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 Qualifying Income ? We convert your qualifying income using bank statement (personal or business) deposits dating back from the last statement received. Basically, you provide us with your last 12 months of personal or business 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.
We offer 14 Bank Statement Mortgage Options ( the most programs of any Lender in Florida) and have listed a compressed snapshot highlighting a summary of features.Highlight of our Bank Statement Loan Program •Business bank statements and personal bank statements permitted•Borrower does not have to be 100% owner of the business•Business expense ratio as low as 0% for personal •Business expense ratio 10% for business bank statements•Up to 90% LTV •Tax Returns or 4506 not required to qualify•No MI and No Prepayment Penalty•P&L statements NOT required on most programs•30 year Fixed and 5/1 and 7/1 ARM’s•Competitive rates starting in the 4’s •Unsurpassed funding timelines•Purchase, Rate/Term and Cash-Out Refinance•Owner-occupied, 2nd homes and investment properties •Non-warrantable condos OK •SFR, Condos, Townhouse and 2-4 Units1 day out of Bankruptcy, Foreclosure, Short Sale•Multiple business bank accounts permitted•Common-sense consideration of NSFs and overdrafts•We now offer 3 months reserve programs vs. the typical 6 monthsWe also provide a chart matrix of the same 4 four programs to highlight options in more detail. About Qualifying If you own your own business or are a self-employed contractor you know that obtaining a mortgage can be difficult. Regardless of what you make for income, tax write-offs and deductions reduces your taxable income that can effect your debt-to-income ratios. The Evolution of Bank Statement Mortgage Loans 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 home. Entrepreneurs 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 Mortgages changed all of that. We offer business owners and self-employed 1099 contractors the flexibility of a bank statement mortgage, where we only check your bank statements 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 !