It is sometimes very difficult for self-employed buyers to qualify for a mortgage to purchase a home. The problem is the lenders usually require the purchaser to show standard proof of income documents such as W2’s and paystubs; two items that many self-employed borrowers do not receive. Then the lenders ask for tax returns. Typically, many tax returns of the self-employed do not reflect enough of a profit “on paper” to qualify. 

That is where we step in…Quantum Mortgage Loan Officers and in-house Underwriters are trained to help the self-employed borrower(s), such as independent contractors, freelancers, and business owners, qualify for a mortgage by doing a deeper dive into the tax returns or using bank statements or asset amortization in place of traditional W2 forms. We help them confront potential roadblocks that might impede their ability to secure a mortgage.

We are trained at analyzing tax returns and company bank statement to find the hidden income. 

Self-Employed Borrower Programs

• Conventional Loans
• Jumbo Loans
• Bank Statement Loans – 12 month and 24 months
• Pro Forma Loans – Profit & Loss Only Loans
• Asset Depletion
• 1099 Only Loans

DOCUMENTATION REQUIREMENTS

Gifts must be evidenced by a letter signed by the donor, called a gift letter. The gift letter must:

• Specify the dollar amount of the gift

• Specify the date the funds were transferred

• Include the donor’s statement that no repayment is expected

• Indicate the donor’s name, address, telephone number and relationship to the borrower 

A borrower of a mortgage loan secured by a principal residence or second home may use funds received as a personal gift from an acceptable donor. Gift funds may fund all or part of the down payment, closing costs, or financial reserves subject to the minimum borrower contribution requirements.

ACCEPTABLE DONORS

A gift can be provided by:

1. Relative, defined as the borrower’s spouse, child or other dependent or by any other individual who is related to the borrower by blood, marriage, adoption or legal guardianship.
2. Fiancé, fiancée or domestic partner *
3. Domestic Partner: An unrelated individual who shares a committed relationship with the primary wage earner, currently resides in the same household as the primary wage earner and intents to occupy the security property with the primary wage earner.
4. The donor may not be or have any affiliation with, the builder, the developer, the real estate agent or any other interested party to the transaction.

Attn: Real Estate Investors in Westchester County, Rockland County and Bronx County, NY

There is no need for income verification or employment verification. Our program uses only rental income from the subject 1-4 investment property to determine cash flow.  We require the rental income to cover the overall principal, interest, taxes and insurance.  The debt service coverage ratio is 1/1.

Investor Cash Flow Option allows qualifying solely off the property debt service with no income verified.  

Traditional income verifications such as paystubs, W2’s- Tax Returns are NOT needed

Great News for Prospective Co-op Buyers in Westchester County, NY

On December 14, 2018, County Executive George Latimer signed the Cooperative Transparency Bill. Chapter 700 of the Laws of Westchester County has been amended to include a new section--section700-21a. The complete law, committee comments, and text can be found at: https://bit.ly/2FsPbVf. The law shall become effective immediately.

What does this mean for the Prospective Co-op Buyers in Westchester County, NY?

Under this new legislation the Co-op Boards will have to follow specific timelines when they receive a new application for a prospective buyer into their co-op.

• Within 15 days of receiving the application the co-op will have to advise the prospective buyer if the application is complete or if anything is missing.
• Within 60 days of receiving the properly completed application the co-op will have to advise the prospective buyer that they either accept or reject the application. This must be in writing.

Here’s what I believe will have the most impact for the Prospective Co-op Buyers in Westchester County, NY

If the application is rejected then a copy of the rejection notice must be sent to the Human Rights Commission. The Commission will have the power to investigate instances of discrimination.  

Shop smarter with a pre-approval from Quantum Mortgage.

We will review your application and your aspirations in earnest. We then look at your financial documents and credit. If everything looks good we can “pre-approve” you for a loan amount. Once you’re pre-approved, you’ll be able to shop for your home pretty much like a cash buyer!

And nothing captures the attention of a seller like a pre-approved buyer from Quantum Mortgage. Call us today to get started on your pre-approval so you can shop smarter for your new home.

Quantum Mortgage

If you’ve been putting off buying a home because you think you need a big down payment, we should talk. Our FHA loans are perfect for home buyers with limited savings and easier to qualify for than you might think.

Just 3.5% down. For less than a few months’ rent, you could be building equity in a home of your own.

Easy qualification. Our FHA loans are more forgiving when it comes to your past credit.

Fast and worry-free. We close most loans in 30 days or less. You may even be able to include your closing costs in the mortgage.

Gift funds accepted. Family members are welcome to help out with your down payment.

Ready to make your big move? Let’s talk about your mortgage options today