Bank Statement Business Description for Bank Statements + 1099 Only Programs
Income and Employment Documentation
- 12 or 24 Most Recent Consecutive Monthly Bank Statements. Must verify all parties on bank account(s) will be on the Note, Otherwise an underwriter exception would be needed
- Most Recent 2 Months of Business Bank Statements - If No Business Account Available
Personal Bank Statements
- When using Personal Bank Statements, most recent 3 Months consecutive Business Bank Statements will be needed to illustrate revenue flow.100% of Deposits Taken for Income – Must Evidence
- Activity to Support Business Operations and Reflect Transfers to Personal Account. If Deposits Are Not Evidence of Business Account Transfers, or
Business Bank Statements
- Most Recent 12 or 24 Months of Business Bank Statements. Properly qualifying your bank statements and calculating your income
- Rental Income: Schedule E or leases and bank statements showing rental income deposits
- Liquid assets for reserves and/or supplemental income if applicable
- Business Description
Verification of Employment Documents (VOE)
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Business Description Letter
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Letter of Explanation Summary Letter Business Overview (Template Loan Officer).
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Borrower must supply a hand-written statement clearly describing the nature of the business and the income it generates, including an explanation of expenses and Expense Factor.
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SS89 completed by the borrower and wet-signed and dated
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CPA, Tax-Preparer, or Licensing Bureau Verifying 2-Year Self-Employment
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CPA or Tax-Preparer "Expense Ratio Letter" (when applicable)
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Example: If Business Expense Statement Letter Indicates a 25% Expense Ratio, Then 75% of Net Qualified Deposits Will Be Used Towards Qualified Income
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Business Must be in Existence for 2 Years, Verified Through CPA, Tax-Preparer, Licensing Bureau, or Website
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Etc.
Liquid Asset Statements:
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Checking, Savings, Money Market, COD showing source of down payment, closing costs, settlement costs, and reserves
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Cash Value Retirement Accounts,
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Cash Value Trust Fund Accounts
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Statements on Accounts Not Used for Income
Real Estate Owned (REO)
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Statements on all mortgages
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Homeowners Insurance Dec page (HOI)
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Homeowners Association Statement (HOA)
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Tax Statement (See Loan Officer)
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Purchase contract If purchase loan
- Recent Property Tax Bill
- Property Profile(s) if refinance
| Loan Scenario Form - Credit Check Not Required |
Available in the following states:
Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Louisiana, Maine, Mississippi, Missouri, Nevada, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin