BANK STATEMENT DOCUMENTATION
Self-employed borrowers are eligible for either Personal Bank Statement Documentation or Business Bank Statement Documentation.
The following restrictions apply to both documentation types:
- Borrowers must be self-employed for at least 2 years.
- Business must be in existence for at least 2 years.
- Standard Tradelines and a 12-month housing history are required.
- Non-Permanent Resident Aliens and Foreign Nationals are ineligible.
- All parties listed on each bank account must be included as borrowers on the loan.
- Statements must be consecutive and reflect the most recent months available.
- Statements must support stable and generally predictable deposits. Unusual deposits must be documented.
- Evidence of a decline in earnings may result in disqualification.
- Up to 3 NSF checks and overdraft protection transfers in the most recent 12-month period are allowed with explanation from the borrower.
Included with the above is your FICO score. You will have 3 scores and banks typically will accept the middle score. So if you have 3 scores of: 660, 700, 720, the banks will use 700. Also note, a lower FICO score can determine the size of the downpayment should you be looking to purchase.