One-Year Lite Doc Program for Self-Employed Borrowers
This One-Year Lite Documentation Loan Program is designed for self-employed borrowers and small business owners who need an alternative to full income verification.
Income guidelines also ideal for borrowers adding a W-2 wage earner income as an additional source of income or as a co-borrower.
Alt-Doc Loan with Bank Statements
Program Guideline Highlights
* W2 Second Job or Co Borrower – OK (IRS Form 4506-C is Required)
* Minimum Credit Score: 620 (middle score)
* Max LTV: 75% for general qualification
* Purchase or Rate/Term Refinance: Up to 85% LTV with a 680 credit score
* Out Refinance: Up to 80% LTV, 640 credit score, and $1,000,000 maximum cash-in-hand
Income Documentation Requirements
12-Month Personal Bank Statement Loan
This program uses 12 months of personal bank statements to verify income, rather than traditional tax returns.
Profit and Loss Statement (P&L)
Borrowers submit a self-prepared, unaudited P&L statement to support bank statement income. This provides a clear financial summary without requiring full tax documentation.
How the Expense Factor Works Breakdown
* An Expense Factor is applied to bank statement income to calculate qualifying income. This percentage is: Determined by the Loan Officer
* Reviewed and approved by the underwriter
* Based on the borrower’s business type and operational scope, outlined in the Business Narrative Form
* This tailored approach allows more accurate evaluation per your specific industry and local market
Additional Income Evaluation Options
Asset Depletion Income may be used to enhance loan qualification
VOE (Verification of Employment) may be required from a CPA, Enrolled Agent, or professional tax preparer. Must include percentage of business ownership and verification of at least one year of filed self-employed tax returns.
Credit Guidelines
* Two 30-day mortgage lates in the past 12 months – OK
* Own up to 20 financed properties – Eligible
* Asset depletion allowed for both W-2 and self-employed borrowers
Available in the Following States
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Kansas, Massachusetts, Missouri, Nevada, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Vermont, Virginia, Washington, and Wisconsin.