We emerge as experts in helping self-employed borrowers who may not qualify through conventional mortgage channels. One of the most powerful tools in our lineup is the Bank Statement Loan Program, specifically for borrowers who earn a solid income but don’t clearly show it on their tax returns.
Real Scenario: Renovating a Second Home with No Tax Return Hassles
A recent client came to us with a common challenge: they were self-employed, owned a second home free and clear, and wanted to tap into the equity to fund renovations.
- Home Value: $480,000
- Desired LTV: 75%
- FICO Score: 686
Despite having strong assets and a solid credit score, they hit a roadblock; their net income on tax returns didn’t support the debt-to-income (DTI) ratio required for a conventional loan.
The Non-QM Solution: 12-Month Bank Statement Program
Instead of turning them away, we offered a smart alternative: our 12-Month Bank Statement Loan Program. By using bank deposits instead of tax returns to verify income, we were able to calculate a qualifying income that accurately reflected the borrower’s true financial situation.
This approach allowed us to approve the loan with a 46% DTI, giving them the funds needed to renovate their second home and continue growing their personal and financial goals, without verifying personal income documentation.
Bank Statement Loan Highlights:
- DTI Up to 50%
- Loan amounts from $100,000 to $3.5 million
- Use personal or business bank statements
- We calculate your qualifying income before submission
Contact us to learn more about our Bank Statement Loans.
