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
* 1 Page Business Account with CPA or Borrower Prepared P&L Statement
* 3 Months Business Account statements or Personal Account statements.
* 12 Months Business account statements or Personal account statements (6 month bank statement programs also available)
* 24 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