Self Employed Financing
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Self Employed Financing
Are you Self-Employed and would like to purchase a home now?
Good news, we specialize in Self-Employed purchase programs. If you have been self-employed for at least 2 years and if you have 5% to 10% down payment, we have the solution and can close your loan in as little as 12 days. Take a quick look at the Self-Employed financing programs available now (at least 1 borrower must be self-employed):
- 580 to 800+ FICO’s
- Down Payment Assistance covering up to 3.5%
- Seller contributions up to 6% / Gift funds allowed
- Bank Statements to prove income (tax returns NOT needed with this type income)
Bank statement loan programs
- 3, 12, or 24 Months Bank Statement Programs (12 months pricing is better than 3 months and 24 months has even better pricing than 12 months)
- The lender is looking primarily at the total funds deposited monthly in order to arrive at the income they will use to qualify you for your purchase loan.
- The best thing about our bank statement program is “NO TAX RETURNS OR CHECK STUBS REQUIRED”
- This opportunity saves tons of time and money in most cases which takes time for those other lenders having to wait on the IRS to confirm tax information. Waiting for IRS these days can kill purchase loan opportunities.
- Needless to say, we still can do a full doc (meaning prove all income in the traditional way) Self-Employed purchase loan which will provide a better rate, however, you will have to provide the most recent two-year business and personal tax returns and Profit & Loss statements along with other requirements.
- Bottom Line Up Front if there’s a purchase loan that exists that fits your situation we find the bank and get you to the closing table as soon as possible.
Debt Service Purchase Financing (DSCR)
NO TAX RETURNS REQUIRED NOT EVEN REQUIRED TO SHOW EMPLOYMENT PERIOD!!
With good credit you can take advantage of this AWESOME program while it is still available.
Here are the highlights to sell on DSCR:
- Remember, these type loans are considered business purpose loans, so these loans DO NOT follow traditional loan requirements like TRID
- This program is the best Investment home program in the business….Conforming cannot touch this.
- It’s all about the Market rent vs the new mortgage payment…That’s it…Very Limited Doc as there is
- NO DTI
- NO Income
- NO Employment is needed.
- We all know that Self Employed borrowers need to show proof of Self Employment for 2yrs on Full Doc or Bank Statement Loan, however, with DSCR, that’s not an issue, because there is NO Employment verification needed.
- No Tax Returns or anything, so if the borrower owes to the IRS, we’d never know, nor do we want to know.
- The borrower can have as many properties as he wants as this is a NO TRID.
- There is NO LE, you as a broker Do NOT have to be licensed to do business in that state, and you can Order the Appraisal any time you wish.
- You do not have to wait for Disclosures because there aren’t any.
Very simple math
- Market Rents divided by the new PITIA = DSCR Ratio.
- You want your DSCR ratio to be 1.0 or above for the best rate and LTV.
- Example (Market rents come back at $2,100 and your new PITIA is $2,000……so, $2,100 divided by $2,000 = 1.05 ratio, so you’re totally good there.
Appraisal for bank statement
When you order the appraisal,
- You need to get have attach the 1007 form, which is the market rents portion.
- Appraiser should know this as it’s an investment property, but it’s always good to make sure.
Assets for PURCHASES
Here’s some really good info on using Assets for PURCHASES
- When you need 70% or less, there is
- NO ASSETS VERIFIED.
- NO SEASONED FUNDS if funds to close are below $100,000.
- Over 70% LTV, there is only 30 Days of Seasoning of funds not 60 DAYS like normal loan.
- Remember, the big sell here is Very Limited DOC and the borrower does not have to worry about offsetting their current rentals, etc. There is NO DTI and NO Employment needed.
- Purchases are great, because all they need to qualify is the DSCR ratio and having the appropriate FICO score.
- They can be a first time home buyer or first time investor as well.