How Alternative Documentation Loans Work...

 Hello!

The Alternative Doc mortgage market continues to grow.

These are loans for people that can’t prove their income via the normal Tax Returns or pay stubs.

Here is a brief summary of how some of these loans work…

Option 1: Bank statement loans.

Very simply we take the aggregate deposits of your bank statements (can be personal or business) and use this for your income.

Variables of Bank Statement loans…

24 Months of bank statements.

12 Months of bank statements.

2 Months of bank statements.

1 Month bank statement.

The reason we offer multiple options for months is that sometimes a 12 month average won’t work as good for the borrower as one month.

We offer down payments as low as 10% on owner occupied bank statement programs.

We also offer multiple ways of calculating deposits, which is very helpful if there are issues with one calculation method.

Rates on these programs are usually only modestly higher than normal conforming rates.

Option 2: Asset Depletion

If you have no income to speak of, or at least you can’t prove your income via traditional means, or bank statements, then Asset Depletion may be an option for you.

If you have sufficient assets then we can use your assets in liu of income documentation.

We have down payments as low as 15% on Asset Depletion loans.

Option 3: Investor Debt Service Coverage (DSCR)

This documentation option is for non owner occupied investment properties. It requires no income documentation. We use the income from the property (rental income) for the buyers income to get the loan approved.

Option 4:  No Ratio and Stated Income loans

No Ratio is stated income and verification of assets to close the transaction.  This is a non owner occupied investor loan only.

Stated Income and Stated Assets is also non owner occupied investor loans only.

We are experts at getting these loans closed and funded.

If you are needing an Alt Doc loan feel free to reach out to us with your questions, or apply now to get pre qualfiied.

That’s it for today!

Thanks for reading!

Brett

 

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