Bank Statement and Asset Depletion
Non-QM loan program uses bank statements In lieu of Traditional Income Documentation to determine a borrower’s Ability-to-Repay. Agency – government regulated. Non-QM is manually underwritten per investor guidelines as well as underwriter discretion.
Non-QM Income Documentation Options for the Self-Employed Borrower
Tax Returns not required; Form 4506-T (now Form 4506-C) not required. Form 4506-C (formerly Form 4506-T) is also not required for Self-Employed borrowers. Form 4506-C is required for W2 Wage Earners only. If W2 Income is mixed with Self-Employment bank statement income. Proof of Payment will be Required. Self-Employment is defined as >25% Ownership to qualify as “self-employed”.
Five Alt Doc and Five Reduced Doc Options
One Page Business Account with CPA or Borrower Prepared P&L StatementÂ
Three Months Business Account statements or Personal Account statements.Â
Twelve Months Business account statements or Personal account statements (6 month bank statement programs also available)
Twenty Four Months Business Account statements or Personal Account statements. Note: We can Co-Mingle Multiple Accounts when it make sense
* Asset Depletion (Quantify Additional Qualifying Income), Asset-Based. Pledged Asset Portfolio Programs
Reduced Doc: (Unseasoned Job Profession History and Income)
* 1 Year Tax Returns – 600 Credit Score
* 1 Year W2 – 580 Credit Score
* 1 Year 1099 Only – 620 Credit Score
Liquid Reserves Requirement: 6 Months Reserves (Subject Property Housing Expense). Note: Cash Out Can be used to Meet Reserve Requirement
Maximum loan amount is $3,000,000 to 90% LTV and a maximum Cash Out (cash-in-hand) dollar Amount of $1,000,000. Loan Amount exceptions made to $10,000,000. Lenient DTI Guidelines to 55%. Exceptions to 60% DTI.
Eligible Property Types:
* SFR, PUD, 2 Unit, 4 Unit, Condo, Modular, Mixed Use, and Specialty Homes
Available Terms:
* 30 Year Fixed, 15 Year Fixed, 5/6 ARM, 7/1 ARM
* Interest Only Available on both the ARM Product as well as the Fixed Rate Product!!
Eligible Occupancies:
* Owner-Occupied/Primary Residence, Second/Vacation Home, Non-Owner-Occupied/Investment Property
Credit Event Seasoning Requirements for this Alt Doc Program
* Bankruptcy – 24 Months
* Foreclosures – 24 Months
* Short Sale- 24 Months
Loan Scenario Form – Credit Check Not Required
Available in the Following States:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and Wisconsin