self employed borrower in TX with no cash reserves

self employed borrower in TX with no cash reserves

To assist you better, I need to clarify a few details about your scenario:

  1. Are you looking to use business funds to meet reserve requirements? If so, I can check which programs allow this.
  2. What type of loan are you seeking? For example, is it for a primary residence, investment property, or second home?
  3. What type of income documentation will you provide? For instance, bank statements, tax returns, or other forms of alternative documentation.

Let me know so I can provide the most accurate options for your situation!

bank statement, primary residence

Yes, business funds can be used to meet reserve requirements for a self-employed borrower using bank statements for a primary residence in Texas. Below is a summary of the key details from each lender:

LenderBusiness Funds Allowed?Key Requirements
A&D MortgageYes- Borrower must own at least 25% of the business.
- Written acknowledgment required if ownership is less than 100%.
- Business funds must be verified and disclosed.
Angel OakYes- Usable balance is based on ownership percentage.
- 1-month business bank statement required.
- Business funds can also be used for down payment and closing costs.
AmWestYes- Up to 100% of business account balance allowed, based on ownership percentage.
- Licensed Tax Preparer letter required.
- Applies to the Bank Statement Advantage Program.
Change WholesaleYes- Business funds explicitly allowed.
- Qualifying amount based on ownership percentage.
- 12 months of bank statements required for income verification.
DeephavenYes- 12 months of business bank statements required.
- Borrower must complete a Self-Employed Business Narrative Form.
- Verification of 2 years of business ownership required.
Newfi LendingYes- Business funds allowed under the Rainier Program and Sequoia NQM Program.
- Subject to ownership percentage and cash flow analysis.
NQM FundingYes- Minimum ownership: 20% for Select Prime, 50% for Flex Supreme.
- 12 or 24 months of bank statements required.
- Business funds must not negatively impact business operations.
FundLoansYes- Borrower must own at least 50% of the business.
- CPA letter or Business Expense Coverage calculation required.
- Business must have sufficient funds to cover 2 months of expenses after withdrawal.

If you need more details about a specific lender or program, let me know!

Revaluate my loan scenario with the updated available lenders

Summary: Business Funds for Reserves in Texas for Self-Employed Borrowers Using Bank Statements

Yes, business funds can be used to meet reserve requirements for a self-employed borrower using bank statements for a primary residence in Texas. Below is a summary of the key details from each lender:

LenderBusiness Funds Allowed?Key Requirements
LoanStreamYesBusiness funds must be documented and verified. Borrower must show that using these funds will not negatively impact the business.
HomeXpressYesBusiness funds are allowed under the CoreX and PrimeX programs. Proper sourcing and seasoning required.
Logan FinanceYesBusiness funds must be sourced and seasoned for at least 60 days. Applies to the Bank Statement Program.
Orion LendingYesBusiness funds must be validated with recent bank statements and a business narrative. Applies to programs like Titan Flex.
Homebridge WholesaleYesBusiness funds allowed if borrower owns at least 25% of the business. CPA letter or cash flow analysis required. Applies to Elite Access (Non-QM) and Access Program (Non-QM).
LendSure MortgageYesBusiness funds must be sourced and seasoned (typically 60 days). Reserve requirements depend on loan amount and LTV.
Oaktree FundingYesBusiness funds allowed if borrower owns at least 25% of the business. Documentation required for reserves and income verification.
The Loan StoreYesBorrower must own at least 50% of the business. Two months of business account statements required.
Axos BankYesBusiness funds allowed with proper documentation, including 12-24 months of bank statements and proof of at least 25% ownership.
REMN WholesaleYesBusiness funds allowed if borrower owns at least 25% of the business. CPA letter or cash flow analysis required.

Key Takeaways:

  • Ownership Requirements: Most lenders require the borrower to own at least 25% of the business, with some requiring 50%.
  • Documentation: Common requirements include business bank statements (12-24 months), CPA letters, and cash flow analyses to ensure the withdrawal of funds does not harm the business.
  • Seasoning: Business funds typically need to be seasoned for at least 60 days.

If you'd like more details about a specific lender or program, let me know!

Revaluate my loan scenario with the updated available lenders

Summary: Business Funds for Reserves in Texas for Self-Employed Borrowers Using Bank Statements

Yes, business funds can be used to meet reserve requirements for a self-employed borrower using bank statements for a primary residence in Texas. Below is a summary of the key details from each lender:

LenderBusiness Funds Allowed?Key Requirements
Forward LendingYesBusiness funds are allowed under the Non-QM Program. Documentation and reserve requirements must be met.
ACC MortgageYesBusiness funds must be seasoned for 60 days or sourced with 2-month statements. A signed letter from non-borrower business owners (if applicable) is required. Applies to Prime, Prime Plus, and Second Chance programs.
Brokers First FundingYesBusiness funds are allowed under the Expanded Document Program. Funds must be sourced, seasoned, and evaluated for impact on business liquidity.
Constructive CapitalNoBusiness funds are not explicitly allowed for reserves under the DSCR Rental Matrix programs. Case-by-case approval may be required.
Community Wholesale LendingYesBusiness funds are allowed under the Community Expanded Prime Program. Borrower must own at least 25% of the business, and ownership must be verified through documentation.

Key Takeaways:

  • Ownership Requirements: Most lenders require the borrower to own at least 25% of the business, with some requiring additional documentation like CPA letters or Operating Agreements.
  • Documentation: Common requirements include business bank statements (2-12 months), seasoning of funds (typically 60 days), and verification of ownership percentage.
  • Program-Specific Guidelines: Each lender has specific programs that allow business funds for reserves, so it's important to match your scenario to the right program.

If you'd like more details about a specific lender or program, let me know!

Help me complete the scenario for Forward Lending. What else is needed?

It seems that there are no specific program details currently available for Forward Lending regarding the use of business funds to meet reserve requirements for a self-employed borrower under the Non-QM Program.

If you have additional details or a specific program in mind, please let me know, and I can assist further. Alternatively, I can help explore other lenders with similar programs. Let me know how you'd like to proceed!

Revaluate my loan scenario with the updated available lenders

Updated Evaluation: Business Funds for Reserves in Texas for Self-Employed Borrowers Using Bank Statements

Here is the updated evaluation of your loan scenario based on the latest information from the lenders:

LenderBusiness Funds Allowed?Key Requirements
Forward LendingYes- Borrower must own at least 50% of the business.
- Business Expense Coverage Calculation required to ensure funds withdrawal does not harm business.
- Documentation of business funds is mandatory.
ACC MortgageYes- Borrower must own at least 50% of the business.
- Business Expense Coverage Calculation required.
- Documentation of business funds is mandatory.
Brokers First FundingNot ConfirmedSpecific program details for using business funds are unavailable. Further clarification from the lender is needed.
Constructive CapitalNoBusiness funds are not explicitly allowed for reserves under their DSCR programs. Owner-occupied properties are also ineligible for their programs.
Community Wholesale LendingYes- Borrower must own at least 50% of the business.
- Business Expense Coverage Calculation required.
- Documentation of business funds is mandatory.

Key Takeaways:

  1. Lenders Allowing Business Funds:

    • Forward Lending, ACC Mortgage, and Community Wholesale Lending allow business funds for reserves, provided the borrower owns at least 50% of the business and meets documentation requirements.
    • A Business Expense Coverage Calculation is required to ensure the withdrawal of funds does not negatively impact the business.

  2. Lenders Not Allowing Business Funds:

    • Constructive Capital does not allow business funds for reserves under their DSCR programs, and owner-occupied properties are ineligible.

  3. Unconfirmed:

    • Brokers First Funding: Specific program details are unavailable. Further clarification from the lender is needed.

Next Steps:

  • If you are interested in moving forward with Forward Lending, ACC Mortgage, or Community Wholesale Lending, I can help you gather the required documentation and calculate the Business Expense Coverage.
  • If you want to explore options with Brokers First Funding, I recommend contacting the lender directly for clarification or providing additional details for further research.

Let me know how you'd like to proceed!