True Stated Income 2019
Stated Income / Verified Asset mortgage program for borrowers that own their own business. Business entity types: c corporation, s corporation, LLC, partnerships.
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
Product Term: 7/1. Interest-Only payment is available.
- Single Family Residence SFR
- 2-4 Units
Loan Amount / Credit Score / LTV Matrix
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
720 Credit Score
- $1,500,000 - 55% LTV
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
Proof of ownership - Business License, CTP CPA Letter verifying 2yrs+ ownership, etc.
Description ‐ Business, Industry, and Borrower's Title on 1003
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
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