Self employed workers will require more documentation than salaried or W-2 Employees. We understand the challenges this can bring to self-employed individuals and our lenders have responded by offering the Profit & Loss Statement Program for self employed borrowers. Simply have your CPA or licensed tax preparer prepare a Profit & Loss Statement for your business that covers a one or two year period plus your year to date profits and losses. Your business or personal tax returns are not required. You will need to verify a 2 year history of being self-employed in the same business.
PROOF OF SELF EMPLOYMENT
The following documentation is required:
Co-Borrower Income: Full documentation, such as paystubs and W-2's from a co-borrower who is not self-employed may be used to supplement the P&L Statement income.
Below we will take a look at the required documentation necessary to satisfy the criteria of The Bank Statement Program. First let's start with some characteristics that are common to Bank Statement Programs:
ELIGIBLE PROPERTY TYPES
MINIMUM DOWN PAYMENT PURCHASE TRANSACTION
Your minimum down payment will depend on your credit score as follows:
RESERVES
In addition to the down payment and closing costs, the Buyer will have to show they have enough funds in their account(s) to cover at least 3 months of mortgage payments including principal, interest, property taxes, homeowners insurance, and association/condo fees (if applicable). Required reserves will depend on the loan amount as follows: