BAD CREDIT STATED INCOME CALIFORNIA MORTGAGE LENDERS

BAD CREDIT CALIFORNIA Mortgage Lenders offers a 12-24-Month Bank Statement Loan Program.

California Mortgage Solutions for Self-Employed Borrowers

• No tax returns required
• 12 month personal or business bank statements
• 24 month business bank statements
• Loans up to $3 million
• Credit scores down to 580
• Up to 90% LTV on Personal and Business with no MI
• DTI up to 50% considered
• Owner-occupied, 2nd homes and investment properties 
• 2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
• Non-warrantable condos considered
• Jumbo loans down to 600 score
• 5/1 ARM or 30-year fixed
• No pre-payment penalty for owner-occ and 2nd homes
• Seller concessions to 6% (2% for investment)
• 2 year self-employed required

1. Bank Statement Lenders Worksheet
2. Bank Statement Lenders 24 Month Profit and Loss Statement Request
3. NO TAX RETURNS NEEDED!!!

JUMBO BANK STATEMENT – STATED MORTGAGE LENDERS UP TO 5 MILLION

California STATED HOME LOANS- BASED ON BANK STATEMENTS

• The borrower must be BAD CREDIT California Self Employed Minimum 2 years!
• Personal or Business Statement Accepted 
• 50% MAXIMUM DTI  FOR BANK STATEMENTS
• 24 months to qualify / Mortgage Late Payments, Short Sales, BK = OK!!
• Bank statement lenders minimum 580 FICO!

25% DOWN STATED California INVESTOR LOANS!

Bad Credit Stated Income California MORTGAGE PROGRAMS
California mortgage lenders offer three stated Documentation Programs:

1.Full Documentation (“Full Doc”)

2. Alternative Income (“Alt Doc Bank Statements”) for Owner Occupied properties

3.Alternative Documentation (“Alt-Doc Cash Flow”) for Non-Owner Occupied or Second Home properties and Business Loan requests.

The below information is a summary of minimum California stated loan documentation requirements for each Income Documentation Program. For additional documentation requirements, refer to the Income Doc Charts in this section of the Guide.

-ALTERNATIVE DOCUMENTATION / BANK STATEMENTS- Bad Credit Stated Income California MORTGAGE LENDERS 

Self-employed ONLY
(Must be able to verify self-employment income)
1. Last twenty-four (24) months personal or business bank statements with all pages required for all months.
2. Stated California Borrower Income is determined by using the gross monthly amount of deposits with a deduction of any itemized debts or other expenses that are verified by a tri-bureau merged credit report.
3. Max six (6) NSF checks in the last twelve (12) months.
4. Acceptable documentation supporting the existence of the business for the most recent two (2) years must be obtained. (Refer to the Acceptable Evidence of Self-employed Business).
FULL DOC / WAGE EARNER
1. VOE completed in full by employer verifying most recent two (2) years (Verbal verification of VOE required) and current year-to-date earnings on a current pay stub OR
2. W-2 for most recent two (2) years & current pay stub reflecting year-to-date earnings OR
3. Signed 1040’s for most recent two (2) years & current pay stub reflecting year-to-date earnings
Fixed & Other Sources
Current award/retirement letter; AND
Copy of the most recent bank statement showing automatic deposit (deposit must specifically reference the source of the deposit); OR
1099 for most recent year
Self-employed
Acceptable documentation supporting the existence of the business (“Refer to the Acceptable Evidence of Self-employed Business”)AND
Verification of income covering the most recent two (2) years and year-to-date earnings with signed 1040’s as well as other    applicable supporting documentation (i.e. 1120’s, K-1s etc.)
100% Commission / Bonus
Verbal VOE, to confirm borrower’s employment and commission/bonus AND
Signed 1040’s for most recent two (2) years with current pay stub reflecting year-to-date earnings (if not pay stub no applicable, obtain bank statements covering year-to-date)
Salaried + > 25% Commission / Bonus
· Signed 1040’s for most recent two (2) years AND current pay stub reflecting year-to-date earnings (pay stub must reflect salaried wage + commission/bonus)
POPULAR BAD CREDIT California Self Employed CALIFORNIA MORTGAGE PAGES

If you are self-employed stated California home loan applicant, you already know the benefits that come with making your own decisions and never having to report to a boss. However, there are some disadvantages to generating your own self-employed income when it comes to applying for a stated California home loan.

-STATED BAD CREDIT CALIFONRIA MORTGAGE LENDERS EXPLAINED

“There are two main problems that self-employed California borrowers face when qualifying for a California mortgage,” “First, you need to prove their income with tax returns rather than using a ‘Bad Credit Stated Income’ loan. Second, the recent housing recession has caused declining income for many self-employed business owners. Even if their income has stabilized, the stated California home loan will be based on the average of your last two years of tax returns, which could show reduced income.”

Bad Credit Stated Income California home loans were originally designed for self-employed people but were abused by too many California business owners that were buying homes they could not afford.

“Stated California income loans are starting to make a small comeback on the secondary market, but only for California Mortgage applicants with good credit scores of at least 640 or above, a down payment of 25 percent of the sales price or more and at least six months of future cash payment reserves to cover all monthly obligations.

“In the mid-1990s we California stated lenders started using bank statements to show cash flow for self-employed people and was a good way to get a lot of California homebuyers approved for Stated California home loans.

BAD CREDIT California Self Employed BORROWERS INCOME AND TAXES

Self-employed stated California mortgage applicants must complete Internal Revenue Service Form 4506-T, which allows stated California mortgage lenders to request tax transcripts. California stated mortgage lenders are required to wait until the tax returns have been recorded by the IRS and must receive them directly from the IRS to verify legitimate returns.

Many self-employed individuals report expenses on their taxes in order to reduce their tax liability, but this can backfire when they apply for a mortgage.

“Self-employed stated California mortgage applicants people typically report their gross income minus expenses to generate a net income,”. “For tax purposes, it may be beneficial to have net income as low as possible, but the net income is the number used for income qualification.

For example, a California business owner that claims $100,000 in income and $80,000 in expenses will find it nearly impossible to qualify for a traditional California mortgage. At this point, a self-employed California homebuyer has no other option but to apply using a stated California mortgage lender.

Cities Around Los Angeles, CA