Self-Employed | Verification of Employment
Portfolio Lenders Now Offer Non-Qualified Mortgages for Both Owner-Occupied and Non-Owner Occupied transaction. This program is very similar to a Stated Income loan program. What makes it very unique is that it is for owner-occupied/primary residence - No income stated/No DTI. On this loan program, DTI is not part of the Qualifying Criteria. We also have No Ratio loan programs. Employer Contact Information to be provided for Verification of Employment (VOE)
Purchase, R/T Refinanc and Cash Out Refinance. Cash out Letter of Explanation: Short, simple and concise explaining the reason for the cash-out and use of funds.
Loan Submission Checklist
- Completed Uniform Loan Application (1003) including . No Statement of Employment or Income on the1003
- Credit Report (within 60 days for a Purchase loan and and Refinance is 45 days)
- "CPA Letter": CPA/Accountant/tax preparer's letter needs to include the following criteria:
- Business Inception Date
- No material COVID-19 Impact on ability to make mortgage payments
- Ownership Percentage
- Dated and signed on firm's letterhead and must include signer's contact information
- CPA/Accountant/Tax Preparer must have a valid PTIN (preparer tax identification number)
- 1040 page 1 - Screenshot up to and including dependents. Loan Officer will not (send to lender/underwriter) include income from 1040 nor will it appear on borrower application. (Required for CDFI Exemption)
- Valid Government issued ID: Driver's License, Passport, EAD expiring in <60 days must include proof of reapplication / valid Visa (if applicable), along with Social Security card
- Letter's of Explanation (LOE) for any derogatory credit for all late payments, derogatory accounts, credit inquiries, physical addresses, name variation on credit report signed and dated, where applicable.
- Valid Government issued ID: Driver's License, Passport, EAD expiring in <60 days must include proof of reapplication / valid Visa (if applicable), along with Social Security car
- Purchase Agreement - Unexecuted agreement may be submitted initially. Fully executed agreement must be provided prior to CTC
- Social Security Administration Authorization disclosure (SSA 89) – Must be wet-signed by the borrower
- Earnest Money deposit and paper trail, if available.
- Bank Statements – most recent two months statements or one quarterly statement for each account
For any large deposits other than those clearly indicating they came from a depository institution titled to borrower, borrower may need to provide a letter of explanation and supporting documentation, Underwriter discretion. Any undocumented/unsourced single and/or cumulative deposits over the $75,000 a month limit within the transaction period might be deducted from the qualifying "income" and assets. Some Underwriters will often allow for a simple Letter of Explanation (LOE) in lieu of the aforementioned.
- Gifts - Provide complete, signed, and dated Gift Letter along with supporting documentatioN
- For Condo/Co-op – Project Questionnaire can be provided by your Loan Officer
- For Refinances – provide Current Mortgage Statement (if taxes and/or insurance not escrowed, provide most recent statements)
- Motivation Letter if applicable
- Lender Attestation of No-Forbearance
- Income Documentation: Product-Dependent
- Self-Employed Borrowers and Real Estate Investors
- Self-Employment and "income" Information and Monthly Income must be Stated on the application
- Owner-Occupied Stated Income and Owner-Occupied Investor No Doc and Lite Doc
- Borrower Prepared Unaudited Profit & Loss Statement,, no CPA or 3rd part Verification Signature - 12-month. Borrower Prepared and Unaudited P&L statement for the period ending within 60 days of loan closing date (optional)
- Debt Service Coverage (DSCR) Programs
- Investor DSCR Loan Programs - up to 80% LTV, Cash Out.
- For the Debt Service Coverage RatioCompleteCalculation Worksheet
- Initial Disclosures:
- Borrower Statement of Occupancy
- Borrower Statement of Business Purpose