Income Documentation Alternative for the Well Qualified Self-Employed Borrower | Forms 406-T and 4506-C Not Required
January 2021
Stated Income Mortgage | Tax Returns Not Required | Form 4506T Not Required
Stated Income Mortgage loan program will be supported by the cash flow of bank statements and is for the Self-Employed borrower only.
Stated Income / Verified Assets SIVA
Primary Residence
Credit Notes:
7-year credit history - No Foreclosure, Bankruptcy, Short Sale, Loan Modification or consumer credit counseling
2 years clean credit history on mortgage and rent
No consumer debt lates - 1 year
Credit report must show a 2-year history of 2 or more open and active trade line accounts
Unlimited real estate properties owned, but 3 financed properties maximum
Employment Type:
Self Employed only - 25% ownership minimum
Employment verification:
Business license and or CPA letter depending on business industry showing 2-year minimum same line of business verifying the name of the business, the percentage of ownership business phone number will be verified by both 411 and or the internet
Asset Documentation
Stated Income / Verified Assets
Tax Returns not required
Required Asset Documentation:
Income is being "stated" on the 1003 Uniform Residential Application, but not verified by traditional income documents
2 months bank statements to verify liquid assets
If using rental income to qualify, must provide leases for all rental properties
All fixed income including retirement, annuities, dividends, Social Security, child support, alimony can be utilized to qualify
Liquidity requirements:
Verified assets must support the amount of income we are stating. Stated income amount should be proportionate to the cash flow of the bank statements
Loan Amount between $400,000 and $650,000 - Minimum liquid asset requirement: $100,000
Loan Amount between $650,000 and $1,000,000 - Minimum liquid asset requirement: $250,000
Loan Amount between $1,000,000 and $1,500,000 - Minimum liquid asset requirement: $500,000
Loan Amount between $1,500,000 and $3,000,000 - Minimum liquid asset requirement: $1,000,000
Additional Underwriting Guideline Summary
Property Types:
- Single Family Residence
- PUD
- 12 acres maximum
Eligible Borrowers:
- Permanent Resident Aliens
- Non-Permanent Resident Aliens
6 months title seasoning required for the subject property
Gift of equity not allowed
States:
Arizona | Alabama | California | Colorado | Florida | Georgia | Illinois | Lousiana | Maine | Maryland | Mississippi | Nevada | North Carolina | Oregon | Pennsylvania | South Carolina | Texas | Virginia | Washington
Reference #124 528alnexsiva04141