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
Credit Score – Max Loan Amount
* 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.
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