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Non-QM - 1099 Only Mortgage
Who is our Non-QM – 1099 ONLY Mortgages Best Suited For?
This mortgage is an excellent option for someone looking to purchase or refinance a home and cannot provide “traditional” income documentation i.e., tax returns as a means of qualification. Unlike most mortgage programs in the marketplace, this mortgage allows you to use only your 1099s that you receive for 2 calendar years as your form of income verification. We must run a 4506 and retrieve a 1099 transcript. This program verifies the validity of the 1099s, ensures they have been filed with the IRS by the issuing party. This program is centered around an applicant who generates income either in the form of commissions or as an independent contractor. We do not require full tax returns or bank statements to verify deposits.
How Do Non-QM – 1099 ONLY Mortgage Works?
These mortgage are portfolio mortgages that are not connected to any government agency. Approvals are heavily focused on your 1099s that are issued to you for the last 2 years. How long you have been in business, and how you derive your income. The focus is to understand your “business concept.”
Mortgage Program Highlights for Non-QM – 1099 ONLY Program
- Mortgage amounts up to $3 million for purchase transactions and $2 million for cash-out refinance transactions
- Maximum loan to value is 85% on purchase transactions and 70.00% for cash-out refinance transactions
- To qualify it must be with 1 or 2 years of 1099s
- A minimum credit score of 660 is required for the program
- Max DTI is 50%
- Minimum of 6 months reserves required**
- This program is eligible for purchase transactions or refinance rate and term or cash out
- Primary residence, second home and investment properties are eligible for this program
- Single family homes, condominiums, and 2-4 unit homes are all eligible for financing
- Non-warrantable condo financing available on a case-by-case basis
- Gift funds eligible, borrower must have at least 5% of their own money in the transaction
- First time home buyers are eligible
- Interest only available
- 5/7/10 year ARM – available
- 30 and 15 year fixed – available
- Minimum mortgage amount is $300,000.00
More reserves will be required for mortgage amounts over $1,000,000.00**