Lender: 5th Street Capital

Qualify With Just One Year of Tax Returns

Ideal for newly self-employed individuals. Flexible options for full documentation loans that don’t meet traditional conforming guidelines due to factors like FICO score, debt-to-income ratio (DTI), credit history, or unique property types.

Declining income will be considered with an LOE/ Letter of Explanation. Change in business structure (i.e.: schedule C to 1120).

* Switch from W2 to consulting/1099: we will consider less than 2 years.
* Note income with less than 12 months receipt verified.
* Declining income considered with a Letter of Explanation (LOE).
* Accommodates business structure changes (e.g., Schedule C to 1120).
* Transition from W2 to consulting/1099 with less than 2 years of history is considered.

Note income accepted with less than 12 months of verified receipts.

The 12-Month Personal Bank Statement Mortgage Loan Program allows borrowers to qualify using 100% of the borrower’s personally identified bank income deposits, excluding transfers between personal accounts, averaged over a 12-month period.

This program does not require tax returns or transcripts, simplifying the application process. Multiple accounts can be used, and under certain conditions, a combination of business and personal statements is allowed.

Additional income sources like W2 earnings or alimony/child support cannot be included in the averaged bank statement deposits but can be documented separately for qualification purposes. This program is designed for self-employed individuals looking for alternative mortgage options.

* 24 Months Personal Bank Statement Program

The 24-Month Personal Bank Statement Mortgage Loan Program allows borrowers to qualify based on 100% of their personal bank deposits, excluding transfers from other personal accounts, averaged over a 24-month period.

This program eliminates the need for tax returns or transcripts. Borrowers can use multiple accounts, and in some cases, a mix of personal and business statements is accepted.

Income from sources such as W2 earnings or alimony/child support cannot be included in the bank statement average but can be documented separately. This option is ideal for self-employed individuals seeking flexible mortgage solutions.

Business Bank Account Statements

The 12-Month Business Bank Statement Mortgage Loan Program allows borrowers to qualify using business bank deposits, with income calculated based on either the monthly net income from a P&L or after applying a 70% expense factor to total usable deposits.

P&L statements, covering the same 12-month period as the bank statements, must be prepared by a licensed tax preparer or neutral third party. The monthly gross revenue on the P&L must align with the bank statements, with deposits within 10% of the gross revenue.

No tax returns or transcripts are required. Multiple accounts can be used, and in some cases, a combination of business and personal statements is allowed. Additional income like W2 earnings or alimony cannot be averaged into the bank statements but can be documented separately. This program is suited for business owners needing alternative mortgage qualification options.

* 24 Month Business Bank Statement Mortgage Loan

The 24-Month Business Bank Statement Mortgage Loan Program allows borrowers to qualify based on business bank deposits. Income is determined by the lower of the following: the income listed on the signed 1003 form, or the monthly net income from a P&L or after applying a 50% expense factor to total usable deposits.

The P&L must be prepared by a neutral third party or licensed tax preparer and should cover the same 24-month period as the bank statements. The total monthly average deposits must be within 10% of the gross revenue on the P&L, ensuring accurate financial representation.

No tax returns or transcripts are required. Multiple accounts can be used, and exceptions may allow combining business and personal statements. Additional income like W2 earnings or alimony cannot be averaged but can be documented separately. This program is ideal for business owners seeking alternative mortgage qualification methods.

Resident Alien Mortgage

The Resident Alien Mortgage Loan Program allows individuals living and working in the U.S. to qualify for a mortgage without the need for citizenship. Borrowers must provide proof of a valid work visa that does not expire within two years or an Employment Authorization Card with supporting documents if expiration is near.

Applicants need a two-year history of living and working in the U.S., a valid social security number, and a U.S. FICO score. A 12-month housing history is also required, along with a minimum of three tradelines with recent activity.

Eligible visa types include B, E, H, L, P, J, and O, with other visas considered by exception. The qualification guidelines are similar to those for U.S. citizens.

Asset Depletion

The Asset Depletion Mortgage Loan Program allows borrowers to qualify for a mortgage using their assets to calculate income for Debt-to-Income (DTI) ratios. If sufficient assets are available, no tax returns are required for qualification.

Borrowers do not need to withdraw or pledge their assets, with only two months of bank statements required. The program is open to both self-employed and W2 borrowers, and it can be combined with full documentation or bank statement income, as long as the assets come from a separate account.

There are no age restrictions, making this a flexible option for borrowers with substantial liquid assets.

DSCR Loan Program

This Lenders DSCR (Debt Service Coverage Ratio) Mortgage Program allows investors to qualify based on the cash flow of the property, rather than personal income. This program uses a rental analysis to assess whether the property’s income covers the mortgage payment.

No personal income documentation, tax returns, or complicated financial statements are needed, simplifying the qualification process. This program is ideal for real estate investors looking for an easy way to secure financing based on property performance rather than personal earnings.

Foreign National Mortgage

The Foreign National Mortgage Loan Program is designed for individuals who are not U.S. residents and do not live or work permanently in the U.S. Borrowers must provide an unexpired passport from their country of citizenship to qualify.

Residents of countries restricted from doing business with U.S. companies, as determined by U.S. government authorities, are ineligible. Any required translations must be performed by a certified translator.

If the loan closing occurs outside the U.S., it must take place at a U.S. Embassy or Consulate. This program offers a financing option for foreign nationals looking to invest in U.S. real estate.

ITIN Investor Mortgage

The ITIN Investor Mortgage Loan Program is designed for individuals with an Individual Taxpayer Identification Number (ITIN) who live and work in the U.S. but are not U.S. citizens. Borrowers must provide a valid ITIN card and an unexpired government-issued photo ID, such as a driver’s license, passport, or visa.

Applicants must show a two-year history of living and working in the U.S., a valid U.S. FICO score, and a 12-month housing history.

To qualify, borrowers must meet minimum tradeline requirements: three tradelines with 12+ months of activity, two tradelines with 24+ months, or one tradeline with 36+ months of activity within the last year. This program offers an option for non-citizen investors seeking mortgage financing.

Lending in the Following States

Arizona, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Louisiana, Maryland, Michigan, Minnesota, Montana, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Washington, and Wyoming.