True Stated Income 2019

 

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Stated Income / Verified Asset mortgage program for borrowers that own their own business. Business entity types: c corporation, s corporation, LLC, partnerships.

Loan Scenario Form - Credit Check Not Required

Self-Employed Home Loan: An alternative to the "bank statement loan" program for the well-qualified self-employed borrower. You could say this is an equity-based loan program in that the max LTV would be 65%. You could also call it a "portfolio loan" or "Non-QM" mortgage.

On a refinance transaction, the purpose of a program like this is to improve the borrowers existing mortgage; Rate & Term refinance.

With a substantial down payment purchase or good equity-position refinance, excellent credit with liquid assets in the amount of at least 12 months housing expense reserves. It can be an alternative to a "bank statement loan" program for the well-qualified borrower.

Alternative income documentation for well-qualified self-employed borrowers

Self-Employed Mortgage Loans

California Only

Product Term: 7/1. Interest-Only payment is available.

Property Types:

  • Single Family Residence SFR 
  • PUD
  • Condos
  • 2-4 Units

Loan Amount / Credit Score / LTV Matrix

SFR

720 Credit Score

  • $1,000,000 - 65% LTV
  • $1,500,000 - 60% LTV
  • $2,500,000 - 55% LTV Condo

700 Credit Score

  • $750,000 - 60% LTV

2-4 Units

720 Credit Score

  • $1,500,000 - 55% LTV

Reserves Requirement

All Stated Income Loans require 12 Months P&I Principle & Interest for each property financed; exceptions are common with compensating factors

Stated Income / Asset Based (whichever is lower):

Stated Income on 1003 (reasonable for job position/job title) or

Verified Assets including down payment + / 6 = Income

Employment Verification Documentation

Self Employed

Proof of ownership - Business License, CTP CPA Letter verifying 2yrs+ ownership, etc.

Description ‐ Business, Industry, and Borrower's Title on 1003

W-2 Employee

VVOE Verbal Verification of Employment / Current Employment (1003 application) must show on credit report

Non-Owner Occupied Investment OK

2-4 Unites OK

Exception down to 700 Credit Score

Loan Amounts to $2,500,000

Loan Amount exceptions made to 11,500,000

Interest Only not available

No 4506T not required

Tax returns not required

Paycheck stubs not required

2 month Bank Statements

Liquid assets from the business is OK if 100% ownership

DTI Max 45%

Foreign Nationals OK

100% Gift funds OK and 60% Foreign National

Credit Notes

Previous housing payment history, 1 30-day late Maximum

3 open accounts on credit at minimum 1 year seasoned

"Housing event" seasoning

Bankruptcy - 3 years

Short Sale - 2 years

Foreclosure - 5 years

 

Reference # 123-34c52-100717