Use Bank Statements as Income Alternative

Stated Income for Self-Employed

Purpose:

  • Purchase, Refinance - Rate/Term
  • Refinance - Cash Out
    • Maximum cash out amount $500,000

Income Documentation Programs - Self-Employed

Income Documentation Options:

  • Asset Depletion / Asset Based (in conjunction with any Alt Doc program)
  • Bank Statements
  • Stated Income

Bank Statements

  • 6 Months Personal Bank Account Statements
  • 12 Months Personal Bank Account Statements 
  • 24 Months Business Bank Statements

Primary borrower must be self-employed - W-2 c-borrower OK

Stated Income / Verified Assets

  • Assets / Reserves
    • 24 months reserves seasoned for 3 months or VOD Verification of Deposit
  • Self-Employed Only
      • 4506T not required
      • Tax Returns not required

Primary borrower must be self-employed - W-2 c-borrower OK

Self-employed is defined by 25% ownership in a company

3 Reduced Doc Options:

  • One year instead of the standard 2-year income history and employment history verification requirements including full tax returns with all schedules
    • 4506T is executed but for only the 1 year W-2. Not previous year.
    • 4506T is not executed for the self-employed borrower
      • Tax Returns not required
  • 1 Year Tax Returns instead of the standard 2-year requirement
    • 4506T is executed but for only the 1 year tax return
  • 1 Year P&L Profit and Loss Statement
    • Borrower prepared and Unaudited
      • Tax returns not required
      • IRS Form 4506-T not required

Jumbo Loan Amounts:

  • Owner Occupied
    • $2,500,00 for purchase and rate/term refinance - 80% LTV maximum
    • $2,000,000 for Cash Out - 75% LTV maximum
  • Non-Owner Occupied / Investment Properties
    • $$1,000,000

Percentage of Financing

  • 90% LTV Maximum

Property Types:

  • SFR Single Family Residence
  • Condominiums < 4 stories
  • Condominiums - highrise OK
  • Townhouses
  • 1-2 Units
  • 2-4 Units
  • Duplex

Occupancies:

  • Owner Occupied
  • Second Home
  • Non-Owner Occupied

Available Terms:

  • ARM's
    • 3/1
    • 5/1
    • 7/1
    • 10/1
  • Fixed Rates
    • 15 year
    • 20 year
    • 30 year

One 60-day previous mortgage late within last 12 months OK

600 Credit Score to 80% LTV

3 previous 30-day mortgage lates within previous 12 months OK

Underwriting Notes:

Short Sale, 1 day seasoned

Foreclosure, 1 year seasoned

Bankruptcy, 1 year seasoned

55% max DTI 

States: Alabama, Arizona, Colorado, California, Florida, Georgia, Maryland, Massachusetts, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington.

Gift Funds for down payment OK if from an immediate family member or it must be 60 days seasoned (exceptions with other compensating factors)