Self Employed 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. 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.
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
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
Verification of Wage-Earner Employment and Self-Employment
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
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
Acceptable Types of Employment:
* Self Employed (=>25%)
* W-2 Wage Earner
* W2 Salary
* W2 Hourly wage
* W2 Commission
Acceptable Types of Employment:
* Applicable Industry License – License Regulator
* License Bureau or equivalent
* Business Registration Certificate
* Business Tax Certificate
* Buyer License
Alternative Documentation “Alt-Doc”
* 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
Credit Criteria:
* 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 Fixed7 Year ARM
* No Prepayment Penalty
Available in the Following States:
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