Bank Statement: What is it?
The Bank Statement program is a loan created for self-employed
borrowers who can’t qualify for a conventional loan due to tax write-offs
that don’t show their true income when analyzing tax returns.
Bank Statement: How do we qualify?
• Borrower must own business for minimum 2 years
• 1 year self-employment option available if in same line of work for prior 2 years
• 12M or 24M Personal Bank Statements
OR
• 12M or 24M Business Bank Statements
• To use Personal Statements – borrower must own minimum 25%
To use Business Statements – borrower must own minimum 50%
Bank Statement: How is income calculated?
• We have a dedicated team to do the work for you
• Income average taken over 12M or 24M
• 24 hour turn-time – up to 48 hours if using multiple business accounts
• Looking for consistent income deposits month to month
• Expense ratio applied for the business
• Qualified income from our team is what is used for UW
• What I’ll need:
• 1003 (pdf)
• Credit Report
12M or 24M Personal or Business Bank Statements
Bank Statement Types Of Loans
• Purchase | Rate-Term | Cash-Out | Delayed Financing
• Primary, Second Home, or Investment
• Minimum FICO 640
• Purchase or R/T: Up to 90% LTV
• Cash-Out: Up to 80% LTV
• SFR, 1-4 Units, Warrantable & Non-Warrantable Condos, PUD’s, Townhouses
• 6 months reserves required – subject property only
W2 income from a co-borrower may be used if not associated with borrower’s business
Bank Statement: Alt Doc Options
• 1099: 1 or 2 years
• Total 1099 plus YTD earnings, less business expense ratio, annualized
• P&L: 1 or 2 years
• P&L prepared by CPA/Tax preparer
• Requires 2 months most recent business statements w/ deposits supporting gross receipts within 15%
• Max 80% LTV – minimum 720 FICO