Not everyone fits in the small box of the traditional mortgage loans. For some, you may need a different type of mortgage. Some buyers have a solid history of financial responsibility and a strong credit rating but have been able to get traditional financing due to income or self employed status. That’s where our Signature Expanded Bank Statement Mortgage Loan comes in.
What is a bank statement mortgage? Exactly what it sounds like. All you need is a bank statement – well maybe 12 -24 months of bank statements! Many self employed borrowers have a good income but may not have enough documentation – I ran into that this week with a client. Using bank deposits over a 12-24 month period may be the easier way to qualify.
In order to qualify you will need the following:
- Personal bank statements (12-24 months)
- No tax returns are required
- You may borrow up to 90% of the value of the home (or sales price, whichever is lower)
- Debt to income ratio up to 50%
- Loans up to $3 million
- Available for primary, secondary and investment properties
- Non warrantable condos can be financed
- No PMI
There are some cons when it comes to bank statement loans. Usually you need to be self employed for at least two years. You will need at least 10% down – maybe 20%. The interest rate will be slightly higher than a regular loan.
For some using a bank statement loan may be a great way to get into a home and then when you can, refinance the mortgage. I have had clients use bank statement or 1099 mortgages to buy and then when their tax returns show enough income, we refinance the loan to a lower interest rate. If this is something you are interested in, please reach out and we can talk about options that work best for you!
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
