Can I Get a Bank Statement Cash Out Refinance Loan?
Bank statement loans are for self employed borrowers who cannot document enough income to qualify for a mortgage. They qualify using the average deposits in their personal and or business accounts for 12-24 months.
Now, this program is also available to those looking for a cash out refinance. This enables self employed homeowners to cash out the equity they need to do repairs or even for investments.
Bank Statement Cash Out Refinance Loan Pros and Cons
Pros
- Helps self employed borrowers to qualify for a mortgage without using tax returns to prove income
- Can be done in some instances with a maximum loan to value ratio of 90%
- Bank statement mortgage rates are just slightly higher than conventional rates
- Up to 50% DTI – Debt to income depending upon your scenario and lender
- Typically no pre-payment penalties
- Available in all 50 states
Cons
- You need to be self employed for a minimum of 2 years
- If your credit score is extremely low, it may reduce the amount you can cash out.
- Rates are slightly higher than conventional but not much more
- Not all lenders offer this program
Click to read more about Bank Statement Loan - Cash Out Refinance Mortgages
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