Five Alternative Income Verification Options
This 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..
Non-QM Income Documentation Options | 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 + Asset Depletion – Five Reduced Doc Options
** 1 Page Business Account with CPA or Borrower Prepared P&L
** 3 Months Personal Account statements + 2 Months Business Account statements
** 6 Months Personal Account statements.
** 12 Months Business account statements or Personal account statements
** 24 Months Business Account statements or Personal Account statements. Note: We can co-mingle multiple accounts when it makes sense.
Reduced Doc: Unseasoned 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
** 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 in 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 – 12 Months
** Foreclosures – 12 Months
** Short Sale- 12 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.