Have no tax returns and looking for a mortgage? We have an option for you!
To minimize the risks before approving a home loan, lending institutions verifying your income. How? By checking your W2 tax forms. If you aren’t providing any income but receiving an unconventional one, you can get a mortgage via Bank Statement Program.
Nowadays, this program became one of the most popular ones for business owners, freelancers, entrepreneurs, and annual workers.
Since most self-employed borrowers have several write-offs on taxes, they won’t qualify for a conventional loan.
The Bank Statements Program was made to face the needs of those who can show good cash flow in their business.
There are few options of 3, 12 – and 24-months bank statements. At the very moment, 12 months statement is the most practiced option. Good to remember that by providing statements for 24-moths you may be qualified for a mortgage on better terms and at a lower rate.
Here’s how it works:
– You should be self-employed for two years – the tax preparer needs to write a letter confirming it.
– You shouldn’t provide any income documents. Tax returns aren’t required too.
– The lender will use your deposits as your income and average it over the 12 months. Depends on the industry you are in, there are expense factors lenders using. For example, if you are in the construction business – lenders will use 50% of deposits, but if you are a consultant with little overhead – lenders might use 80% of deposits.
– You can buy a house with a minimum down payment of only 10%.
– 30 YEAR FIXED, 5/1 & 7/1 ARM
– Owner Occupied Only
– SFR, PUD, Condo
– Purchase: 75% LTV up to $750K
– Purchase: 65% LTV up to $3MM
– R/T & Cash-Out: 70% LTV up to $750K
– Cash-Out: 55% LTV up to $3MM
– No Tax Returns, No 4506T
– 100% Gift Allowed
– Business Funds allowed, if 100% ownership
– Reserves are not required
For more information, free and extensive consultation – contact one of our experts.
LBC Capital offers excellent customer service, competitive mortgage rates, and tailored underwriting to our clients.