Improved credits scores, down payment minimums, ample cash reserves, and a well-developed financial profile can be a long climb for many borrowers. At times, the summit may have seemed out of reach.
We understand the challenge and are launching a new product designed to reward those who made it to the top – Apex Prime.
What is Apex Prime? A Guide for Partners
Apex Prime is a tighter version of Super Prime with significant price improvement – a premier Non-QM tier for high-credit borrowers. With this tool, partners can offer better terms to those clients who already have strong credit, a clean housing history, lower leverage, and manageable DTI. Apex Prime serves as an additional competitive advantage, helping partners strengthen relationships with their trusted clients.
See the comparison table to check the difference between Prime, Super Prime, and Apex Prime.
What Files are Eligible for Apex Prime?
- Income Documentation. Full Doc, Bank Statement, Asset Utilization, and 1099 borrowers
- Credit Score. FICO 680+
- Property Type. Purchase or refinance of a single-family residence or PUD (non-condo, non-rural)
- CLTV. ≤80% on owner-occupied properties and ≤75% on investment properties and second homes
- DTI. ≤45%
- History. Clean 24-month housing history with no rent-free situations
Not eligible: More restrictive programs (condo, rural, DTI above 45%), rent-free and ITIN borrowers, interest only and ARM mortgages, or reserves of less than six months.
What Programs are Available?
Apex Prime can be applied to first-lien Bank Statement, Full Doc Non-QM, 1099, and Asset Utilization Non-QM loans. The product is available in all states where Super Prime is offered and is subject to standard state-level restrictions. Wholesale, Correspondent, and Correspondent Plus channels are eligible.
The standard maximum loan amount is $3 million, and up to $5 million is available at CLTV ≤55% on purchases. First-time homebuyers can qualify for loan amounts up to $2 million with a premium pricing tier.
How to Qualify Your Client
- Confirm that the property type is eligible. Condos, condotels, rural properties are a hard stop – choose Super Prime instead.
- Calculate DTI. Loans exceeding 45% do not qualify.
- Check the documentation type. No P&L or WVOE is allowed.
- Verify the 24-month housing history. Obtain full landlord or mortgage payment records going back 24 months. Note that a 12-month history is insufficient, and rent-free borrowers are ineligible.
- Confirm the borrower’s residency. US citizens, permanent residents, or non-permanent residents can qualify, while ITIN borrowers and foreign nationals are ineligible.
- Ensure that reserves meet the Apex matrix. A minimum of six months of reserves is required for loans of less than $2 million, 12 months for loans of $2-$4 million, and 24 months for loans over $4 million.
- Confirm that credit events are seasoned for over 48 months from the completion or discharge date.
When working with a loan application in AIM, Apex Prime can be applied during the program selection stage. Overall, the workflow stays the same.
Offer Better Pricing for High-Credit Borrowers
Apex Prime is a great opportunity for partners to improve pricing for their financially strong borrowers with clean SFR or PUD files.
If you are not yet a partner, fill in the Broker Package today:
FAQ: Apex Prime by AD Mortgage
What is Apex Prime?
Apex Prime is a new, enhanced version of Super Prime. It allows AD Mortgage’s partners to offer significant price improvement to eligible borrowers with strong profiles. See the comparison of Prime, Super Prime, and Apex Prime for more details.
Who Can Qualify for Apex Prime?
Apex Prime is available for borrowers with strong credit, lower CLTV, manageable DTI, and a clean housing history. If you have a client like that, you can apply Apex Prime in AIM during the program selection stage.
What Non-QM Programs are Eligible for Apex Prime?
Apex Prime works with first-lien Bank Statement, Full Doc Non-QM, 1099, and Asset Utilization Non-QM loans.
What Channels are Available?
Apex Prime is available across Wholesale, Correspondent, and Correspondent Plus channels.
What is the Maximum Loan Amount to Qualify for Apex Prime?
Generally, the maximum loan amount is $3 million. However, higher amounts of up to $5 million are available on purchases at CLTV ≤ 55%. For first-time homebuyers, the maximum loan amount available is $2 million.
Why Use Apex Prime?
Apex Prime helps partners build trust and connections with their clients. Now, those borrowers who already have strong profiles can benefit from improved pricing.
What are the Best Borrower Fits for Apex Prime?
Apex Prime is designed for eligible borrowers with strong profiles who are purchasing or refinancing single-family residences or PUDs using eligible Non-QM loan programs.
