San Diego Self-Employed Mortgage Lenders – Serving All California – San Diego CA Self Employed business lenders provide San Diego self employed mortgage applicants owners and Wage Earners can both qualify- Joint San Diego CA Self Employed Mortgage Applicants with 1 wage earner and 1 self-employed business owner can verify income separately, with the self-employed San Diego CASelf Employed Mortgage Applicant utilizing 12 or 24 months business and/or personal California Bank statements and the wage earner providing paystubs/W-2s we can use both incomes to qualify. The wage earner 4506T should include W-2 transcripts only.
- Must Document Proof of 2 years Self Employed!
- No tax return California Bank statement only mortgage lenders
- 12-month personal or business California Bank statements
- 24-month business or personal California Bank statements
- Loans up to $3 million
- Credit scores down to 600
- Rates starting in the 4’s
- 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, California 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)
- Combination of California Bank statements and w2 OK!
• Eligible deposits from the California Bank statements should generally be within +/- 10% of the gross income (business accounts) or net income (personal accounts) as shown on the Profit and Loss statement
• California Bank Transfers from other California Bank accounts into the business California Bank accounts will require conclusive evidence that the source of transfer is business-related income.
• An Income calculated with business or personal California Bank statement documentation should be consistent with income documented by the borrower on the loan application
• Borrowers income in 1003 should never be used for qualifying, even if it is less than the P&L income calculated above
• Any deposits into a personal account deemed to derive from a source other than the business (rents, SSI, joint account holder wage income, IRS refunds) must be excluded from the California Bank statement only income analysis and added separately as qualifying income if applicable.
• NSF also know as no n sufficient funds require a borrower Letter of explanation to evaluate that they are not due to financial mishandling and/or indicative of insufficient income
• NSFs should be covered with deposits shortly after they are incurred.
• Unusually large deposits exceeding 50% of monthly income (as defined by Fannie Mae) into personal accounts must be documented and explained via Letter of Explanation and
must be consistent with the business profile. If Letter of Explanation is sufficient, no sourcing required.
• Transaction history printouts are not acceptable.
• Multiple California Bank accounts may be used.
• Co-mingling of personal and business receipts and expenses in Personal California Bank Accounts is not permitted. Evidence of comingling will require the loan to be submitted and qualified as a business California Bank statement loan.
• If personal California Bank statements provided reflect payments being made on obligations not listed on the credit report, a thorough analysis must be performed and Letter of Explanation provided by the borrower, as outlined below. California Bank statement loans submitted with tax return documentation or transcripts are ineligible.
SAN DIEGO CA MORTGAGE LENDERS DOCUMENT REQUIREMENTS
(1) 12 or 24 months Personal or 12 or 24 months Business California Bank statements
San Diego CA Self Employed Mortgage Applicants who own more than 3 businesses must use personal California Bank statements option
California Bank statements must be most recent available at the time of application and must be consecutive
(2) Profit & Loss Statement
If submitting personal California Bank statements, a P&L prepared by the San Diego CASelf Employed Mortgage Applicant covering no less than 12 or 24 months is required
The P&L must be signed and dated by the self-employed mortgage applicant.
If submitting business California Bank statements, a P&L prepared by the San Diego CASelf Employed Mortgage Applicant covering no less than 24 months is required
The San Diego CASelf Employed Mortgage Applicant is required to provide separate P&Ls for each business being used in qualifying.
The P&L should generally cover the same calendar months as the California Bank statements provided.
(3) Validation of a minimum of 2 years existence of the business from one of the following: Business License, Letter from Tax Preparer, Secretary of State Filing or
SELF EMPLOYED San Diego CA PROFIT & LOSS ANALYSIS
• Net Income from the P&L will be used as Qualifying Income for both personal and business California Bank statements.
• The P&L used for qualifying must be signed by the San Diego CASelf Employed Mortgage Applicants.
• Declining Income requires a Letter of explanation to determine if the trend will continue.
• Any amounts on the P&L representing salary/wages paid to the San Diego CASelf Employed Mortgage Applicants/business owner can be added back and considered in the net income analysis.
• Expense line items that can be added back to the business net income include depreciation, depletion, amortization, casualty losses, and other losses or San Diego CA business expenses that are not consistent and recurring.
• San Diego CA Self Employed Mortgage Applicants utilizing business California Bank statements that own > 50% but < 100% of a business will be qualified at the P&L/AES net income multiplied by their ownership percentage.
• The P&L expense ratio, Gross Income minus Net Income, divided by Gross Income, should be reasonable for the profession.
Example: A home-based sole practitioner therapist/consultant can be expected to have a low expense ratio, while a retail San Diego CA business that has a full staff of employees and relies heavily on inventory to generate income will have a high expense ratio.
• If the file does not contain a CPA prepared P&L, steps must be taken by the underwriter to evaluate the reasonableness of the expenses listed by the San Diego CASelf Employed Mortgage Applicants.
• This requires the San Diego CASelf Employed Mortgage Applicants to provide a business narrative which includes detail related to the size/scope and operating profile of the business, including the following:
o Description of the San Diego CABusiness/Business Profile
o Location & Associated Rent o Number of Employees / Contractors o Estimated Cost of Goods Sold (Does
business involves the sale of goods or just services?)
o Materials/Trucks/Equipment o Commercial or Retail client base? o Business Analysis
• Business Expenses listed on a San Diego CASelf Employed Mortgage Applicants prepared P&L should generally relate to the information provided below.
Age of Documents Self Employed Mortgage Lenders Requirements
Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 60 days prior to closing
Appraisal Requirements For San Diego CA Self Employed Mortgage Lenders
Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to the appraisal process and value determination, in addition,n an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 day period, a new appraisal is required. Re-certification of value is
not acceptable. Minimum Square Footage 800 Sq. Feet Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal
Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. A 5% reduction in LTV/CLTV will be required for all properties identified to be in a declining market as designated by the appraiser.