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Interested in the 12-month bank statement program to purchase investment property. But I do not have a primary residence.
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Do you do bank statement loans.? HOW DOES BANK STATEMENT LOANS WORK? WHERE CAN I GO TO GET APPROVED FOR BANK STATEMENT LOANS.
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I am not familiar with bank statement loans. Can you please explain how bank statement loans work.
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A bank statement loan, also known as a self-employed mortgage or a non-QM (Non-Qualified Mortgage) loan, is a type of mortgage loan designed for individuals or businesses who may have non-traditional income sources or difficulty documenting their income through traditional means, such as pay stubs and tax returns. These loans are typically used by self-employed individuals, freelancers, small business owners, and others who have variable or unconventional income streams.
The key characteristic of a bank statement loan is that it relies on bank statements, typically personal or business bank statements, to verify income. Instead of providing tax returns or W-2 forms, borrowers provide their bank statements, often for the past 12 to 24 months. Lenders will review these bank statements to assess the borrower’s income and determine their ability to repay the loan.
Here are some key points about bank statement loans:
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Flexible income documentation: Bank statement loans are designed to accommodate borrowers with fluctuating income or those who have a significant portion of their income in cash. This flexibility can be helpful for self-employed individuals who may not have consistent pay stubs or tax returns.
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Higher interest rates: Bank statement loans typically come with higher interest rates compared to traditional mortgage loans. This is because they are considered riskier for lenders due to the unconventional income verification method.
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Larger down payment: Borrowers may be required to make a larger down payment compared to traditional mortgages to mitigate the lender’s risk.
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Credit score requirements: While credit score requirements can vary by lender, borrowers may need a decent credit score to qualify for a bank statement loan.
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Loan types: Bank statement loans can be used for various types of mortgages, including purchase loans, refinancing, and home equity lines of credit (HELOCs).
It’s essential to note that bank statement loans have become less common in recent years, as they were associated with the housing market crash of 2008. However, some lenders still offer these loans to qualified borrowers, and the specific terms and requirements can vary widely between lenders. If you’re considering a bank statement loan, it’s essential to shop around, compare offers, and carefully review the terms and conditions to ensure it’s the right option for your financial situation.
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What is the requirements for a borrower to be eligible for bank statement mortgage loans? Do you need to have a bona fide business to be eligible for bank statement loans? Can a sole proprietor without an LLC, corporation, or legal partnership be eligible for bank statement loans? Can W2 wage earners qualify for bank statement loans? Can 1099 wage earners qualify for bank statement loans? If I am a cash wage earner buying and selling cars without a legal form of business, can I qualify for bank statement loans? Does the lender need to see income tax returns? How many years in business do you need to be to qualify for bank statement loans. Do you need to be self-employed to be eligible for bank statemnent loans? Can you have a co-borrower that is a W2 wage earner on the main borrower is self-employed? How is qualified income calculated on bank statement loans on personal and business bank statements. Can you use both personal and business bank statements? Thank you in advance @Annie @Dale_Elenteny @john @John_Strange
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