Bank Statement Income Documentation List

  • Business Description

  • Income Documentation (Bank Statements, 1009's)

  • Liquid Asset Documents

  • Verification of Employment Documents

  • REO Documents

  • Business Description:

    • Letter of Explanation Summary Letter Business Overview (Template Loan Officer).

    • Borrowers Must Supply a Written Statement Clearly Describing the Nature of their Business and the Income it Generates, Including an Explanation of Expenses.

 

  • SS89 Completed by Borrower and Wet-Signed Signed & Dated


Income Documents

  • 12-24 Most Recent Consecutive Monthly Bank Statements

    • Verify All Parties on Bank Statements Will Be on the Loan, Otherwise an Exception Will Be Required

  • Most Recent 2 Months of Business Bank Statements - If No Business Account Available


Business Bank Statements:

  • Most Recent 12 or 24 Months of Business Bank Statements

Calculating Qualifying Income – Business Bank Statements


Verification of Employment (VOE)

  •  CPA, Tax-Preparer, or Licensing Bureau Verifying 2-Year Self-Employment


Personal Bank Statements

  • 100% of Deposits Taken for Income – Must Evidence Activity to Support Business Operations and Reflect Transfers to Personal Account. If Deposits Are Not Evidence of Business Account Transfers, or Business Account Does Not Exist

    • When Using Personal Bank Statements, Most Recent 3 Months Consecutive Business Bank Statements to Show Revenue Flow.

  • CPA or Tax-Preparer "Expense Ratio Letter" (when applicable)

    • Example: If Business Expense Statement Letter Indicates a 25% Expense Ratio, Then 75% of Net Qualified Deposits Will Be Used Towards Qualified Income
    • Business Must be in Existence for 2 Years, Verified Through CPA, Tax-Preparer, Licensing Bureau, or Website


Liquid Asset Statements:

  • Checking, Savings, Money Market, COD,..Showing Source of Down Payment, Closing Costs, Reserves
  • Cash Value Retirement Accounts,
  • Cash Value Trust Fund Accounts
  • Statements on Accounts Not Used for Income

 

 

REO | Real Estate Owned

  • Statements on All Mortgages
  • Homeowners Insurance Dec page (HOI)
  • Homeowners Association Statement (HOA)
  • Tax Statement (See Loan Officer)



Subject Property

  • Purchase Contract If Purchase
  • Property Profile If Refinance

 

States:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin