WE HAVE MORE REASONS TO SAY YES.
WATCH A VIDEO ABOUT THIS PROGRAM
Great question. Many businesses operate with an expense ratio well below 50%. If that's the case, simply provide a letter from a licensed tax professional that states the accurate expense ratio for your business. For example, if your business is operating at a ratio of 30%, then you can multiply the figure in step 4 above by 70%. If it's 25%, then multiply by 75%, and so on...
There are no prepayment penalties for owner occupied and second homes, so the loan can be refinanced if desired, as soon as the applicant qualifies for a traditional home loan. Many of our clients use this program to buy their dream home and decide to refinance it into a traditional loan once they and their tax advisers determine the optimal time. It allows the business owner to take control and buy a home on their terms.
Get to know more with free info and resources to help you quickly get familiar this exciting program--check out our Bank Statement Loan Video Workshop.
Some lenders may offer this type of program, but few of them offer the educational resources and experience, making us a trusted leader in Bank Statement Home Loan financing.
Our bank statement loan program solves this problem. Rather than using tax returns, we allow the business owner the ability to use the ordinary business deposit income in their bank statements as the income on the new loan. We find that it often provides a more accurate portrait of the applicant's true income profile and business profitability.
And that figure becomes the monthly income for your new loan.
At a Glance
Minimum Down Payment
10% - for loan sizes ranging from $125,000 - $3MM
FICO of 740+
6 months up to $1MM loan size
9 months up to $2MM loan size
12 months up to $3MM loan size
15% - for loan sizes ranging from $125,000 - $3MM
FICO of 700+
3 months up to $1MM loan size
6 months up to $2MM loan size
9 months up to $3MM loan size)
PMI (Private Mortgage Insurance)
Minimum mid-credit score
Min/ Max Loan Amount
$150,000 - $3MM
Loan Repayment Terms
30 Year Fixed Rate / 5/1 ARM / 7/1 ARM
None for Owner-Occupied Homes or Second Homes.
Investment properties Only - 6 months interest on 80% of the original principal balance
Recent Housing Events
Min 24 months - OR-1 day minimum (See Loan Originator for details)
Max Seller Contributions
6% for Owner-Occupied or Second Homes
2% for Investment Homes
Escrows for Property Taxes and Home Insurance required
Primary Residence / Second/Vacation Home / Investment
Acceptable Property Types
Single Family, Townhome/ Villa/ Condominium/ Condotel or Non-Warrantable Condominium
UNACCEPTABLE Property Types
Manufactured Homes, Modular Homes, Mobile Homes, Raw Land, Condotels, Log Homes, Dome Homes, Tiny Homes, Commercial Mixed-Use
We accept 1099 Independent contractors for Cannabis-based businesses.
FREQUENTLY ASKED QUESTIONS (FAQ)
Get answers to common questions from business owners just like you.
NEW APPROVAL GUIDELINES
Minimum Mid-credit score and Down Payments (for loan amounts ≤$1MM):
This is not a commitment to lend. Not all borrowers will qualify for the loan programs listed. All program terms and conditions are subject to change and may be discontinued without prior notice. Contact loan originator for program questions and scenarios.