Applying for a bank statement program in Florida
If you’re self-employed in Florida, you already know the problem. Your business is doing well, money is coming in, your bank account looks strong, but when a lender looks at your tax returns, the income seems too low.
That happens because business owners write off expenses. You lower your taxable income, which is smart for taxes, but it can hurt you when applying for a traditional mortgage programs. This is where our mortgage broker team cn help.
With a Florida bank statement mortgage, we don’t rely on your tax returns to qualify you. Instead, we use your bank deposits. We look at the real money coming into your accounts and calculate income based on that. For many business owners, freelancers, contractors, and 1099 earners, this makes much more sense.
These loans are part of what’s called non-QM financing. That simply means they don’t follow the strict rules of conventional loans. They were created for people whose income doesn’t fit into a standard box.
Buy or refinance a property with or without showing your tax returns
How we make it work for you
When someone applies for a regular mortgage, the lender usually reviews two years of tax returns and averages the reported income. If you’ve written off a lot, that number may not reflect what you actually earn.
With a bank statement loan, we review twelve to twenty-four months of bank statements instead. We look at consistent deposits and calculate qualifying income from there. The focus is on real cash flow.
The most important part is not all lenders calculate deposits the same way. That’s why our team at LBC Mortgage don’t just submit your statements and hope for approval. We review everything first and separate transfers from true income. Then, we clean up your file and choose the lender whose guidelines match your situation better. That preparation makes a very big difference.
Because we also do DSCR loans for investors, we know how alternative qualification works for loan programs. If your income comes from rental property and not from business deposits, you may want to learn about those types of loans too.
In Florida, most programs require at least two years of self-employment, although sometimes one year can work if you were in the same line of business before. Down payments are usually between ten and twenty percent. Credit scores often start around 600. Debt-to-income ratios are generally capped around forty-five percent. Loan amounts commonly range from about two hundred thousand up to one million dollars, depending on the strength of the file. If your property is from a higher price point, you may also consider jumbo loans. Here at LBC Mortgage, we work with more than 100 lenders so we can compare options and structure the loan correctly from the beginning.
Unique income situation?
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Is a Florida bank statement loan the right option for you?
A bank statement loan in Florida makes sense when tax returns are the only thing holding you back. If your business is stable and your deposits are consistent, this program can open the door to homeownership.
If you are buying an investment property instead of a primary home, you may also look at investment property loans. Or if you are want buy a property for short-term rental income, you can check our Airbnb loans.
It’s important to understand that these loans usually come with higher interest rates than conventional ones, and down payment will be higher too. The flexibility comes with a little bit higher costs. For many self-employed borrowers, though, the choice is between paying a little more now or waiting years to qualify traditionally.
If liquidity is your strongest asset rather than deposit consistency, we can offer you an asset-based solutions and for borrowers without traditional documentation such as Social Security numbers, we also offer ITIN loans.
Our job is to look at your full picture and tell you the truth. Sometimes this is the right move. Sometimes there’s a better strategy. We walk you through the numbers so you can decide with confidence.
If you’re self-employed in Florida and feel like traditional underwriting doesn’t reflect your real income, we’re here to review your situation and show you what’s possible with bank statement program. We structure loans around how you actually earn, not just what your tax return shows.
