|
Mortgage Loan Income Qualification Self-employed borrowers usually maximize their itemized deductions. In the past, they usually applied for a mortgage with a No-Doc product, which was more expensive than SIVA, but simple and easy. No-Docs are no longer available. Now, besides Full Documentation, the only other option is Stated Income-Verified Assets (SIVA). But, a 4506T is still required by most lenders. Although, we have a couple lenders that do not require a 4506T, at higher rates and fees than the others. A 4506T allows the lender to receive transcripts of your past two year's Federal Tax Filings. That's not all so bad. Common-sense underwriting is still practiced by Portfolio Lenders. The three main areas of concern: - Are your assets in-line as to what you state as income?
- Are your liabilities in-line as to what you state as income?
- Is your life-style similar to others in that income-level?
SIVA has higher rates than Full Doc. We'll do our best to see if we are able to get you qualified with a Full Doc product. In addition to our portfolio lenders common-sense underwriting, there are several areas of deductions claimed on your Federal Tax Filings that are allowed by most lenders to be added back into income. Allowable Debt-to-Income Ratios (DTI) DTI is your total adjusted income, compared as a percentage, to your total monthly obligations, including your new mortgage payment. We have a couple of portfolio lenders that allow up to 60% DTI on jumbo loans. Most will go up to 50%.
|