Why No Doc Mortgages?
No doc mortgages and alternative income home loans can be a great option if you do not qualify for a Conventional, FHA, or VA loan. No Doc Mortgages can be useful for people who cannot provide proof of income documentation like W2’s or tax returns. They can also be helpful for someone who has experienced foreclosure or bankruptcy within the past 2 - 4 years. These options include:
- Bank Statement Home Loans
- 36 month Asset Utilization
- Fresh Start Program
You may also hear these loans referred to as:
- stated income mortgages
- bank statement home loan
- no doc mortgages
- nina (no-income no-assett)
- no ratio loan
- alternative income verification loans
We recommend you take a look at these alternatives to help you qualify for your next home loan.
36 Month Asset Utilization Qualification
This home loan options is great for business owners, self-employed, or investors. With this program we are able to use your qualified assets and divide them by 36 months and add that amount to your monthly income.
This program is ideal for someone who has a lot of money in the bank but cannot provide proof of monthly income using W2's and tax returns.
Who can benefit from the 36 Month Asset Utilization program?
- Business Owners
- Self employed
- Someone with alternative income with money in the bank
36 Month Asset Utilization Qualification Requirements
- Loan amount up to $3,000,000
- Credit score at least 680
- Purchase or Cash out refinance
- Owner occupied, 2nd home, or investment property
How does the 36 month asset utilization work?
- Take all of the qualified assets and divide them by 36 months
- This amount can be added to your total monthly income
Example of Asset Utilization Calculation
If you have a total of $300,000 in qualified assets then you divide that by 36. This total is $8,333.00 and can be added to your total monthly income.
Bank Statement Mortgages
Bank statements will typically be required by the lender when you are applying for a no doc mortgage.
Income verification using bank statements
By submitting up to 24 months of bank statements we can use the deposit amounts to determine a monthly income. This is crucial to the qualification process of bank statement mortgages. This information is then used to calculate home much home you can qualify for.
Proof of Deposit
A proof of deposit may be required by the lender to make sure the borrower has enough funds for the down payment and closing costs. The proof of deposit (POD) will be requested by the lender. When the deposit has been made then the POD will be provided to the lender from the bank. Get more information about Proof of Deposits.
What is a bank statement mortgage?
A bank statement home loan is a program in which the borrower can submit bank statements to provide proof of income.
Who are bank statement mortgages good for?
A bank statement mortgage is for someone who cannot provide proof of income using the typical documentation. W2’s and tax returns are typically used by borrowers to prove their income. For those who make an income that is not necessarily reflected on a W2 or tax return then a bank statement loan one to explore. People this might work well for include: self employed, entrepreneurs, investors, freelancers.
Can I use a Business Bank Statement to Get Approved for a Bank Statement Home Loan?
Yes, you can submit bank statements from a business bank account. It is possible that only a percentage of these deposits can be used because of the expenses associated with running a business.
Fresh Start Program
Our FRESH START mortgage program is designed to help lend to borrowers who have had a recent short sale, foreclosure, or a bankruptcy. Typically if any of these events happen to you, there is a 2-4 year waiting period from the discharge date or sale date, to obtain a new mortgage using conventional or FHA financing.
Some of the Loan Features of FRESH START include:
- LTV up to 85% with no Mortgage Insurance
- Minimum Credit Score 580
- DTI Ratios greater than 50% considered
- Up to $350,000 cash back on refinances