Non-Prime Mortgages Niches

Parent Category: Unconventional Mortgages
Category: Non Qualified Mortgages
Published: 16 June 2018
Created: 16 June 2018
Last Updated: 11 October 2022

Self-Employed Borrower Bank Statement Loan Program

This mortgage program is for self-employed borrowers who write off too much on their taxes or do not do their taxes. Only your bank statements required tax returns are not.

Reserve Requirements

Flexible lenders will accept 100% of deposits to the borrower's business, personal or commingled accounts along with an unaudited borrower prepared profit and loss statement. Borrower prepared is how it is written in the underwriter guidelines.

Non-Prime-like Guidelines

This program also allows for one 30-day mortgage late in the last 12 months and in terms of credit depth, requires only two trade lines. Qualification is based on a two months bank statements or 24-month average of all deposits with no "business deductions, subtracted from bank statements no business deductions subtracted. No other lenders will do that this makes it a little easier for a self-employed borrower to qualify for a mortgage loan. 2 months bank statements bank statement qualification guidelines are extremely lenient.

Accommodating Lender Program Guidelines

2 months bank statements are ideal for the self-employed borrower that has too many Non-Sufficient Funds (NSF) on month 3, 4, and 5. We only need two months.

12 Months or 12 Months Bank Statement Income Documentation Matrix:


740 Credit Score

  • Maximum Loan Amount: $4,000,000 wand 12 Months Reserves to 85% LTV

  • Maximum Loan Amount: $3,500,000 with 9 Months Reserves to 85% LTV

  • Maximum Loan Amount: $3,000,000 with 9 Months Reserves to 80% LTV

  • Maximum Loan Amount: $2,500,000 with 6 Months Reserves to 80% LTV

  • Maximum: Loan Amount: $2,000,000 with 6 Months Reserves to 85% LTV

  • Maximum Loan Amount: $1,500,000 with 4* Months Reserves to 85% LTV


700 - 739 Credit Score

  • Maximum Loan Amount: $4,000,000 wand 12 Months Reserves to 85% LTV

  • Maximum Loan Amount: $3,500,000 with 9 Months Reserves to 85% LTV

  • Maximum Loan Amount: $3,000,000 with 9 Months Reserves to 80% LTV

  • Maximum Loan Amount: $2,500,000 with 6 Months Reserves to 80% LTV

  • Maximum: Loan Amount: $2,000,000 with 6 Months Reserves to 85% LTV

  • Maximum Loan Amount: $1,500,000 with 4* Months Reserves to 85% LTV


660 - 699 Credit Score

  • Maximum Loan Amount: $3,500,000 wand 12 Months Reserves to 80% LTV

  • Maximum Loan Amount: $3,000,000 with 9 Months Reserves to 80% LTV

  • Maximum Loan Amount: $2,500,000 with 9 Months Reserves to 75% LTV

  • Maximum Loan Amount: $2,000,000 with 6 Months Reserves to 75% LTV

  • Maximum: Loan Amount: $1,500,000 with 6 Months Reserves to 80% LTV

  • Maximum Loan Amount: $1,000,000 with 4* Months Reserves to 80% LTV


640 - 659 Credit Score

  • Maximum Loan Amount: $3,500,000 wand 9 Months Reserves to 75% LTV

  • Maximum Loan Amount: $3,000,000 with 6 Months Reserves to 70% LTV

  • Maximum Loan Amount: $2,500,000 with 6 Months Reserves to 70% LTV

  • Maximum Loan Amount: $2,000,000 with 3 Months Reserves to 70% LTV

  • Maximum: Loan Amount: $1,500,000 with 3 Months Reserves to 65% LTV

  • Maximum Loan Amount: $1,000,000 with 3 Months Reserves to 65% LTV


620 - 639 Credit Score

  • Maximum Loan Amount: $2,000,000 wand 12 Months Reserves to 75% LTV

  • Maximum Loan Amount: $2,000,000 with 9 Months Reserves to 70% LTV

  • Maximum Loan Amount: $1,500,000 with 9 Months Reserves to 70% LTV

  • Maximum Loan Amount: $1,000,000 with 6 Months Reserves to 70% LTV

  • Maximum: Loan Amount: $750,000 with 6 Months Reserves to 70% LTV

  • Maximum Loan Amount: $750,000 with 6 Months Reserves to 70% LTV


600 - 619 Credit Score

  • Maximum Loan Amount: $2,000,000 wand 12 Months Reserves to 75% LTV

  • Maximum Loan Amount: $2,000,000 with 9 Months Reserves to 70% LTV

  • Maximum Loan Amount: $1,500,000 with 9 Months Reserves to 70% LTV

  • Maximum Loan Amount: $1,000,000 with 6 Months Reserves to 70% LTV

  • Maximum: Loan Amount: $750,000 with 6 Months Reserves to 70% LTV

  • Maximum Loan Amount: $750,000 with 6 Months Reserves to 70% LTV


580 - 599 Credit Score

  • Maximum Loan Amount: $750,000 wand 12 Months Reserves to 75% LTV

  • Maximum Loan Amount: $750,000 with 9 Months Reserves to 70% LTV

  • Maximum Loan Amount: $1,000,000 with 9 Months Reserves to 70% LTV

  • Maximum Loan Amount: $1,250,000 with 6 Months Reserves to 70% LTV

  • Maximum: Loan Amount: $750,000 with 6 Months Reserves to 70% LTV


Credit Notes

  • Minimum credit score: 580
  • No mortgage lates allowed previous 24 months
  • Housing credit event (bankruptcy, foreclosure, short sale, loan modification: 36 months
  • Minimum tradelines 2 open and active minimum of 12 months


Cash-Out Limits

  • Maximum LTV - 85%
  • Loan amount > $1,500,000 Maximum LTV - 80%

Property Types

  • Single Family Residence
  • Condominium (non-warrantable condominium maximum loan amount - $2,000,000)
  • 2-4 Units - Maximum LTV - 85%

Debt-to-Income (DTI)

  • 55%

Terms Available

  • ARM's - 5/1 LIBOR, and 7/1 LIBOR
  •  Fixed - 15 Year, and 30 Year
  • Interest Only - Interest Only - 120 month term - Recast to 30 Year Fixed

 

Available in the Following States:

Alabama, Arizona, Arkansas, California, Colorado, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Montana, New Jersey, Nevada, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.

Please note, we have dozens of bank statement loans that cover all 50 states except Massachusetts and New York.