Our client, a self-employed entrepreneur and social media influencer in the entertainment and podcasting industry, was looking to grow his portfolio of rental investment properties.
He went under contract to purchase two properties in Connecticut, a 2-unit (duplex) and a 4-unit (fourplex).
Ideally, he wanted to qualify for a traditional loan using his tax returns. However, as a self-employed borrower, he wrote off a lot of expenses, so his tax returns did not show adequate income to support the requested mortgage debt.
Instead of using his tax returns, we showed his income through 12 months of his business bank statements. Because his bank statements reflected consistent gross deposits from his business, he satisfied the lender’s income requirements and he qualified for an interest rate in the 4’s at 75% loan-to-value.
Bank statement programs are just one of many popular mortgage programs specially designed for self-employed borrowers.
To qualify under a bank statement loan program, you’ll generally need to provide 12 to 24 months of bank statements. Depending on circumstances, you may also need a letter from a CPA verifying how long you’ve been in business, the nature of said business, your percentage of ownership, and other details. No tax returns required.
The bank statement program is also very flexible. Indeed, there are at least 7 methods that lenders use to calculate income based on bank statements.
Contact us today for all your self-employed lending needs.
