A Successful Refinance Using the Bank Statement Loan Program
The bank statement program is a great alternative for borrowers who can’t show income through traditional documentation such as tax returns.
Our clients, a self-employed husband and wife, were in dire need of refinancing their primary residence in Lighthouse Point, Florida. With a looming interest rate hike and a short-term, interest-only mortgage with a balloon payment due in 2022, they turned to us for help.
Achieving Goals Through Creative Financing Solutions
Using the bank statement loan program, we were able to obtain a $1,275,000 loan amount at 75% loan-to-value (LTV). Additionally, our clients were able to refinance their private note into a more favorable loan with a lower interest rate and a traditional 30-year-fixed term.
As self-employed borrowers, their income was best demonstrated through their business bank account deposits, making the bank statement program an ideal solution for them.
Overcoming Challenges to Secure Approval
To qualify them for the loan, we utilized 24 months of their business bank statements, which showed non-sufficient funds (NSFs). By providing compensating factors like a healthy savings account balance, we satisfied the underwriter’s concerns and successfully closed the deal.
Discover the Benefits of Bank Statement Loans
Bank statement loans are just one of the many self-employed loans to purchase or refinance a property. And with at least 7 bank statement calculation methods, nearly every borrower can benefit from this flexible loan type.
We specialize in home loans without tax returns. Contact us today to learn how this innovative program can help you achieve your financial goals.
