SUBJECT: New P&L Only Option for Access Non-QM Product
DATE: October 14, 2022
Effective 10/14/2022, a P&L Statement Only alternative documentation option is available for REMN Wholesale’s Access Non-QM product.
The P&L Statement Only documentation option relies on unaudited profit & loss statement(s) in conjunction with a minimum of 2 months business bank statements to determine qualifying income.
Below are some product highlights, and to review all comprehensive product changes, please refer to Access Guidelines.
P&L Statement Only Alt Doc Option – Highlights
- Self-Employed borrowers only (self-employed borrowers who file their own tax returns are not eligible)
- Primary, Second Home, and Investment Properties eligible
- Purchase/Rate-Term and Cash-Out Refi available
- Max cash-out is $1,000,000
- Minimum 700 FICO score
- Max LTV 75%
- Max DTI 50%
- Residual income of $2,500/monthly is required for primary residences, and is developed by subtracting total monthly debts from the total gross monthly income
- Minimum of two (2) years self-employment in the current profession
- Validation of a minimum of two (2) years existence of the business from one of the following: Business License, Letter from Tax Preparer. Secretary of State filing or equivalent
- Borrower must have >= 50% ownership of the respective business (if more than one borrower holds ownership in the respective business, the 50% minimum ownership is cumulative).
- Most recent unaudited Profit & Loss (P&L) statement(s), based on below application date range. P&L end date must be less than 90 days old at closing
|Application Dates||Required Profit & Loss Statements|
|January 1 – March 31||Unaudited 12-month P&L from prior year|
|April 1 – December 31||Unaudited 12-month P&L from prior year + Unaudited YTD P&L for current year|
- All Profit & Loss (P&L) statements must be completed by an independent CPA/EA/CTEC
- Qualifying income is the lower of the unaudited Profit & Loss (P&L) statement(s), or monthly income disclosed on the initial signed 1003 (cannot use an updated or revised 1003 for this comparison – must be the initial signed 1003)
- The net income calculated from the business’s P&L Statement must be based on the borrower’s percentage of ownership (e.g. if borrower has 65% ownership, the borrower’s qualifying income is the net income calculated from the P&L statement(s), multiplied by 65%
- Full documentation from a co-borrower who is not self-employed may be used to supplement the P&L Statement income
- Borrowers relying on P&L statements to calculate DTI may supplement their income with the following sources: Social Security, Pension, Asset Utilization/Distribution (not eligible for Cash-Out Refinance), Alimony, Child Support, and Second Job income
**Please contact your Account Executive with any questions**