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As a business owner, you work hard, and you deserve to buy your dream home, just like anyone else.
Unfortunately, most banks and credit unions are unable to see your type of income in the same way you do. They are required to use the taxable portion of the income on your tax returns.
If you're like most successful business owners, you pay tax professionals to keep your tax burden as low as possible. This is a great strategy...until you try to apply for a traditional home loan.
...But it's no longer a problem, because now you've discovered our Bank Statement Loan Program.
Using our Bank Statement Mortgage, we count the income that runs through your business bank statements, instead of using your tax returns. This approach gives us a more accurate portrayal of your business' true profitability versus the tax return approach.
Other than the income calculation approach, you'll find that our Bank Statement loan program works like every other traditional mortgage you may have experienced.
In fact, it has some added flexibility that you won't find in traditional mortgages. There is no PMI, and best of all, there are no prepayment penalties.
Many of our clients use this program to buy their dream home and later decide to refinance it into a traditional loan once they and their tax advisors determine the optimal time.
Essentially, the Bank Statement Loan program allows you to take control and buy a home on your terms.
We are proud to support American business owners. We believe in keeping things simple, which is why we provide educational resources and our decades of experience, so you can finance with confidence.
We are your trusted leader in Bank Statement Home Loan financing.
Give us a call today to discuss your scenario and find out how we can make homeownership possible for you!
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DOWNLOAD DOCUMENT CHECKLIST
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FREQUENTLY ASKED QUESTIONS (FAQ)
Get answers to common questions from business owners just like you.
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🚀 WHO IS THE IDEAL CANDIDATE FOR A BANK STATEMENT LOAN?
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Are you a 1099 Employee or Independent Contractor? Did you know that there is a program designed for your type of income?
Check out our 1099 INCOME PROGRAM.
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LEARN MORE
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Here's how income is calculated on a Bank Statement Loan:
1. We review the most recent 12-24 months of your business bank statements, counting all of the ordinary business deposits. These are your GROSS DEPOSITS.
2. Divide the GROSS DEPOSITS by the number of total bank statements being reviewed. (12 or 24) This is called MONTHLY GROSS INCOME.
3. Multiply the MONTHLY GROSS INCOME x THE BUSINESS OWNER'S PERCENTAGE OF OWNERSHIP (%) in the business.
4. Multiply this number an EXPENSE FACTOR. We offer two ways to determine business expenses:
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OPTION 1
BUSINESS NARRATIVE ANALYSIS:
Complete a short business narrative form, explaining your type of business (goods, services or both), industry, number of employees, etc.
Depending on your type of business, we will apply an expense ratio ranging from 15% to 85%.
OPTION 2
EXPENSE RATIO PROVIDED BY A LICENSED TAX PROFESSIONAL
Your tax professional provides a letter specifying the business's current expense ratio as a percentage of the gross annual sales / revenue.
The lowest acceptable expense ratio is 15%, regardless of the ratio specified in the letter.
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FINAL INCOME USED FOR INCOME QUALIFICATION
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Minimum Down Payment
10% - for loan sizes ranging from $125,000 - $3MM
FICO of 740+
Reserves:
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+
Reserves:
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)
None
Minimum mid-credit score
575
(LTV will vary, see loan originator for details)
Min/ Max Loan Amount
$150,000 - $3MM
Loan Repayment Terms
30 years
Amortization
30 Year Fixed Rate / 5/1 ARM / 7/1 ARM
Prepayment Penalties
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
Escrows for Property Taxes and Home Insurance required
Occupancy
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
Other
Yes! We accept income from legal Cannabis-based businesses. 🌿
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If you are a business owner, we'd love the opportunity to answer all of your questions and review your options and see if this is the right loan program for you.
Remember, stop letting these banks tell you NO, when we have more reasons to say YES.
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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.
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