Texas Home Mortgage Loans and Refinance Documentation
Full Income Verified Assets (FIVA, Full-Doc)
Income must be documented high enough to qualify for mortgage using mortgage programs standard Debt-to-income ration (DTI) guildlines.
Example:
The DTI ration needed to qualify for a specific mortgage is 50%. Principle
Interest Taxes Insurance monthly payment or PITI = $1500/Month. Borrower
credit bureau reports $800/month in other debt (auto, credit cards, student
loans, etc.). $1500/Month PITI + $800/Month in other debt = $2300/Month
in total debt. Borrower must document at least $4600/Month in income
to qualify for the new mortgage.
Income Documentation
Salary/Hourly.
- 2 most recent and concurrent yrs W-2.
- 2 most recent and concurrent pay-stubs.
Self Employed and/or Other Income.
- 2 most recent and concurrent business and/or personal tax returns.
- 2 most recent concurrent months personal and bank statements, all pages.
- Rental Property Income: Tax returns. Leases, appraisal summary with rent expected.
Asset Documentation must demonstrate anywhere from 2 to 10 months worth of borrowers total monthly mortgage payment or PITI, depending on Property Use. Higher cash reserves are typically required for investment property. Lowest cash reserves are required on a Primary Resident.
Borrowers wishing to obtain any type of Stated documentation loan must usually provide proof of least 2 years self-employment. Accepted proof includes: Letter from CPA stating your filing of 2 years most recent concurrent tax returns (actual income numbers are traditionally blacked out), Schedule C, or K-1 which ever apply.
