Bank Statement Super Jumbo Loan
Despite a low credit score, our client was approved on an exception basis for a super jumbo loan due to his substantial bank statement deposits and other strong compensating factors. We cleared his loan to close in less than 3 weeks.
Loan Amount:
$3,737,500.00
Loan Type:
Super Jumbo
- Location: Miami, Florida
- Property Type: Single-Family Residence
- Transaction Type: Purchase
- Loan Amount: $3,737,500.00
- LTV: 65%
- Wow Factor: Super Jumbo Loan Despite Low Credit Score
The Challenge
Our client needed a mortgage to purchase a new home in Miami, Florida for $5.75 million.
As a successful entrepreneur and founder of several companies, including a public adjusting firm and a property damage mitigation company, his self-employed income was complex.
While his tax returns showed relatively low income, his business bank statements showed exceptionally strong deposits, making him an ideal candidate for a non-QM loan where he would use his bank statements instead of tax returns to qualify.
However, his credit score was 695, which was below the 700 minimum score requirement. While bank statement loan programs typically allow credit scores as low as 620 to 660, the higher the loan amount, the higher the minimum credit score becomes.
Since our client was seeking a super jumbo loan amount above $3 million, the credit requirements were more stringent. We referred him to a credit repair expert, but unfortunately, nothing could be done in the short term to increase his score to 700.
The Solution
Because our client’s credit score was below the lender’s 700 requirement, we asked the lender to provide an exception.
We analyzed his file and presented the lender with a thorough memorandum that highlighted these strong compensating factors:
1. Exceptional income: Based on the most recent 12 business bank statements from two of his companies, he showed a combined monthly income of over $1 million (after excluding certain non-qualifying deposits and applying a 50% expense ratio).
2. Plentiful post-closing reserves: We provided the most recent statement from over a dozen of his accounts, showing liquid assets over $8 million (including assets belonging to his wife but that could be used as gift funds under the lender’s flexible guidelines).
3. Clean housing history: Our client owned an investment property with a mortgage and never had a late mortgage payment.
4. Letters of explanation: Our client’s credit score was 695, only 5 points below the minimum requirement. We provided the lender with detailed letters from the borrower explaining the derogatory items that appeared on his credit report.
After reviewing our request, the lender granted the exception request and waived the 700 credit score requirement. In exchange, the lender set the LTV at 65% (instead of 70% LTV) and slightly increased his interest rate.
The Result
With the exception granted, the path to closing was straightforward. We worked diligently to satisfy the lender’s requirements, including ordering 2 appraisals, getting an income letter from our client’s Enrolled Agent (EA), and obtaining proof he paid off his student loans.
Ultimately, we obtained the clear-to-close in less than 3 weeks, and the parties closed early (2 weeks before the contract deadline).
Our client and his family look forward to enjoying their new home in Miami for many years to come.
This transaction highlights what’s possible with the right execution. Learn more about super jumbo loans in Florida and how complex purchases are approved.
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