FULL DOC
Feature Increased LTVs and Higher DTI
Traditional full doc that doesn’t meet conforming guidelines due to FICO, DTI, credit event or property type
When Two Years Won't Qualify, One Year Might
When a borrower falls short using two years of tax returns, the loan doesn't always have to end there.
Our Full Documentation Loan Program gives mortgage brokers additional flexibility by allowing eligible borrowers to qualify using just one year of tax returns when it produces a stronger debt-to-income ratio.
For self-employed borrowers whose income has increased over the past year, using only the most recent tax return can make all the difference in qualifying for the home they want.
Instead of losing the loan, bring the scenario to 5th Street Capital.
Ideal Borrower Scenarios
Our Full Doc program is an excellent solution when:
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Your borrower qualifies using one year of tax returns but not two.
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Business income has increased significantly over the past year.
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The borrower narrowly misses agency DTI requirements.
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The borrower has fully documentable income but needs more underwriting flexibility.
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Traditional documentation provides stronger qualifying income than alternative documentation.
If your borrower has improving income, don't assume averaging two years is your only option.
Full Documentation Program Highlights
Our flexible guidelines help you solve more income qualification challenges.
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One-year tax return option available on eligible transactions
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Traditional Full Documentation underwriting
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Debt-to-income ratios up to 55% in qualifying scenarios
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Purchase, rate-and-term refinance, and cash-out refinance options
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Newly self-employed borrowers may be considered
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Flexible treatment of complex income sources
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Competitive loan amounts and financing options
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Common-sense non-QM underwriting
Why One Year Can Make All the Difference
Many successful business owners are growing year after year. Unfortunately, conventional underwriting often averages two years of income, which can significantly reduce qualifying income when a business has recently expanded.
Our Full Doc program may allow eligible borrowers to qualify using only their most recent year's tax return, helping increase qualifying income and improve debt-to-income ratios.
That means you may be able to:
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Save loans that narrowly miss DTI requirements.
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Help borrowers qualify for a larger loan amount.
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Keep purchase transactions together.
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Avoid unnecessary restructuring of the loan.
Full Doc vs. Alternative Documentation Loans
Not every self-employed borrower needs a Bank Statement, 1099, or P&L loan.
If your borrower has strong, documentable income, and especially if using one year of tax returns creates a stronger qualifying income, a Full Doc loan may be the better financing solution.
If tax returns still don't produce enough qualifying income, our non-QM specialists can also evaluate whether a Bank Statement, 1099, or P&L program provides a better outcome.
Because we offer multiple self-employed lending solutions, we'll help determine the documentation method that gives your borrower the greatest opportunity for approval.
Why Partner with 5th Street Capital?
At 5th Street Capital, we look beyond standard agency guidelines to help mortgage brokers find financing solutions for borrowers with unique income situations.
Our experienced non-QM team works with you to evaluate each scenario, identify the strongest qualifying income, and deliver concierge-level service from submission through funding.
When a borrower falls just short, don't give up on the transaction. Contact your 5th Street Capital Account Executive today to see if qualifying with one year of tax returns can help you get the loan approved.