved Condos) in Designated Rural Areas.
Household Income Limit
Total Household Income cannot exceed 115% of the median family income for the county.
Guarantee Fee Structure
- Upfront Guarantee Fee: 1.00% (can be financed).
- Annual Fee: 0.35% (paid monthly).
Bankruptcy Chapter 7 Seasoning
3 Years from discharge date.
Foreclosure Seasoning
3 Years from completion date.
Key Feature
Targeted zero-down loan for low-to-moderate-income families in rural/suburban zones.
DSCR Loans (Investment Properties Only) - Non-QM
Min. Credit Score
640 FICO minimum. Higher scores drastically improve rates/LTVs.
Income/DTI Check
NONE. Qualification is solely based on the property's Debt Service Coverage Ratio (DSCR).
Max LTV by Transaction Type
- Purchase: Up to 80% LTV (higher DSCR required)
- Rate & Term Refinance: Up to 75% LTV
- Cash-Out Refinance: Up to 70% LTV
DSCR Requirement
- 1.00+ Ratio: Property generates enough income to cover PITI. (Standard pricing)
- 0.75 - 0.99 Ratio: Property is slightly cash-flow negative. (Higher rate/fee)
- "No Ratio": Available with higher down payment (e.g., 30%).
Property Unit Eligibility
SFR, Condo, Townhome, 2-4 Unit Multi-Family, and **Short-Term Rentals**. Investment only.
Required Reserves
Strictly enforced. Typically 6-12 months PITI (Principal, Interest, Taxes, Insurance) required in liquid assets.
Bankruptcy Chapter 7 Seasoning
Highly program-dependent, typically 2-4 Years from discharge date.
Key Feature
Enables investors to scale their portfolio rapidly without showing personal income or limiting DTI.
III. Key Credit Event Seasoning Matrix
Minimum Waiting Periods (From Event Completion Date)
Credit Event Type
Conventional (Fannie/Freddie)
FHA
VA / USDA
Chapter 7 Bankruptcy Discharge
4 Years
2 Years
VA: 2 Years / USDA: 3 Years
Chapter 13 Bankruptcy Discharge
2 Years
1 Year (from discharge date)
1 Year (from discharge date)
Foreclosure or Deed-in-Lieu
7 Years
3 Years
VA: 2 Years / USDA: 3 Years
Short Sale
4 Years (7 years if mortgage insurance claim paid)
3 Years
VA: 2 Years / USDA: 3 Years
IV. Required Income & Employment Documentation Matrix
Documentation Required to Verify Borrower's Income
Borrower Type
W-2 Employee (Standard)
Self-Employed (25%+ Ownership)
DSCR / Asset-Based Loans
Conventional / FHA / VA / USDA
2 Years W-2s, 30 Days Paystubs, V.O.E.
2 Years Personal & Business Tax Returns (Full Schedules). Note: Conventional loans may only require **one year** of tax returns in certain well-qualified instances.
N/A (Documentation not used for qualification)
Jumbo / Portfolio Loans
Requires 2 years W-2s and up to 60 days Paystubs.
2 Years Full Tax Returns, YTD P&L, 2 Months Bank Statements. Higher scrutiny.
Varies by program (Bank Statements, Asset Depletion required)
Fixed/Retirement Income
Social Security/Pension Award Letter, 60 Days Bank Statements. (All Loan Types except DSCR)
N/A
N/A (Uses property cash flow)
V. Minimum Credit Score & Maximum LTV Quick Reference
Maximum Loan-to-Value (LTV) by Credit Score Band
FICO Score Band
Conventional (Purchase)
FHA (Purchase)
VA (Purchase)
Below 620
Ineligible (Conv. requires 620 min)
Up to 96.5% LTV (Min 580)
Up to 100% LTV (Min 580)
620 - 679
Up to 95% LTV
Up to 96.5% LTV
Up to 100% LTV
680 - 719
Up to 97% LTV (3% down programs)
Up to 96.5% LTV
Up to 100% LTV
720+
Up to 97% LTV
Up to 96.5% LTV
Up to 100% LTV
VI. Grand Master Loan Program Comparison
All Key Eligibility Factors by Program Type
CRITERIA
Conventional
FHA
VA
USDA
Minimum FICO Score
620
580 (for 3.5% down)
580
640 (for AUS approval)
Max DTI Ratio
Up to 50%
Up to 56.99%
Flexible (Residual Income)
29% / 41% (Strict)
Max LTV (Purchase)
97% (3% down)
96.5% (3.5% down)
100% (0% down)
100% (0% down)
Cash-Out Refi Max LTV
80%
80%
100%
NOT PERMITTED
Chapter 7 Bankruptcy Seasoning
4 Years
2 Years
2 Years
3 Years
Foreclosure Seasoning
7 Years
3 Years
2 Years
3 Years
Monthly Mortgage Insurance (PMI/MIP)
Required if LTV > 80% (Removable)
Required (Lifetime for LTV > 90%)
NONE
Required (Annual Guarantee Fee)
Self-Employed Tax Returns (Standard)
2 Years (1 Year possible)
2 Years
2 Years
2 Years
Your Ultimate Mortgage Resource is Complete.
With the ultimate cheat sheet in hand, the next step is a personalized consultation. Let's find your perfect program.
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