Here’s Everything You Need to Know About Bank Statement Mortgages

Bank statement loans help self-employed entrepreneurs get a mortgage. In the tax return of a self-employed applicant, the actual income is often not shown, as many expenses can be written off thanks to the advantageous tax number. While reducing your tax liability is good, it can hurt your chances of getting a traditional mortgage. 

Mortgage using Business Bank Statement helps California to obtain financing on attractive terms and with flexible terms. At Vfind loans, we want the self-employed borrower to have as many opportunities for mortgage financing as the employed borrower. If you can show you can repay the loan and we can prove the earnings with your bank statements, you are well on your way to becoming a homeowner. 

What is a bank statement loan? 

The name says it all – instead of your tax returns, which are normally required for self-clearance, we can use your bank statements to qualify you for a mortgage. If your tax return shows a loss, most lenders would refuse to do so. This is the case even with profitable gains and losses. Lenders can only use the income posted on their tax returns to qualify. 

A bank statement loan avoids the need to file a tax return and instead focuses on the money you deposit each month to qualify. for a mortgage in corona ca. It works like any other loan – you apply for and qualify for the loan and receive the funds to buy a home by making your mortgage payments on a monthly basis. 

Who are bank statement loans for? 

Self-employed homebuyers often have trouble keeping track of their income, but a closer look at a Business Bank Statement Mortgage Program gives a better picture of the borrower’s financial situation. In fact, these borrowers are generally in very good financial shape. By checking bank statements, we quickly determine the actual income of a borrower and can thus easily determine a debt ratio. That results in a solid number that both the borrower and the lender can work with to ensure the review and ultimately a successful loan deal. 

You likely work with many clients who are self-employed and fall into categories such as insurance agents, contractors, plumbers, lawyers, doctors, accountants, estheticians, and even real estate investors, to name a few. Many of these borrowers have significant wealth, but they must prove the income in other ways to the traditional W2 borrowers, which can have income with payment and tax returns. Business Bank Statement Mortgage Program are the same, but Vfind loans do not require the borrower to be 100% a business owner. However, the longer a business is open and established, the more convenient a borrower can qualify. 

A unique feature of Vfind loans is that no income statements are required for our 12 and 24-month loan programs with bank statements analysis can be very frustrating for the borrower, mortgage broker, and lender as many questions often arise and the numbers often do not match. Make sure you find alternative means of protecting the records and data necessary to provide the best solutions for every borrower. 

Vfind loans ‘s new two-month statement product requires statements, but this offering is aimed at borrowers who want a simpler and streamlined closing process. The guidelines are stricter than our 12 and 24-month programs, but we can walk you through the process if it is suitable for your borrowers.