Mortgage and Portfolio Loan Guide

Bank Statement Loan

portfolio mortgage lenders

Bank Statement Loan Program | Self-Employed Home Loans


Getting a mortgage when you’re a business owner can be tough.

But it shouldn’t be impossible.

A bank statement loan might be your best solution if you’re a business owner looking to buy or refinance a home.bank statement mortgage

When you’re self-employed you do your best to take full advantage of the tax write-offs you’re entitled to. One of the only times those┬ásignificant write-offs becomes an issue is when you’re looking to finance a home.

Most lenders will take a look at your tax returns and tell you that you don’t qualify for a mortgage because you just don’t show enough income on your tax returns.

There is a better way.

When getting approved for a portfolio loan you have an opportunity to get evaluated from a common sense standpoint. Your bank statements are collected from a 12-24 time period and deposits are added and averaged. Also you’ll need a 12 month profit and loss statement.

Bank Statement Loan Highlights

  • 20% down minimum

  • 640 credit score minimum

  • Available on primary residence, 2nd home, and investment property.

  • Interest only option available

  • 12-24 month bank statements are required. Will consider business bank statements on a case-by-case basis.

  • CPA or third party tax preparer to provide statement of expense factor.

  • Available on purchase and refinance.

  • Must be at least 3 years from major credit issue (bankruptcy, foreclosure, short-sale, etc.)

Each scenario is evaluated individually. There is no cookie cutter circumstance.

Get your questions answered.

portfolio mortgage lenders

 

I invite you to reach out to me directly to learn more.

It would be a privilege to connect and find a way to accomplish your goals.

 

real estate investment loans

Bank Statement Loans | For Self-Employed or 1099 borrowers

3 Ways to Get Approved

  • Personal Bank Statements
      • Get 12 months personal bank statements – All pages
      • Review deposits, make sure that they have all come from the same source. Random cash deposits cannot be used.
      • Need to see deposits coming from a business account or related to business.
      • Proof been in business at least 2 years
      • Letter from CPA stating percentage of ownership in the business, and how long borrower has been in business.
      • Get 3 months bank statements for all businesses owned (to show proof of deposits on personal bank statements)
  • Business Bank Statements – 50% Expense Factor
      • Get 12 (prefer 24) months business bank statements – All pages
      • Review deposits
      • Subtract by 50% (example: if deposits are 100K, subtract by 50K, and your income is 50K)
      • Letter from CPA stating percentage of ownership in the business, and how long borrower has been in business.
  • Business Bank Statements – Actual Expense Factor
    • Get 12 (prefer 24) months business bank statements – All pages
    • Review deposits
    • Letter from CPA stating percentage of ownership in the business, expense factor, and how long borrower has been in business.
    • Subtract income found on bank statements by whatever expense factor the CPA confirms in letter.

Key Points

  • Minimum 20% down (10% down on case by case basis)
  • 6 months reserves
  • 640 Credit
  • At least 2+ years from Bankruptcy (max LTV is 70% if <4 years)
  • At least 3+ years from Foreclosure (max LTV is 70% if <7 years)
  • Must be in business at least 2 years
  • Max DTI is 45%
  • Minimum loan amount is 150K

self employed home loans

E015: Bank Statement Loan for Self-Employed Borrowers