Welcome to AltQualify’s Self-Employed Resource Center! We’re here to empower you with valuable information and tools to navigate the world of non-QM loan options, DSCR, and bank statement programs. Whether you’re a self-employed individual or simply exploring your financing choices, our resource center has you covered.
Please see the guidelines for the loan products available. These guidelines will change periodically and are subject to investor approval. If you have any questions please email us at contact@altqualify.com or call your Alt Quailfy sales represenative.
When applying for Non-QM loans or bank statement programs, having the right documents is crucial. Our handy document checklists will help you prepare and organize the necessary paperwork, making your loan application process smoother and more efficient. Click on the program below to find out what document you will need to supply for qualification.
Here are commonly used forms and examples of third party paperwork needed for qualification purposes. These letters and forms are for informational purposes only and should be used as an example of what information is needed when completing them. CPA/Tax preparer Letter as well as a unaudited P&L are required to be put on the company letterhead of the firm or person who prepared the document.
1. What is a DSCR loan program?
Answer: A DSCR loan, or Debt-Service Coverage Ratio loan, is a Non-QM mortgage program that assesses the property’s income
potential rather than the borrower’s personal income. It’s ideal for investors and property owners who want to finance income-producing properties.
2. How is DSCR calculated for a loan application?
Answer: DSCR is calculated by dividing the property’s net operating income (NOI) by the mortgage payment (principal, interest,
taxes, and insurance). A DSCR ratio above 1.0 indicates positive cash flow, making the property a viable investment.
3. What is a Bank Statement loan program?
Answer: A Bank Statement loan is a Non-QM mortgage program where lenders use your personal or business bank statements as
proof of income instead of traditional pay stubs or tax returns. It’s suitable for self-employed individuals or those with irregular income.
4. How do Bank Statement loans work?
Answer: In a Bank Statement loan, lenders typically review 12-24 months of your bank statements to determine your average monthly
income. The income used for qualification is usually based on deposits rather than withdrawals.
5. What is a P&L only loan program?
Answer: A Profit and Loss (P&L) only loan program is a Non-QM mortgage option designed for self-employed borrowers. Lenders assess
your income and ability to repay the loan based on your business’s profit and loss statements, bypassing traditional income documentation.
6. Can I qualify for these Non-QM programs with a lower credit score?
7. What types of properties can be financed with DSCR loans?
Answer: DSCR loans are typically used to finance investment properties, including rental homes, multi-family units, and commercial real estate.
8. Are there any specific income requirements for Bank Statement loans?
Answer: Income requirements for Bank Statement loans vary by lender, but generally, you should have a consistent and sufficient amount
of deposits in your bank statements to qualify.
9. Can I get a P&L only loan if I’m a sole proprietor or have a partnership?
Answer: Yes, P&L only loans can be available to sole proprietors, partnerships, and other business structures. Lenders will review your
business financials to determine eligibility.
10. Are these programs available for primary residences, or only for investment properties?
Answer: DSCR, Bank Statement, and P&L only loans are often used for investment properties, but some lenders may offer variations that
can be used for primary residences. Check with your lender for specific program options.
11. Do these Non-QM programs have higher interest rates than traditional mortgages?
Answer: Non-QM programs may have slightly higher interest rates and fees than conventional mortgages, as they cater to borrowers with
unique financial situations. However, rates can vary, so it’s essential to shop around for the best terms.
12. How can I apply for a Non-QM loan under these programs?
Answer: To apply for a Non-QM loan with DSCR, Bank Statement, or P&L only options, contact a lender or mortgage broker that offers these
programs. They will guide you through the application process, document requirements, and eligibility criteria.
Remember that the specific terms, requirements, and availability of these Non-QM loan programs may vary among lenders, so it’s crucial
to consult with a qualified mortgage professional to discuss your individual circumstances and explore the best options for your needs.
