If you own your own business or are self-employed, you know that getting a mortgage can be difficult. Regardless of what you make for income, the system of tax write-offs that make your job profitable keeps holding you back from buying a home. That’s because lenders are forced to look at your tax statements and not your bank statements when they make a credit decision on your mortgage. The Bank Statement Mortgage is here to change all of that.
After the crash of the housing market in 2008, the federal government took custodianship over Fannie Mae and Freddie Mac, the two largest lenders in the country. They were so large that if they failed, they would put thousands of homeowners out on the street, so the government stepped in. While this led to many of the great loan programs that we have today, including HARP and FHA that let homeowners recover from being underwater or buy a home with less money down, they also made it far more difficult for business owners and self-employed people to buy a home.
Entrepreneurs and self-employed workers were now required to prove their income by what they pay in taxes, not what they made. This has kept everyone from doctors and lawyers to real estate agents and web designers from buying a home, as they are forced to write off business expenses merely to keep their companies or practices profitable. This shows as less income made for taxes but doesn’t show the true income that they make. This means that they can’t buy a home that is on the proper level to what they make but instead must settle for less home or continue to rent.
The Bank Statement Mortgage changes all of that. With guidelines changing, we are now the first mortgage bank to offer self-employed individuals the flexibility of a bank statement mortgage, where we check your bank statements for mortgage viability. This way, you can write off all your business expenses, keeping your business profitable and healthy.
- We no longer need to look at your tax returns or tax transcripts
- Your average deposits make up your income statement
- We can look at 12 or 24 months of bank statements
- If you own a business, we need to see 24 months of the business statements and a P&L statement covering that same 24 month period
- You can purchase a home with as little as 10% down
- If you want to refinance, you can get a Rate and Term for up to 90% of the home’s value
- Take a Cash Out Refinance of up to 85%
- Take out a mortgage from $100,000 up to $2.5 Million
- We accept Debt to Income Ratios up to 55%
- Take out Adjustable or Fixed Rate mortgages, whichever you prefer
- Interest Only Mortgage Options Available
- Must be Self Employed for 2+ years
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656. You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?