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 defined as >25% Ownership to qualify as “self-employed”.
Bank Statement and Asset Depletion
* 3 Alt Doc and 3 Reduced Doc
* 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 makes sense
* Asset Depletion (Quantify Additional Qualifying Income), Asset-Based. Pledged Asset Portfolio Programs Also available.
Reduced Doc: Unseasoned Job/Profession History and Income
Loan Scenario Form- No Cost – No Credit Check *
Self-Employed and Co-Borrower 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
Available in the Following States:
Alabama, 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.