Self-Employed Home Loan Program
This kind of loan product is for the Self-Employed borrower that can produce a 1-year P&L along with a letter from their tax professional verifying 2+ years of self-employment history in lieu of traditional tax returns and also can be an alternative to a “bank statement loan” for the well-qualified borrower.
Self-Employed Home Loans – All Income Documentation Programs
Product Term: 7/1
Forms 4506-T and 4506-C Not Required
Self-Employed Income Documentation Options:
- Low Doc: Income documentation type: 1-year profit and loss statement
- 24-month P&I Principal and Interest Reserves for Subject Property only
Documentation Options and Highlights
- 680 Credit Score – $1,000,000 | 70% LTV
- 700 Credit Score – $1,500,000 | 65% LTV
- 720 Credit Score – $2,500,000 – 60% LTV
- 680 Credit Score – $1,000,000 | 65% LTV
- 700 Credit Score – $1,500,000 | 60% LTV
- 670 Credit Score – $1,500,000 | 60% LTV
Documentation Options and Highlights
- YTD and prior year P&L completed by an unverified independent third‐party.
- Business License or CPA Letter verifying 2 years 25% ownership.
- 4506-T not required.
- Tax returns not required.
- Paycheck stubs not required.
- 2-month Bank Statements
- 6 Months Purchase Seasoning required for Cash Out Refinance
- 12 Months P&I in US Financial Institution
- Non-Owner Occupied OK
Credit History Notes:
- Previous Housing Payment History, 1 “30 day late” maximum
- 3 open accounts on credit at minimum 1 year seasoned.
- Housing Event” Seasoning
- BK – 3 years
- Short Sale – 2 years
- Foreclosure – 2 years
Underwriter Notes:
- No Reserves Requirement
- Foreign Nationals
- Liquid assets from the business are OK if 100% ownership
- W2 (co) borrower: Written Verification of Employment
- LTV <60% Loan amount to $1,000,000 – 6 months Principal and Interest payment
- LTV >60% – 12 months Principal and Interest payment
- Passport, I‐94 & valid VISA (F‐1 and F‐2 type not allowed)
- Passport & either I‐94W or proof of ESTA Approval on VISA Waiver Program
- Borrowers must have a U.S. address at the time of application.
- Foreign down payment, closing costs, and/or reserves must be transferred to U.S. institution.
- Automatic Debit payment from U.S. institutions
- 12-month P&I reserves deposited prior to funding
- 100% Gift funds OK and 60% Foreign National
Eligible Property Types:
- SFR Single Family Residence and PUD
- Condos
- 2 – Units
- 3 – Units
- 4 – Units
Available in the Following States:
California, Colorado, Florida, Georgia, Oregon, Texas, Tennessee, and Washington.
545 c277 12041
Last Updated on 2 months ago by Broker Mortgages