Home loans for self-employed people using bank statements to qualify. Do you have a great CPA that helps you pay less taxes? That can make it difficult to qualify for a home loan. I can help. NO TAX RETURNS REQUIRED. Buy a home today or cash out your existing home equity.
If you own your own business or are self-employed, you know that getting a mortgage can be difficult. You may generate a great inflow of cash and make great money but the system of tax write-offs for self-employed individuals holds you back from qualifying for a mortgage with traditional home loans. That because Fannie Mae, Freddie Mac and FHA require tax returns to qualify your income. You must average the last 24 months of your NET income in order to determine your ability to qualify under these rules.
Bank Statement Loan Program Story
It’s a simple unfortunate truth for self-employed home buyers. When you have hard-to-document income or a lot of write-offs, it can be tougher to qualify for a traditional home loan.
Due to rules put into place with the last financial meltdown and other regulatory measures imposed by the Consumer Financial Protection Bureau, it can be more difficult for self-employed business owners to qualify.
Our bank statement program allows us to make home loans that don’t have to follow the ability-to-repay (ATR) rule, they are also called Non-QM home loans..
This option can be ideal for folks that earn seasonal income, are independent contractors, or are self-employed. For these home buyers, tax returns are not helpful. Yet, these would-be home buyers are much more qualified than many salaried employees.
John was a perfect example.
John had a great company that made boxes for huge companies. John made a lot of money, just not on paper. John had plenty of income each month, but after writing off a significant amount of business expenses, he doesn’t report adequate income to qualify for traditional financing. Thanks to a “bank statement” program from Service First Mortgage, he became a home owner.
The bank statement program doesn’t require tax returns at all, so write-offs are not a problem.
Service First Mortgage offers a 12 and 24 Month Bank Statement Program.
Borrower Employment Types:
- Self-Employed – Must provide business license, Tax Preparer’s letter or corporate paperwork.
We accept Personal or Business Bank Statements. However, qualifying income will be calculated differently.
Here are some examples:
Personal Bank Statements: 100% of Deposits
Add all deposits for all 24 months and divide that amount by 24 to receive the monthly income amount
Ex. 24 months deposits total = $200,000 / 24 = $8,333 a month income.
Bank Statements For Self-Employed Borrowers
- Min FICO 500
- Loan Amount $100K to $3M
- Cash out up to $3M
- W-2 co-borrower ok
- W2 co-borrower income and employment traditionally verified
- Personal or business statements
- DTI up to 43%
- P&L statement required if business & personal accounts are combined
- Statements for the most recent 24 month period required
- Assets must be fully documented
- Retirement income is usable with verification
Why work with anyone but the best in non-QM?
- 1 day out foreclosure, short sale, deed-in-lieu, or bankruptcy
- Up to 95% LTV / No MI (including Jumbo loans)
- 12 months personal or business bank statements
- No active trade lines required/Rent free OK/Gift Funds OK
- Loans up to $3 million
- Non-warrantable condominiums allowed
- Owner-occupied, second homes and investment properties
- Mortgage lates ok
Richard Woodward, NMLS 217454
Your Local, Direct, 5 Star Rated Mortgage Lender, Specialty Lending Manager
Office: (214) 945-1066
Service First Mortgage NMLS 166487
6800 Weiskopf Ave #200, McKinney, TX 75070
Licensed by the Texas Department of Savings and Mortgage Lending (SML) Mortgage Banker Registration. Service First Mortgage is an Equal Housing Lender. This is not an offer of credit or commitment to lend. Loans are subject to buyer and property qualification. Rates and fees are subject to change without notice. The views expressed on this site are those of the individual author and do not necessarily reflect the positions, strategies or opinions of Service First Mortgage or its affiliates.