Lets get right to the bad news; There are no more ” Stated income” “No Doc” or “No Income Verification liar loan approvals for residential home buyers anymore. Based on the new mortgage laws created after the mortgage meltdown, it is illegal to make primary residential mortgage loan to borrowers that cannot verify their ability to make the mortgage payments on a primary home.
Don’t worry we can help! Today there are alternatives for the Self-Employed mortgage applicants. For Starters, we are excellent at reviewing your tax returns and finding extra income that many bank statement only mortgage lenders often overlook. This is a real benefit because you can sometimes go conventional mortgage and get a better deal with lower mortgage interest rates.
We are also quite good at discovering other solutions, like restructuring some debt, getting a temporary co-signor or using other lending loopholes.
NO TAX RETURNS NEEDED FOR SELF EMPLOYED- For Self-Employed mortgage applicants with a large down payment and good credit, we have our bank statement only mortgage program to document your income that does not require tax returns for income approval!
Our bank statement only mortgage program for self employed on requires 24 months bank statements and Profit & Loss. Here we will review your last most recent 24 months bank statements and Profit & Loss statement covering the same 24 months period to determine an income stream to be used in qualifying.
To be eligible for the No IRS Forms loan at least one borrower must have a 25% ownership interest in a business and be able to document 2 years current continuous self-employment with a business licence verified by a third party (such as government entity or borrower’s business attorney). Borrowers whose self-employment cannot be independently verified are not eligible.
If one borrower is self-employed and one is a W2 employee we can still combine the income. The W2 employee must provide copies of their last 2 yrs W2s (no tax returns) and 1 full month of pay stubs.
Business Mortgage Lenders-If you buy a property in the name of your business entity (i.e. Your Corporation or LLC) we are able to do a “Stated Income” loan. However, the potential market rent of the property less vacant factors must be able to cover the monthly payment with some margin. The down payment amount can vary depending on several factors, including the debt service coverage ratio of the property.
Your Next Step- If you are thinking of buying or refinancing a home in the near future, we suggest getting a no-cost or obligation review of your financial picture. As we mentioned above, we are quite good at finding hidden income so we always recommend showing us your last 2 years Federal Tax Returns to see if we can qualify you for a regular loan. If we determine that this is not a viable mortgage option, we will move onto the other mortgage programs.