Bank Statement Mortgage……
What does that mean? That’s the question we get when we talk to clients and Real Estate Agents. Well, let’s dive deep into what these loans can do to put business owners into homes that they couldn’t qualify for over the last decade. We will discuss why they exists, who they are designed to help, and how we are using bank statement mortgages to qualify most self-employed folks couldn’t buy a home before because of how they do their taxes.
“What happened to the good ole days….”
If I can go back in history a little bit, I promise this won’t take long. When the housing crash happened in 2008, the industry as well as congress took a long look at the mortgages that had been closed over the past decade. In turns out, the ole days weren’t all that good. As a result, many options that were once available became extinct and many people who could afford to purchase a new home no longer could get qualified. For a few years, only the most qualified had access to a mortgage loan while the whole country and our industry looked to reset in order to avoid what happen in 2008 from ever happening again. This left many self-employed folks out of luck.
“Times They Are A Changin'” — The Self-Employed Revolution
Until now, with the introduction of bank statement mortgages, one important segment of the population was still being shutout of home ownership. I’m talking about our self-employed, entrepreneurs, and business owners. The great people who make our local economies flourish are our local business owners. The were having trouble getting qualified for conventional financing because of how their tax returns were structured. They were being penalized for the write-offs they were legally entitled to That is changing quickly as the industry realizes that most self-employed business people truly make more than what their returns say they do.
The process is actually very simple. If you have been in business for at least 2 years, we will add up your business deposits over the last 12 or 24 months and use that number to determine your income. For most business owners, that allows them to purchase on average $235,000 more than they previously could. Bank Statement loans require as little as 10% down. That opens the door for even more business owners. Previously, these loans required at least 20% down and carried higher than normal fees.
So…..what do I need to do?
Here is a quick overview of the program:
- You do not provide tax returns or transcripts
- Your average deposit determine your income
- You will need 12 or 24 month deposit history
- You will need a 2 year self-employment history
- Loans from $100,000 up to $3 Million
- No mortgage insurance
- Can be your primary residence or an investment property
- Credit scores down to 600 accepted
Get pre-approved here – Bank Statement Mortgage Qualification
Call The Mark Sullivan Team in at (615) 968-5338. You can always apply online at bit.ly/sullivanteam or applywithsully.com for any mortgage needs. We are available on the weekends as well. To schedule a call, visit Schedule A Meeting. We work hard to make it easy on you. Nobody gets lower rates on than The Mark Sullivan Team, why go anywhere else?