WHAT IS A BANK STATEMENT MORTGAGE?
A “Bank Statement Mortgage”, aka Self-Employed Mortgages, have taken over the traditional stated income loans as an alternative for borrowers who are unable to verify their income in the traditional way by providing the previous two years tax returns, W2’s, and paystubs.
Many self-employed workers earn a good living and have strong cash flow. But when it comes to tax time, most (if not all) take advantage of IRS Tax Laws and “write off” every expense they possibly can.
This certainly helps the tax liability makes it really hard to qualify for a mortgage.
With our Bank Statement Mortgage, we take a true look at the monthly cash flow by averaging deposits into either a Personal or Business account. The result is a “qualifying income” that is more accurate and reflective of actual earnings.
This program is a perfect option for self-employed borrowers who need an alternative method to document their income. By averaging deposits over a period of time, we can determine the true cash flow of the business.
SOLUTIONS FOR THE SELF-EMPLOYED
A Bank Statement Mortgage provides mortgage solutions for all types of self-employed individuals. Here is a list of individuals we have provided solutions for:
If you have a solid credit and financial history, but you haven’t been able to get traditional financing due to income being filed on your tax returns…
Our Bank Statement Mortgage could be the solution
FLEXIBILITY FOR THE SELF-EMPLOYED
With flexible underwriting guidelines, we are able to customize a mortgage solution that works for you.
Your tax returns might not reflect income levels for a mortgage, but your bank statements do.
HOW DOES A BANK STATEMENT LOAN WORK?
Rather than using your “Adjusted Gross Income” from your tax returns, we will use your bank statements (either Personal or Business) and simply average the deposits over a period of time. The result is a true indicator of cash flow for the business, a number we will then use to qualify you for a mortgage.
Depending on the scenario/situation, we can look at bank statements from a 24 month, 12 month, 6 month, or even a ONE month period.
ELIGIBLE PROPERTY TYPES
All property types are eligible, including: Single Family, Multi Family, Condos, Manufactured/Modular, and Condo-Tels