Producing tax returns, paystubs and W-2s to satisfy the application and underwriting guidelines of lenders may not pose a challenge for borrowers working as salaried or hourly employees. At MortgageDepot, a multi-state mortgage broker based in New York, we understand how producing the documentation to prove income may be a challenge for self-employed borrowers. We now offer a stated-income loan, which we describe as our Lite Doc program, to allow self-employed borrowers access to financing for the purchase of owner occupied real estate.
Challenges faced by self-employed borrowers
As a general rule, the underwriting guidelines followed by most lenders look for verification of a buyer’s source of income by demanding the following documents from borrowers:
- Pay stubs
- Income tax returns
Self-employed individuals, such as owners of small business and freelancers, who are unable to prove income in the manner traditionally required by lenders would be prevented to obtaining mortgage financing.
Stated-income loans for owner occupied properties
Our loan officers specialize in finding financing tailored to the circumstances of each borrower. Self-employed borrowers may find our Lite Doc program to be a perfect match. Highlights of the program include the following:
- No requirement for borrower to produce tax returns, pay stubs or W-2s.
- Borrowers must be self-employed and produce 12 months of borrower-prepared profit and loss statements.
- Properties with one to four units, including condominiums, cooperatives and planned unit developments, are eligible for financing.
- Loan amounts available up to $2 million.
- Available loan-to-value ratio up to 75% and debt-to-income ratio up to 50%.
- Borrower funds required to close may include up to 100% through gifts.
Properties must be owner occupied in order to be eligible for financing under this program.
Learn more about stated-income loans
Our loan officers work with borrowers through each step of the loan process from application through closing.
Contact one of our loan consultants to learn more about the stated-income loan.