12 Month Bank Statement Mortgage For Self-Employed Borrowers

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12 Month Bank Statement Mortgage For Self-Employed Borrowers

This ARTICLE On 12 Month Bank Statement Mortgage For Self-Employed Borrowers Was PUBLISHED On August 9th, 2019

12 Month Bank Statement Mortgage
Gustan Cho Associates

 

Until recently, most self-employed home buyers had a difficult time qualifying for a mortgage.

  • Many self-employed home buyers often have the means to afford a higher-end home
  • Self-employed wage-earners have the luxury to write off many business expenses under the IRS Tax Code
  • Writing off business expenses from their gross income benefits self-employed wage-earners in paying less in income taxes
  • Unfortunately, a lot of write-offs means self-employed wage-earners having a difficult time qualifying for a mortgage

In this article, we will cover the 12 Month Bank Statement Mortgage For Self-Employed Borrowers.

How Does The 12 Month Bank Statement Mortgage For Self-Employed Borrowers Work

How Does The 12 Month Bank Statement Mortgage

The 12 Month Bank Statement Mortgage For Self-Employed Borrowers offered at Gustan Cho Associates Mortgage Group works as follows:

  • Must be self-employed
  • Qualified Income is derived by averaging the past 12 months of bank statement deposits
  • It can be either personal and/or business bank statements
  • Needs to be 12 months bank statements from one bank
  • Only deposits count and withdrawals do not matter
  • No bank overdrafts in the past 12 months
  • The average 12 months deposits are the monthly qualified income

Income tax returns are not required. We only go by the past 12 months of bank statement deposits.

Other Lending Guidelines To Qualify For The 12 Month Bank Statement Mortgage For Self-Employed Borrowers

Other Lending Guidelines To Qualify For The 12 Month Bank Statement Mortgage

To qualify for the 12 Month Bank Statement Mortgage and/or Non-QM Loans, borrowers should have 3 established credit tradelines that have been seasoned for the past 24 months.

  • Verification of rent and/or past housing payment history is required
  • Debt to income ratios cannot exceed 50% DTI
  • 10% to 20% down payment is required
  • The amount of the down payment is dependent on the borrower’s credit scores, type of property, and credit history
  • The maximum loan limit is $3 million
  • Loan size over $3 million is underwritten on a case by case scenario basis and may require an additional down payment and reserves
  • There is no private mortgage insurance required
  • Minimum credit scores of 500 FICO is allowed
  • The lower the credit scores, the higher the down payment requirement
  • Late payments in the past 12 months, including mortgage lates, is allowed
  • There is no waiting period requirement after bankruptcy, foreclosure, deed in lieu of foreclosure, short-sale

Non-QM Loans and 12 Month Bank Statement Mortgage For Self-Employed Borrowers on primary owner-occupant home loans have no pre-payment penalty.

Benefits Of Non-QM And 12 Month Bank Statement Mortgage For Self-Employed Borrowers

Benefits Of Non-QM And 12 Month Bank Statement Mortgage

There are many benefits of Non-QM and 12 Month Bank Statement Mortgage For Self-Employed Borrowers. Non-QM Loans are not for borrowers with just bad credit. Many borrowers who qualify for government and conforming loans often benefit from Non-QM Mortgages.

Here are the main benefits of using Non-QM And 12 Month Bank Statement Mortgage For Self-Employed Borrowers:

  • Borrowers who exceed government and conforming limits
  • Borrowers with late payments in the past 12 months, including mortgage late payments
  • Borrowers who do not meet the mandatory waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, short-sale
  • Homebuyers needing a jumbo loan but have lower credit scores down to 500 FICO
  • Self-employed borrowers who have little to no income or negative income on their tax returns can qualify with our Non-QM 12 Month Bank Statement Mortgage

For more information about the contents of this article or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. The Team at Gustan Cho Associates Mortgage Group is available 7 days a week, evenings, weekends, and holidays.

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