Loan Document Types
Here's a
comprehensive reference guide to loan documents
used in today's market:
Full Income/Full Asset:
A Full Doc loan required asset, employment and
income documentation and verification. Two
months' worth of bank statements satisfies the
asset verification requirement. For income
verification, the requirement is one month's
payroll check stubs, two years' tax returns and
W-2 forms.
Alt Document: Requires two months'
bank statements, one month's payroll check stubs
and two years' W-2 forms.
Full Income/Stated Asset: Income is verified
on the 1003 (standard loan application).
Verification of two years' employment is
required along with tax returns and W-2 forms.,
Assets are stated on and included on the loan
application. No bank statements or any
other paperwork is required or verified.
Stated Income/Verified Asset: The income is
stated on the 1003 and included on the loan
application. It must be reasonable for the
vocation of the borrower. No payroll check
stubs, tax returns or W-2 forms are collected,
but employment is verified for a minimum
two-year period. Full documentation of
assets is required.
No
Ratio: Income is not disclosed or verified
on the loan application. Verification of
employment for a minimum two-year period is
required and verified. Full asset
documentation is required.
Stated Income/Stated Asset: Income is stated
on the loan application; no verification is
collected. Verification of employment for
a minimum two-year period is required.
Assets are also included and stated, but not
verified on the loan application. No bank
statements or any other paperwork is required.
No
Income/No Asset: Employment is required and
verified, but no asset verification or income
information is on the application.
No
Doc: No asset, income or employment
verification of any kind is in file or on the
application, nor are they verified.
