Primary Borrower – Self-Employed Home Loan
Bank Statement Loans are ideal for self-employed borrowers, defined as those with at least 25% ownership in a company.
Alt Doc (24 months) – Bank Statement Program
These programs focus on bank statement revenue and cash-flow, making them suitable for unique financial situations or the typical (deposit income into the Business Bank Account and then transfer funds to your Personal Bank Account to pay bills, etc.) financial situation.
Bank Statement Loans and Options:
* 1 Month – Personal Account
* 2 Months – Business Account (exceptions made)
* 3 Months – Business or Personal Account(s)
* 6 Months – Personal Account(s)
* 12 Months – Personal Account
* 24 Months – Business Account
Reduced Doc (12 Months Employment Verification) Options:
* 1-year W2 or 1 year 1099 in lieu of the standard 2-year income history and employment history verification requirements including full Tax Returns with all Schedules
* 4506-C is executed but for only the 1 year W-2. Not the previous year.
* 4506-C is not executed for the self-employed borrower
Lite Doc (12 Months Income Documentation) Options:
* 1-Year Tax Returns instead of the standard 2-year requirement
* 1 Year P&L Profit and Loss Statement
* * Borrower Prepared and Unaudited
* Asset Depletion Blended Income
* Reserves: 24 Months Reserves seasoned 3 Months or VOD | Verification of Deposit (2-month average)
Eligible Property Types:
* Single Family Residence
* Condominiums > 4 stories, Condominiums – High Rise OK, Townhouses, 1-2 Units, 2-4 Units, Duplex
Eligible Occupancies:
* Owner Occupied
* Second Home
* Non-Owner Occupied
Available Terms:
* ARM’s: 3/1, 5/1, 7/1, 10/1, Fixed Rates: 15 Year, 20 Year, 30 Year
Underwriting Highlight Detail Notes
* Primary Borrower must: be Self-Employed | W2 Co-Borrower – OK
* Self-Employed is Defined by 25% Ownership in a Company
* Bank statement revenue, cash-flow centric
* 600 Credit Score to 80% LTV
* DTI – 50%
* 3 previous 30-day Mortgage Lates within Previous 12 Months OK
* 1-60-day Previous Mortgage Late within the Last 12 Months – OK
* Short Sale, 1 day seasoned
* Foreclosure, 1 year seasoned
* Bankruptcy, 1 year seasoned
Gift Funds for down payment OK if from an immediate family member or it must be 60 days seasoned (exceptions with other compensating factors)
Available in the Following States:
Alabama, Arizona, California, Florida, Georgia, Maryland, Massachusetts, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington.