Many self-employed business owners, contract employees, and salespeople who work under the tax status of a 1099, sometimes have trouble qualifying for a mortgage because it is difficult to track and prove their income. They tend to write off many expenses, so their tax returns don’t really show their true income which makes qualifying for more traditional loan programs such as conventional, FHA, and/or VA financing very difficult, if not impossible.
This is where flexible mortgage programs such as Portfolio Lending Programs for borrowers with non-traditional lending needs, and unique financing scenarios comes into play.
For example, we have a 12-month bank statement mortgage that was specifically designed for these types of borrowers. These loans are perfect for people who have good credit, and provable liquid reserves, but who are having difficulties proving their income.
With a 12-month bank statement loan, we will average your income based on average deposits over the last 12 months. If you are using income from a business bank account, you must be a majority owner of the business and your income will be calculated using deposits net of all withdrawals and debits.
This average will then take into account any recurring monthly expenses, and subtract them in order to arrive at an average monthly income. This monthly income will then be used to qualify you for a new loan.
Our bank statement loans will finance as much as $3,500,000 of a purchase and/or refinance. Please keep in mind that we do have a minimum FICO, cash reserves, and other requirements may apply.
If you would like to see if you might qualify for this type of loan and/or to discuss other possible mortgage options, please call me, Erik Sandstrom, at 1-800-779-4547; or email me at Erik@LoansReduced.com.