• Purpose: Qualify borrowers using business or personal bank statements instead of traditional W-2 income.

• Documentation: 12 or 24 months of personal or business bank statements.

• Credit Score: Typically 660+ (varies by lender/program).

• DTI: Up to ~50% with compensating factors.

• Down Payment: 10–20% depending on property type and occupancy.

• Eligible Borrowers: Self-employed or irregular income borrowers.

Purpose: Qualify borrowers who receive 1099 income instead of W-2.

Documentation: 1–2 years of 1099 forms, possibly tax returns.

Credit Score: Typically 620+.

DTI: Up to ~50%, sometimes higher with strong reserves.

Down Payment: 10–20% typical; can vary by program.

Eligible Borrowers: Independent contractors, freelancers, or gig workers.

Purpose: Qualify borrowers based on liquid assets rather than earned income.

Documentation: Bank statements, investment account statements, retirement account statements.

Credit Score: Typically 620+.

DTI: Flexible; payments calculated based on asset drawdown.

Down Payment: 10–20% standard.

Eligible Borrowers: Retirees, high-net-worth individuals, or anyone with substantial liquid assets but limited traditional income.

Purpose: Qualify investment property borrowers based on property cash flow, not personal income.

Documentation: Property income and expenses (rent roll, leases, P&L).

DSCR Requirement: Typically ≥1.0–1.25 (net operating income ≥ debt payments).

Credit Score: Usually 620+–680.

Down Payment: 20–30% standard for investment properties.

Eligible Borrowers: Real estate investors or income-producing property owners.