Lite Doc and Reduced Doc Options:
* Lite Doc – 12-Month Income Documentation
Our alt doc mortgage loan program includes a Lite Doc option designed for borrowers who prefer simplified income documentation. This program allows qualification with just the previous 12 months of income records, offering two convenient paths: One year of W-2 forms paired with 30 days of paycheck stubs, or one year of tax returns combined with a year-to-date profit and loss statement (using the 4506-C form). This flexible approach is ideal for those who need a streamlined process to secure financing.
* Reduced Doc – 12-Month Employment Documentation
The Reduced Doc option in our alternative documentation mortgage loan program is ideal for borrowers who require less intensive documentation, while still maintaining a clear and verifiable record of their income and employment over the last 12 months.
The eligibility criteria for an alt doc mortgage loan program with a Lite Doc option typically include the following:
- Income Documentation:
- One year of W-2 forms plus 30 days of recent paycheck stubs, or
- One year of tax returns along with a year-to-date Profit and Loss (P&L) statement.
- Credit Score:
- Minimum credit score requirements vary by lender but generally range from 600 to 680 or higher.
- Loan-to-Value (LTV) Ratio:
- LTV ratios depend on the loan amount, property type, and borrower profile. Typically, higher LTVs are available for borrowers with better credit scores and lower debt-to-income ratios.
- Employment History:
- A stable employment history is usually required, with at least two years in the same industry or job.
- Debt-to-Income (DTI) Ratio:
- Lenders assess the borrower’s DTI ratio, with lower ratios improving eligibility.
- Property Type:
- The program may be available for various property types, including primary residences, second homes, and investment properties.
- Residency Status:
- Available to U.S. citizens, permanent residents, and, in some cases, foreign nationals with valid documentation.
These criteria may vary based on the lender’s specific requirements and the borrower’s unique financial profile.
As an alternative to the standard two years of income documentation, you have two options: either provide one-year W2 alongside 30 days of paycheck stubs year to date (YTD) or submit one year tax returns along with a year-to-date Profit and Loss (P&L) statement.
One Year Verification of Employment: | VOE:
Our alternative documentation mortgage loan program offers a Reduced Doc option, providing a simplified process for verifying employment for the previous 12 months. This program is designed for borrowers who prefer to meet minimum necessary requirements for an easy and clean mortgage approval.
Wage Earner Verification of Employment Options:
* Written (WVOE) and Verbal (VVOE) Verification
* * Written Verification of Employment / WVOE signed by the owner or direct supervisor.
* * Verbal Verification of Employment / VVOE
For wage earners, the program allows for various Verification of Employment (VOE) options. Borrowers can submit a Written Verification of Employment (WVOE) signed by the owner or direct supervisor, or opt for a Verbal Verification of Employment (VVOE), making the process flexible and accommodating.
Eligible Self-Employment Verification of Employment Options:
* Operating Agreement
* K1
* “CPA Letter” Provided by a Tax Professional such as a CPA, EA, etc.
* Internet Listing
You can provide an Operating Agreement, a “CPA Letter” from a tax professional such as a CPA or EA, or even an Internet Listing that confirms the existence and operation of their business. These options offer the flexibility needed for self-employed individuals to qualify for a mortgage.
Available Terms:
* 40 Year Fixed – with or without 10-Year Interest Only
* 30 Year Fixed – with or without 10-Year Interest Only
* ARMs – 5/1,7/1, 10/1
Borrower Residency Status: Available to U.S. citizens, permanent residents, and, in some cases, foreign nationals with valid documentation.
Credit Requirements:
* 3 open and active tradelines with a minimum 1-year history or 2 open and active tradelines with a minimum 2-year history
* 620 Minimum Credit Score. 640 Credit Score – 55% Debt-to-Income Ratio (DTI) OK
Major Derogatory Credit Requires Only 2 Years Seasoning
* Housing Payment History 1 30-Day Mortgage or Rent
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.