The eMortgage auction addresses, the Six most common income problems as follows:

Home loan programs associated with the eMortgage auction provide debt ratios of 55% as apposed to conforming home loans which limit debt ratios to 38%. If you’ve had a job lapse or several bad income months, a 55% debt ratio can make up the difference. Furthermore if your income was strong 2 years ago, but was week last year, your income can be averaged out over the past two years. As such, if that average falls within a 55% debt ratio, your income qualifies.

If you are self employed and had an inefficient bookkeeper, and therefore can not prove your income, the eMortgage auction emphasizes “stated income” programs. That means your income gets “stated” on the application and NO W2s, paystubs, or tax returns are required to prove your income.

There are also “no ratio” programs available. If your credit score is 580 or above, you can usually qualify for a “no ratio” program which requires no income information to be put on the application at all.

For self employed folks who have cashflow through their bank accounts, 24 months bank statements can get surprisingly low interest rates; even with credit problems.

Some lenders associated with the eMortgage auction require only one (1) year proof of income; provided the borrower has been in the same line of work for at least 2 years.