Self-Employed? Here’s How You Can Qualify for a Bank Statement Loan

Are you self-employed? Consider a Self Employed Bank Statement Loan Program. You belong to almost nine million self-employed people in the United States. You enjoy the advantages of self-employment that aren’t afforded to full-time workers—a flexible schedule, control of your life and the ability to select who you work with and what you do. You can apply now by calling the John Thomas Team at 302-703-0727 or you can APPLY ONLINE

Over 6 million small business owners in the U.S. need mortgage options that reflect their actual income.

Traditional loans rely on tax returns, often not showing the full financial picture for self-employed borrowers. PRMI’s Bank Statement Loan Program looks at real cash flow, making it easier for business owners to qualify.

Program Highlights:

? No Tax Returns Needed: We use 12-24 months of bank statements to assess income.
? Higher Loan Amounts & LTVs: Loans up to $5 million with up to 90% LTV.
? Quick Pre-Qualifications: Get answers in up to 24 hours from our in-house team.
? Flexible Income Sources: Combine W-2 earnings with bank statement deposits.

Many self-employed borrowers are turned away by traditional lenders, but we offer a solution that works. PRMI’s Bank Statement Loan Program helps borrowers close more loans with flexible income verification and common-sense underwriting.

The financial perks of self-employment can be tremendous too, opening up any number of tax deductions related to the business.

One of the benefits if you’re self-employed and looking into purchasing a home is the privilege to take a self-employed bank statement loan.

For the sake of our readers who aren’t familiar, let me define a few terms:

Self-employed: you’re considered self-employed if you have an income-generating business but without any employees. If you have one employee then you may be categorized as a small business.

W2s: The W-2 form is the document an employer is required to send to each of their employees and the Internal Revenue Service (IRS) at the end of the year. The form reports the employee’s annual wages and the amount of taxes withheld from their paychecks.

Bank statement loan: A bank statement loan is a relatively new loan for the self-employed borrower.  Instead of qualifying with your tax returns and W2s, you qualify with bank statements as the proof of income!

How to Qualify for a Self-Employed Bank Statement Loan

1. At least 1 year self employed or business owner.
2. Bank statements: You’ll generally need to submit either 12 or 24 months’ worth of bank statements.  Depending on the your qualifications, you may be able to use both your personal and business bank statements together as qualifying income.  The income will be the average of the total income overall 12 or 24 months of deposits.
3. Down payment: The maximum allowable loan-to-value ratio is usually 90%, which means a minimum down payment of 10%.  If you have a lower credit score (especially under 680), expect to need to put closer to 20% down payment.
4. Credit Score: The Minimum credit score is 600.  Keep in mind, the lower your credit score, the higher the down payment required and the higher the mortgage interest rate.
5. Debt-to-Income Ratio: Bank statement mortgages allow higher than usual DTI ratios, allowing a maximum ratio of up to 55%.
6. Loan Amount: The maximum loan size varies based on credit score and lenders. The John Thomas Team will lend all the way up to $5,000,000.

What are the Guidelines for Bank Statement Loan Programs?

The Self Employed Bank Statement Loan Program is an alternative solution for self-employed borrowers with active businesses and strong cash flow, but have numerous tax write-offs that do not allow them to qualify for a traditional conventional mortgage loan. Below are the guidelines:

• Can be Use for Purchase, Rate/Term Refinance, or Cash-Out Refinance
• Loan Amounts from $75,000 to $5,000,000
• Loan to Value up to 90% on purchase transactions
• Occupancy type of Primary Residence, Second Home or Investment Property
• Debt to income ratios up to 55%
• Can Use 12 or 24 months of Personal or Business Bank Statements
• Can be Fixed Rate or ARMs
• Can be 30 Year or 40 Year Terms
• Interest Only Payments are Available

Are You a Real Estate Agent with Self Employed Borrowers?

If you are a real estate agent with self employed borrowers that have been turned down for a mortgage loan to purchase or refinance a home because of their tax returns, then the Self Employed Bank Statement Loan Program is a great tool for you to add to your toolbox. Call John Thomas today at 302-703-0727 to learn how you can partner with us to grow your business.

How Do You Apply for a Bank Statement Loan Program?

If you’re a self-employed borrower who needs to utilize a Bank Statement Loan Program and looking into purchasing or refinancing your dream home, we’re here to make things easy for you! APPLY ONLINE HERE, or call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713