BANK STATEMENT LOAN PROGRAMS FOR SELF-EMPLOYED BORROWERS
Self Employed Home Purchase and Refinance Options using Bank Statement Deposits to establish Your Monthly Qualifying Income.The facts are that most Self-Employed would agree that their tax returns don't really show their true income as many tend to write off many expenses over that a W-2 wage earner. As a result, your net taxable income (after deductions) disqualifies you for a traditional home purchase and/or refinancing options.Who can apply? This program is available to Business owners, 1099 Contractors, Sole proprietors, Professional Associations, Corporations, LLC’s, and wage earners who recently changed their tax status from W-2 to 1099 Self-Employed 12 months ago or more 12-24 Month Personal or Business Bank StatementsProvide 24 months of bank statements (personal or business) dating back from the last statement received. In the alternative, you can provide your most recent 12 months of personal bank statements. However, you will need to prove that you have been self-employed for 24 months. Acceptable Properties:Single family homes, townhomes, condos, condotels, duplex, triple or four-plex all qualify on various programs. Property usage can be as a primary residence, second home, vacation Home or rental investment properties.
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 Bank Statement Mortgage Options ( the most programs of any Lender in Florida) and have listed a compressed snapshot highlighting 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•580 Min-FICO •90% Max LTV @ 660 FICO •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.