STATEMENT LOANS DELIVER FLEXIBILITY

Find out how self employed borrowers are qualifying for home loan

BANK STATEMENT LOANS MAKE YOUR HOME DREAMS A REALITY...

Bank Statement Loans Offer Low Rates and a Simple Process for the Self-Employed

Good news! You can still qualify for a mortgage loan even if you declare negative income on your federal income taxes. At Leverage Lending, our 12-month bank statement loan program does not require any federal income tax returns for verification. Instead, we factor in all the deposit amounts accumulated in your bank statements minus an expense factor over the last year to calculate your income. Our Bank Statement Loan program does not require Private Mortgage Insurance (PMI) and there is no maximum loan limit. Borrowers can apply from $250,000 and up to $10,000,000. However, a downpayment of between 10-20% will be needed to qualify. The down payment and mortgage rate are based on your credit score.

The Bank Statement Loan Process

Self-employed borrowers only need to provide the following documents:

12-24 months of bank statements to provide verification of deposits
Proof that your business has been in existence for at least 2 years

WHY A BANK STATEMENT LOAN?

Benefits of Bank Statement Loans include:

No tax returns needed
Loss of income on tax statements is acceptable
20% down payment not required
Business owners do not need to own 100% of the business to qualify
Eligible to receive low-interest rates including up to 30 year fixed rate
Provides lending opportunities for self-employed borrowers with specific tax scenarios

Bank Statement Loan Qualifier!

DON'T CLAIM ALL OF YOUR INCOME ON YOUR TAX TURNS?

TYPES OF PROPERTIES ELIGIBLE UNDER BANK STATEMENT MORT GAGES

Bank Statement Loans can be used to purchase the following properties:

Owner-occupied Single Family Home
Second Homes
Investment Homes
Condominiums
Two to Four Unit Residential Properties
Non-Warrantable Condominiums
Short-Term Rentals

Bank Statement Loan Qualifier!

BANK STATEMENT LOAN SCENARIOS

Scenario examples of potential borrowers

Scenario # 1: A husband or wife is self-employed and their spouse is a w2 employee

The self-employed borrower will provide 12 to 24 months of personal or business bank statements (where ever they deposit their business revenue)
The W2 employee borrower will provide 2 years W2s and the last two paystubs
If a borrower owns 100% of their business, the income for the self-employed borrower will be calculated by adding up all of the customer deposits for the last 12 or 24 months and then reducing that amount by 30% - 50% to determine the qualifying income that can be used for a mortgage loan.
The bank statements of the borrower must show consistent income to prove they are regularly earning money (not just one or two large deposits a year)
The income for the self-employed borrower and the W2 salary borrower will be combined to determine the total qualifying income.

Scenario #2 Both borrowers are self-employed for at least two years in separate businesses

Each self-employed borrower will need to provide 12 to 24 months of personal or business bank statements (where ever they deposit their business revenue)
If a borrower owns 100% of their business, the income for the self-employed borrower will be calculated by adding up all of the customer deposits for the last 12 or 24 months and then reducing that amount by 30% - 75% to determine the qualifying income that can be used for a mortgage loan.
If the borrower only owns 50% of the business then the amount determined using the model above will be divided in half.
- Example: business deposited $200,000 over the last 12 months. The owner owns 50% of the business and it is a consulting business. 70% of $200,000 is $140,000 (this is the income that could be used IF he/she owned 100% of the business. This amount is then reduced by 50% so only $70,000 can be used.
The bank statements of the borrower must show consistent income to prove they are regularly earning money (not just one or two large deposits a year)
The exact process is repeated for the other self-employed borrower and the results of each income calculation are combined together to determine the qualifying income for both borrowers.

LENDING GUIDELINES ON BANK STATEMENT MORTGAGE LOAN PROGRAM

Lending Guidelines On Bank Statement Mortgage Loan Program

Bank Statement Loans can be used to purchase the following properties:

Lenders who originate and fund Bank Statement Mortgage Loan Programs look for borrowers with strong credit profiles and scores of 680 or higher
The borrower’s bank statement history is closely monitored. Lenders will specifically look out for overdrafts and non-sufficient funds fees.
Up to 2 overdrafts in one calendar year are acceptable
Down payments as low as 10% are available for borrowers purchasing primary homes and 15% for those purchasing secondary homes. Depending on the loan amount, investment properties will require anywhere from 20% to 25% down.

Bank Statement Loan Qualifier!