Self Employed 1099 Only and Bank Statement Home Loans | Forms 46506-T and 4506-C Not Required
This loan program is for home buyers and homeowners that have a few late payments or recently experienced a housing event such as bankruptcy, foreclosure, or short sale. Non-Prime mortgages are not only for challenged credit borrowers, but also good and excellent credit borrowers that require a higher risk and more aggressive loan program; 95% LTV Cash Out refinance would be 1 example.
Self Employed borrowers like yourself can document income by providing 1-24 consecutive months of their most recent bank account statements and/or 1-year Reduced Doc, or 2 years Alt Doc 1099 Only programs as an alternative to conventional regulation and requirements
support income and if there is a "wage earner borrower", too, primary or co-borrower, this applicant uses their W-2 and paystub for income documentation because this bank statement loan program does not have a prepayment penalty, borrower can refinance at any time to obtain a lower rate or take cash out.
1099 Only programs available with a 620 middle credit score and $3500 Disposable Income. If you are an independent contractor and file Schedule C only your 1099 for income instead of your tax returns W-2s paycheck stubs profit-and-loss statements. Multiple 1099s– okay
Purpose: Purchase and Rate/Term or Cash Out refinance. Maximum Cash Out $1,500,000
Verification of Wage-Earner Employment and Self-Employment
Self-Employment (=/>25%)
Third party CPA Letter - The "CPA letter" deosn't need to be the same CPA that fiiled your taxes. Any CPA or EA - OK!
Applicable Industery License - License Regulator
License Bureau or equivelent
Business Registration Certificate
Business Tax Certificate
Buyer License
Blacked Out Schedule C
Internet Listing
Wage-Earner Employment
Verbal Verification of Employment (VVOE) - Super simple and fast. A phone call is placed by the lender to your HR department or equivent manage
Written Verification of Employment (WVOE) - Standard VOE Form to be completed by your pay-roll department manager, HR department manager or equivelent dated no more than 10 business days before the close date
Acceptable Types of Employment:
Self Employed (=>25%)
W-2 Wage Earner
W2 Salary
W2 Hourly wage
W2 Commission
Guidelines and Highlights333333333333333333333333333333333333333333
---Ability to Repay and Verification of Employent
Income and E:
Alternative Documentation "Alt-Doc"
Bank Statements,1099 Only and Asset Depletion
Income Documentation:333333333333333333333333333
Unconventional - 12 months Bank Statements for self-employed. and/or
Conventional - W-2 and paystub for wage earners
Credit Criteria:
Mortgage History - 1 30-Day late previous 12 months
Bankruptcy Seasoning: - 1 Day
Foreclosure Seasoning - 1 Day
Short Sale - 1 Day
Credit Scores:
580 Minimum
Loan to Value ratio (LTV)
80%
Debt to Income Ratio (DTI):
50%
Maximum Loan Amount:
$2,500,000
Property Types:
Single Family Residence (SFR)
1-2 Units
2-4 Units
Occupancies:
Owner Occupied / Primary
Investment
Terms:
30-Year Fixed
15-Year Fixed7 Year ARM
No Prepayment Penalty
Available in the Following States:
Arizona, Colorado, California, Florida, Texas, and Washingtgon
Reference# 535 06131519-16-12-16