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Self-employed Qualifying Income Options

Self-employed borrowers are eligible for either personal bank statement documentation or business bank statement documentation to verify consistent, qualifying income.

The following requirements apply to both documentation types:

  • Borrowers must be self-employed for at least 2 years and business must be in existence for at least 2 years.
  • Non-permanent Resident Aliens and Foreign Nationals are ineligible.
  • All parties listed on each bank account must be included as borrowers on the loan.
  • Up to 3 NSF checks and overdraft protection transfers in the most recent 12-month period are allowed with explanation from the borrower.

PERSONAL BANK STATEMENT PROGRAM

  • 24 months or 12 months complete bank statements
  • 100% of deposits, averaged over 24 months or 12.
  • Transfers between personal accounts should be excluded
  • Transfers from a business account into a personal account are acceptable
  • Unusual deposits must be documented
  • Borrowers will qualify off the lower of the following:
    • Income figure listed on Signed 1003
    • Personal Bank Statement Average (total deposits [minus any disallowed deposits] 24 months or 12 months)

BUSINESS BANK STATEMENT PROGRAM

  • 24 or 12 months complete business bank statements
  • One of the following is needed:
    • Borrower prepared P&L covering same time period as the bank statements.
    • Expense statement prepared by CPA or licensed tax preparer
  • Business bank accounts, personal bank accounts addressed to a DBA, or personal accounts with evidence of business expenses can be used for qualification.
  • Wire transfers and transfers from other accounts must be documented or excluded.
  • Borrower must be minimum 50% owner of business.
  • Business expenses must be reasonable for the type of business (examples of business with higher expense ratios may include construction companies, builders, restaurants and retail firms).
  • Statements should show a trend of ending balances that are stable or increasing over time.

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COMPLAINT AND LICENSING INFO

Complaints may be directed to Hallmark Home Mortgage at 855.249.7731 or an email may be sent to: complaints@1hallmark.com

Corporate NMLS:53441 | NMLS Consumer Access
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CORPORATE CONTACT

7421 Coldwater Road Fort Wayne, IN 46825
888.490.1428 | 260.469.0900

Hallmark Home Mortgage, LLC (NMLS # 53441) is an Equal Housing Lender. Hallmark Home Mortgage is not endorsed by any government agency. Reviews and comments have been submitted by customers voluntarily, are solely the views of such customers, and have been screened by Hallmark Mortgage LLC prior to publication in accordance with our guidelines. Customers were not compensated for their reviews/comments but were informed that the submittals may be used in Hallmark Mortgage LLC advertising. Hallmark Home Mortgage, LLC (NMLS # 53441) is not licensed to originate in all states. All rights reserved. NOTICE: All loans are subject to credit, underwriting, and property approval guidelines. Offered loan products may vary by state. There is no guarantee that all borrowers will qualify. This is not a commitment to lend nor an offer to enter into a rate lock agreement. Terms, conditions and programs are subject to change without notice. Certain limitations apply. Contact us for additional details. Not all offices are licensed in all states. Visit: https://www.hallmarkhomemortgage.com/disclosures for complete licensing information. Through UnitedHealthcare, UMR and HealthSCOPE Benefits creates and publishes the Machine-Readable Files on behalf of Hallmark Home Mortgage. To link to the Machine-Readable Files, please click on the URL provided: https://transparency-in-coverage.uhc.com

  • Home
  • About
    • Leadership Team
    • Homebuying Process
    • Careers
  • Meet Our Team
  • Loan Products
  • Resources
    • Contact Us
    • DASH
    • eHome
    • Homebuying 101
    • Manage Account
    • Mortgage Calculator
    • New Construction
    • On Time Guarantee
    • Purchase
    • Refinance