| How do you qualify for a mortgage when you are self-employed and your tax returns show almost no income? A bank statement loan. Instead of tax returns, the lender reviews 12 to 24 months of your business or personal bank statements and qualifies you on your actual deposits. If you run a business in Cleveland County, you know the game. Your CPA works hard to lower your taxable income. That is smart on April 15 and painful when you apply for a mortgage, because a traditional loan only counts what is on the return. Bank statement loans fix that. Here is how they work. We gather 12 or 24 months of statements. The lender totals your deposits, applies an expense factor based on your type of business, and that becomes your qualifying income. No tax returns. No profit and loss gymnastics. What you should expect. Rates run a bit higher than a conventional loan, usually by a half point to a point. Down payments typically start at 10 percent. You will need about two years of self-employment history and decent credit. For a lot of business owners, the trade is well worth it, because the alternative is not buying at all. Here is where being a broker matters. Mathewson Mortgage Capital works with more than 50 wholesale lenders, and bank statement programs vary wildly between them. One lender might count 50 percent of your deposits, another 85 percent. Same statements, very different approval. A bank with one program cannot shop that for you. We can. I have helped contractors, landscapers, salon owners, truckers, and farmers all over Cleveland County buy homes the banks turned down. Your hard work counts here, even when your tax return hides it. Self-employed and want to know what you actually qualify for? Call us at [PHONE]. Have your last 12 months of statements handy and we can usually give you a real number the same week. |
