The eMortgage auction addresses, the Six most common income problems as follows:
Home loan programs associated with the eMortgage auction can allow for debt ratios of often greater than 50% 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 50% 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 50% 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 does emphasize programs that allow non-occuppying co-signers. Thus if you show insufficient income on your W2s, paystubs, or tax returns your might be able to qualify with a co-signer, even if that person would not actually be residing at your home.
Unfortunately, there “no ratio” programs are no longer available. If your credit score is below 600, or if your credit score is even less than 580, you can usually still qualify for financing with a non-occupant co-signer. However the historic "no ratio", "stated income", or "no income check" programs are no longer available.
If you are self employed, and have cashflow through your bank accounts, 24 months bank statements can "no longer" help you qualify for a loan.
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.