DTI & Income Verification - Self Employed Income Verification - Plaid

Plaid allows the borrower to connect to their personal or business bank account for income verification. This is NOT a bank statement program.

Requirements for Use of Business Accounts

• Borrower(s) must have a FICO score of 680 or higher
• They will be required to enter business related information. This includes business name, website, industry, business description, percentage owned, who remains the remaining percentage, business info comment box (optional)

Calculation for Business Accounts

• No gross up
• A deduction of 35% is taken from the base income for standard business expenses
• Ownership percentage is used to determine the amount of income used
  • Final Income = Adjusted gross x Ownership %
• Plaid connection is deemed successful as long as the income shows up in their account and is retrieved during the pull

Plaid & DTI < 50%

• If the connection is successful, and the DTI is <50%, the borrower can move forward in their application
• If there is NO successful connection via Plaid, the borrower will be able to upload their tax returns

Plaid & DTI > 50%

If the DTI is still greater than 50%, the borrower has four options:

• Reduce Loan Amount – The system will let the borrower know what they need to lower it to, in order to make the deal work.
• Pay Off Debts – The borrower will be able to select liabilities to pay off. The DTI will reflect the payoff selections in real time.
• Add Income – This allows the borrower to add additional income that wasn’t considered during the prequal.
• Add Co-Borrower – They can add a co-borrower to combine incomes.

NOTE: If the above two options do not work, and the DTI is still above 50%, the loan will be denied.