Popular Texas Topics Include:
- Texas-Bank Statement Only Mortgage Lenders
- Low Downpayment Texas Self Employed Mortgage Lenders
- Texas Self Employed Mortgage Lenders
- 12-24 month texas bank statement mortgage Lenders program
Texas Self Employed Mortgage Lenders provide for two (2) additional documentation options to determine a Texas Self Employed Mortgage Applicants qualifying income. Under this program either of the following will be acceptable;
- 12-months personal Texas Bank Statements; or
- 24-months business Texas Bank Statements
NO Tax Return Self-Employed Mortgage Lenders
Texas Bank Statement mortgage Lenders provide the perfect option for self-employed borrowers who do not have the tax documents to prove their ability to pay. We can offer up to 90% LTV on personal and business and 55% DTI with scores as low as580.
- 2 year self-employed or same line of work required
- No tax returns required
- 12 month personal Texas Bank Statements
- 12 month business Texas Bank Statements
- Loans up to $3 million
- Credit scores down to 600
- Up to 90% LTV on Personal and Business with no MI
- DTI up to 55% considered
- Owner-occupied, 2nd homes and investment properties
- 1 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 prepayment penalty for owner-occ and 2nd homes
- Seller concessions up to to 6% (2% for investment)
Texas Self Employed Mortgage Applicants General Mortgage Requirements
Under this program, all Texas Self Employed Mortgage Applicants must be Self-employed.
Refer to the applicable Program Matrices for credit score, ratio and LTV restrictions.
Texas Self Employed Mortgage Income Calculations for Texas Bank Statements
Personal Texas Bank Statement Mortgage Lenders Average The following requirements apply when calculating qualifying income using personal Texas Bank Statements:
- All parties on the self-employed banks statement loan must be on the loan; and
- Qualifying income is defined as 100% of deposits, averaged over a twelve (12) month period; and
- Texas Bank Statement Statements must be consecutive and reflect the most recent months available; and
- Transfers from a Texas Self Employed Mortgage Applicants business bank account to personal account are allowed; and
- If the Texas Bank Statements provided reflect payments being made on obligations not listed on the credit report, refer to Undisclosed Debts for additional guidance.
Texas Self Employed Texas Bank Statement Documentation Requirements
Most recent twelve (12) months consecutive Texas Bank Statements IRS transcripts are not required under the personal Texas Bank Statement program. In the event one or more Texas Self Employed Mortgage Applicants) are wage earners IRS transcript are still not required for income calculations.
Business Texas Bank Statement Only Mortgage Lenders
The following requirements apply when calculating qualifying income using business Texas Bank Statement mortgage applicants:
- Texas Self Employed Mortgage Applicants must be 100% owner of the business; and
- Qualifying income is defined as, the total deposits, less the percent of business expenses, annualized.
Business Texas Bank Statements Expense to Income Ratio
The percentage of expenses used to determine the Texas Self Employed Mortgage Applicants qualifying income, can never less than 10%of the total deposits.
For Texas Bank Statement mortgage approvals purposes, a Business Expense, CPA Statements or Profit and Loss Statements reflecting an expense ratio of less than the minimum required (10%), the percentage used to determine the qualifying income will be adjusted to the 10% minimum.
Texas Self Employed Texas Self Employed Mortgage Applicants Documentation Requirements
A Third Party or CPA prepared Business Expense Statement or Profit and Loss Statements, which is less than 90-days old at the time closing, must specify the total business expenses as a percent of the gross revenue. Twenty-four (24) month business Texas Bank Statements covering the same time period as the Business Expense Statement.
Texas Self Employed MORTGAGE RATIO REQUIREMENT OCCUPANCY HOUSING RATIO DTI
- primary Residence 40% 50%
- Second Home N/A 50%
- Investment N/A 50%
Texas Self Employed Mortgage Initial Disclosed Income
Income disclosed on the initial signed application should be reviewed. If income calculated is significantly higher than income stated on 1003, the underwriter should request an explanation from the Texas Self Employed Mortgage Applicants to determine the acceptability of the income.
Income Texas Self Employed Mortgage Applicants
The income of each Texas Bank Statement only mortgage applicant who will be obligated for the mortgage debt and whose income is being relied upon in determining ability to repay must be analyzed to determine whether his/her income level can be reasonably expected to
continue.Texas Self EmployedTexas Self Employed Mortgage applicant Income may not be used in calculating the Texas Self Employed Mortgage Applicants debt-to-income ratio if it comes from any source that cannot be verified, is not stable, or will not continue. All Texas Self Employed Mortgage Applicants income documentation used for qualification must be dated within 90-days of closing.
Texas Bank Statement Only Mortgage Lenders Program Restrictions
The following restrictions apply when using Texas Bank Statement documentation:
- Texas Self Employed Mortgage Applicants must qualify with Standard Trade Lines as per Trade Line Requirements section.
- Non-permanent resident aliens and foreign nationals are not eligible.
- Payroll deposits into accounts from other employment must be reflected as direct deposits and may not be included in the Texas Bank Statement average. W-2 earnings must be documented as per therequirements in Salaried/Wage-Earners section.
- A consistent pattern of withdrawals exceeding deposits on a monthly basis or evidence of a declinein earnings may result in disqualification.
- NSF and overdraft activity must be reviewed for acceptability.
Income derived solely from the ownership of rental properties must be calculated per tthe requirements
in Rental Income section. Texas Self Employed Mortgage Applicantss who receive rental income as a secondary
income source may utilize Texas Bank Statement documentation on a case-by-case basis.
- Non-Profit organizations are not eligible under the Business Texas Bank Statement Program.
Texas Self Employed Mortgage Applicants Credit and Liabilities
A U.S. credit report is required for each borrower on the loan who will sign the Note. The credit report should provide merged credit information from the three major national credit repositories. A minimum of two credit scores is required. The credit report should include verification of all credit references provided on the loan application and must certify the results of public record searches for each city where the borrower has resided in the last two (2) years. Either a three bureau merged report or a Residential Mortgage Credit Report (RMCR) is required.
Alimony and Child Support Texas Self Employed Mortgage Applicants
Income received from alimony or child support must continue for at least three (3) years.Evidence that the Texas Self Employed Mortgage Applicants has received the payments for the six (6) months preceding the loan application by way of court ledgers or statements, bank deposit slips, signed tax returns, cancelled checks, or other legally accepted evidence ofreceipt.
Annuity Income For Texas Self Employed Mortgage Applicants
Annuities less than twelve (12) months old must be in a non-revocable trust with a minimum term of 40-months in order to use as qualifying income. A twelve (12) month history of receipt must be verified using 1099’s, tax returns, and/or Texas Bank Statements. The account asset balance must support the continuance of the monthly payments for a least three (3) years after the closing date.
Documentation Requirements Texas Self Employed Mortgage Applicants
Letter from issuer of annuity to be obtained stating that it has been set up on periodic withdrawal, amount of withdrawal, duration and balance; and Proof of receipt documented with the most recent two (2) years signed federal tax returns, two (2) most recent Texas Bank Statements or deposit slips. Documentation must confirm the amount, duration, and frequency of the income, as well as the likelihood of continuance for three (3) years.
Auto Allowance and Expense Account Payments Texas Self Employed Mortgage Applicants
Income from this source can be used if a two (2) year history of receipt can be confirmed and documented with the most recent two years signed federal tax returns and the income is reported on IRS Form 2106.Documentation provided to support this income must specify the amount, duration and frequency of the income and the corresponding expenses must match the same time period as the income from the employer.
Texas Bank Statement Program
Texas Self Employed Mortgage Applicantss seeking to document income using personal or business Texas Bank Statements must follow the requirements as outlined within the Texas Bank Statement Program.
