Bank Statement Jumbo Mortgage

By
Mortgage and Lending with Guaranteed Rate, Marin County, CA NMLS: 22343

Bank Statement Jumbo Mortgage

 

It is no secret that the self-employed have their share of challenges when it comes to getting a home loan.  And why wouldn't they?  On one hand, their tax professionals spend hours maximizing their deductions and helping them "write off" every allowable expense and on the other hand, their mortgage loan advisor tells them they have to show more income in order to qualify.

 

The difference of intentions is like two trains moving in opposite directions...

 

Yet, there may be a solution for some of these borrowers.  On both the purchase and refinance side, we have a jumbo mortgage program that allows the self-employed to qualify with bank statements instead of tax return income.  We'll look at 12 months of business and personal bank statements but we won't request pay stubs, W-2 forms or personal or business tax returns.  Here are the key points:

 

Who is Eligible?

This program is a match for the self-employed business owner with two-year history of operating the sole proprietorship, LLC, S-Corp or C-Corp.  We prefer to see 100% ownership of the business but we can make some exceptions to this guideline.  We do not allow any major derogatory events (bankruptcy, foreclosure, short sale, etc.) within the last five years.  Realtors, independent contractors and other professionals who receive a 1099 are also ideal candidates for this bank statement loan.

 

How Does it Work?

We're next going to look at 12 months' worth of business bank statements and we're going to get a sense of the business deposits over that period of time.  We'll apply a 50% expense ratio to derive our qualifying income.  So, for example, if the business shows $40K of monthly deposits on average, our business owner and borrower now has $20K per month of qualifying income.  Simple as that, except we exclude any windfall deposits, transfers to and from accounts or anything other than legitimate business deposits.  

 

What Else?

We will permit all occupancy types (primary, vacation and rentals) and we'll allow loan-to-values (LTV) up to 75%.  Interest-only payment options exist and our maximum debt-to-income (DTI) ratio is 47%, because this is a non-QM program.  Simply, you have more flexibility under these guidelines than under the stricter qualifying parameters of a qualified mortgage (QM).  Best of all, and worth repeating, we will not request your tax returns and we don't need to see a profit and loss (P&L) statement for the business --- the bank statements are driving this train.

 

Bank statement qualification mortgages can open the door for the hard working business owner who has heretofore had little luck getting a hefty mortgage payment to fit into his skinny tax returns.  If you'd like to know more about this program today, get your ticket at the station, get in touch and I'll be happy to help.

 

All aboard! 

 

 

Robert J. Spinosa
Vice President of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 Fax: 415-366-1590
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate's Human Resources Department.

 

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood ChicagoIL 60613 - (866) 934-7283

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Location:
California San Francisco County
Groups:
Realtors®
Posts to Localism
Local Expert
California and Hawaii Real Estate and Area Information Blog
Addicted to Active Rain
Tags:
realtor
income
home loan
business
purchase
expense
interest only
ltv
qualify
owner
self employed
sole proprietor
tax return
1099
deduction
refi
dti
llc
w2
mortgage
refinance
bank statement
scorp
pay stub
write off
qm

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
203,874
Lee Potts
Aloha Group Maui - Lahaina, HI
The smarter we work, the luckier you get.

VERY interesting...

Apr 05, 2018 12:11 PM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
549,153

Rob Spinosa

Vice President of Mortgage Lending, Marin County
Can I Get a Jumbo Loan with 10% Down?
*
*
*
*
Spam prevention

Additional Information