Loan Documentation Types

FULL DOC

Full Documentation refers to standard Fannie Mae/Freddie Mac documentation.  It is in the form of fully completed documents that are sent from the Broker/Lender directly to the Borrower's employer or depository, and upon completion, are returned from the employer or depository to the Broker/Lender for verification and approval.

Application:

• 2-year employment history
• Verified income from all sources
• Verified assets sufficient to cover the amount to close plus required reserves

Employment Documents:

• Pay stubs and W-2’s as required by loan program
• Tax returns for self-employed persons (last two years)
• Verbal VOE (Verification of Employment) and/or evidence of self-employment

Asset Documents:

• Bank statements – all pages (last 3 months)
• 401K statement with documentation regarding terms of withdrawal (last 3 months)
• Stock statements (last 3 months)

ALTERNATIVE DOC

Alternative Documentation allows documentation to be obtained directly from the Borrower rather than from the Borrower's employer, bank, or mortgage servicer.

REDUCED DOC

This documentation type requires that the primary source of income be verified, while the amount of income, although disclosed, is not verified.  Unearned or passive sources of income, if used to qualify, must be verified in the standard manner.

STATED (Stated Income)

Application:

• 2-year employment history
• Verifiable income from all sources
• Verified assets sufficient to cover the amount to close plus required reserves

Employment Documents:

• Verbal VOE (Verification of Employment) for salaried persons
• Evidence of self-employment (i.e. CPA letter and/or business license) for self-employed persons.

Asset Documents:

• Bank statements – all pages (salary deposits do not need to be shown) [last 3 months]
• 401K statement with documentation regarding terms of withdrawal [last 3 months]
• Stock statements [last 3 months]
• Verified assets must support income

SISA (Stated Income/Stated Assets) 

The Borrower's employment is stated and verbally verified.  The Borrower's income and assets are stated and not verified.

Application:

• 2-year employment history
• Verifiable income from all sources
• Verifiable assets sufficient to cover the amount to close plus required reserves

Employment Documents:

• Verbal VOE for salaried persons
• Evidence of self-employment (i.e. CPA letter and/or business license) for self-employed persons

Asset Documents:

• Assets must support income
• No documents required

NO RATIO

The Borrower's source of income is verified, but the income amount is neither disclosed nor verified.

Application:

• 2-year employment history
• Source of other income
• Verified assets sufficient to cover the amount to close plus required reserves

Employment Documents:

• Verbal VOE (Verification of Employment) for salaried persons
• Evidence of self-employment (i.e. CPA letter and/or business license) for self-employed persons

Asset Documents:

• Bank statements [last 3 month’s]
• 401K statement with documentation regarding terms of withdrawal [last 3 months]
• Stock statements [last 3 month’s]
• Verified assets must support income

NINA (No Income/No Assets) 

The Borrower's employment, income, or assets are neither disclosed nor verified.

Application:

• 2-year employment history
• Source of other income

Employment Docs:

• Verbal VOE (Verification of Employment) for salaried persons
• Evidence of self-employment (i.e. CPA letter and/or business license) for self-employed persons

Asset Documents:

• No documents required

NO DOC

The Borrower's employment, income and assets are not disclosed.

Application:

• Income/asset sections of loan application are left blank

Employment Docs:

• No documents required

Asset Documents:

• No documents required

It should be noted that certain loan programs may contain specific criteria that are more restrictive and/or different from standard guidelines.  Contact your Broker/Lender for specific loan guidelines and program eligibility and requirements.

This information presumes that the Borrower is salaried without overtime, commission, or bonus.