Bank Statement Loans are available up to a $2.5 million loan amount, and are for those borrowers whose have good cash flow through their bank accounts but don’t show enough income on their tax returns to qualify for a full-doc loan. Either personal or business statements can be used. Tax Returns are NOT typically required.
15% down with a 680 score and 20% down with a 620 score.
Personal Bank Statements (12 or 24 Mo.):
For Borrowers who receive hourly or salaried W2 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
Deposits must provide support for the business’ bottom line “Net Income/Profit”
Business Bank Statements (24 Mo.):
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
Deposits must provide support for the business’ top line “Gross Income/Business Receipts”
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
Confidential, secure and discrete application process.
Talk or Text – 702-326-7469 DSherbondy@AllWestern.com