Reduced Doc | 12 Months
We can help new business owners or self-employed borrowers who experienced a greater amount of income last year compared to the previous year.
Reduced Income Documentation and Reduced Employment Verification Documentation
This loan program is ideal for self-employed borrowers because income tax write-offs reduce the amount of revenue that the underwriter can consider and self-employed borrowers need to prove employment and income stability, usually back two years.
Verification of Employment (VOE)
- Employment and Income Doc Reduced from 24 Months to 12 Months Tax Return or 1 Year W2
- Use only 1 year Tax Return to get the approval you need for your next home purchase or refinance, First. Time Homebuyers (FTHB) included.
Employment Highlights
Self-Employed and/or W2 Wage Earner
- Full Doc loan, average the preceding 2 years. With this program, you have the flexibility to utilize last year only to avoid a lower two-year average.
- Interest Only Available to 85% LTV
LTV /Loan Amount, and Credit Score
- 90% to $2000000 – 680 FICO
- 85% to $2500000 – 680 FICO
- 80% to $3500000 – 660 FICO
Eligible Property Types /LTV
- Single Family Residence (SFR) – 90%
- Condo – Warrantable & Non-Warrantable – 85%
- Duplex – 85% LTV
- Townhome / Townhouse
- 2-Unit – 85% LTV
- 3-Unit – 80% LTV
- 4 Unit – 75% LTV
Eligible Occupancies
- Primary
- Second Home
- Investment Properties – 80%
- Cash Out or 85% Purchase / Rate & Term
Credit Highlights
- Minimum Credit Score: 640
- Chapter 13 Bankruptcy Seasoning – 12 Months Discharged
- Chapter 7 Bankruptcy – Seasoning – 24 Months Discharged
- Foreclosure – Two Years Discharged
- Short Sale – Two Years Discharged
- Loan Modification – Two Years Discharged
- Housing History: One 30-Day Late in Previous 12 Months
Credit Criteria and Notes:
- Two open tradelines With a Minimum of 2-Year History for the Primary Borrower. Unacceptable
- Tradeline Types Include Authorized User Account Deferred Payment School Accounts
- General Guideline Highlights
- First Time Home Buyer – OK
- Gift Funds – OK
- 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, Massachusetts, Michigan, 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.