1. Property, occupancy, and transaction
Share the property address and type, intended occupancy, purchase price or estimated value, loan purpose, requested amount, and expected closing timeline.
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Alternative Income Loans
Use income documentation that reflects how you earn or hold assets. The team reviews the transaction, occupancy, documentation method, credit, and property to determine the available program and terms.
Programs cover primary residences, second homes, and investment properties. Available terms depend on the transaction, property, borrower, state, documentation method, and current guidelines.
Program overview
Alternative income loan details
Compare accepted documentation methods, loan amounts, down payment requirements, term options, and the factors used in underwriting. Final eligibility, approval, pricing, and terms depend on the complete application.
| Occupancy and loan purposes | Primary residences, second homes, and investment properties are available for purchase, rate-and-term refinance, and cash-out refinance. Occupancy, purpose, state, borrower, property, and current program guidelines control. |
|---|---|
| Loan amounts | Loan amounts range from $100,000 to $4 million. The maximum depends on occupancy, loan purpose, documentation method, credit profile, property, state, and program tier. |
| Down payment | Down payments start at 10% for qualifying purchase scenarios. The required down payment, cash to close, reserves, and post-closing liquidity depend on occupancy, documentation, credit, property, transaction, and underwriting guidelines. |
| Documentation methods | Accepted documentation methods include personal or business bank statements, 1099 forms, profit-and-loss statements, eligible assets, and written verification of employment. The method must match the borrower’s income pattern and supporting records. |
| Available term families | Available structures include 30- or 40-year fixed terms, 7/6 or 10/6 adjustable-rate terms, and qualifying interest-only options. The complete scenario determines the available term. |
| Review factors | Underwriting reviews credit, housing history, debt-to-income ratio, income documentation, assets, reserves, property eligibility, valuation, title, insurance, occupancy, loan purpose, and state-specific requirements. |
| Documentation fit | The documentation path must match the borrower’s income pattern and available records. Underwriting confirms whether the borrower, income, property, and transaction meet program requirements. |
| Pricing and final terms | Rates and pricing are scenario-specific and can change. Request a current review using the property, occupancy, purpose, documentation method, credit profile, and requested loan amount. |
Eligibility and terms vary by transaction, property, borrower, state, documentation method, and current program guidelines. Final underwriting and approved documents control.
Alternative Income Documentation
Documentation options include personal or business bank statements, 1099 forms, profit-and-loss statements, eligible asset-based calculations, and written verification of employment. The team reviews the selected method, supporting records, income stability, credit, housing history, assets, reserves, property, occupancy, and loan purpose.
Documentation guide
Alternative income documentation methods
Use this guide to compare each documentation method, the records reviewed, and the conditions that apply.
| Documentation method | What underwriting reviews | Important condition |
|---|---|---|
| Personal bank statements | Eligible deposits and the required statement period, together with supporting business records when applicable. | Deposit treatment, exclusions, income stability, and documentation requirements vary by program and scenario. |
| Business bank statements | Business deposits, ownership, operating expenses, and supporting records used to estimate qualifying income. | The expense method and documentation period remain subject to current program and underwriting review. |
| 1099 income | Eligible 1099 earnings, continuity, history, and supporting documentation for the income source. | A 1099 form alone does not establish eligibility or qualifying income. |
| Profit-and-loss statement | An eligible profit-and-loss statement and any required supporting bank statements, preparer information, or business records. | Preparation standards and supporting records depend on the applicable documentation method. |
| Eligible assets | Documented eligible assets, ownership, accessibility, required reserves, and the program calculation. | Asset-based qualification is subject to eligible asset types, calculation rules, transaction details, and underwriting. |
| Written employment verification | Eligible written verification and any required employment, income, and continuity support. | Availability, leverage, loan amount, and supporting documentation vary by current program guidelines. |
Occupancy and transaction review
Alternative income documentation is available across primary residence, second-home, and investment-property transactions, with different requirements for each scenario.
| Scenario | Available transactions | Review focus |
|---|---|---|
| Primary residence | Eligible purchase, rate-and-term refinance, or cash-out refinance. | Documentation method, credit, debt-to-income ratio, property, assets, reserves, and current owner-occupied guidelines. |
| Second home | Eligible purchase, rate-and-term refinance, or cash-out refinance. | Occupancy, property use, documentation method, credit, assets, reserves, and current second-home guidelines. |
| Investment property | Eligible purchase, rate-and-term refinance, or cash-out refinance for business or investment use. | Occupancy, business-purpose requirements, documentation method, property, credit, assets, reserves, and current investment guidelines. |
Maximum loan amount, down payment, leverage, documentation, and available terms vary by occupancy, purpose, borrower, property, state, and current approved program guidelines. Final underwriting and approved documents control.
Scenario review
What to prepare for an alternative income review
A complete scenario identifies the right documentation method and the supporting records underwriting requires.
2. Income method and records
Describe how income is earned and which records are available, such as bank statements, 1099 forms, profit-and-loss statements, asset records, or written employment verification. The review will determine whether a method is eligible and what period and supporting documents apply.
3. Assets and underwriting documents
Be ready to discuss funds for closing, reserves, housing history, credit, ownership, title, insurance, and property documentation. Requirements vary by the complete scenario and current approved guidelines.
Ready for a scenario-specific review?
Send the property, occupancy, transaction, and income-documentation details to review program fit and next steps.
Request a Scenario Review
Share the property, occupancy, transaction, and available documentation for a scenario review. A member of theLender team can explain eligibility requirements, supporting records, and available structures. This is not an approval, commitment, official Loan Estimate, or rate quote.
Alternative Income Loans
Answer a few questions and submit the form to request a scenario review.
Frequently Asked Questions
1. What is an alternative income loan?
An alternative income loan uses approved documentation beyond a traditional paystub and tax-return calculation. Documentation options include bank statements, 1099 forms, profit-and-loss statements, eligible assets, and written employment verification. Underwriting reviews the selected method and supporting records.
2. Which documentation methods are accepted?
Accepted methods include personal or business bank statements, 1099 forms, profit-and-loss statements, eligible asset-based calculations, and written verification of employment. The borrower’s income pattern, records, occupancy, transaction, and program determine the method and documentation period.
3. Which property occupancies are available?
Programs cover primary residences, second homes, and investment properties. Occupancy determines the documentation, leverage, loan amount, pricing, and underwriting conditions.
4. How do the $4 million maximum and 10% down option work?
Loan amounts range from $100,000 to $4 million, and down payments start at 10% for qualifying purchase scenarios. Occupancy, loan purpose, documentation method, credit profile, property, state, requested amount, and current guidelines determine the exact maximum and down payment.
5. What should I prepare for a scenario review?
Prepare the property, occupancy, loan purpose, requested amount, and available income records. Also be ready to discuss assets, funds for closing, reserves, credit, housing history, ownership, insurance, and title. The review identifies the documentation path and program requirements.