10/22/2026 - Smart Series Guideline Updates

SmartEdge: Asset Qualifier Eligibility

Primary Residence

• Units: 1–4
• Purchase or rate-and-term refinance
  • Maximum loan amount: $2,000,000
  • Minimum credit score: 700
  • Maximum LTV: 80%
• Cash-out refinance
  • Maximum loan amount: $1,500,000
  • Minimum credit score: 720
  • Maximum LTV: 75%

Second Home²

• Units: 1–2
• Purchase or rate-and-term refinance
  • Maximum loan amount: $2,000,000
  • Minimum credit score: 720
  • Maximum LTV: 80%
• Cash-out refinance
  • Maximum loan amount: $1,500,000
  • Minimum credit score: 740
  • Maximum LTV: 75%

Investment Property²

• Units: 1
• Purchase or rate-and-term refinance
  • Maximum loan amount: $1,500,000
  • Minimum credit score: 740
  • Maximum LTV: 75%
• Cash-out refinance
  • Maximum loan amount: $1,000,000
  • Minimum credit score: 760
  • Maximum LTV: 70%

Eligibility Notes

• ¹ Cooperative: Maximum LTV/CLTV is 70%.
• ² First-time homebuyers and non-permanent residents are not permitted for second homes or investment properties.

Product Summary Updates

Ineligible Subordinate Financing

• Current policy: Subordinate financing is not permitted for:
  • Asset Qualifier
  • Condotels
  • Transactions using gift funds
• New policy: Subordinate financing is not permitted for:
  • Asset Qualifier
  • Transactions using gift funds
• Change: The condotel restriction has been removed.

Housing Payment History

• Current policy:
  • A 1×30×12 history is permitted, except the following require 0×30×12:
    • Asset Qualifier
    • Mortgages modified within the past 24 months
    • First-time homebuyers
    • Non-warrantable condos
  • Applies to all mortgage and rental payments within the 12 months before closing.
• New policy:
  • A 1×30×12 history is permitted, except the following require 0×30×12:
    • Asset Qualifier
    • Mortgages modified within the past 24 months
    • First-time homebuyers
  • Applies to all mortgage and rental payments within the 12 months before closing.
• Change: The 0×30×12 requirement for non-warrantable condos has been removed.

Guideline Updates

Documentation Age

• Current policy: Documents must be no more than 90 days old as of the note date.
• New policy: Documents may be up to 120 days old as of the note date.

Condotels

• Current policy: Subordinate financing is not permitted.
• New policy: The restriction has been removed; subordinate financing is now permitted.

Delinquent Credit

• Consumer credit counseling: Borrowers who entered consumer credit counseling must complete it before applying for the loan.
• Removed restriction: Non-warrantable condos are no longer prohibited when the borrower participated in consumer credit counseling during the past 24 months.

Self-Employed Income

• Current policy: A year-to-date profit-and-loss statement and balance sheet are required.
• New policy: The balance-sheet requirement has been removed.

Alimony and Child Support Payments

• Current policy: Document receipt of payments for the most recent 12 months.
• New policy: Document receipt of payments for the most recent six months.

Property Flips

• Current policy:
  • No-cash-out refinance: Appreciation greater than 20% during the past 90 days requires two full appraisals.
  • Cash-out refinance: Appreciation greater than 20% during the past 12 months requires two full appraisals.
• New policy: These restrictions have been removed.

Resources

• Smart Series Product Summaries
• Smart Series Underwriting Guide > Smart Series Underwriting Guide