Six Alternative Income Verification Options -
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.
Alternative Non-QM Income Documentation Options for the Self-Employed Borrower
Tax Returns not required; Form 4506-T not required. Form 4506-C 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".
Bank Statement and Asset Depletion
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 Also available
Reduced Doc: Unseasoned Job Profession History and Income | Self-Employed and W2 Wage Earners
- 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
Eligible Occupancies
- Owner-Occupied/Primary Residence
- Second/Vacation Home
- Non-Owner-Occupied/Investment Property
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!!
Credit Notes
- Traditional Credit Only
- Credit Rescore to Qualify for More Loan (or a Better (more suitable) Loan Program: Terms, Pricing, Conditions, etc.
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