1099 Only and Bank Statement Home Loans
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.
Why Non-Prime?
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.
Acceptable Types of Employment:
- Self Employed (=>25%)
- W-2 Wage Earner
- W2 Salary
- W2 Hourly wage
- W2 Commission
Documentation Types
- Bank Statements
- 1099 Only
- Asset Depletion
Acceptable Income Documentation:
- Unconventional – 12 months Bank Statements for self-employed and/or
- Conventional – W-2 and paystub for wage earners
Self-Employed Verification of Employment
- Third party CPA Letter – The “CPA letter” does not need to be the same CPA that filed your taxes. Any CPA or EA – OK!
- Applicable Industry License – License Regulator
- License Bureau or equivalent
- Business Registration Certificate
- Business Tax Certificate
- Buyer License
- Blacked Out Schedule C (Sole Proprietor)
- Internet Listing
IRS Form 4506-C – Not Required
Form 4506-C (formerly 4506-T) is required by all Qualified Mortgage Lenders including conventional. 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
Wage-Earner Verification of Employment
Verbal Verification of Employment (VVOE) – Super simple and fast. A phone call is placed by the lender to your HR department or equivalent manager.
Written Verification of Employment (WVOE) – Standard VOE Form to be completed by your pay-roll department manager, HR department manager or equivalent dated no more than 10 business days before the close date
Credit Criteria:
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
- Mortgage History – 1 30-Day late previous 12 months
- Bankruptcy Seasoning: – 12 Months
- Foreclosure Seasoning – 12 Months
- Short Sale – 12 Months
- Credit Scores – 600 Minimum – LTV 85%
Eligible Property Types:
- Single Family Residence (SFR)
- 1-2 Units
- 2-4 Units
Eligible Occupancies:
- Owner Occupied / Primary
- Investment
Available Terms:
- 30-Year Fixed
- 15-Year Fixed
- 7-Year ARM
- No Prepayment Penalty
Available in the Following States:
Alabama, Arizona, Colorado, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Kansas, Massachusetts, North Carolina, South Carolina, Tennessee, Texas, and Washington
Reference# 535 06131519-16-12-16
Last Updated on 2 weeks ago by Broker Mortgages