We offer an equity-based mortgage option for borrowers with substantial property equity who may not qualify through conventional income or credit requirements. Instead of focusing primarily on the borrower’s FICO score or employment, this program centers on the property’s value and the equity remaining after the loan closes.
Qualify Based on Property Equity
This program does not require a minimum FICO score, income documentation, employment verification, or cash reserves. Eligibility depends mainly on the property’s value, the requested loan amount, and the borrower’s remaining equity.
- Loan amounts from $250,000 to $1.5 million
- Financing up to 55% LTV or CLTV
- No minimum FICO score
- No income documentation
- No employment requirement
- No reserves required
- Unlimited cash-out
- Purchase, rate-and-term refinance, and cash-out transactions
- Primary residences and second homes
- 30-year fixed-rate financing
- First-time homebuyers permitted
Understanding the Remaining Equity Requirement
The program requires the borrower to retain at least $150,000 in equity after accounting for the proposed loan amount. Calculate remaining equity by subtracting the loan amount from the property’s value. Use the lower of the sales price or appraised value to determine available equity.
For example:
- Property value: $455,000
- Maximum LTV: 55%
- Proposed loan amount: $250,250
- Remaining equity: $204,750
Because the borrower would retain more than $150,000 in equity, the property would satisfy the program’s minimum remaining-equity requirement.
Eligible Arizona Property Types
- Single-family residences
- Planned unit developments
- Townhomes
- Warrantable condominiums
- Non-warrantable condominiums
- Two- to four-unit residential properties
- Eligible manufactured homes
For two- to four-unit properties, the borrower must occupy one of the units as a primary residence.
Recent Credit Events May Be Considered
Borrowers with recent credit challenges may still be eligible. The program may consider applicants as soon as one day after a bankruptcy discharge. A minimum of 12 months is generally required after a foreclosure, depending on the circumstances and program review.
Collections and charge-offs do not necessarily need to be paid off. Judgments and tax liens, however, must generally be paid before or at closing.
The absence of a minimum FICO requirement does not mean that credit is ignored entirely. Underwriting and program guidelines still apply to the borrower and property profile.
No Income or Employment Qualification
One of this program’s most important features is that it does not use an income-based qualification process. It requires no minimum employment history, and borrowers don’t need to document income through tax returns, W-2s, pay stubs, bank statements, or profit-and-loss statements.
- Self-employed borrowers with difficult-to-document income
- Retired borrowers without regular employment income
- Borrowers between jobs
- Individuals with substantial equity but limited taxable income
- Borrowers recovering from recent credit events
- Property owners who need access to equity without a conventional income review
Additional Program Guidelines
- Assets needed for closing require approximately 30 days of verification
- Gift funds may be permitted
- Gift of equity transactions may be considered
- Impound accounts are required
- Seller contributions may be allowed up to 6%
- One full appraisal and a second review are generally required
- Housing history may allow fewer than 90 days late at the time of funding
- Interest-only payments are not available
- Prepayment penalties are not permitted
- Limited cash-out restrictions do not apply
Eligible borrowers may include U.S. citizens, permanent resident aliens, non-permanent resident aliens with acceptable U.S. credit and visa documentation, and certain foreign nationals purchasing eligible second homes.
An Equity-Based Mortgage Option for Arizona Borrowers
A low credit score, unverifiable income, a recent bankruptcy, or a lack of traditional employment does not always mean financing is unavailable. For borrowers with enough equity, an equity-based mortgage may offer a practical path to purchasing a home, refinancing an existing mortgage, or accessing cash from a property.
Every scenario is different, and final eligibility depends on the property, loan amount, remaining equity, occupancy, appraisal, and complete underwriting review.
Contact us to discuss your Arizona property.