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)

Eligible Transactions:

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.

Gift Money

  • 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

Stated Income

  • 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

Self-Employed Borrowers

  • 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