Self Employed 1099 Only and Bank Statement Home Loans
The Non-QM Mortgage Loan Program offers flexible solutions for self-employed borrowers, including 1099-only for Sole Proprietor and bank statement home loans for the self-employed. Perfect for those with non-traditional income, this program simplifies the qualification process.
Prime Bank Statement Loan
Self Employed borrowers like yourself can document income by providing between 1 and 24 consecutive months of their most recent bank account statements and/or 1-year Reduced Doc, or 2 years Alt Doc 1099 Only programs as an alternative to conventional regulation and requirements support income and if there is a “wage earner borrower”, too, primary or co-borrower, this applicant uses their W-2 and paystub for income documentation because this bank statement loan program does not have a prepayment penalty, borrower can refinance at any time to obtain a lower rate or take cash out.
Bank Statement Loan 620 Credit Score
The Non-Prime Bank Statement Loan is designed for borrowers with a 620+ credit score seeking flexible financing options. This program uses bank statements to verify income, eliminating the need for traditional documentation.
We also offer 3-year terms for borrowers with longer-term projects as well as traditional bridge funding. An investor can close in a natural person’s name or business entity.
Non-Prime 1099 Only
This non-prime loan program is for sole-proprietor home buyers and homeowners that have a few late payments or recently experienced a “credit event” such as a bankruptcy or “housing event” such as a foreclosure, or short sale. Non-Prime mortgages are not only for challenged credit borrowers, but also good and excellent credit borrowers that require a higher risk and more aggressive loan program; 95% LTV Cash Out refinance would be one example.
1099 Only Loan Also Available – 620 Credit Score
1099 Only programs available with a 620 middle credit score and $3500 Disposable Income. If you are an independent contractor and file Schedule C only your 1099 for income instead of your tax returns W-2s paycheck stubs profit-and-loss statements. Multiple 1099s– okay.
Cash Out to $1,500,000 (cash-in-hand)
Cash-out refinancing is available, with a maximum cash-out limit of $1,500,000. No 4506-T or 4506-C forms are required, streamlining the application and documentation process.
Verification of Self-Employment | VOE
* Third party CPA Letter – The “CPA letter” does not need to be the same CPA that filed your taxes. Any (CPA) or Enrolled Agent (EA) – OK!
* Applicable Industry License – License Regulator
* License Bureau or equivalent
* Business Registration Certificate
* Business Tax Certificate
* Buyer License
* Blacked Out Schedule C
* Internet Listings
Wage-Earner Employment Verification
Verbal Verification of Employment (VVOE) – Super simple and fast. A phone call is placed by the lender to your HR department or equivalent manager.
Written Verification of Employment (WVOE) – Standard VOE Form to be completed by your pay-roll department manager, HR department manager or equivalent dated no more than 10 business days before the close date.
Acceptable Types of Employment:
* Self Employed (=>25%)
* W-2 Wage Earner (W2 Salary, Hourly, Commission)
Guidelines and Highlights:
* Alternative Documentation “Alt-Doc”
* W-2 Wage Earner (W2 Salary, Hourly, Commission)
* Bank Statements,1099 Only and Asset Depletion
* Loan to Value ratio (LTV): 80%
* Debt to Income Ratio (DTI): 50%
* Maximum Loan Amount: $2,500,000
Alternative and Full Doc Income Documentation:
* Unconventional – 12 months Bank Statements for self-employed. and/or
* Conventional – W-2 and paystub for wage earners
Credit Scores & Credit Criteria
* Mortgage History – 1 30-Day late previous 12 months
* Bankruptcy Seasoning: – 1 Day
* Foreclosure Seasoning – 1 Day
* Short Sale Seasoning – 1 Day
* Credit Scores: 580 Minimum
Eligible Property Types:
* Single Family Residence (SFR), 1-2 Units, 2-4 Units
Eligible Occupancies:
* Owner-Occupied, Owner-Occupied/ Investment, Non-Owner-Occupied/ Primary, Non-Owner-Occupied Investment, Second/Vacation Home
Available Terms:
* 30-Year Fixed, 15-Year Fixed, 7 Year ARM
* No Prepayment Penalty
Available in the Following States:
Arizona, Colorado, California, Delaware, Florida, Georgia, Hawaii, Illinois, Maryland, Nevada, North Carolina, Oregon, South Carolina, Tennessee, Texas, Utah, and Washington.
Reference# 535 06131519-16-12-16