Profit &Loss• Borrower prepared Profit and Loss statement for previous 12 months, reviewed and validated by an independent licensed/qualified 3rd party • Documentation indicating

Who is it for? Designed as an income documentation alternative to bank statements allowing Self Employed borrowers to utilize their Profit & Loss statement

How do you calculate it? Take the approved net income and divide by 12

What documents do you need?

Profit &Loss

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Making Non-QM Loans Easier

• Borrower prepared Profit and Loss statement for previous 12 months, reviewed and validated by an independent licensed/qualified 3rd party

• Documentation indicating that the 3rd party reviewer is licensed or qualified

• Evidence that your business has been in operation for12 months or greater

Who is it for?Designed to offer an income documentation option for self-employedor 1099 borrowers utilizing Personal or Business Bank Statements

How do you calculate it?Enter all deposits for 12 months, subtract business expensesor apply the 3rd party verified Expense Ratio to the deposits

What documents do you need?

Bank Statement



• Expense Ratio method or Traditional statement review available

• Completed BSI questionnaire

• 12 months consecutive bank statements

• Expense Ratio certification from a 3rd party (if applicable)

• Proof of business ownership (if applicable)

Who is it for?Designed for borrowers that need to supplement their income with seasoned assets in order to make their income adequate to qualify for a mortgage

How do you calculate it?Begin with the asset account balance: - Subtract penalties (if applicable) - Subtract taxes Divide by 84 to get your supplemental income

What Documents do you need?2 most recent consecutive asset statements • Assets must be seasoned 60 days prior to close • Unusual or uncharacteristic deposits must be sourced

Asset Depletion



What is it and who is it for?Designed for the high net worth borrower that wants to use assets to qualify for a mortgage rather than income

How do you calculate it?Begin with the Asset Account balances:

- Subtract penalties (if applicable)- Subtract taxes

Assets must meet or exceed the total liabilities

What Documents do you need?2 most recent consecutive asset statements

• Assets must be seasoned 60 days prior to close• Unusual or Uncharacteristic deposits must be sourced

Ready Asset



What/who is it?Designed to qualify any borrower using standard documentation

How do you calculate it?Use current paystubs to calculate a monthly wage *Don’t forget to include any overtime or bonuses received

What Documents do you need? • Previous year’s W2 and 2 most recent consecutive paystubs • or Recent tax returns, SSN award letter, VOE VOE may be required if: • Irregular income is received such as bonuses, overtime or commission • Borrower has been employed with current employer for less than 2 years

Full Doc

