12 And 24 Month Bank Statement Mortgage For Self-Employed Home Buyers

This Article Is About 12 And 24 Month Bank Statement Mortgage For Self-Employed Borrowers

Great news for self-employed borrowers.

  • Until non-QM and alternative mortgage loan programs were launched a few years back, self-employed homebuyers had a difficult time qualifying for a home mortgage
  • This was because self-employed borrowers often take substantial unreimbursed business expenses which affects the adjusted gross income
  • Many self-employed borrowers will have little to no adjusted gross income after deductions
  • Others can have a negative income
  • Being able to take tax deductions is one of the many great benefits of being a self-employed wage earner
  • Unreimbursed business expenses will lower the adjusted gross income
  • Lower adjusted gross income means the taxpayer will pay less in federal income taxes
  • However, tax deductions mean lower income taxes paid but it is not good when it comes to qualifying for a mortgage
  • With the bank statement mortgage loan program now available, self-employed borrowers can qualify for 12 and 24 month bank statement mortgage loan program for self-employed borrowers with no income tax returns required
  • We will average either the past 12 months and/or 24 months of bank statement deposits and use that average as the monthly qualified income
  • Withdrawals do not count
  • Bank statement mortgage loan programs have become a very popular loan program among self-employed borrowers

In this article, we will discuss and cover 12 And 24 Month Bank Statement Mortgage For Self-Employed Home Buyers.

Bank Statement Loan Program Explained

Gustan Cho Associates now offers 12 And 24 Month Bank Statement Mortgage for self-employed borrowers:

  • No income tax returns are required
  • No private mortgage insurance is required
  • There are no maximum loan limits
  • Self-employed borrowers had a difficult time qualifying for home mortgages since the 2008 Housing Bubble Collapse due to taxable income making it difficult in qualifying for traditional government and conforming loans
  • Our 12 and 24-month bank statement mortgage now makes the dream of homeownership possible for self-employed borrowers
  • Many entrepreneurs who could have afforded higher-end homes have been renting until now

With the launch of the 12 And 24 Month Bank Statement Mortgage Program at Gustan Cho Associates, business owners can now qualify for home mortgages using their bank statements.

How Is Income Calculated With Bank Statement Mortgage12 And 24 Month Bank Statement Mortgage

On 12 and 24 month Bank Statement Mortgage Loan Programs, income is calculated by adding total deposits of either 12 and/or 24 months and averaging it by either 12 and/or 24 months.

  • The average monthly deposits will be the qualifying monthly gross income
  • Withdrawals do not count
  • Some investors may allow 100% of the deposits to be used on personal bank statements
  • Some investors may only allow 50% to 70% of the deposit to be used on business bank statements

It depends on the individual lenders and/or investor and case scenario.

How Bank Statement Mortgage Lenders Process And Underwrite Loans

Bank Statement Mortgage Underwriting is rather streamlined and simple. Loan Officers need to gather borrowers’ bank statements. Underwriters will go by the ending balance of monthly bank statements.

Here is what underwriters will analyze and review when processing and underwriting bank statement mortgage borrowers:

  • All Pages Of Monthly Bank Statements And Ending Balances
  • Regular Deposits, Withdrawals, Overdrafts, Ending Balances With Special Emphasis On Deposits
  • Irregular, Unique,  And Large Deposits
  • Account Transfers, Bank Wires, ATM Advances, Abnormal Activities

Asset Depletion Mortgage Program

How Bank Statement Mortgage Lenders Process And Underwrite Loans

Gustan Cho Associates offers asset depletion bank statement mortgage loan program.

  • Asset depletion can be used as qualified income with our bank statement mortgage for self-employed borrowers

The following assets of self-employed borrowers can qualify for our asset depletion loan program:

Asset conversion can be used for qualifying income. Qualified assets for asset depletion can be:

  • Liquid Stocks
  • Liquideable Bonds
  • Mutual Funds
  • Retirement accounts such as 401k
  • Savings/Checking Accounts

Depending on the loan program and investor, there is a conversion chart on the percentage of the asset that can be converted to income. Please contact us at Gustan Cho Associates for more details at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com.

NON-QM Bank Statement Loans

All Bank Statement Loans are non-QM loans. 

  • They are not Qualified Mortgages
  • There is no waiting period after a housing event and/or bankruptcy discharged date to qualify for non-QM loans
  • 10% to 20% down payment is required
  • Down payment requirements depends on borrowers credit scores
  • Mortgage rates are dependent on down payment and credit scores
  • Need verification of rent for the past 12 months with no late payments in the past 12 months
  • Borrowers can qualify during Chapter 13 Bankruptcy repayment but need to have been in the repayment for at least 12 months
  • Need approval of Chapter 13 Bankruptcy Trustee
  • Need to have been self-employed for at least 2 years
  • 3 credit tradelines seasoned for at least 12 months
  • Bank statement needs to be from the same bank

Gustan Cho Associates is a mortgage company licensed in multiple states with no overlays on government and conventional loans. The Team at Gustan Cho Associates are experts in non-QM and bank statement loans for self-employed borrowers and licensed in multiple states. Please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

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