Bank Statement Program: A Tailor-Made Solution for Self-Employed Borrowers
A bank statement program is a great alternative to qualify for a loan when the traditional avenue of providing tax returns is simply not available.
Our clients, a husband and wife duo running a successful clothing and apparel business, faced rejection by their bank when they tried to secure a loan for their first home. They turned to us for assistance, and we quickly identified the issue: as self-employed borrowers, their income was better demonstrated through their business bank statements rather than tax returns.
We found a lender willing to approve them under a bank statement program, which is an ideal solution for self-employed borrowers. All we needed to provide were 12 months of their business bank statements.
And with at least 7 bank statement calculation methods, nearly every borrower can benefit from this flexible program.
Overcoming Obstacles and Achieving Homeownership
With only a 20% down payment, our clients became proud homeowners, securing a 30-year fixed interest rate of 5.25% – all without submitting a single tax return.
We also helped them address other challenges, such as:
- Boosting their credit scores to qualify for a lower interest rate and 80% loan-to-value (LTV) instead of 75% LTV.
- Obtaining lender approval for using gift funds from family members to cover a significant portion of the down payment.
- Despite the ongoing COVID-19 pandemic, we ensured their loan closed on time according to the purchase agreement’s deadline.
Ready to Explore the World of Self-Employed Loans?
If you’re a self-employed borrower struggling to secure a home loan, the bank statement program might be the solution you need. In fact, there are several options for home loans without tax returns:
- Bank statements
- Profit and loss statement
- CPA, accountant, or tax preparer letter
We specialize in self-employed loans. Contact us today to learn more and start your journey toward homeownership.