NO W2, NO 1099, NO TAX RETURN CALIFORNIA MORTGAGE LENDERS

NO W2, NO 1099, NO TAX RETURN CALIFORNIA NO INCOME MORTGAGE LENDERS

  

CALIFORNIA NO TAX RETURN MORTGAGE LENDING CRITERIA: Loan programs for Owner Occ + 2nd homes only
CALIFORNIA LOAN AMOUNTS:
● Minimum loan amount $100,000
CALIFORNIA NO TAX RETURN RESERVE REQUIREMENTS:
● 6 months required above 85% LTV
● 6 months required on 12 Mo Cash Flow Product
● See loans > $1M for additional info
NO TAX RETURN CALIFORNIA INCOME DOCUMENTATION:
12 or 24 California business or personal bank statment mortgage lenders
(Self Employed or Contractors, Freelancers), Full Doc income with lease agreements, ok
(rental income qualified by lease agreements)

NO TAX RETURN MORTGAGE LENDERS CAN ALSO TAKE THE FOLLOWING TO VERITY INCOME!
● Full Doc – 2 year (W-2 & paystubs, 1040s, K1’s)
● Full Doc – 1 year (W-2 and Current YTD paystub, K1’s)
● Full Doc – 1 year (One year Tax Return and YTD P&L Self Empl)
● Alt Doc – 12 or 24 months business or personal bank stmts
(Self Empl only), Full Doc income with lease agreements, ok
(rental income qualified by lease agreements)
● Asset Base California Mortgage Lenders – 100% of amount needed to amortize loan plus
monthly debts for 60 months, max 80% LTV to $1.0M; Max 75%
LTV to $1.5M
● Asset Assist – Assets divided by 120 is added to income.
$1.5M max loan amount to 75% LTV, Max 80% LTV to $1M
● ALT Doc—3-month California Bank Statement (24-month CPA compiled
and signed California P&L statement supported by 3-months bank stmts)
● ALT Doc—Profit and Loss (P&L) only. 24-month P&L compiled
and signed by CPA. CPA must also attest to filing tax returns for
borrower for 24-months.
● ALT Doc—VOE only
NO TAX RETURN CALIFORNIA DOWN PAYMENTS:
● All down payment funds must be verified
prior to drawing loan documents
● Secondary Financing 80% Max LTV/90% Max
CLTV
California TAX LIENS, JUDGMENTS:
● All tax liens and judgments must be paid at
closing
CALIFORNIA COLLECTION ACCOUNTS:
● Collections and charge offs need to be paid off
except:
– Medical Collections
– Collection accounts older than 2 years
CALIFORNIA FIRST-TIME HOME BUYER:
● A , A- and B credit grades. B- grade case by
case
NON-PERMANENT CALIFORNIA RESIDENT ALIEN:
● 80% max LTV Purchase and Rate and Term
Refi 75% max LTV on Cash Out
● A, A- and B credit grades only
● No FICO is allowed (when no FICO, price at Aand add 0.500% to rate)
● Visa classifications allowed
(E-1 – E-3/G-1 – G-5/H-1/L-1/NATO/O-1/R1/TN (NAFTA)

Today we are going over several different options to purchase CALIFORNIA NO INCOME MORTGAGE LENDERS primary, second home, investment and commercial properties without using your tax returns to qualify. Before we go into detail as to how to qualify each purchase type let me explain why a mortgage lender would not need to verify your income for purchasing a property. Self-Employment • A borrower who owns twenty-five percent (25%) or more of a business entity is considered self-employed.

NO W2, NO 1099, NO TAX RETURN CALIFORNIA NO INCOME MORTGAGE  LENDERS SUMMARY

  • 2 years proof of self employment required.
  • Use 12 or 24 months Business or Personal bank statements for income.
  • Separate Bank Account Deposits used for Income = OK!
  • Commingle income source example w2 + 1099 + Self Employment
  • Max Cashout Up to 80% Loan To Value.
  • Must prove last 12 months timely mortgage payments.

NO W2, NO 1099, NO TAX RETURN CALIFORNIA NO INCOME MORTGAGE  LENDERS

NO Tax return CALIFORNIA NO INCOME MORTGAGE  LENDERS provides two (2) additional documentation options to determine a self employed mortgage applicants s qualifying income. Under this program either of the following will be acceptable;

12-months personal or business bank statements; or

24-months personal or business bank statements 

12 MONTH BANK STATEMENT- NO TAX RETURN CALIFORNIA NO INCOME MORTGAGE  LENDERS

  1. Acceptable documentation supporting the existence of the business for the past two (2) years (“Refer to the Acceptable

Evidence of Self-employed Business”) AND

  1. Last twenty-four (24) months business bank statements with all pages required for all months or 2 years form 1099 (must

be verified via form 4506) plus bank statements for YTD. At Its discretion, Bank Statement CALIFORNIA NO INCOME MORTGAGE  LENDERS may accept fewer than 24 months

of bank statements provided that Bank Statement CALIFORNIA NO INCOME MORTGAGE  LENDERS takes the tota ldeposits for the months it has and divides by 24. AND

  1. One of the following:
  • A profit and loss statement (P&L) provided and signed by theBorrower covering the current year-to-date and prior year.

100% of the average monthly net profit from the P&L will be used to calculate the income. The P&L must be reasonable for the type of business and the gross revenue must match the gross amount of the bank statements for the period

covered

  • A signed prior year and YTD business P&L prepared by aCPA or an Enrolled Agent. 100% of the average monthly netprofit from the P&L will be used to calculate the income. TheP&L must be reasonable for the type of business and thegross revenue must match the gross amount of the bank statements for the period covered.
  • An expense statement specifying business expenses as a percentage of the gross annual sales prepared and signed by

a CPA or Enrolled Agent who has detailed knowledge of the business.12 months business bank statements (Self-Employed)

  1. Acceptable documentation supporting the existence of the business for the past two (2) years (“Refer to the Acceptable

Evidence of Self-employed Business”) AND

  1. Last twelve (12) months business bank statements with allpages required for all months or 1-year form 1099 (must be verified via form 4506) plus bank statements for YTD AND
  2. One of the following:
  • A profit and loss statement (P&L) provided and signed by theBorrower covering the most recent 24 months. 100% of the average monthly net profit from the P&L will be used to calculate the income. The P&L must be reasonable for the type of business and the gross revenue must match the gross amount of the bank statements for the period covered
  • A P&L prepared by a CPA or an Enrolled Agent covering the most recent 24 months. 100% of the average monthly net profit

from the P&L will be used to calculate the income. The P&L must be reasonable for the type of business and the gross revenue must match the gross amount of the bank statements for the period covered.

24 months personal bank statements (Self-Employed & Gratuity Earners)

  1. For self-employed borrowers, acceptable documentation supporting the existence of the business for the past two (2)years (“Refer to the Acceptable Evidence of Self-employed

Business”).

  1. Last twenty-four (24) months personal bank statements with all pages required for all months. At its discretion, Bank Statement CALIFORNIA NO INCOME MORTGAGE  LENDERS may accept fewer than 24 months of bank statements provided that Bank Statement CALIFORNIA NO INCOME MORTGAGE LENDERS takes the total deposits for the months it has and divides by 24.
  2. For self-employed borrowers, two (2) months business bank statements are required to verify that a valid business bank

account exists. If a business bank account does not exist, the personal bank account statements will be treated as a business account. (See 24 months business bank statements)

  1. Income is determined by using 100% of the personal bank statements average gross monthly amount of

deposits. For borrowers with rental properties, gross rental income will be subtracted from the total amount of deposits to determine the amount of income from the borrower’s income source. Net rental income will be calculated separately in accordance with the policy inthe DEBT TO INCOME section.12 months personal bank statements (Self-Employed &

Gratuity Earners)

  1. For self-employed borrowers, acceptable documentation supporting the existence of the business for the past two (2)years (“Refer to the Acceptable Evidence of Self-employed

Business”).

  1. Last twelve (12) months personal bank statements with allpages required for all months.
  2. For self-employed borrowers, two (2) months business bank statements are required to verify that a valid business bank

account exists. If a business bank account does not exist,the personal bank account statements will be treated as a business account. (See 12 months business bank statements)

  1. Income is determined by using 100% of the personal bank statements average gross monthly amount of deposits. For

borrowers with rental properties, gross rental income will be subtracted from the total amount of deposits to determine the amount of income from the borrower’s income source.Net rental income will be calculated separately in accordance with the policy in the DEBT TO INCOMEsection.

NO W2, NO 1099, NO TAX RETURN CALIFORNIA NO INCOME MORTGAGE  LENDERS GENERAL REQUIREMENTS

Under this program all self employed mortgage applicants s must be Self-employed.

Refer to the applicable Program Matrices for credit score, ratio and LTV restrictions.

Income Calculations for Bank Statements

Personal Bank Statement Average

The following requirements apply when calculating qualifying income using personal bank statements:

  • All parties on the bank statements must be on the loan; and
  • Qualifying income is defined as 100% of deposits, averaged over a twelve (12) month period; and
  • Statements must be consecutive and reflect the most recent months available; and
  • Transfers from a self employed mortgage applicants ‘s business to personal account are allowed; and
  • If the bank statements provided reflect payments being made on obligations not listed on the

credit report, refer to Undisclosed Debts for additional guidance.

DOCUMENTATION NEEDED BY NO TAX RETURN CALIFORNIA NO INCOME MORTGAGE  LENDERS

Most recent twelve (12) months consecutive business or personal bank statements

IRS transcripts are not required under the personal bank statement program. In the event one or more co-

self employed mortgage applicants (s) are wage earners IRS transcript are still not required.

INCOME USING BANK STATEMENTS FOR INCOME

The following requirements apply when calculating qualifying income using business bank statements:

  • self employed mortgage applicants  must be 100% owner of the business; and
  • Qualifying income is defined as the total deposits, less the percent of business expenses,

Annualized.

UNACCEPTABLE INCOME FOR NO TAX RETURN CALIFORNIA NO INCOME MORTGAGE  LENDERS

The following sources of income are not acceptable:

  • Contributions or support from family members
  • Educational benefits
  • Food stamps
  • Illegal income
  • One-time capital gains (continuing capital gains may be considered as acceptable source of income)
  • Refund of federal, state or local income tax

 

USING BUSINESS BANK STATEMENTS EXPENSE RATIO

The percentage of expenses used to determine the self employed mortgage applicants s qualifying income, can never less than 5%

of the total deposits. For underwriting purposes, a Personal self prepared Business Expense  or Profit and Loss Statements reflecting an expense ratio of less than the minimum required (5%), the percentage used to determine the qualifying

income will be adjusted to the 5% minimum.

This is a confidential self employed CALIFORNIA NO INCOME MORTGAGE  LENDERS document intended for internal use only. This document is not intended for public distribution or consumer information and any

reproduction or modification is strictly prohibited without the express written consent of self employed CALIFORNIA NO INCOME MORTGAGE  LENDERS .

self employed CALIFORNIA NO INCOME MORTGAGE  LENDERS Portfolio Select Underwriting Guidelines August 3 2018

Documentation Requirements

A Third Party or CPA prepared Business Expense Statement or Profit and Loss Statements, which is less

than 90-days old at the time closing, must specify the total business expenses as a percent of the gross

revenue.

Twenty-four (24) month business bank statements covering the same time period as the Business Expense

Statement.

OCCUPANCY BANK STATEMENTS FOR INCOME

Owner Occupied Principal Residence

An owner-occupied property is a 1-4 family dwelling occupied by the borrower(s) as his / her principal

residence.

  • Borrower occupies the subject as their principal residence. For a purchase transaction, Borrower’s

stated intention to occupy the subject as their principal residence.

  • Property location is relatively convenient to borrower’s place of employment.
  • Property possesses the physical characteristics to accommodate the borrower’s immediate

dependent family.

II.7.2 Second / Vacation Home

A second / vacation home is owned and occupied by the borrower for some portion of the year, in addition

to their principal residence.

  • Timesharing, rental agreement ownership or 2-4 unit properties are NOT eligible as second /

vacation homes.

  • Property must be suitable for year-round occupancy.
  • Property must not be subject to any rental pools or agreements requiring the rental of the property.
  • A management firm does not control property occupancy.
  • No more than one (1) second / vacation home per borrower is allowed.
  • Pricing adds and LTV restrictions may apply. See program rate sheet for details.

Borrowers purchasing or refinancing a second / vacation home must execute a 1-4 Family Rider as a part of

the loan documents.

Investment Property (Non-Owner Occupied)

An Investment property is a 1-4 unit residential dwelling or a unit in a condominium complex or a PUD owned

by an individual who does not occupy the dwelling, now or in the future. The dwelling is leased and occupied

as a principal year-round residence to individuals other than the owner.

  • Vacant investment properties are not typically eligible for a refinance transaction. Certain exceptions

will be made on a case-by-case basis with a 10% reduction in LTV.

  • When financing an investment property, Bank Statement CALIFORNIA NO INCOME MORTGAGE  LENDERS Mortgage Corp. limits the number of total

investment properties a borrower may own including subject to 10, whether mortgaged or not.

  • Investment properties that were built by a borrower / contractor are generally not eligible for

financing.

All borrowers purchasing or refinancing a one to four family investment property must execute a 1-4 Family

Rider with loan documents and provide rent-loss insurance coverage.

Short Term Rental Property

Bank Statement CALIFORNIA NO INCOME MORTGAGE  LENDERS will consider second home or non-owner properties rented out on a short-term basis through

sites like AirBnB or VRBO on a case by case basis only. When considering a loan request for a short-term 

rental property, the following will be considered:

  • Satisfactory evidence that short term rental use is legal in the subject property’s jurisdiction.
  • All required registrations, licenses, permits, and business tax certificates must be provided and

reviewed.

  • If the property is part of a HOA, documentation from the HOA will be required to verify that the

subject’s use is permissible under the CC&Rs.

  • Satisfactory evidence that the owner has registered and paid all required transient occupancy taxes.
  • Satisfactory evidence of commercial insurance covering the property as a short-term rental with a

minimum $1,000,000 in coverage for commercial liability, as well as coverage for damage to the

subject property caused by guests of at least the loan amount or guaranteed replacement cost.

The appraiser, in addition, must comment on the prevalence of short term rental activity in the market area,

and whether there is an impact on marketability. All short-term rental properties must be in highly marketable

areas.

Short term rental income may be verified by either 1040 Sch. E, or remittance statements from the renting

entity (AirBnB, VRBO, etc., along with satisfactory evidence of all management and maintenance expenses

to cover a minimum of 12-month period. The lower of verified short term rental income and monthly market

rent will be used to qualify.

DEBT TO INCOME RATIO USING BUSINESS OR PERSONAL BANK STATEMENTS FOR INCOME

PRIMARY, SECOND HOME, INVESTMENT OCCUPANCY HOUSING RATIO DTI

Primary Residence 50% 55%

Second Home N/A 50%

Investment N/A 50%

 1003 Initial Disclosed Income

Income disclosed on the initial signed application should be reviewed. If income calculated is significantly

higher than income stated on the 1003, the underwriter should request and explanation from the self employed mortgage applicants 

to determine acceptability of the income.

Self Employed CALIFORNIA NO INCOME MORTGAGE  LENDERS Program Restrictions

The following restrictions apply when using bank statement documentation:

  • self employed mortgage applicants  must qualify with Standard Trade Lines as per Trade Line Requirements section.
  • Non-permanent resident aliens and foreign nationals are not eligible.
  • Payroll deposits into accounts from other employment must be reflected as direct deposits and

may not be included in the bank statement average. W-2 earnings must be documented as per the

requirements in Salaried/Wage-Earners section.

  • A consistent pattern of withdrawals exceeding deposits on a monthly basis or evidence of a decline

in earnings may result in disqualification.

  • NSF and overdraft activity must be reviewed for acceptability.
  • Income derived solely from the ownership of rental properties must be calculated per the

requirements in Rental Income section. self employed mortgage applicants s who receive rental income as a secondary

income source may utilize bank statement documentation on a case-by-case basis.

  • Non-Profit organizations are not eligible under the Business Bank Statement Program.

 Occupancy

Owner-Occupied & Second Home only

Investment properties limited to purchase transactions only

Second Homes Eligibility Requirements:

  • Must be located a reasonable distance away from the self employed mortgage applicants ’s principal residence and occupied

by the self employed mortgage applicants  for some portion of the year.

  • Must be located in a vacation area or an explanation for second home is required and must be

reviewed by the Underwriter.

  • Restricted to one unit dwellings

This is a confidential self employed CALIFORNIA NO INCOME MORTGAGE LENDERS  document intended for internal use only. This document is not intended for public distribution or consumer information and any

reproduction or modification is strictly prohibited without the express written consent of self employed CALIFORNIA NO INCOME MORTGAGE LENDERS .

self employed CALIFORNIA NO INCOME MORTGAGE  LENDERS Portfolio Select Underwriting Guidelines August 3 2018

  • Must be suitable for year-round occupancy
  • The self employed mortgage applicants  must have exclusive control over the property. The property cannot be rented

seasonally or otherwise for any portion of the year, regardless of whether rental income is claimed

on tax returns.

  • Cannot be subject to any agreements that give a management firm control over the occupancy of

the property

Reserves

Refer to program matrix for reserve requirements.

NO W2, NO 1099, NO TAX RETURN MORTGAGE PROGRAMS Transaction Types

  • Purchase
  • Rate and Term Refinances
  • Cash-Out Refinances

NO W2, NO 1099, NO TAX RETURN MORTGAGE PROGRAMS

  1. Primary home – No Tax Return CALIFORNIA NO INCOME MORTGAGE LENDERS CALIFORNIA NO INCOME MORTGAGE LENDERS
  2. Second Home or Vacation! – No Tax Return CALIFORNIA NO INCOME MORTGAGE LENDERS CALIFORNIA NO INCOME MORTGAGE LENDERS
  3. Investment Homes- No Tax Return CALIFORNIA NO INCOME MORTGAGE LENDERS California No Income mortgage lenders
  4. Commercial – No Tax Return CALIFORNIA NO INCOME MORTGAGE LENDERS CALIFORNIA NO INCOME MORTGAGE LENDERS

 NO TAX RETURN MORTGAGE PRIMARY HOMES

Primary Home Purchase – Frank Dodd or Wall Street Reform and Consumer Protection Act is a 2010 after the 2008 financial crisis was created a rule placing the burden on CALIFORNIA NO INCOME MORTGAGE LENDERS to prove the self employed mortgage applicants s ability to repay. ATR or Ability To Repay requires lenders to verify or prove the self employed mortgage applicants s ability to repay by documenting and verifying income and assets when purchasing a primary home.

CALIFORNIA NO INCOME MORTGAGE LENDERSBusiness Loans Based On Business Bank Statement Deposits. Are you self-employed or 1099 wage earner and having a hard time getting pre-approved for a CALIFORNIA NO INCOME MORTGAGE ?  We know the story. They have a great top line, but after the accountant works their magic there isn’t much adjusted gross income left to by a CALIFORNIA NO INCOME MORTGAGE LENDERShome. CALIFORNIA NO INCOME MORTGAGE LENDERSbank statement Business Lenders can help!…

CASH OUT NO TAX RETURN CALIFORNIA NO INCOME MORTGAGE LENDERS Always use the appraised value for LTV calculation on a refinance transaction.

There is no ownership seasoning requirement for a cash-out refinance when at least one self employed mortgage applicants  on the new

loan is an original purchaser. There is no seasoning requirement when additional self employed mortgage applicants s are added to title

so long as at least one self employed mortgage applicants  from the original purchase will be a self employed mortgage applicants  on the new loan.

If a self employed mortgage applicants  is on title without any original purchasers, the self employed mortgage applicants  must wait 6 months to do a cash out refinance.

If a property is titled in an LLC and the self employed mortgage applicants (s) are 100% owners of the LLC, then title may be

transferred to the individual self employed mortgage applicants (s) for purposes of refinance without a waiting period. (Example:

Husband and wife are 100% owners of LLC. They can deed property to themselves as individuals to

do a refinance without a waiting period, so long as the LLC has been on the existing loan for 6 months.

o If the LLC has more than one member and only one member will be on the new loan, then

the member who receives title must wait 6 months to do a cash-out refinance.

When the appraised value exceeds purchase price by more than 20% and the subject property is currently

owned for less than 6 months (at time of application date), the appraisal must provide detailed and substantial

commentary to support the increase in value.

Note: The following items may be paid off with proceeds from a Rate/Term refinance:

Non-purchase money seconds with 12 month seasoning

HELOCs (Home Equity Line of Credit) with total withdrawals not exceeding $2,000 in the last twelve

(12) months

A refinance of a prior cash-out loan within 6 months is allowed to be classified as a rate/term refinance.

CREDIT REQUIREMENTS BY NO TAX RETURN CALIFORNIA NO INCOME MORTGAGE LENDERS

All self employed mortgage applicants s must have a minimum credit score of 500.

The representative score for each self employed mortgage applicants  is:

o The middle score when three scores are obtained, or

o The lower score when two scores are obtained

o If only one score is obtained, that is the representative score for the self employed mortgage applicants 

The representative score for the loan is the lowest representative score of the self employed mortgage applicants s.

Each of the following credit components impacts the self employed mortgage applicants ’s ability to repay the loan:

self employed mortgage applicants s must have a minimum of 3 trade lines on the credit report. Trade lines may be open or

closed, with one seasoned trade line having a minimum 24 month rating and one trade line with at

least a $5,000 high credit limit. The seasoning and high credit limit requirements may be met with the

same trade line. Authorized user trade lines are not eligible for any portion of the credit requirement.

When spouse is co-self employed mortgage applicants  only one self employed mortgage applicants is required to have the credit depth listed above.

Mortgage / Rental Lates – 1×30 during the past 12 months

o This applies to all mortgages on all properties

o (See Loan Modification for refinancing loans with prior modifications)

o No Notice of Default (NOD) filed on any property in the past 12 months

o Rental history must be documented by a direct verification of rent (VOR) by a professional

management company and/or private party. If the VOR is provided by a private party, 12

months cancelled checks or 12 months bank statements must be provided to document

rents.

o See First Time Home Buyer

o Verification of mortgages that do not appear on credit report:

Institutional lender – Written VOM

Private lender – 12 months cancelled checks

 

Bankruptcy (Ch. 7, 11 and 13), Short Sale, Deed-in-Lieu, Charge-off of Mortgage Accounts – None

less than four (4) years

o Bankruptcy, Short Sale, Deed in Lieu, Charge-off of Mortgage Accounts ≥ 2 years and < 4

years is acceptable with the following compensating factors:

Maximum 70% LTV or existing guidelines, whichever is lower

Foreclosure – None in the last four (4) years

o Foreclosure ≥ 3 years and < 4 years is acceptable with the following compensating factors:

Maximum 70% LTV or existing guidelines, whichever is lower

Judgment/Tax Lien/Collections/Charge-Offs

o Judgments and Tax Liens must be paid

o Medical collections are excluded regardless of amount

o Any new charge-offs or non-medical collections within the last 12 months greater than

$1,000 per trade line, or the cumulative amount is greater than $2,000, must be paid off.

Consumer Credit Counseling – self employed mortgage applicants s who have experienced credit or financial management

problems in the past may have elected to participate in consumer counseling sessions to learn how to

correct or avoid such problems in the future. Whether self employed mortgage applicants s have or have not completed

participation in the sessions before closing on the mortgage transaction is not relevant since it is the

self employed mortgage applicants ’s credit history that is of primary importance. (FNMA B3-5.2-01)

Disputed Accounts – Disputed accounts are reviewed to determine current balance and derogatory

information (a 30-day or more delinquency) within 2 years prior to the credit report date:

o Zero balance and no derogatory information – no action required

o Zero balance and derogatory information – remove and pull new credit report

o A positive balance and no derogatory information – remove and pull new credit report

o A positive balance and derogatory information – remove and pull new credit report

A credit supplement is not allowed to document disputed accounts.

See Liabilities for additional information

Underwriters will evaluate the self employed mortgage applicants ’s liabilities to help assess Ability to Repay. These will include:

The monthly payment on any simultaneous loan

The consumer’s monthly payment for mortgage-related obligations

The consumer’s current debt obligations, alimony, and child support

DOCUMENT REQUIREMENTS FOR NO TAX RETURN MORTGAGE 

self employed mortgage applicants ’s most recent one (1) month bank statement can be used to verify funds. 

Bank statements may not be more than 90-days old at the time of the Note date.Bank Statements – Personal

Bank statements may not be more than 90-days old at the time of the note date.

All deposits ≥ 50% of the self employed mortgage applicants ’s gross monthly qualifying income must be sourced. (Refer to the Bank Statement Program , Asset Depletion Program or Asset Qualifier Program Sections for documentation requirements for these programs)

Documentation Requirements Most recent one (1) month bank statement reflecting a minimum of 30-days history.

USING EQUITY FROM EXISTING HOME

A copy of the fully executed settlement statement; and

A copy of the self employed mortgage applicants ’s bank statement showing the proceeds being deposited and sufficient funds

No Tax Return CALIFORNIA NO INCOME MORTGAGE LENDERS
Documentation Requirements

All accounts should be fully verified with ownership established; and

Verify self employed mortgage applicants ’s actual receipt of the funds realized from the sale or liquidation when these funds are

used to complete the transaction for any part of the down payment or required cash to close.

USING RENTAL INCOME EQUITY FROM EXISTING HOME

Documentation Requirements

All of the following must be obtained to confirm leasing of the property:

Fully executed lease agreement

Security deposit from the tenant

Bank statement showing the deposited security funds

ANNUITY INCOME FOR NO TAX RETURN MORTGAGE

Annuities less than twelve (12) months old must be in a non-revocable trust with a minimum term of 40-months in order to

use as qualifying income.

A twelve (12) month history of receipt must be verified using 1099’s, tax returns, and/or bank statements.

The account asset balance must support the continuance of the monthly payments for a least three (3) years after the

closing date.

Documentation Requirements

Letter from issuer of annuity to be obtained stating that it has been set up on periodic withdrawal, amount

of withdrawal, duration and balance; and

Proof of receipt documented with the most recent two (2) years signed federal tax returns, two (2) most

recent bank statements or deposit slips.

Documentation must confirm the amount, duration, and frequency of the income, as well as the likelihood

of continuance for three (3) years.

PUBLIC ASSISTANCE FOR NO TAX RETURN MORTGAGE

Income from Government Assistance Programs, such as Food Stamps, Aid to Dependent Children, or Welfare, may be used

as qualifying income provided the income:

Has been received for the past two (2) years; and

Can be expected to continue for a minimum of three years from the date of the mortgage application.

Documentation Requirements

Letters or exhibits from the paying agency that state the amount, frequency, and duration of the benefit;

or

Two (2) months bank statements or pay stubs evidencing receipt of payments

USING PENSION AND RETIREMENT INCOME FOR NO TAX RETURN MORTGAGE

If the self employed mortgage applicants  is of retirement age, proof of continuance does not have to be documented when the income is received

from corporate, government or military retirement/pension.

If retirement income is in the form of monthly annuity distributions, such as 401(k) or IRA, proof of three (3) years

continuance is required.

There are certain situations where additional documentation would be required to determine what portion of a self employed mortgage applicants ‘s

income is non-taxable. The non-taxable portion may be grossed up.

Refer to the Non-Taxable Income Section for additional information.

A self employed mortgage applicants  presently employed but anticipating retirement within three (3) years from note date must be evaluated upon

the verified anticipated retirement income. A combination of present earnings and future retirement income does not

represent a supportable level of earnings. Effective income for self employed mortgage applicants s planning to retire (or end employment for other

reasons) during the three (3) year period must include the amount of documented retirement or other benefits to be

received, Social Security payments, or other payments expected to be received in retirement.

Documentation Requirements

Verification of prior employment from the organization providing the income;

Copies of award/benefit letters with evidence of recent receipt of income (Two (2) most recent bank

statements showing direct deposits, copies of checks, two (2) years W-2s/1099s, etc.); and

The most recent two (2) years personal federal tax returns or 1099 forms or W-2s reflecting receipt of

Income

SEASONAL INCOME REQUIREMENTS FOR NO TAX RETURN MORTGAGE

Seasonal income may be considered if the applicant has worked the same job in season for the past two (2) years and

expects to be rehired for the next season.

The written Verification of Employment must reference the likelihood of self employed mortgage applicants ‘s rehire.

This is a confidential No Tax return CALIFORNIA NO INCOME MORTGAGE  LENDERS document intended for internal use only. This document is not intended for public distribution or consumer information and any

reproduction or modification is strictly prohibited without the express written consent of  No Tax return CALIFORNIA NO INCOME MORTGAGE LENDERS Portfolio Select Underwriting Guidelines

Seasonal income from W-2s and pay stubs should be averaged over a (2) year period.

Documentation Requirements

Written VOE; and

Most recent two (2) years W-2’s

Self Employed self employed mortgage applicants s

 No Tax return CALIFORNIA NO INCOME MORTGAGE  LENDERS considers any individual to be self-employed if he or she has a 25% or greater ownership interest in a business orreceives 25% or more of his/her total income in commission.

Self-employed self employed mortgage applicants s should have a consecutive, level or increasing earnings trend that supports a two (2) year history

of self-employment with the same business and at the same location.

Documentation Requirements

Most recent two (2) years tax returns

Most recently filed prior two (2) years signed individual federal tax returns (with all schedules attached,

including W-2’s and/or 1099’s); and

 

 

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