Verification of Employment and Stated Income

There are two primary types of loan documentation when it comes to the application process: Full Doc and Stated Doc (or No Doc). "Full Doc" means you, the borrower, will provide Two full years of W-2's (if employed) and/or Two full years of Tax Returns (plus current profit and loss statement) for self employed. That's usually the Rub or challenge here in California: Not too many people actually make the income to afford a mortgage out here. SOLUTION: Stated Income loans. This is where we basically make up your income (within reason for your employment). Additionally, we'll need a Verification of Employment (VOE) to prove what you do. If employed, we send a form to your employer. If Self-Employed, then we'll probably look to get one or more of the following: Business license, letter verifying self employment from a CPA, industry license, letters of reference from clients/vendors. To side step some of these issues in the years to come, get some side income going from another source so that you either use your own Name as a business entity or get a DBA (Doing Business As) and/or get income via 10-99 contract and a CPA will then be able to verify that you did receive income as self employed. Verification of Employment completed.
Finding creative solutions for a crazy market: Pat Townsley, Mortgage Broker serving all of California. www.PTRE.net or call Toll free: 800-646-5527