Blog, Documentation
Reduced Documentation Loans
November 23, 2009 by Rob Spring · Leave a Comment
| For all Reduced or Low Documentation loans |
Social Security Number, for borrower and co-borrower if any
Employment History
For the last two years, employment dates, addresses, “stated” salary
(income must be deemed “reasonable” by the underwriter)
Liabilities and Other Non-Mortgage Debt
Creditors names, addresses, account numbers
Monthly payments and balances
| Other income information you may need |
If you’re self-employed
A letter signed by your CPA, indicating what type of work you do, how long you have been doing it and to their knowledge how long you have been self-employed
If divorced or separated
Complete executed divorce decree and settlement agreement
Payment history of alimony/child support over the past 12 months, if it is a financial obligation.
If you choose to have this be considered as part of your income (you don’t have to), be prepared to provide 12 months canceled checks or bank statements reflecting income deposits.
| If you own real estate |
Name and address of all mortgage lenders for the past 24 months, account numbers, monthly payments and balances
If you’ve sold your home but not closed:
A copy of the sales contract
If you’ve sold your home, closed, and you will use the proceeds for your new down payment:
A copy of the HUD-1 Uniform Settlement Statement
| If you rent |
Name, address and phone number of landlords for the past 24 months
| If you’re buying a home |
Purchase sales contract or offer to purchase and all addenda
Furnish contract with original signatures of buyer and seller
If a source of your down payment is a gift:
Name, address and relationship of donor.
Gift funds will be verified in both the donor and recipient’s accounts.
Note: Not all loan programs allow gifts to be part of your down payment.
For Identity Verification
Evidence of Social Security Number and photo identification
For VA Financing
DD214 and Certificate of Eligibility
For Construction/Perm Loan
Signed construction with cost breakdown, builder plan and specifications