NOO pay option arm

are there any lenders doing 85% noo stated with no seasoning in Ohio ?

no more stated in Ohio.

World Savings Bank may do it. You would have to be a very strong borrower, good credit, assets and strong job history. I not an expert in Ohio but its worth a call.

world savings wants to see 12 month seasoning to use appraised value

There are still some lenders allowing for stated income submissions; I am aware of a NOO 90 LTV option ARM which would require:

  • 6 months of reserves
  • FICO => 680
  • 4 active tradelines
  • 42 DTI

Two option ARM products available; standard (1 month version) and 5 yr fxd version.


Scott Miller


Please confirm that you are looking for a cash out investment loan, not a purchase. Assuming that’s why you’re looking to use the appraised value with no seasoning.

I dont think the 90% option quoted previosly would be available on that. However, I could be mistaken as lenders have really shake up their programs.

Novastar had a 100% option arm stated income stated reserves with a 680+, but i know they tightened up their act and do not offer any stated 100% anymore, but they could be a good bank to check out considering you only need 85%. Is your fico good?- i’d check them out.

The OP is looking for NOO guidelines; you paraphrased the “old” OO guidelines…

Novastar caps investors at 65 LTV for stated and 70 LTV for FULL DOC cash out refi submissions.


Scott Miller

I’m loosing many of my no money down residential investment buyers because of the recent tightening of lender guides. What if anything are you recommending to these buyers when they approach you for funds? I also sense my reduced doc buyers are struggling to find purchase money and refi. FNMA hasn’t changed their position on no seasoning with full docs have they?

Fannie does not have sesoning requirements, not even for reduced documentation loans. However, the ltv on those are lower and qualifying can be harder. Thus the reason for using the AltA programs.

Buyers should always no the length of time the seller has been on title and whether or not a rehab was done on the property. This info must be provided to the mortgage professional handling the purchase. There are lenders out there that dont have a requirement for how long the seller has been on title. There are still even lenders that will do 100% financing for your buyers. For investors, they need to know that a 720 score for stated income or no ratio will be required. Also, plan on having about 12 months of the expected piti in reserves. This is after closing costs/prepaids. Reserves must also have been in the account for at least 2 months.

As mentioned by another poster, there is still several lenders offering 100% financing to investors; terms & conditions previously stated apply.

Increased credit score requirements, stricter negative cash flow tolerance and more cash reserves required are some of the not so subtle changes that have been incorporated of late.


Scott Miller