1 Month Bank Statement Loan for Self-Employed Borrowers
This 1-Month Bank Statement Loan is a convenient solution for self-employed individuals seeking flexible income documentation. This Non-QM program relies heavily on the borrower’s credit history, offering a simplified qualification process. With a 50% debt-to-income (DTI) ratio and no requirement for cash reserves, it eliminates the need for traditional tax transcripts like the 4506-T or 4506-C forms.
Non-Qualified Mortgage Program
Designed for borrowers who need alternative income verification, this program streamlines the approval process while maintaining competitive terms. If you’re self-employed and looking for a straightforward way to secure financing, this loan option could be the perfect fit.
1 Month Bank Statement Loan: Flexible Financing up to 85% LTV
The 1-Month Bank Statement Loan can be a solution for self-employed borrowers, allowing income verification through a single month’s bank statement. With loan-to-value (LTV) ratios up to 85%, this program offers significant borrowing power with minimal documentation.
The Income is stated and is not calculated (No Ratio) from the One-Month Bank Statement. The main Bank Statement Qualifying Criteria is the Account 1) must end in a positive balance with no NSF’s.
Self-Employed – Non-QM One Month Bank Statement Program
This One-Month Bank Statement Program is Weighed Almost Entirely on the Credit History of the Borrower and Again is Stated with a 50% Debt-to Income (DTI) Ratio and Cash Reserves are not required. No 4506-T form means no tax transcripts. Form 4506-C now not required
What is a 1-Year VOE?
One Year VOE means your qualifying criteria is based only on the one, most recent year period instead of the standard two-year history. Qualifying in terms of income and of the One Year the method of verification can be a little inconvenient.
Verification of Employment
One of the most critical parts of the approval criteria for a Non-QM loan alt doc program is the official Verification of Employment. 2-year history does need to be verified and is often very easy and convenient when done properly with the ideal method via any of the following:
Verification of Employment (VOE) Options
- Business License
- CPA Letter
- EA (Enrolled Agent) Letter
- Articles of Incorporation
- Articles of Business Organization
- Government Agency Certificate
- Sellers License
- 4506-C Not Required
Purpose: Purchase, Rate/Term and Cash Out for Single Family Residence
Jumbo Loan Amounts: $4,000,000 – Owner-Occupied Only:
- Credit Score 620 – Purchase: 70% LTV to $750,000, Cash-Out Refinance: 65% LTV to $500,000
- Credit Score 640 – Purchase: 70% LTV to $1,000,000, Cash-Out Refinance: 65% LTV to $1,000,000
- Credit Score 660 – Purchase: 75% LTV to $2,000,000, Cash-Out Refinance: 70% LTV to $1,500,000
- Credit Score 680 – Purchase: 80% LTV to $2,500,000, Cash-Out Refinance: 75% LTV to $2,000,000
- Credit Score 700 – Purchase: 85% LTV to $3,000,000, Cash-Out Refinance: 80% LTV to $2,500,000
- Credit Score 720 – Purchase: 85% LTV to $3,500,000, Cash-Out Refinance: 75% LTV to $3,000,000
- Credit Score 740 – Purchase: 90% LTV to $4,000,000, Cash-Out Refinance: 80% LTV to $3,500,000
Eligible Property Types:
- Single Family Residence – Attached (SFR)
- Single Family Residence – Detached (SFR)
Credit Report Requirements:
- Clean mortgage history – 5 years seasoned (24-month history verification)
- Minimum Credit Score – 620
Depth Criteria:
- Two open account tradelines >1 year seasoning
- One open account tradeline >3 years seasoning
“Housing Event” Seasoning Requirements:
- Charge-offs, collections, tax liens – 1 day
- Bankruptcy
- Chapter 7 – 12 months
- Chapter: 13 – 24 months
- Foreclosure – 24 months
- Short Sale – 24 months
- Deed-In-Lieu – 24 months
- Consumer Credit Counseling – 24 months
Available in the Following States:
Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington.
Last Updated on 4 weeks ago by Broker Mortgages