California Stated Income Mortgage Lenders
When you apply for a conventional bank mortgage, you need to provide your income tax returns including most recent paystubs to prove your income before you can be approved. While this is often straightforward, there are situations where providing this proof may act as a barrier to getting a loan and where a California Stated Income loan can help. In the past with a California Stated Income loan, you simply state your income amount, without the need for verification via tax returns. Today since the housing cash stating your income without verification of income does not exist. We offer bank statement only loans with No tax returns required to verify your income!
Self Employed Mortgage Lenders Self-Employed Borrowers
- No tax returns required
- 12 month personal bank statements
- 24 month business bank statements
- Min 600 Fico 15% down with 6 months reserves in your bank account at closing.
- Min 660 Fico 10% down with 6-month reserves in your account at closing.
- Loans up to $3 million
- Credit scores down to 600
- Rates starting in the 4’s
- Up to 90% LTV on Personal and Business with no MI
- DTI up to 50% considered
- Owner-occupied, 2nd homes and investment properties
- 2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
- Non-warrantable condos considered
- Jumbo loans down to 600 score
- 5/1 ARM or 30-year fixed
- No pre-payment penalty for owner-occ and 2nd homes
- Seller concessions to 6% (2% for investment)
- 2 year self-employed required
Self Employed Bank Statment ONly Mortgage- Explained
We offer a 12 & 24-Month California Bank Statement Loan Program.
Borrower Employment Types:
- Must provide business license, Tax Preparer’s letter or corporate paperwork to prove at least 2 years in the same line of work.
Personal Bank Statements: 100% of Deposits
Add all deposits for all 12 or 24 months and divide that amount by 12 or 24 respectively to receive the monthly income amount we will apply as the borrower’s qualifying income.
Ex. 24 months deposits total = $200,000 / 24 = $8,333 a month income.
Ex. 12 months deposits total = $100,000 / 12 = $8,333 a month income.
Business Bank Statements you have a few options
- 50% of Deposits no questions asked!
- Provide a signed dated expense ratio letter!
- Provide you own signed and dated profit and loss!
Add all deposits for all 12 or 24 months, divide by 2, and then divide by 12 or 24 respectively to receive the monthly income amount we will allow for the borrower.
Ex. 24 month deposit total = $500,000 / 2 = $250,000 / 24 = $10,333 per month income. Only 50% is used because we have to assume the business has overhead.
Bank Statement Only Program Details:
Personal & Business Guidelines
- Only deposits can be used
- Transfers are NOT counted on personal and case-by-case for business.
- Must have 12 or 24 consecutive months of statements (no gaps)
- Must provide All pages (even the last pages with advertising)
- Cannot comingle (use two different accounts) statements.
- If the account was used and closed and new account for the remainder of statements must show the closing of old account and the opening of new account
- Transfers may be accepted for business statements when they come from credit card clearing houses (examples: Paypal, Square, AMEX, etcetera). Reviewed for acceptance on a case-by-case basis, and must be considered normal for the company.
– Multiple accounts are considered on a case-by-case basis when (a) one account is closing and reopening new account, or (b) for Business accounts that are two different and autonomous businesses.
California Stated Income Mortgage Lenders
Examples of situations where a California Stated Income loan in Los Angeles would help to facilitate your application process:
- You are self-employed. Your income may be significantly higher some months and lower on others, and it may also be processed through multiple payment providers, making documentation complicated. With a Los Angeles California Stated Income loan, you can simply state the average amount and move forward with your loan application.
- You are transitioning from one job to another. Perhaps, for example, you have been hired, but there is a gap before your employment formally begins, or there are delays in the HR department processing your paperwork. A California Stated Income loan allows you to get approved for a mortgage and move into your new home in Los Angeles without waiting on HR or your work schedule.
Benefits of California Stated Income Loans
Many know one of the major benefits of California Stated Income loans they can speed up your approval process, and may also make it easier for you to qualify for a loan. But there are a couple other advantages to doing a bank statement only loan:
- Less paperwork for you. Not only is a California Stated Income loan faster to apply for, but it is also easier. Not having to provide income verification documentation reduces your paperwork, freeing up your time and energy to focus on other aspects of your application process.
- You get to decide what you can afford. When you apply for a traditional mortgage, the lender looks at your income paperwork and decides as to what you can afford. With a California Stated Income loan, you are given more freedom when it comes to interpreting your finances. This is very important in a situation like a self-employment where the bank may not be able to see the full picture as you can.