Self Employed Tax Return Issues? Bank Statement Income Program

Posted by Dietchi Thomas on Friday, January 27th, 2017 at 2:28pm.

Self Employed Tax Return Issues? Bank Statement Income Program

Self employed borrower bank statement program

 

Too often borrowers with incomes that are difficult to document, especially self employed borrowers, have a very hard time obtaining a mortgage loan approval to purchase a home.  Well, we have a mortgage loan option which is lenient on previous credit issues and can use the borrower’s bank statements to calculate their income and can be described as:

  • Flexible guidelines
  • Favorable terms
  • Understanding
  • Alternative solution
  • Unique
  • Up to $2,000,000 loans

Buyers with at least 20% down can have access to this product which is more forgiving in the areas of credit and income documentation compared to FHA, Fannie, Freddie, or VA.  NO TAX RETURNS REQUIRED!  NO TAX RETURNS REQUIRED! NO TAX RETURNS REQUIRED! 

Characteristics of the Bank Statement Mortgage include:

  1. 12 months bankruptcy discharge or 24 months seasoning from foreclosure or short sale
  2. Self employed only
  3. Not for limited credit borrowers
  4. Average 24 months bank statements **
  5. Requires a borrower signed P&L for most recent year & YTD
  6. NC, SC, & VA borrowers
  7. $150,000 – $2,000,000 loan size limits
  8. Primary & secondary residences only
  9. Single family residences, townhomes, and condos only
  10. 6 months asset reserves required

NO TAX RETURNS REQUIRED!  NO TAX RETURNS REQUIRED! NO TAX RETURNS REQUIRED! 

** Bank statement average requirements

  • Personal accounts:  100% of deposits, averaged over 24 months
  • Business accounts:  100% gross deposits minus withdrawals, averaged over 24 months (personal bank accounts that serve as business accounts must be underwritten as business accounts)
  • Multiple bank accounts, either personal and/or business may be used
  • Statements must be consecutive and reflect the most recent months available
  • Transfers between personal accounts will be excluded
  • Transfers from a business account to a personal account are acceptable
  • Unusual deposits must be documented

NO TAX RETURNS REQUIRED!  NO TAX RETURNS REQUIRED! NO TAX RETURNS REQUIRED! 

If you are self employed and want to purchase a home by using bank statements and a profit and loss, give our team a call to discuss your options.

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