Stated Income Texas Mortgage Lenders
10% Down Payment Using Bank Statements as Income!
Texas Mortgage Lenders for Self-Employed Borrowers
- No tax returns required
- 12 month personal bank statements
- 24 month business bank statements
- 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
- TEXAS STATED INCOME MORTGAGE LENDERS PROGRAMS
- 6 TEXAS STATED INCOME MORTGAGE LENDERS PROGRAMS
- Stated Income Texas Mortgage Lenders+Easy Approvals!
- TEXAS SELF EMPLOYED-BANK STATEMENT MORTGAGE LENDERS
- 10% DOWN+STATED INCOME TEXAS MORTGAGE LENDERS
- STATED INCOME FL MORTGAGE LENDERS PRIMARY HOMES!
- TEXAS STATED INCOME MORTGAGE LENDERS PROGRAMS …
- texas stated income mortgage lender
Bank Statement Only borrowers that can document their income by providing the following:
NO TAX RETURNS NEEDED!!!
- Borrower must be Self Employed
- Personal or Business Statement Accepted
- 50% MAXIMUM DTI FOR BANK STATEMENTS
- 24 months to qualify / Mortgage Late Payments, Short Sales, BK = OK!!
- Bank statement lenders minimum 580 FICO!
Texas mortgage lenders offer three stated Documentation Programs:
1.Full Documentation (“Full Doc”)
2. Alternative Income (“Alt Doc Bank Statements”) for Owner Occupied properties
3.Alternative Documentation (“Alt-Doc Cash Flow”) for Non-Owner Occupied or Second Home properties and Business Loan requests.
The below information is a summary of minimum Texas stated loan documentation requirements for each Income Documentation Program. For additional documentation requirements, refer to the Income Doc Charts in this section of the Guide.
-ALTERNATIVE DOCUMENTATION / BANK STATEMENTS- STATED INCOME Texas MORTGAGE LENDERS
(Must be able to verify self-employment income)
1. Last twenty-four (24) months personal or business bank statements with all pages required for all months.
2. Stated Texas Borrower Income is determined by using the gross monthly amount of deposits with a deduction of any itemized debts or other expenses that are verified by a tri-bureau merged credit report.
3. Max six (6) NSF checks in the last twelve (12) months.
4. Acceptable documentation supporting the existence of the business for the most recent two (2) years must be obtained. (Refer to the Acceptable Evidence of Self-employed Business).
FULL DOC / WAGE EARNER
1. VOE completed in full by employer verifying most recent two (2) years (Verbal verification of VOE required) and current year-to-date earnings on a current pay stub OR
2. W-2 for most recent two (2) years & current pay stub reflecting year-to-date earnings OR
3. Signed 1040’s for most recent two (2) years & current pay stub reflecting year-to-date earnings
Fixed & Other Sources
Current award/retirement letter; AND
Copy of the most recent bank statement showing automatic deposit (deposit must specifically reference the source of the deposit); OR
1099 for most recent year
Acceptable documentation supporting existence of the business (“Refer to the Acceptable Evidence of Self-employed Business”)AND
Verification of income covering the most recent two (2) years and year-to-date earnings with signed 1040’s as well as other applicable supporting documentation (i.e. 1120’s, K-1s etc.)
100% Commission / Bonus
Verbal VOE, to confirm borrower’s employment and commission/bonus AND
Signed 1040’s for most recent two (2) years with current pay stub reflecting year-to-date earnings (if not pay stub no applicable, obtain bank statements covering year-to-date)
Salaried + > 25% Commission / Bonus
· Signed 1040’s for most recent two (2) years AND current pay stub reflecting year-to-date earnings (pay stub must reflect salaried wage + commission/bonus)
TEXAS STATED INCOME MORTGAGE LENDERS EXPLAINED
A Stated Income Texas Mortgage Lenders loan is a mortgage where the lender does not verify the borrower’s income by looking at their pay stubs, W-2 employee income forms, income tax returns, or other records. Instead, Texas Mortgage Applicants are simply asked to state their income, and taken at their word. These loans are sometimes called liar loans or liar’s loans. Stated Income Texas Mortgage Lenders loans were originated by Ameriquest.
These loans are nominally intended for self-employed Texas Mortgage Applicants or other Texas Mortgage Applicants who might have difficulty documenting their income. Stated Income Texas Mortgage Lenders loans have been extended to customers with a wide range of credit histories, including subprime Texas Mortgage Applicants. The lack of verification makes these loans particularly simple targets for fraud.
Stated Income Texas Mortgage Lenders loans fill a gap of situations which normal loan standards would not approve. For example, a standard rule is that a customer’s mortgage and other loan payments should take up no more than 45% of the person’s income. This would seem prudent for a person just owning their main home. However, a real estate investor may have multiple properties and for each may receive only a small amount more than their loan payments on each house, but end up with $200,000 in disposable income. Nevertheless, a non-Stated Income Texas Mortgage Lenders loan would decline this person since their debt to income ratio would not be in line. The same issue can arise with self-employed Texas Mortgage Applicants, where the bank with a fully documented loan would include the borrower’s business debt in their debt to income calculation. Stated Income Texas Mortgage Lenders loans also help Texas Mortgage Applicants where fully documented loans normally would not consider the source of income as being reliable and stable, such as investors who consistently earn capital gains. Fully documented loans also do not consider potential future income increases. Another type of loan that uses the same principles is the no income disclosure loan.
The president of the Mortgage Brokers Association for Responsible Lending, in a statement at a Federal Reserve hearing on mortgage regulation, reported that his organization had compared a sample of 100 Stated Income Texas Mortgage Lenders mortgage applications to IRS records, and found almost 60% of the sampled loans had overstated their stated income by more than 50 percent.
In 2010, Wall Street Reform and Consumer Protection Act, restricting Stated Income Texas Mortgage Lenders loans, went into effect. Section 1411 of the Act states: “A creditor making a residential mortgage loan shall verify amounts of income or assets that such creditor relies on to determine repayment ability to repay, Currently, stated income Texas mortgage lenders are conducting their own version of income and asset verification.
Stated Income Texas Mortgage Lenders loans are still offered typically by small local banks. Qualification requirements are based on stable employment, good reserves, good FICO and no less than 40% equity position in the property. Stated Income Texas Mortgage Lenders loan availability changes very from state to state, county to county.