Alt Doc Loans

Verification of Employment (VOE) Only **No 4506-T Required.

1. Income Documentation
– Wage Earner: VOE Only
– Self Employed: YTD and 1 Year P&L statement signed by borrower, CPA letter verifying business ownership for 2 years and Business License Required
2. 2-4 units condo project is ineligible
3. Reserves: Verification of Deposit (VOD) accepted
LTV =< 60% & loan amount up to $1,000,000 6 months P&I
LTV > 60% or loan amount over $1,000,000 12 months P&I
4. Credit History
Mortgage Late Max 1 X 30 in past 12 months
3 tradelines seasoned for minimum 12 months
– Bankruptcy: 3 years
– Shortsale / Deed in lieu: 2 years
– Foreclosure: 5 years
– Loan Modification: 2 years
5. Delayed financing allowed
6. Listing history: 3 months from the date of listing cancellation to loan application date
7. Financed properties: Maximum 8 properties for US Citizen and Permanent Resident
Maximum 3 properties for Foreign National
8. Finance Amount: Maximum $3 million for US Citizen and Permanent Resident
Maximum $2 million for Foreign National
9. Source of Funds: Borrower must contribute at least 10% towards the transaction using their own funds in purchase transaction
10. Gift: Acceptable after 10% (of total down payment) contribution has been made by borrower using own funds
NOT allowed on 1) investment transaction 2) any reserves OR 3) debt pay off to qualify
11. Borrower with more than 5 financed properties are limited to 50% LTV for investment transaction
12. 3rd party payments: may be omitted with 6 months cancelled checks evidencing liability is being paid by other. If self employed, P&L must reflect such expenses
13. Rate and Term: Payoff of non purchase money second is allowed if seasoned for over 12 months
14. Foreign nationals: Requires ACH with investor bank with 12 months reserve deposit at closing
15. Unpermitted addition: Allowed. If supported by comparables, value may be give on attached unpermitted additions

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