Income Documentation Alternative for the Well Qualified Self Employed Borrower

June 2018

Tax Returns Not Required

Form 4506T Not Required

Stated Income loan program will be supported by the cash flow of bank statements and is for the Self Employed borrower only.

Pre Qualification Form

 

Stated Income / Verified Assets SIVA

Primary Residence

Loan Purpose

Units

LTV

Maximum Loan Amount

Maximum Cash Out

Credit Score

Purchase

Rate and Term Refinance

Single Family Residence 70% $1,000,000 N/A 700
60% $2,000,000 700
50% $3,000,000 700
Cash Out 70% $1,000,000 $400,000 700

Second Home

Loan Purpose

Units

LTV

Maximum Loan Amount

Maximum Cash Out

Credit Score

Purchase

Rate and Term Refinance

Single Family Residence 60% $750,000 N/A 700

 

 

Underwriting Guideline Summary

Credit Notes:

7-year credit history - No Foreclosure, Bankruptcy, Short Sale, Loan Modification or consumer credit counseling

2 years clean credit history on mortgage and rent

No consumer debt lates - 1 year

Credit report must show a 2-year history of 2 or more open and active trade line accounts

Unlimited real estate properties owned, but 3 financed properties maximum

Employment Type:

Self Employed only - 25% ownership minimum

Employment verification:

Business license and or CPA letter depending on business industry showing 2-year minimum same line of business verifying the name of the business, the percentage of ownership

Business phone number will be verified by both 411 and or the internet

 

Asset Documentation

 

Stated Income / Verified Assets

Tax Returns not required

 

Required Asset Documentation:

Income is being "stated" on the 1003 Uniform Residential Application, but not verified by traditional income documents

2 months bank statements to verify liquid assets

If using rental income to qualify, must provide leases for all rental properties

All fixed income including retirement, annuities, dividends, Social Security, child support, alimony can be utilized to qualify

Liquidity requirements:

Verified assets must support the amount of income we are stating. Stated income amount should be proportionate to the cash flow of the bank statements

Loan Amount between $400,000 and $650,000 - Minimum liquid asset requirement: $100,000

Loan Amount between $650,000 and $1,000,000 - Minimum liquid asset requirement: $250,000

Loan Amount between $1,000,000 and $1,500,000 - Minimum liquid asset requirement: $500,000

Loan Amount between $1,500,000 and $3,000,000 - Minimum liquid asset requirement: $1,000,000

 

Additional Underwriting Guideline Summary

Property Types:

  • Single Family Residence
  • PUD
  • 12 acres maximum

Eligible Borrowers:

  • Permanent Resident Aliens
  • Non-Permanent Resident Aliens

6 months title seasoning required for the subject property

Gift of equity not allowed

 

Reference #124 528alnexsiva041415

 

Mortgage brokers/lenders perform acts for which a real estate license is required.