Deephaven intends to increase partner non-intermediary lending capabilities
Non-agency lender Deephaven announced new income qualification options designed to allow brokers and correspondents to compete for more creditworthy borrowers who are excluded from agency mortgages.
The company’s new asset utilization calculations determine qualifying income based on a wide range of assets – including personally held stocks, bonds, mutual funds, vested retirement accounts, and personal bank accounts.
“These options enable loan officers to fill a huge niche in the market by providing sensible solutions to a borrower’s challenges,” said Shelly Griffin, senior vice president of customer development. “For example, if borrowers have enough assets to meet down and reserve requirements, pay 60 months of monthly debt payments, and pay off that mortgage, they are likely worthy customers. In this highly competitive market, Deephaven strengthens each partner’s ability to win their business before others do. “
According to Deephaven, it offers two alternatives:
- Total Assets Calculation: The company offers mortgages for borrowers whose assets cover the new loan amount, down payment, closing costs, required reserves and ongoing monthly obligations of five years. There is no need to include your employment or total income on a 1003 form.
- Leverage Ratio Calculation: Borrowers must have at least (a) 1.5 times the loan balance or (b) $ 1 million in qualifying assets, both of which are minus the down payment, closing costs, and required reserves. Monthly income is calculated by dividing qualified net worth by 84 months.