BANK STATEMENT LOAN PROGRAMS FOR SELF-EMPLOYED BORROWERS
Self-Employed Loans using Bank Statement Deposits to Establish Your Monthly Qualifying Income Up to 90% LTV and Rates Starting in the 4’s * Many people who are business owners or receive a 1099 may agree that their tax returns don't really show their true income and tend to write off many expenses that a salaried or W2 employee is not able to do. As a result, your net income (after deductions) on your tax returns may not qualify for a traditional mortgage.Key Advantages of Bank Statement LoansThe bank statement mortgage is an alternative income solution offered to help self-employed borrowers qualify for a mortgage without Tax Returns or IRS 4506-T verification and offers No Pre-Payment Penalty and No PMI. Using Bank Statement Deposits vs Tax Returns. Your qualifying income is not reduced by write offs and deductions. Who Qualifys These programs are available to 1099 Contractors, Sole proprietors, Professional Associations, Corporations, LLC’s, and W-2 wage earners who recently changed their tax status from W-2 > to 1099 Self-Employed for 12 months or more. 12-Month Bank StatementsBorrower(s) provide most recent 12 months (personal or business) bank statements as well as documentation that you have been self-employed for 24 months - Min 650 Middle Fico score.24-Month Bank StatementsBorrower(s) provide most recent 24 months (personal or business) bank statements - Min 580 Middle Fico score
Background If you own your own business or are self-employed, you know that getting a mortgage can be difficult. Regardless of what you make for income, the system of tax write-offs that make your job profitable keeps holding you back from buying a home. That's because lenders were forced to look at your tax statements and not your bank statements when they make a credit decision on your mortgage. The Bank Statement Mortgage is here to change all of that. After the crash of the housing market in 2008, the federal government took custodianship over Fannie Mae and Freddie Mac, the two largest lenders in the country. They were so large that if they failed, they would put thousands of homeowners out on the street, so the government stepped in While this led to many of the great loan programs that we have today, including HARP and FHA that let homeowners recover from being underwater or buy a home with less money down, they also made it far more difficult for business owners and self-employed people to buy a homeEntrepreneurs and self-employed workers were now required to prove their income by what they pay in taxes, not what they made. This has kept everyone from doctors and lawyers to real estate agents and web designers from buying a home, as they are forced to write off business expenses merely to keep their companies or practices profitableThis shows as less income made for taxes but doesn't show the true income that they make. This means that they can't buy a home that is on the proper level to what they make but instead must settle for less home or continue to rentThe Bank Statement Mortgage Option changed all of that. With guidelines changing, we are now offer self-employed individuals the flexibility of a bank statement mortgage, where we check your bank statements and deposit history to create a qualifying income. This way, you can continue to write off all your business expenses, keeping your business profitable and healthy ! We offer 14 types of Bank Statement Mortgage Options and have listed a compressed snapshot of the highlights of the top 4 out of the 14. Highlight of our 12 or 24 Months Bank Statements •Use Business or Personal Bank Deposits for income•Requires No Tax Returns or 4506 •Primary Residence, Second Home and Investment Properties•Purchase, Rate/Term and Cash-Out Refinance•1 day out of Bankruptcy, Foreclosure, and Short Sale •Loans $150k to $5 Million•30 year Fixed and 5/1 and 7/1 ARM’s•600 Min-FICO •90% Max LTV•Rates starting in the 4’s•DTI up to 50% considered•Owner-occupied, 2nd homes and investment properties •Non-warrantable condos considered•No pre-payment penalty for owner-occ and 2nd homes•Seller concessions to 6% (2% for investment)•2 years self-employed required•No Reserve Requirements, No MI and No Prepayment Penalty•SFR, Condos, Townhouse and 2-4 UnitsWe also provide a chart matrix of the same 4 four programs to highlight options in more detail.