We have Los Angeles and California borrowers that ask if they can get a home loan with poor or bad credit – and, of course, the answer is yes! We also have many that ask if they can get a home loan with low income – and the answer is also yes! Income is one of the components that we are required by law to take into account when making a loan to a Borrower.
We do consider our Borrower’s’ income when we are in the process of making a loan to a Borrower. However, as we continue to mention: we lend on the equity in your home, business, or other real estate property.
Income can be broken down into two major categories: Employment Income From a lending perspective it’s the easiest type of income for our company to consider when providing a loan since it is so easy to calculate. We will only require:
- A recent paycheck stub
- Two years W2’s to complete our income documentation.
We then use the information on the paycheck stub and W2’s to calculate a monthly income for our Borrower. If some of the monthly income is from commission, bonus or simply overtime we don’t have to have a full two years of payment to our Borrower from their employer in order to consider their income for qualifying purposes like the big banks and large institutional lenders are required to do in making their decision to make a loan.
Self-Employment income This can be a little more difficult to calculate since there are so many variables and ways that self-employed Borrowers earn money. We might ask for 2 years tax returns and a Profit and Loss (P & L) statement. We can make a loan even if our Borrower has been in business for less than two years or can’t prove income. We just need to know how the loan will be paid back. For those Borrowers who just don’t quite fit in the box we try to document income by alternative means.
We are not constrained by regulations and government oversight that restricts the big banks and large institutions from making a loan to self employed Borrowers. We are able to allow our Borrowers to simply state their income and approve their loan as a “Stated Income” loan. The banks and large institutional lenders can’t do it but we can. We are aware that often there are times that our Borrower’s income documentation does not reflect the total amount of income generated and received.
Our loan officers are available at to assist you in reviewing your monthly income and how it will be calculated when we considering making you a loan.
We really want to help you get the money you need.