Self employed borrowers have the option of a jumbo stated income loan
Of course stated income loans have been out of the picture for some time now, but who would have ever though you they would come back so quickly. And not only come back for conforming loan amounts but now Jumbo amounts. We now have a Jumbo stated income program for Purchase, Rate/Term Refinance and Cash-out Refinance transactions.
Jumbo Stated Income Loan Employment Requirements
In order to qualify for the Jumbo stated income loan the borrower must be:
- Self-employed
- Sole proprietorship, corporations where borrower owns 100% of shares and LLC and where borrower is sole member/manager.
- In addition to being self employed, the borrower must be in the same line of work for 2 years or more.
Jumbo Stated Income Loan documentation requirement
There is a minimum 12 months requirement of bank statements to verify assets and make sure the borrower has the capability to pack back the loan. In order to use business assets to verify sufficient funds for income and reserve requirements, the borrower has 100% ownership of the business. Also, The Company CPA to verify that withdrawal of funds has no adverse effect to business.
All the money must be your own and there must be adequate reserves
Since the traditional methods qualifying for a loan require tax returns, other factors are usually lenient such as reserve requirements and gifts for down payments. However in this case please be prepared… gift funds and assets must belong to the borrower and cannot be contributed by other parties. Also there will be a seasoning requirement which means the funds for reserves must be in the borrowers account for a required period of time.
For additional questions or to see if you qualify please feel free to contact me directly at (818) 854-4218.
