Bank Statement Loans For Self-Employed Homebuyers

by martyna
Bank Statement Loans For Self-Employed Homebuyers

Capital Lending Network, Inc. offers 12 and 24 months bank statement loans for self-employed homebuyers with no income tax returns and limited documentation required. The bank statement mortgage program is for self-employed borrowers. It benefits those who show little to no income or even negative adjusted gross income due to writing off unreimbursed business expenses.

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How Is Qualified Income Determined On Bank Statement Mortgages

The monthly bank statement deposits over the past 12 months are averaged. The average monthly deposits over the past 12 months are the qualified income that is used for debt to income ratio calculations by the mortgage underwriter. Withdrawals do not matter. For example, if the borrower makes a $10,000 deposit every month and withdraws $9,999.00 the same day, the $10,000 deposit will be used. The withdrawal and/or balance do not matter. To qualify, the borrower needs to have been self-employed for at least two years.

Bank Statement Loans Mortgage Guidelines

What are the guidelines for loans with a bank statement for self-employed borrowers

Capital Lending Network, Inc. has multiple wholesale bank statement mortgages, lending partners. Since bank statement loans are non-conforming loans, our wholesale investors can make exceptions on a per case by case basis. In general, the following terms and conditions apply to most of our bank statement mortgage loan programs. Need to be self-employed for at least two years. Provide the past twelve months’ bank statements with no bank overdrafts. There is no maximum loan limit. The minimum down payment required is a 10% down payment.

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Non-QM Down Payment Requirements

The lower your credit scores, the larger the down payment that is required. There is no private mortgage insurance required on all non-QM and bank statement loans for self-employed borrowers. Mortgage rates mainly depend on the combination of the borrower’s credit scores and the down payment.

12-Month Bank Statement Loans For Primary Homes

Bank statement mortgage loans are for owner-occupant primary homes, second homes, and investment properties. Minimum credit score requirements of 620 FICO. Timely rental and/or housing payments in the past 12 months. Minimum of 3 credit tradelines that have been seasoned for at least 12 months. The bank statement loan program is one of the most popular at Capital Lending Network, Inc.

Non-QM Bank Statement Loans Versus Traditional Jumbo Mortgages

What's the difference between non-QM bank statement loans and traditional jumbo mortgages

Self-employed homebuyers now have the opportunity to purchase a high-end home without worries about qualifying for a Jumbo mortgage. Traditional Jumbo lenders consider high-end homes as high risk. Many will require a 40% debt to income ratio cap and impeccable credit and a 740 credit score. They will use the adjusted gross income of the self-employed borrower. Our non-QM bank statement loan program has a minimum credit score requirement of 620 FICO.

Adjusted Gross Income Versus Bank Statement Deposits As Qualified Income

Most self-employed wage earners take advantage of the tax benefits which enables them to pay less in taxes. However, this often hurts when they apply for a mortgage. With the bank statement loan program for self-employed borrowers, self-employed borrowers can now qualify for a Jumbo bank statement loan without the need to worry about qualified income. Your deposits will be used to c qualified income.

How Does The 12 And 24 Month Bank Statement Mortgage For Self-Employed Borrowers Work

Great news for self-employed borrowers. Until non-QM and alternative mortgage loan programs were launched a few years back, self-employed homebuyers had a difficult time qualifying for a home mortgage. This was because self-employed borrowers often take substantial unreimbursed business expenses which affects the adjusted gross income. Many self-employed borrowers will have little to no adjusted gross income after deductions. Others can have a negative income.

Tax Benefits Of Self-Employed Wage Earners

Being able to take tax deductions is one of the many great benefits of being a self-employed wage earner. Unreimbursed business expenses will lower the adjusted gross income. Lower adjusted gross income means the taxpayer will pay less in federal income taxes. However, tax deductions mean lower income taxes paid but it is not good when it comes to qualifying for a mortgage.

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Limited Documents And No Income Tax Returns Required

With the bank statement mortgage loan program now available, self-employed borrowers can qualify for a 12 and 24-month bank statement mortgage loan program for self-employed borrowers with no income tax returns required. We will average either the past 12 months and/or 24 months of bank statement deposits and use that average as the monthly qualified income. Withdrawals do not count. Bank statement mortgage loan programs have become a very popular loan program among self-employed borrowers. In this article, we will discuss and cover 12 And 24 Month Bank Statement Mortgage For Self-Employed Home Buyers.

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Bank Statement Loan Program Explained

Capital Lending Network, Inc. now offers 12 And 24 Month Bank Statement Mortgage for self-employed borrowers:

  • No income tax returns are required
  • No private mortgage insurance is required
  • There are no maximum loan limits
  • Self-employed borrowers had a difficult time qualifying for home mortgages since the 2008 Housing Bubble Collapse due to taxable income making it difficult in qualifying for traditional government and conforming loans
  • Our 12 and 24-month bank statement mortgage now makes the dream of homeownership possible for self-employed borrowers
  • Many entrepreneurs who could have afforded higher-end homes have been renting until now

With the launch of the 12 And 24 Month Bank Statement Mortgage Program at CLN Mortgage, business owners can now qualify for home mortgages using their bank statements.

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How Is Income Calculated With Bank Statement Mortgage

On 12 and 24 months Bank Statement Mortgage Loan Programs, income is calculated by adding total deposits of either 12 and/or 24 months and averaging it by either 12 and/or 24 months. The average monthly deposit will be the qualifying monthly gross income. Withdrawals do not count. Some investors may allow 100% of the deposits to be used on personal bank statements. Some investors may only allow 50% to 70% of the deposit to be used on business bank statements. It depends on the individual lenders and/or investor and case scenario.

How Bank Statement Mortgage Lenders Process And Underwrite Loans

Bank Statement Mortgage Underwriting is rather streamlined and simple. Loan Officers need to gather borrowers’ bank statements. Underwriters will go by the ending balance of monthly bank statements.

Here is what underwriters will analyze and review when processing and underwriting bank statement mortgage borrowers:

  • All Pages Of Monthly Bank Statements And Ending Balances
  • Regular Deposits, Withdrawals, Overdrafts, Ending Balances With Special Emphasis On Deposits
  • Irregular, Unique,  And Large Deposits
  • Account Transfers, Bank Wires, ATM Advances, Abnormal Activities

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Asset Depletion Mortgage Program

Capital Lending Network, Inc. offers an asset depletion bank statement mortgage loan program. Asset depletion can be used as qualified income with our bank statement mortgage for self-employed borrowers. The following assets of self-employed borrowers can qualify for our asset depletion loan program. Asset conversion can be used for qualifying income. Qualified assets for asset depletion can be the following:

  • Liquid Stocks
  • Liquideable Bonds
  • Mutual Funds
  • Retirement accounts such as 401k
  • Savings/Checking Accounts

Depending on the loan program and investor, there is a conversion chart on the percentage of the asset that can be converted to income. Please contact us at CLN Morgage for more details at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com.

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NON-QM Bank Statement Loans

All Bank Statement Loans are non-QM loans. They are not Qualified Mortgages. There is no waiting period after a housing event and/or bankruptcy discharge date to qualify for non-QM loans. 10% to 20% down payment is required. Down payment requirements depends on borrowers’ credit scores.

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Non-QM Mortgage Rates

Mortgage rates are dependent on down payment and credit scores. Need verification of rent for the past 12 months with no late payments in the past 12 months. Borrowers can qualify during Chapter 13 Bankruptcy repayment but need to have been in the repayment for at least 12 months. Need approval of Chapter 13 Bankruptcy Trustee. Need to have been self-employed for at least 2 years. 3 credit tradelines seasoned for at least 12 months. The bank statement needs to be from the same bank.

Start The Non-QM Bank Statement Mortgage Process

If you have any mortgage-related questions or want to qualify for the 12-month bank statement mortgage loan program, please contact us at Capital Lending Network, Inc. at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Capital Lending Network, Inc. is available 7 days a week, evenings, weekends, and holidays.