Mortgages Unlimited, Minnesota, Wisconsin, and South Dakota today's Mortgage Rates in Minnesota, Wisconsin, South Dakota

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Can you get a true NO Documentation Mortgage Loan? (NINA, SISA, No Doc) NO

Can you get a bank statements only for income proof loan? YES

Can you get a stated income loan? YES





WHAT IS YOUR QUALIFYING INCOME?

Current traditional loan lending rules REQUIRE ALL LENDERS to document sufficient monthly income to safely afford the house payments. Traditional loans like Fannie Mae, Freddie Mac, FHA loans, and VA loans, all deem this proof as regular documented income, like pay stubs, tax returns, social security, child support, etc.

For self employed borrowers, lenders will look at your last two-years Federal Tax Returns, both business and personal. If you get 1099's, you are considered self-employed. We look at your return, and essentially, whatever you report to the IRS as taxable income is what we use for mortgage qualifying.  If you write your income down, that is great for not paying taxes, but a gigantic problem for home loan qualifying. Learn more about self-employed mortgage loans.

For those who received tipped income, commission, or others who income varies, your income will be averaged over two-years based on W2's and tax returns.

Bank Statements for income, or Stated Income loans have returned!

NON-TRADITIONAL INCOME LOANS IN 2018 AND BEYOND

Non-Traditional mortgage loans are back, but with larger down payments, and more expensive than in the past.

Basically you have three options:

BANK STATEMENT Loan Programs

With bank statement programs, generally lenders will use either 100% of personal bank statement deposits, or 50% of business bank statements as your qualifying income. If you are a joint owner, business accounts are 50% of deposits, then divide by the number of owners.

The terms are generally available as both fixed and adjustable rate mortgages, with significantly higher interest rates than traditional loans. Down payment requirements typically tend to be at least 20% down or more, but as little as 10% is possible with good credit.

STATED INCOME Loan Programs

Old fashioned stated income loans are also becoming available again. These loans are known as "Outside of Dodd Frank" loans that don't meet the strict "Qualified Mortgage" rules that dictate traditional mortgage loans.

  • No proof of income needed (stated income)
  • W2 job OK. (don't need to be self employed)
  • Must prove down payment and closing costs money
  • No Reserves required
  • Up To 75% LTV (25% down)
  • Interest Only payment available
  • No Pre Payment Penalties
  • Rates start about 2% higher than standard loans
  • 1 4 unit properties:
  • Investment
  • Business purpose O/O
  • Foreign Nationals OK
  • Fix and Flip

ASSET BASED / ASSET DEPLETION Loan Programs

Loan income qualifications are based on verified assets. These programs vary, but a common version is where they simply divide your verified liquid assets by 5-years (60 months). For example: If you have $200,000 in liquid assets, divide that by 60 months, equals $3,333 a month income. 

  • Assets can be in the bank, 401k, stocks, bonds, etc. (must prove liquid)
  • Minimum 25% down
  • Owner occupied or Investement
  • Purchase or Refinance
  • 600 credit score or higher
  • Maximum debt ratio of 50%
  • Must show last two months asset statements
  • Letter of explanation documenting source of income and contemplated depletion

ABILITY TO REPAY IN FULL Loan Program

This program is pretty straight forward. You simply prove you have enough liquid assets to cover the loan balance.

  • No monthly income require
  • Do not have to currently be employed
  • Minimum 25% down payment
  • Purchase or Refinace
  • Owner occupied or Investment property
  • Scores as low as 600 allowed
  • Show only two months asset statements

SHOULD I APPLY?

YES, but due to the nature of these loans, we will make all efforts to qualify you for a traditionals loan, or to discuss putting yourself into position to refinance into a traditional loan as soon possible.

If one of these alternative mortgage loan programs fits your situation, and you meet the basic criteria above, by all means, you should apply online or call our office at (651) 552-3681 to discuss your situation.