Many business owners and entrepreneurs face challenges when qualifying for loans due to tax write-offs or fluctuating income. However, our Non-QM solutions offer alternatives, such as bank statement loans, to help you access the financing you need.
The Scenario: A Self-Employed Homeowner Looking to Renovate
One of our recent clients owned their primary residence free and clear, with a home valued at $1 million. They wanted to tap into their equity to fund a significant renovation, requesting $500,000 in cash.
On paper, this borrower had an excellent 749 FICO score, but their reported net income on tax returns created a debt-to-income (DTI) issue with conventional lenders. Since conventional mortgage options were off the table, they needed an alternative solution.
Instead of relying solely on tax returns, we used our 12-month bank statement program to qualify the borrower based on their actual cash flow. By analyzing their deposits over the past year, we calculated a strong DTI of 48%, making them eligible for the loan.
With this solution, the borrower was able to:
- Access up to 80% LTV on their primary residence
- Secure $500,000 in cash for their renovation
- Avoid traditional income documentation hurdles
Bank Statement Cash-Out Refinance Highlights
Our bank statement program is an excellent option for self-employed borrowers who need to leverage their home equity. Key features include:
- Primary residence cash-out refinance up to 80% LTV
- Second homes cash-out up to 75% LTV
- Investment property cash-out up to 75% LTV
If you’re self-employed and struggling to qualify for a conventional loan due to tax return limitations, a Non-QM bank statement loan could be the perfect solution.
Contact us to learn more about our non-QM mortgage loan programs.
