Recently Closed - Florida Bank Statement Loan
Recently, I received a phone call from an LO that needed some help with a client in Florida that was purchasing a home. The client had a very specific need, with a lot of positive attributes and some negative aspects (in the eyes of an underwriter) that made the transaction an interesting process.
The product needed was a jumbo bank statement loan with 20% down required with a FICO score less than 720. The referring broker did not have this product available, but thankfully one of my broker options did offer this product up.
Our client was self-employed in real estate, and due to many business expenses, consistently variable income, and seasonal dips in income, bank statements were the only way we could provide qualifying income to achieve an approval for a jumbo loan amount.
With the selected bank statement program, the investor required 24 months of bank statements, and used the average of all deposits to calculate the qualifying income. Thankfully, with this calculation (in contrast to how standard conforming income is calculated), the client was easily able to meet debt-to-income ratio requirements.
A few hurdles that we had to get past were that our client changed the structure of his employment, incorporating his business within the past 12 months, and having prepared and filed his own taxes, we had no assistance from a CPA (whereby more often than not, a CPA letter is required for this type of product), and there was also a personal bankruptcy in recent history. To compensate, we gathered letters of explanation, business listings, and real estate licenses, and we were able to seek approval from there.
In just over 30 days we went from application to clear to close, and this client now has a beautiful new home in Pinellas County, Florida.
Using a niche loan program like a bank statement loan is always rewarding as they're known to be difficult loans to get closed, but in this case it was even more rewarding as our client was purchasing he & his family's dream home, and they are extremely pleased to now call a beautiful house less than a mile from the Gulf of Mexico, home.