SELF-EMPLOYEES SPECIAL

There are many people who are considered to be self-employees, i.e. they are not getting a salary, no W-2 and no paystubs from the employer. To accommodate them, lenders came up with the variety of programs, such as bank statements, Profit and Loss only, assets depletion or if it is rental property, DSCR – debt service coverage ratio, i.e. qualifying income is only based on the rents generated by the property.

One of these programs allows lenders to qualify borrowers’ income only on the 1099. It can be a good option for landscapers, real estate agents, consultants, drivers, handymen, web and graphic designers or anyone who is self-employed.

We have discussed this program during our recent staff meeting with Jane Yanecko from Logan Finance. The lender is using income reported on 1090 minus 10%. It can be combined with other income like W-2. Maximum loan amount is $3 million, minimum credit score is 660 and it can be used for the primary, second homes and investment properties with interest only payments.

You can view a video cut of our recorded conversation with Jane by following this link to my YouTube Channel.

With any questions on the subject, please call me at (415) 225-7920. Or send me an email at mannykagan@comcast.net.

I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation

NMLS #205637
DRE #00824602