Bank Statement Loans

Bank Statement Loans are available up to a $2.5 million loan amount ($3 million purchase price 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 typically required.

15% down with a 680 score and 20% down with a 620 score. 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. 

Personal Bank Statements (12 months):

  • For Borrowers who receive hourly or salaried W2 income, 1099 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
  • Total up your deposits each month for 12-months then we will use the monthly average as your qualifying income.
  • If you pay business expenses through your personal account, that could present a problem for the Investor. Ask me.

Business Bank Statements (24 Months):

  • 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
  • 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

  • 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.
EXAMPLE #1— 12 Mo. Personal Bank Statements
Dan’s Paint and Wallpaper (Retail)
•Self-Employed borrower with good cash flow but reduced taxable income as a result of high deductions.
•Borrower is the sole owner of a retail Paint/Wallpaper company.
•12 months personal bank statements
•The expense ratio of the business is 75%, which is reasonable for a retail business with employees and inventory .
 
 EXAMPLE #2— 24 Mo. Business Bank Statements
Marriage Counselor
•Self-Employed borrower with good cash flow but reduced taxable income as a result of high deductions.
•Licensed Marriage Counselor and works out of a home office
•24 months business bank statements

•The expense ratio is only 12 % which is reasonable for a home based business with no employees and no inventory.

Confidential, secure and discrete application process.

 702-326-7469 – Talk/Text     EMAIL: DSherbondy@AllWestern.com

Dan Sherbondy
Senior Loan Officer
All Western Mortgage
(established in 1981)
“Dan The Loan Man”
702-326-7469 talk/text
efax: 702-583-7467
DSherbondy@AllWestern.com

Equal Housing Opportunity

Dan’s Licensing: NV MLD 45649, CA-DBO313289, NMLS 313289
All Western Mortgage, 8345 W Sunset Rd Ste 380. Las Vegas, NV 89113
702-326-7469- TALK OR TEXT | | 702.369.0905 – Switchboard (Ask for Dan)

Company NMLS# 14210, NV Division of Mortgage Lending Lic# 204, Arizona Lic# 0923280, Licensed by the CA Dept of Corporations Lic# 603F053, CA Dept of Real Estate Lic# 01893025, CO Division of Real Estate, Florida Lic# MLD895, NM Financial Institutions Division Lic# 03619, UT Division of Real Estate Lic# 7776975,
OR Dept of Consumer & Business Services Lic# ML-4924, TX Dept of Savings and Mortgage Lending – Consumer Notice, WA State Dept of Financial Institutions Lic# CL-14210.