Bank Statement Home Mortgage Loans

COVID-19 UPDATE: Most Bank Statement Loans are temporarily suspended but I do still have one with 30% down (70LTV). Send me a message using the form at the bottom and I’ll let you know when the lower-down bank statement loans return.

Bank Statement Home Mortgage Loans are available up to a $3 million loan amount, possibly more with an “exception”. $3.3 million max purchase price given 10% down, 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 required. These are NOT “stated income”, AKA “Liar Loans”. You have to prove that you can make the payment.

10% down with a 680 score* No PMI (private mortgage insurance) is required.
15% down with a 640 score* No PMI is required.
20% down with a 580 score* No PMI is required.
*These down payments are for Owner-occupied. Rental properties require a minimum of 15% down.

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. This is your money and stays in your account. The Investor just needs to know that you have a few bucks tucked away and are not living paycheck to paycheck with no savings whatsoever.

Personal Bank Statements (12 or 24 months):
o For Borrowers who receive hourly or salaried W2 income, 1099 income, as well as cash tips. i.e Servers, Bartenders, Hair Stylist, Dancers, etc.
o For borrowers with a large business, multiple businesses or who own a business with a partner.
o Option for borrower who maintains a personal bank account separate from their business bank accounts (separate books)
o Deposits represent net profits from their business activities
o Total up your deposits each month for 12-months then we will use the monthly average as your qualifying income.
o If you pay business expenses through your personal account, that could present a problem for the Investor. Ask me.

Business Bank Statements (12 or 24 Months):
o Primarily for small business owners or sole proprietors
o Option for borrowers who use a single account for both business and personal finances (co-mingling)
o Deposits represent gross receipts/income from their business activities
o 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
o Bank statement income CAN be combined with other sources of income (Rents or Pensions) and/or co-borrower wage income.
o 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.
o 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.
o Unusually large deposits (as defined by Fannie Mae) into personal accounts must be documented and explained via Letter of Explanation.
o Multiple bank accounts may be used.
o Tax Returns/ 4506T not required for self-employed borrowers.
o Can be combined with other sources of income (Rents or Pensions) and/or co-borrower wage income.
o Only large deposits (generally > 50% of monthly income) require Letter of Explanation. No audit of all deposit / withdrawal activity required.

This is NOT a “stated income” loan. You must prove that you can afford the payment using bank statements to show good cash flow.

Confidential, secure and discrete application process.
702-326-7469 – Talk/Text EMAIL: DSherbondy@AllWestern.com