Purchase, refinance, or cash-out.
STATED INCOME FOR THE SELF-EMPLOYED
Stated income loan transactions were very much the loan program of choice for the self-employed borrower looking to purchase or refinance a residential property. With the changes in the mortgage industry in early 2008 stated income loans completely disappeared leaving many qualified self-employed borrowers without a financing option. Investors have made this program available as of early 2015. The program is currently available to self-employed borrowers with the ability to verify a minimum of 6 months savings reserves and a minimum credit score of 680.
BUSINESS BANK STATEMENTS
Another financing solution for the self-employed is the utilization of a 12 month average of (net deposits) of business bank statements over a period of 12 months. This loan program will use a combination of business and personal bank statement deposits as a representation of the average monthly income a self-employed borrower is bringing in on a monthly basis rather than tax returns.
ONE YEAR TAX RETURNS
The ability to utilize the income of one year versus an average of two years can also be a significant advantage to a self-employed borrower.