Just want to know if there is stated income program for owner occupied in the market at all ?
There’s a “trust funding” program that may work but minimum property value is $500,000. Just received info on another source the other day. See details below. Dont know anything other than what was sent to me.
Self-Employed SIVA program
Summary of SIVA Program
The SIVA Program is for Self-Employed borrowers only * buying or refinancing, including Cash-Out, of their 1-4 family primary home or their vacation home if it is a SFR or Condo. The Debt to Income (DTI) should not exceed 36/44.
Maximum financing is:
70LTV/CLTV to $750K with .250% add-on to rate
55LTV/CLTV to $1.0M with .500% add-on to rate
50LTV/CLTV to $1.5M with .750% add-on to rate
50LTV/CLTV to $3.0M with .750% add-on to rate
Borrower must provide proof (such as CPA letter) they are self-employed owner in an established business for at least 2 full years and their credit should be very good to excellent.
*** A 4506 is not required. While there is no minimum reserves requirements verified liquid assets including PITI reserves need to be consistent with the borrowers stated income and reasonable for the transaction.
*** A Cash-Out refinance must include a reason from the borrower.
***To qualify for the SIVA program the borrower needs to be S/E in the same that they “own” an established business usually with a separate set of books that can be independently verified by CPA or some other means. 1099 Independent Contractors are often working for one or more companies but do not actually own the business.
***Stated rental income can be used to offset debt on investment property but net rental income cannot be used a qualifying income on SIVA program (because SIVA is only for S/E income) unless it is verified by copies of fully executed leases.
***The SIVA program may be combined with a borrower (including his/herself) that has a salary or other verifiable form of income on the same application. The S/E borrower states their income, confirms, ownership and verifies all assets. The salary borrower states and verifies their income by traditional means such as W-2s, and pay stubs.
The LTV and rates are based on the SIVA program. Although we don’t us VICO scores to evaluate the loan application the borrower should have very good credit and SIVA and NIVA programs credit history should be substantial and excellent. Any derogs must be explained.
**A Strong mortgage payment history with no late payment past the grace period, usually the 15th, is important.
Copies of cancelled mortgage payments checks or a detailed mortgage payment history from the lender showing no late fees may be required on a case-by-case basis.
***On a SIVA program the liquid assets including reserves must be consistent and support the borrowers stated income. A general rule of thumb is the liquid assets derived from earnings should be t least 1/3 to ½ of the borrowers annual stated income – at maximum LTV assets should be a least ½ and at a lower LTV the assets can be about ½. However, factors such as other RE and retirement assets are considered. Credit usage and history are always very important. The DTI is base on the LTV and should not exceed 38/44 to 60LTV or 36/44 to 70LTV on the SIVA program.
Business funds are allowed for the down payment or reserves if the borrower is 100% owner of the business and their company accountant provides written verification that withdrawal of the funds will not have an adverse affect on the Business Operations.
CT, DE, MA, NH, NJ, NY, PA, RI, and FL (depending on the county)
does this still exist???
I know of NO stated income program. Tax returns are required on almost every loan application now.
trust program still available…checking on the stated program.
Trying for a foreclosed house. Have to go thru Bof A. Have a 25 year strong biz that’s heavy on tech so we take huge deductions. BoA would not add back our deductions to pre-approve us despite hi FICO, great credit, perfect record with previous home. We want to combine biz and home under one roof. Could use elderly Mom’s income as she will move in. Could also use wife’s income but she had a Bnkruptcy (hospital) 9.5 years ago. Anybody tried to combine incomes to beat the BofA beast?
Need best advice.