True Stated Income 2024 | Forms 4506-T and 4506-C Not Required
An alternative to the “bank statement loan” program for the well-qualified self-employed borrower. You could say this is an equity-based loan program in that the max LTV would be 75%. You could also call it a “portfolio loan” or “Non-QM” mortgage.
Self-Employed Home Loan Income and Employment Documentation
Stated Income / Verified Asset mortgage program for borrowers that own their own business. Business entity types: C corporation, S corporation, LLC, partnerships. Employment and income sections on application left blank; No Ratio Alt Doc. Submit your loan scenario for Loan Officer review. (credit check not required!)
Self-Employed Home Loan Income and Employment Documentation
Stated Income / Verified Asset mortgage program for borrowers that own their own business. Business entity types: C corporation, S corporation, LLC, partnerships. Employment and income sections on application left blank; No Ratio Alt Doc. Submit your loan scenario for Loan Officer review. (credit check not required!)
On a refinance transaction, the purpose of a program like this is to improve the borrower’s existing mortgage, Rate & Term refinance.
With a substantial down payment purchase or good equity-position refinance, excellent credit with liquid assets in the amount of at least 12 months housing expense reserves. It can be an alternative to a “bank statement loan” program for the well-qualified borrower.
* California Only
Acceptable Self Employment Proof of Ownership
* Business License
* Business Certificate
* CPA Letter verifying 2yrs+ ownership including % of ownership, etc.
* EA Letter verifying 2yrs+ ownership including % of ownership, etc.
* Description ‐ Business, Industry, and Borrower’s Title on 1003
Product Term: 7/1. Interest-Only payment is available.
Eligible Property Types:
* Single Family Residence SFR
* PUD
* Condos
* 2-4 Units
Loan Amount / Credit Score / LTV Matrix
| Credit Score | Loan Amount | Loan-to-Value | Property Type |
|---|---|---|---|
| 720 | $4,000,000 | 90% LTV | Single Family Residence |
| 700 | $3,500,000 | 85% LTV | Single Family Residence |
| 700 | $4,000,000 | 80% LTV | Single Family Residence |
| 700 | $5,000,000 | 70% LTV | Single Family Residence |
680 Credit Score
* $750,000 – 60% LTV
720 Credit Score
* $3,000,000 – 65% LTV
* $2,000,000 – 70% LTV
* $1,500,000 – 75% LTV
700 Credit Score
* $2,500,000 – 65% LTV
* $2,000,000 – 70% LTV
* $1,000,000 – 75% LTV
680 Credit Score
* $2,000,000 – 60% LTV
* $1,500,000 – 65% LTV
* $1,000,000 – 70% LTV
Reserves Requirements:
All Stated Income Loans require 12 Months P&I Principle & Interest cash reserves for each property financed. Exceptions are common with compensating factors.
Stated Income / Asset Based (whichever is higher):
Stated Income on 1003 (reasonable for job position/job title) or
Verified Assets including down payment + / 6 = Income
Employment Verification Documentation
W-2 Employee – VVOE Verbal Verification of Employment / Current Employment (1003 application) must show on credit report,
Underwriter Notes and Highlights
* Non-Owner-Occupied Investment OK
* 2-4 Units – OK
* Exception down to 700 Credit Score
* Loan Amounts to $2,500,000
* Loan Amount exceptions made to 15,000,000.
* Interest Only not available
* No 4506T not required.
* Tax returns not required.
* Paycheck stubs not required.
* 2-month Bank Statements
* Liquid assets from the business are OK if 100% ownership.
* DTI Max 45%
* Foreign Nationals OK
* 100% Gift funds OK and 60% Foreign National
Credit Notes:
* Previous housing payment history, 1 30-day late Maximum
* 3 open accounts on credit at minimum 1 year seasoned.
“Housing Event” Seasoning Requirements:
* Bankruptcy – 3 years
* Short Sale – 2 years
* Foreclosure – 5 years
Underwriter Notes:
* Exception down to 660 Credit Score
* Maximum loan amounts – $5,000,000. Loan amount exceptions made to 15,000,000
* Interest Only – Available
* No 4506-C Not Required
* Foreign Nationals OK
* 100% Gift Funds OK
* Maximum LTV 70% for Foreign National
Available in the Following States:
California
Reference # 123-34c52-100717