1. How to look at our Bank Statement Product
5/4/2015

2. Why is this so great?
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.
5/4/2015

3. PURCHASE, RATE AND TERM, CASH OUT
OWNER OCCUPIED, 2ND HOMES AND INVESTMENT
W2 or Bank Statement (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
5/4/2015

4. Option 1 – 12 month bank statement 25% or greater ownership in a business
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 1003.
Twelve month P&L prepared by BORROWER or 3rd 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.
5/4/2015

5. Option 2 & 3 – Currently not available.
5/4/2015

6. Option 4 – 1Yr. 1040’s or W2 only.
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 or a written VOE for salary and/or commission borrowers. Income period reflected on VOE to match tax return/W-2.
5/4/2015

7. How to calculate the income on bank statement.
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.
5/4/2015

8. Additional Information
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
0x30 in past 12 months for mortgage/rent – no exceptions
3 active trade lines seasoned for at least 24 months
No seasoning for rate/term and cash out refinances
5/4/2015