A straightforward mortgage built for self‑employed borrowers and non‑traditional income earners who qualify using bank statements instead of tax returns. Here’s what you need to know in simple terms:

• Who Can Apply:
– Must be self‑employed (≥25% business ownership) with 12–24 consecutive months of bank statements.
– U.S. citizens, permanent residents, and qualifying non‑permanent residents only.
– First‑time homebuyers are eligible — investment purchases are not.

• Income Verification:
– Use your bank statements to prove income — no W‑2s or tax returns required.
– Statements must be clean, consecutive, and free of co‑mingled personal/business deposits.

• Debt & Cash Flow:
– Maximum debt‑to‑income (DTI) is typically 50% (exact limit varies by loan size).
– Residual income requirements ensure you have enough left after debts: $1,550 per month for one person; $2,600 for two; add $150 for each additional household member.

• Down Payment & Reserves:
– Minimum 3% borrower contribution from your own funds.
– Cash reserves required based on loan size:
• $1–$500K → 3 months of principal, interest, taxes & insurance (PITIA)
• $500K–$1M → 6 months PITIA
• $1M–$2M → 9 months PITIA
• $2M–$3M → 12 months PITIA

• Property Requirements:
– Eligible: single‑family homes, 1–4 unit properties, warrantable condos, and PUDs (≥600 sq ft).
– Ineligible: manufactured homes, raw land, non‑warrantable condos, unique properties, <600 sq ft, and certain high‑risk property types.

• Loan Limits:
– Unlimited financed primary residences.
– Up to 10 financed second homes or investment properties per borrower.
– Total outstanding loan balance with this investor capped at $5 million.

• Transaction Types:
– Purchase, rate‑and‑term refinance, and cash‑out refinance (max cash‑out $1 million, with six‑month seasoning).
– Delayed financing permitted under strict documentation rules.

In a nutshell, the Yellow Edition is ideal if you’re self‑employed, have stable bank‑statement income, and can meet moderate down‑payment and reserve requirements. It combines flexibility in property ownership with clear, straightforward qualification criteria.