Using a bank statement loan (a mortgage without tax returns), we were able to help our clients, a husband and wife, achieve their rate-and-term refinance goals for their primary residence in Lighthouse Point, Florida.
They needed to refinance the private note on their home for two reasons.
First, and most urgently, their mortgage had a step-rate, and their interest rate was scheduled to increase to the double-digits very soon.
Second, their mortgage was short-term (only three years) with interest-only payments, and a balloon payment due at maturity in 2022, to the tune of more than $1.2 million.
We were able to refinance them into a much better loan. Not only did we lower their interest rate, but we also lengthened the term of their loan to a more traditional 30-year-fixed term with principal-and-interest payments.
Finally, the way we qualified them for the new loan needed to be creative and outside-the-box. As self-employed borrowers running their own businesses, they were not showing enough income on their tax returns to qualify for a loan. Rather, they showed income through deposits to their business bank accounts.
Therefore, the bank statement program was ideal for them. Instead of tax returns, we used 24 months of their business bank statements to qualify them for the loan. (As one hurdle, the business bank statements showed non-sufficient funds (NSFs), so we had to provide compensating factors to satisfy the underwriter, including a healthy balance in their savings account.)
Bank statement loans can be the ideal solution for your purchase or refinance goals. Contact us today to learn more.