Full Self Employed Guidelines

 

Non-Prime - Consumer Purpose – Owner Occupied (TRID compliant)

  • Up to 95% LTV (no MI)
  • Rates from 3.990% at PAR (50% LTV) to 7.375% at PAR (95% LTV)
  • MAX DTI
    • 43% at 90.01-95% LTV
    • 50% at 80.01-90% LTV
    • 55% up to 80% LTV
  • EIGHT ways to document income (ATR)
    1. Full Doc: W-2’s & Paystub, 1040’s
    2. Alt Doc: 12- or 24-months bank statements.
    3. VOE Only Program (for NON-self-employed borrowers only): Verifiable VOE from Employer (not self-employed or self-prepared); VOE must be fully filled out and must include all income and averages; VOE must be signed and dated by the employer with accurate contact information
    4. 1099 Only Program (for NON-self-employed independent contractors): 2 Years 1099s; Athas to verbally verify accuracy of income on 1099s
    5. K-1 Only Program: 2 Years K-1s; requires CPA/certified tax preparer/enrolled agent attesting that K-1s are accurate and borrower has been self-employed for at least 2 years
    6. P&L Only Program - BORROWER PREPARED (for self-employed borrowers only): Full year 2018 complete profit and loss statement and 2019 Complete YTD profit and loss statement

·  Borrower to sign and date the P&Ls and attest to the accuracy of the P&L’s via a hand written, signed and dated LOE; and

·  A verifiable letter from a licensed CPA/certified tax preparer/enrolled agent attesting the borrower prepared P&Ls are factual

  1. P&L Only Program – PROFESSIONAL PREPARED (for self-employed borrowers only): Full year 2018 Complete Profit and Loss Statement and 2019 Complete YTD Profit and Loss Statement

·  Verifiable letter from licensed CPA/certified tax preparer/enrolled agent attesting that they prepared the P&L statements

·  Proof that the borrower has been self-employed for that business for 2 years

  1. Asset Depletion Program (available for all employment types including retired/unemployed: Qualifying income is based upon Total Assets Eligible for Depletion, less down payment, less out of pocket closing costs, less required reserves, divided by 84. This amount will be used as the monthly income; debt calculations will need to include all debts, not just housing debts.

Alt-A / Non-Prime / Hard Money – NON-Owner Occupied Investment Properties (no TRID)

  • Up to 80% LTV
  • Rates from 5.250% at PAR (55% LTV) to 9.990% at .875 points (80% LTV)
  • Call me with scenarios because there are many options in our Non-Owner Occupied programs