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 Flexible Mortgage Loans for Entrepreneurs, Business Owners, Freelancers and Independent ContractorsWe Offer New and Improved Bank Statement Loans Without Sky-High Interest Rates No tax returns or tedious employment paperwork required.We know traditional mortgage loans pose a serious challenge for self-employed and independent professionals because your tax returns don’t reflect your full income and financial capabilities. Bank statement loans allow you to purchase or refinance a home without the use of traditional income documentation. Instead, you can qualify based on your bank statements - either personal or business.
Don’t miss out on your dream home. Pre-approval only takes 24-48 hours.Bank Statement MortgageA self-employed loan solution tailored to your individual needs Enjoy market leading unbeatable 30-year fixed rates (buydown available)Flexible Loan Terms30 year fixed, and 40 year fixed-interest only (10 year I/O period). Loan amounts from $250,000 to $5 Million12 to 24 months business or personal bank statements to income qualifyPurchase a home with as little as 10% downRefinance cash-out up to 85% of property valueFlexible Property TypesSingle family, condo, townhomes, and 2-4 units. Purchase or refinance your primary residence or vacation and investment properties. Interest Only OptionsNo (MI) mortgage insurance is required. Fast ApprovalGet Pre-Approved in just 24-48 hours and know your rate and closing costs from the very start. Q. What is a Bank Statement Loan?A. A Bank Statement loan, sometimes referred to as a Bank Statement Mortgage, is a home loan program designed for self-employed/ business owners. For qualification purposes, the lender uses the deposits made into the business owner's account as the source of income for qualification purposes, instead of using the applicant's tax returns.Q. Is a Bank Statement Loan a Subprime Loan? A. NO. A Bank Statement loan is not a subprime loan. A Bank Statement Loan is a secondary market loan program in a category known as a "Non-QM" loan, or "Non-Qualified" mortgage loan. A Non-QM loan program still qualifies the applicant's income; however it uses alternative ways to qualify the applicant. Many Non-QM programs like Bank Statement Loans, are designed around the lending needs of a certain market segment. Bank Statement Loans are specifically designed around the unique lending needs of Self-employed/ business owners. Q. What is the difference between a bank statement loan and a traditional loan program?A. The primary difference between a bank statement loan and a traditional home loan is that the applicant qualifies based on the deposit income in the bank statements, rather the applicant's tax returns.Q. How long must I be in business to qualify for a Bank Statement Loan?A. Your business must be at least 24 months old to qualify for a Bank Statement Loan.Q. My business had a bad year in 2020 due to COVID-19, but my business has rebounded significantly in 2021. How does this affect my loan approval with a Bank Statement Loan?A. For Bank Statement loans, we normally ask applicants to provide the most recent 24 months of bank statements, but there are times when reviewing only the most recent 12 months is a better approach, especially if your business suffered an unusually down year, like many did in 2020. We work with our clients to determine which path is the best for you and your situation and your goals.Q. Can I use PERSONAL bank statements on a Bank Statement Loan?A. YES. If your ordinary business income is deposited into a personal account, you can use personal bank statements. Keep in mind, this may potentially complicate the approval process if you share this account with another person, such as a spouse who has a job. If you're a 1099 wage-earner and depositing your income into a personal account, we suggest using our 1099 income program.Q. I work for a company that pays me 1099 wages. Can I still qualify for a Bank Statement program?A. YES, however the loan process would likely be much easier using our 1099 income program. Keep in mind that a Bank Statement loan was designed for true business owners, and as an independent contractor earning 1099 wages is technically not self-employment. If your employer pays you in 1099 wages, then the only time you're considered self-employed is by the IRS when you file tax returns, and neither of these two programs uses tax returns. If you receive 1099 wages, a 1099 Income Program is designed more for your type of income and may end up giving you more income—and even greater buying power than you would with a Bank Statement Loan. The two programs are very similar, in terms of minimum down payment, minimum credit scores, etc. I've included a link in the description below.Q. Do bank statement loans have prepayment penalties?A. NO. Bank Statement Loans do not have prepayment penalties as long as the home is being occupied by the owner, or is being used as a second home/ vacation home.Q. I own my business 50/50 with a business partner. Can I still do a Bank Statement Loan?A. YES, but unless your business partner is also qualifying for the same home loan with you, then it would reduce the amount of income by their percentage, which could in turn significantly reduce the amount of house you can afford. For instance, if you own 50% of the business, then you can only use 50% of the income from the bank statement income analysis.Q. I own my business 100% but my spouse works a W2 job. Can my spouse's income count?A. YES. As the business owner, we will calculate your income using Bank Statements, and for your spouse, we'll calculate their income using W2's, paystubs, and a Employment Verification from their employer.Q. Do I Have to sign an IRS Form 4506-C to Qualify for a Bank Statement Loan?A. NO. A 4506-C is an IRS document that authorizes the lender to pull a tax return transcript. Signing a 4506-C is NOT a requirement of a Bank Statement Loan.Q. Can I receive a GIFT from a family member a Bank Statement Loan?A. YES. Your family can contribute to your down payment and closing costs as long as the home you're buying is a Primary Residence or Second Home. Gift Funds cannot be used on Investment homes.Also, Gift funds can be used to cover 100% of the down payment and closing costs; however the applicant must have their OWN funds at least 5% of the purchase price, plus the reserves, which are usually 3-9 month's worth of the TOTAL new house payment (including property taxes, insurance, and property association dues). If you're receiving Gift Funds, be sure to tell your Loan Originator so we can guide you through this part of the process.Q. Can I receive a Closing Cost Credit from a Seller on a Bank Statement Loan?A. YES. This known as an Interested Party Contribution (IPC). You may receive an IPC from a seller, a builder, or a realtor.
Remember, this type of credit must always be written into your purchase contract and reviewed by the underwriter.Q. Do I need a letter from a licensed tax preparer or CPA?A. ON A CASE-BY-CASE BASIS. If you are qualifying for a bank statement loan, you may be asked to provide a letter from a licensed tax preparer. On a Bank Statement Loan, the lender is not reviewing tax returns, so lenders rely on third-parties such as a licensed tax professional to verify certain aspects of your business.Here are some examples of the things commonly requested:
Q. I've been asked to provide a letter from a licensed tax preparer or CPA. Does this have to come from the same accountant who prepares my tax returns?A. NO. The letter can come from any licensed tax preparer, accountant, or CPA. The letter must appear on their letterhead, be signed and dated. The lender needs to be able to verify the tax professional's Preparer Tax Identification Number (PTIN) or CPA license number.Q. I've been asked to provide a letter from a licensed tax preparer or CPA. The information does not match my tax returns. Is this okay?A. YES. The letter being provided relies on third-party information provided by a licensed tax professional, and is not expected to directly match the information seen in the tax returns. Unlike a traditional home loan program, on a Bank Statement Home loan program, the lender does NOT pull a tax return transcript of the applicant's personal or business returns from the IRS.Q. Can I add a Co-signer to the application?A. NO. Co-signers and applicants who are not occupying the new home are not allowed on a Bank Statement Loan Program.Q. Can I get a Bank Statement Loan if I've had a Bankruptcy?A. YES, as long as the Bankruptcy has been discharged for at least 1 month ago or longer. Depending on the length of time after discharge, it may affect the minimum down payment on a home.
Q. Can I get a Bank Statement Loan if I've had a Foreclosure?A. YES, as long as the Foreclosure is completed at least 1 month ago or longer. Depending on the length of time after the certificate of title date, it may affect the minimum down payment on a home.
Q. Can I get a Bank Statement Loan if I've had a Short Sale?A. YES, as long as the sale date of the Short Sale was at least 1 month ago or longer. Depending on the length of time after the sale date, it may affect the minimum down payment on a home.
Q. I invest in Cryptocurrency as my primary source of income. Can I qualify for a Bank Statement Loan? A. NO. Cryptocurrency deposits cannot be used to qualify for a Bank Statement Loan. Only US bank accounts can be used in the income calculation. Additionally, Cryptocurrency cannot be used towards the down payment, settlement charges or reserves on a Bank Statement Loan. If you intend to utilize Cryptocurrency towards down payment, settlement charges, or reserves, the funds must be placed in a US bank account and seasoned for a minimum of 60 days before these funds can be used in a real estate transaction. What is a bank statement on a loan?What is a bank statement loan? With a bank statement loan — also known as a stated income loan≈you won't need to provide your lender with some of the typical financial documents needed for a mortgage, such as W-2s and tax returns. Instead, you'll use bank statements to prove income.
What type of loan is a bank statement loan?Bank statement loans are a type of non-qualified mortgage loan that allows you to qualify based on bank statements instead of tax returns. The lender will require prospective borrowers to provide a certain number of months' worth of bank statements in order to prove their ability to repay the loan.
Should I get a bank statement loan?“Bank statement loans should be your last option as they are non-QM loans and come with higher rates.” Bank statement loans typically have a higher interest rate and bigger down payment requirements. These extra costs offset the risk associated with not being able to show income via traditional methods.
What is a 12 month bank statement loan?Lenders that offer bank statement loan programs will look at a borrower's bank over a 12 to 24 month time period to determine the borrower's net income, which is the amount of money earned after the borrower has paid taxes and business-related expenses.
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What is a bank statement mortgage loan
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