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Alternative Income

Alternative Income loans help self-employed borrowers qualify for a mortgage without tax returns.

Arc Home's Alternative Income program is ideal for self-employed borrowers who cannot use their tax returns to qualify for a home loan. Two types of Alternate income loans are Bank Statement or Asset Utilization Loans.

  • Bank Statement loans allow the use of personal or business bank statements to calculate income - No Tax Returns or W-2's required*
    • 12- or 24-month business or personal bank statement options available
    • Additional documentation required for qualifying income and loan approval
  • Borrowers may also qualify using assets in lieu of employment*
  • Available for Cash Out Refinance, Rate and Term Refinance or Purchase
  • Primary, Second Home or Investment Properties
  • Loans up to $3 million
  • Borrow up to 90% of the value of the property
  • Credit score as low as 660

* Additional documents may be required for eligibility.

Frequently Asked Questions:

What is an Alternative Income mortgage?

Alternative Income mortgages allow eligible borrowers to use bank statements or assets to verify a borrower's income in lieu of W-2s or tax returns. These loans are often a great option for qualified self-employed borrowers or those with signiticant assets.

How does an Alternative Income Mortgage differ from a traditional mortgage?

Unlike a traditional mortgage that requires tax returns or paystubs as proof of income, our Alternative Income Loan Programs provide borrowers the ability to use bank statements for income and cash flow verification. Personal assets may also be utilized to qualify. Alternative Income mortgages may also require additional documents to qualify for the loan such as a business narrative.

What if I have not filed my tax returns?

No problem, we do not need income tax returns and you do not need to sign IRS Form 4506-T.

Can I use another person's conventional income on the loan?

Yes, you can use an additional applicant's conventional income from employment, retirement, or other sources on the loan in addition to your income.