12 Months Income Alternative to 24 Months
As an alternative to the standard two years of income documentation, we have two options for you: either provide one year W2 alongside 30 days of paycheck stubs year to date (YTD), or submit one year tax returns along with year to date Profit and Loss (P&L) statement. Form 4506-C is Required. One year business seasoning required.
Lite and Reduced Doc Options:
- Previous Year W2 + 30 Days paystubs with YTD
- Previous Year -Form 1099(s) + YTD P&L
- Previous Year Business and Personal Returns (extension OK)
- P&L – Prepare by a licensed tax professional. Must include license number and on company letterhead
Reduced Doc – One Year Employment History Verification Options:
- Article of Incorporation/ Operating Agreement
- CPA Letter stating % of Ownership number of years in existence
Wage Earner Verification of Employment Options:
- Written Verification of Employment (WVOE), endorsed by the Owner, Company Officer, or Direct Supervisor.
- Verbal Verification of Employment (VVOE) with contact details for the HR department, including a phone number for verbal confirmation.
- Small Business: Direct Supervisor Phone Number
Evidence One Years Self-Employment Options:
- Tax Professional such as a CPA, EA, Professional Bookkeeper
- Internet Listing – Verify Phone Number and Business Address via Third Party resource, Manta, etc.
Available Terms:
- 30 Year Fixed Rate, 5/1, 7/1, 10/1 ARMS’s
- 10-Year Interest Only
- 20 Year Amortization
- 40 Year Fixed Rate, 5/1, 7/1, 10/1 ARMS’s with or without 10-Year Interest Only
- 30 Year Amortization with or without 10-Year Interest Only
Required Credit Criteria & Highlights:
** 50% Debt-to-Income Ratio (DTI) 620 Minimum Credit Score
** 55% Debt-to-Income Ratio (DTI) 660 Minimum Credit Score
** Seasoning for Major Derogatory Credit Requires Only 2 Years Seasoning
** Housing Payment History 1 30-Day Mortgage or Rent
** Investors – Unlimited Financed Properties -OK
Available in the Following States:
Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Nevada, New Jersey, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Virginia, and Washington.