# eligibility-logic

> HEA and Sale-Leaseback eligibility calculation rules and patterns

- Author: Isai Guerrero
- Repository: isai-guerrero/stayfrank-partner-portal
- Version: 20260206151430
- Stars: 0
- Forks: 0
- Last Updated: 2026-02-06
- Source: https://github.com/isai-guerrero/stayfrank-partner-portal
- Web: https://mule.run/skillshub/@@isai-guerrero/stayfrank-partner-portal~eligibility-logic:20260206151430

---

---
name: eligibility-logic
description: HEA and Sale-Leaseback eligibility calculation rules and patterns
---

# Eligibility Logic Guide

## Overview

Two separate eligibility systems evaluate properties:
1. **HEA (Home Equity Agreement)** - `src/lib/heaCalculator.ts`
2. **Sale-Leaseback** - `src/lib/slCalculator.ts`

Both return eligibility status + ineligibility reasons.

---

## HEA Eligibility (Unlock)

### State Whitelist (25 states)
```typescript
const HEA_STATES = [
  'AZ', 'CA', 'FL', 'HI', 'ID', 'IN', 'KY', 'MI', 'MO', 'MT',
  'NV', 'NH', 'NJ', 'NM', 'NC', 'OH', 'OR', 'PA', 'SC', 'TN',
  'UT', 'VA', 'DC', 'WI', 'WY'
]
```

### Value Requirements
- Minimum: $175,000
- Maximum: $3,000,000

### Equity Requirements
- Max CLTV (Combined Loan-to-Value): 80%
- Max investment amount: $500,000
- Uses 19.9% annualized cost cap logic

### Property Type Exclusions
- Manufactured homes
- Apartments
- Land
- LLC/Corporation/Partnership ownership

### Calculation Pattern
```typescript
interface HEAResult {
  eligible: boolean
  maxInvestment: number
  reasons: string[]  // Ineligibility reasons
}

function calculateHEA(property: PropertyData): HEAResult {
  const reasons = []

  // Check state
  if (!HEA_STATES.includes(property.state)) {
    reasons.push('State not eligible for HEA')
  }

  // Check value range
  if (property.value < 175000 || property.value > 3000000) {
    reasons.push('Property value outside eligible range')
  }

  // Check CLTV
  const cltv = property.mortgageBalance / property.value
  if (cltv > 0.80) {
    reasons.push('CLTV exceeds 80%')
  }

  // Check property type
  if (EXCLUDED_TYPES.includes(property.type)) {
    reasons.push('Property type not eligible')
  }

  // Check ownership
  if (isLLCOrCorp(property.ownerName)) {
    reasons.push('LLC/Corporate ownership not eligible')
  }

  return {
    eligible: reasons.length === 0,
    maxInvestment: calculateMaxInvestment(property),
    reasons
  }
}
```

---

## Sale-Leaseback Eligibility

### State Whitelist (11 states)
```typescript
const SL_STATES = ['AZ', 'NV', 'CA', 'CO', 'TX', 'GA', 'FL', 'TN', 'OH', 'IN', 'NC']
```

### Value Requirements
- Minimum: $200,000
- Maximum: $3,000,000

### Equity Requirements
- Max LTV: 65%
- Available cash = (65% × property value) - mortgage balance

### Property Type Requirements
- Single Family ONLY (more restrictive than HEA)

### Calculation Pattern
```typescript
interface SLResult {
  eligible: boolean
  offerAmount: number
  reasons: string[]
}

function calculateSL(property: PropertyData): SLResult {
  const reasons = []

  // Check state
  if (!SL_STATES.includes(property.state)) {
    reasons.push('State not eligible for Sale-Leaseback')
  }

  // Check value range
  if (property.value < 200000 || property.value > 3000000) {
    reasons.push('Property value outside eligible range')
  }

  // Check property type (SFR only)
  if (property.type !== 'Single Family') {
    reasons.push('Only Single Family homes eligible')
  }

  // Calculate offer
  const maxOffer = property.value * 0.65
  const availableCash = maxOffer - property.mortgageBalance

  if (availableCash <= 0) {
    reasons.push('Insufficient equity for Sale-Leaseback')
  }

  return {
    eligible: reasons.length === 0,
    offerAmount: Math.max(0, availableCash),
    reasons
  }
}
```

---

## Testing Eligibility Changes

When modifying eligibility rules:

1. **Test state boundaries** - Properties right at edge of eligible states
2. **Test value boundaries** - $174,999, $175,000, $3,000,000, $3,000,001
3. **Test CLTV/LTV boundaries** - 79%, 80%, 81% for HEA; 64%, 65%, 66% for SL
4. **Test ownership patterns** - "John Smith", "Smith LLC", "Smith Corporation"
5. **Test property types** - SFR, Condo, Manufactured, Townhouse

## Common Modifications

| Change | File | Function |
|--------|------|----------|
| Add eligible state | Calculator file | State array |
| Change value limits | Calculator file | Validation function |
| Add exclusion reason | Calculator file | Reasons array |
| Change CLTV/LTV cap | Calculator file | Calculation function |