Bank Statement Home Loans

Bank Statement Home Loans

Bank Statement Loans are available up to a $3 million loan amount ($3.3 million purchase price or higher with more down payment), and are for those who have good cash flow through their bank accounts but have too many write-offs on their tax returns to qualify for a loan where tax returns are required. Either personal or business statements can be used. Tax Returns are NOT typically required.

10% down with a 680 score. 15% down with a 640 score. 20% down with a 580 score. A minimum of 3-months of the payment amount must be in your bank or retirement account at close of escrow for reserves. i.e. If the payment is $1500 per month, you need a minimum of $4500 in your accounts at close of escrow.

 

Personal Bank Statements (12 months):

For Borrowers who receive hourly or salaried W2 income, 1099 income, as well as cash tips. i.e Servers, Bartenders, Hair Stylist, Dancers, etc.

For borrowers with a large business, multiple businesses or who own a business with a partner.

Option for borrower who maintains a personal bank account separate from their business bank accounts (separate books)

Deposits represent net profits from their business activities

Total up your deposits each month for 12-months then we will use the monthly average as your qualifying income.

If you pay business expenses through your personal account, that could present a problem for the Investor. Ask me.

Business Bank Statements (24 Months):

Primarily for small business owners or sole proprietors

Option for borrowers who use a single account for both business and personal finances (co-mingling)

Deposits represent gross receipts/income from their business activities

We take your total monthly deposits averaged over 12 or 24 months, less your business expenses that show up on your bank statements, to arrive at your usable income for qualifying.

Tax Returns not required for self-employed borrowers

Bank statement income CAN be combined with other sources of income (Rents or Pensions) and/or co-borrower wage income.

Co-mingling of personal and business receipts and expenses in Personal Bank Accounts is not permitted. Evidence of comingling will require the loan to be submitted and qualified as a business bank statement loan.

NSFs require a borrower Letter of Explanation to evaluate that they are not due to financial mishandling and/or indicative of insufficient income. I.e. if you are a habitual check-bouncer you may not qualify for this loan.

Unusually large deposits (as defined by Fannie Mae) into personal accounts must be documented and explained via Letter of Explanation.

Multiple bank accounts may be used.

Tax Returns/ 4506T not required for self-employed borrowers.

Can be combined with other sources of income (Rents or Pensions) and/or co-borrower wage income.

Only large deposits (generally > 50% of monthly income) require Letter of Explanation. No audit of all deposit / withdrawal activity required.

EXAMPLE #1— 12 Mo. Personal Bank Statements

George’s  mobile detail carwash  (Retail)

•Self-Employed borrower with good cash flow but reduced taxable income as a result of high deductions.

•Borrower is the sole owner of a retail mobile detail carwash license.

•12 or 24 months personal bank statements

•The expense ratio of the business is 75%, which is reasonable for a retail business with employees and inventory .

 EXAMPLE #2— 24 Mo. Business Bank Statements

Internet Entrepreneur as LLC

•Self-Employed borrower with good cash flow but reduced taxable income as a result of high deductions.

•Licensed Internet website or County license  and works out of a home office

•12 or 24 months business bank statements

•The expense ratio is only 12 % which is reasonable for a home based business with no employees and no inventory.

 

Confidential, secure and discrete application process. Call us today to see if a bank statement loan can get you into your dream home!

Follow Joshua Nieves Mortgage Team - Residential Mortgage Services On Social Media

Licensing

Licensed in Nevada and California

Joshua Nieves NMLS #557025
Residential Mortgage Services
NMLS #168397
MLD #25237
CA-DBO5570215

ehl
rms-logo

Contact Us

Joshua Nieves Mortgage Team - Residential Mortgage Services
3585 E Flamingo Road
Ste 103,102,101
Las Vegas, NV 89121

Direct Line:
(702) 580-5069

Office Line:
(702) 796-3453

Day Hours:
MON-FRI 8AM - 5PM

Available by appt. 7AM-7PM