-
Bank Statement Loans
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
-
3 Replies
-
Hi there, you need to be self-employed to qualify for a bank statement program. You can either own a business entity; or you can be a sole proprietor. You can’t be a W2 employee. In some cases, you can’t be a 1099, but in some others you can, to do a bank statement loan. Why would you want to do a bank statement loan if you have 1099’s? Especially if you only have one 1099 gig? If you have several 1099 gigs and maybe sometimes you get paid 1099’s and sometimes you get paid with Zelle, etc., you would want a bank statement loan. I hope this helps. If you have any more questions, let me know.
-
Thank you, Ann. One of the most requested frequently asked questions is what is the guidelines for 90% LTV bank statement loans for self-employed borrowers. Can you explain the guidelines such as the minimum credit score requirements, how you guys come up with qualified income on business and personal bank statements, the number of credit tradelines, are credit disputes allowed, and other important factors for 10% down payment bank statement loans?
-
Can you explain the guidelines such as the minimum credit score requirements. Answer: We can go down to 575 at a 65 LTV. The higher the fico, the higher the LTV.
How you guys come up with qualified income on business and personal bank statements: Answer: Monthly deposits are added. You need to back out transfers. On personal bs, you can count the deposit 100% usually, and business bs, you have an expense ratio of 50% unless you can get a tax advisor to say its less.
The number of credit tradelines. Answer: 3 trades for 24 months each is usual. If its 65% ltv or less, 1 trade for 24 months and 2 other trades with no requirements. However, we are coming out with new guidelines on this soon.
Are credit disputes allowed: Answer: If the borrower is disputing something we don’t care. We don’t care at all about credit card lates. We don’t count them at all. All we care about is the mortgage and/or rent has been paid on time.
Other important factors for 10% down payment bank statement loans? Answer: Must be self-employed for 2 years or more. We do have a 1-year se program if it hasn’t been in business for a full two years, but at a reduced LTV of 80.
-