How to look at our Bank Statement Product

 Bank statement program – alternative - self employed  Foreclosure, BK or loan modification: – only require seasoning 12 months – (.50% rate hit if seasoned less than 36 months)  FICOS AS LOW AS 620 – All property types, including n/o & units  ARM PRODUCT – INTEREST ONLY AVAILABLE  Allowed up to 10 financed properties, including subject (if all income is from rental, must go full doc)  Only 1 year 1040’s or W2 for salaried or commissioned employees (requires 2 yr. same business)  Gifts okay after 30% down.  FTHB’s okay to 43% DTI; Otherwise max ratios to 55% (investment to 50%).  No seasoning for rate/term or cash out.

 PURCHASE, RATE AND TERM, CASH OUT  OWNER OCCUPIED, 2 ND HOMES AND INVESTMENT  W2 or STATED INCOME (can combine both)  MINIMUM $50,000 – MAXIMUM $2,500,000  BORROWER PAID ONLY  ALL HITS ARE TO THE RATE – see rate sheet  ARMS – 5-1; Caps 5-2-5; INDEX 1 YR LIBOR; MARGIN 3.75% (CURRENTLY AT 4.75 PAR) Disclosure need to be accurate!  INTEREST ONLY available for.250% Rate Adustment  Self Employed for 2 years – we do not verify with a 4506T; when combined with a W2; W2 income will require a 4506T

 12 months of personal bank statements to determine income derived from the business (income stated on the 1003)  Income is considered to be transfers or deposits from business accounts, deposits from business accounts thru an ATM or payroll check deposits. Deposits divided by 12 months – enter on  Twelve month P&L prepared by BORROWER or 3 rd party CPA/tax preparer and covering the same time period to further validate the “income” shown in the bank statements *.  CPA/tax preparer’s attestation of borrower’s percentage of ownership and that the borrower has been self-employed in the same business for a minimum of 2 years.  *P&L net income doesn’t need to match 1003 income. Looking to see that deposits make sense to income.

 Corporation where 100% of shares are owned by borrower, single member LLC, single partner partnership or sole proprietor. Validation of percentage of ownership may be thru Articles of Incorporation, state DOC, etc.  Most recent 12 months P&L “certified” prepared by CPA/tax preparer. Three months of personal bank statements are required to commensurate with the net income shown on the P&L. Net income to go on  CPA Tax Preparers' attestation of borrower’s percentage of ownership and that the borrower has been self-employed in the same business for a minimum of two years.

 Option 3: Available to any borrower with a 25% or greater ownership in a business CPA/TAX preparer letter stating the net business income taken by borrower over the last 12 months. Net income per CPA stated on the Most recent three (3)months personal bank statements must be in line what business shows as income. Has to make sense. (If 100% ownership, it can be either business or personal returns to show the income.) CPA/tax preparer’s attestation of borrower’s percentage of ownership and that the borrower has been self employed in the same business for a minimum of two (2) years. Tax Preparer – defined as someone who is licensed, can look up on line, etc.

 Available to any salaried or salary plus commission borrower Most recent one (1) year tax return or most recent W2 (income shown on 1003 with current paystub showing YTD income. Most recent two (2) months personal bank statements to validate required reserves Processed 4506T – IRS transcripts required. A CPA/tax preparer’s attestation that the borrower has been in the same business for a minimum of two years.

All individual deposits counted if less than 50% of monthly income stated. Each deposit equal to or greater than 50% of the monthly income figure must be sourced. Deductions: Transfer, NSF fees, returns, insurance refunds, etc.

 Rental Income – 75% of lease minus PITI+HOA  Departing residence requires 30% equity  Reserves – minimum 6 months, max 18 months depending on loan amount + 2 mos. for each additional n/o/o property.  Residual income required if DTI 43.01% or higher  POA’s not allowed.  All inquiries on credit report must be explained.  Each derogatory credit must be explained.  ARM disclosures must be accurate – see notes on ARM product