The 1 Year Alt Doc Loan Program provides a reduced-documentation mortgage option for both W-2 wage earners and self-employed borrowers who may not qualify using traditional two-year income documentation.
The program generally requires only one year of income documentation while allowing loan amounts up to $4,000,000, LTVs up to 85%, and credit scores starting at 620.
1099-only and bank statement income documentation programs may also be available for borrowers who require alternative income qualification.
All Lite Doc and Reduced Doc loan options require a completed Form 4506-C covering the previous one-year period.
One Year Income Documentation Requirements
Depending on the borrower and income source, qualifying documentation may include:
- One year of personal and business tax returns with all applicable schedules
- Year-to-date Profit and Loss Statement or balance sheet beginning the month following the most recent tax return
- Tax filing extensions may be considered on a case-by-case basis
- Income should generally be stable or increasing
- Distribution income permitted
- Rental income may be considered without Schedule E
- Trust income permitted
- Bank statement income documentation options available
1 Year Alt Doc Credit Score and LTV Requirements
Qualification is based in part on credit score, loan-to-value ratio, and requested loan amount.
Credit Score/ Loan-to-Value/ Loan Amount Matrix:
| Credit Score | Loan-to-Value | Loan Amount |
| 620 | 70% LTV | $1,500,000 |
| 640 | 75% LTV | $2,000,000 |
| 660 | 80% LTV | $2,500,000 |
| 680 | 75% LTV | $3,000,000 |
| 700 | 80% LTV | $3,500,000 |
| 720 | 85% LTV | $4,000,000 |
Maximum financing is subject to occupancy, property type, underwriting, and other program requirements.
Reduced Employment Documentation for Self-Employed Borrowers
Self-employed borrowers may qualify using reduced employment verification rather than extensive traditional employment documentation.
A letter from a qualified tax professional, such as a Certified Public Accountant (CPA) or Enrolled Agent (EA), may be used to document the business and self-employment history.
CPA or Tax Professional Letter Requirements
The letter should generally include:
- Borrower’s percentage of business ownership
- Tax professional’s regulatory or licensing status
- Confirmation of at least two years of self-employment
- Business name
- Business physical address
1 Year Alternative Doc Loan Program Guidelines
Key underwriting guidelines include:
- Maximum loan amount: $4,000,000
- Maximum LTV: 85%
- Minimum credit score: 620
- Minimum reserves: 3 months PITIA for the subject property
- Maximum investment property LTV: 75%
- Maximum DTI: 50%
- DTI exceptions may be considered up to 55%
- Gift of equity from an immediate family member permitted
Eligible Property Types
Eligible properties may include:
- Single-family residences
- 2-unit properties
- 4-unit properties
- Condominiums
Available Loan Terms
Available financing terms include:
- 15-year fixed
- 30-year fixed
- 40-year fixed
- 3-year ARM
- 5-year ARM
- 7-year ARM
- 10-year ARM
- Interest-only option available with the 40-year term
Alternative Income Documentation Options
Borrowers who do not fit the one-year full documentation requirements may have additional Non-QM income documentation options available, including:
- 1099-only income programs
- Bank statement loans
- Other reduced-documentation mortgage programs
These alternatives can be useful for self-employed borrowers, independent contractors, business owners, and borrowers whose taxable income does not accurately reflect their qualifying cash flow.
Prequalification Without a Credit Check
Borrowers can submit their income, property, credit score, and loan details for an initial program review without requiring an upfront credit check.
Loan Scenario Form – Credit Check Not Required
States Where the Program Is Available
The 1 Year Full Doc Loan Program is available in the Following States:
Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, North Carolina, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.
Last Updated on 1 month ago by Broker Mortgages