Alternative Documentation and Bank Statement Loans
There are a number of programs available that allow for reduced or alternative documentation. These programs are often used by self employed borrowers, as a typical mortgage transaction would use the last 2 years tax returns to prove income and self employed borrowers often have a lot of write offs and show much less income on their taxes than they actually take home. This can hurt their ability to qualify for most mortgage products, which is why lenders have designed products that use alternative means to calculate income. The most popular is the bank statement loan, which just uses income deposits on bank statements to prove income. We can utilize as little as one month's bank statement or an average of one or two years worth. We can also use business bank statements. Another handy strategy is using assets in lieu of income. There's even a stated income program with no income verification!