Not all borrowers want to use (or can even use) their tax returns to help them qualify to get a loan. This is seen quite frequently in self-employed borrows who need to use alternative documentation that prove they have an ability to repay their loans. There are two forms of Alt Doc Loan which include asset back program and bank statements. Assets back programs mean that the borrower can use assets are collateral for a means of acquiring the loan. These include things like the equity on their home, cash accounts such as bonds, stocks, and mutual funds. This also means the borrower has to have sufficient liquid assets at hand for a down payment as well as closing costs and reserves. Funds from borrowers must be seasoned and sources for two months and they must supply the most recent consecutive statements or quarterly statements.
If a borrower doesn’t have the means to complete an asset-backed loan they can take the route of using bank statements. This means that funds in the business account of the borrower can be used toward the down payment, reserves and closing costs. This is under the stipulation that the borrow or non-borrowing partner has a 100% ownership interest in the business.
There are plenty of business owners and interested borrowers that understand that they make enough money to pay back a loan. However, being able to traditionally prove those income sources can be difficult and that’s where the Alt Doc loan becomes a necessity. If you have between 35-40 percent that can be used as down payment and great credit you can be on a right track to getting an alt doc loan. When you have complicated financial standing an Alt Doc loan can be the savior you need without having to supply piles of paperwork and proof. Usually, with an Alt Doc loan, you will need that percentage of a down payment as well as a 620 or better FICO score depending on how much you will put down . You should also have savings that include at least 6 months of principal and interest after closing. If you think an Alt Doc loan is that answer to your needs you can contact US Direct Lender today.
We are a direct lending company that specializes in lending our own money. We also underwrite our own loans. What does that mean for you? We can quickly move through the loan process to approve your application if you are a qualified borrower. Our main goal is to remove the obstacles that consumers generally experience when trying to borrow money. Our highly trained Customer Care team can review all of the important terms and conditions with you. This can help to ensure that you understand how our process of borrowing and paying back your loans works. Our team can be reached by phone, email, or an online chat to answer any of your questions or concerns. US Direct Lender understands that taking out a loan is a daunting decision that should be taken very seriously and we are here to help make that process a smooth one.