90% LTV Purchase, Full DOC or Bank Statements

As you prepare for your next home purchase, one important question may weigh on your mind. Can you afford to buy the right house at this time? Your ability to qualify for financing, the down payment requirement and the loan terms all impact the answer to that question. At MortgageDepot, many of our customers are interested in making a 10 percent down payment. This may be a manageable down payment amount for you, and it offers benefits like home equity from day one and a reasonable monthly payment. What should you know about this type of residential mortgage?

90 Percent Full-Doc Loan

We offer two primary types of residential loans with a 10-percent down payment requirement. One of these is a full-doc loan, which means that you will need to provide personal tax returns, bank statements, W-2s and other similar documents to prove your income and your assets. With this loan program, you can expect:

• A more competitive interest rate
• A lower monthly payment
• Strict requirements for your debt-to-income ratio

90 Percent Bank Statement Loan

The other primary type of 90 percent LTV residential loan that we offer is a bank statement loan. Self-employed individuals and individual contractors cannot provide paystubs and W-2s to document their income. Because of IRS-permitted tax write-offs, personal and business tax returns may not reflect the full amount of income that the applicant generates. With a bank statement loan, the underwriter will calculate your income by reviewing your tax returns. If you apply for a bank statement loan, you can expect:

• A slightly higher interest rate
• A higher minimum credit score requirement in some cases
• A requirement to provide up to 12 months of bank statements

Get Pre-Qualified Today
Our loan originators at MortgageDepot have exceptional knowledge of an extensive range of residential mortgage programs. After we get to know your specific needs and qualifications, we will help you to set up competitive terms for a home loan that meets those needs.

Get in touch with one of our loan consultants for more information.