Homeownership, owning your business, and living life to the fullest are 3 of the most popular answers to the American dream. One could see why many desire to own a business. Successful business owners enjoy a sense of pride in building something that supports their employees and provides valuable services. Yet, the self employed also have a business to be their own boss and control their lifestyle. Lifestyle includes time, finances, and even homeownership. But, over the years homeownership was a challenge for business owners because of stringent tax returns income requirements. That is where bank statement mortgage loans come in handy.
NO Paystubs, No Tax Returns, No W2s Required
Wait! Self employed business owners have to provide 2 years of tax returns, k1’s, w2’s, and a pint of blood right? That is the beauty of the bank statement mortgage loans. For self employed borrowers with a business in existence for at least 2 years, these documents are not required here. Unlike FHA, Fannie, Freddie, or VA, there are no tax returns required. So, this loan program is a great mortgage alternative. Income documentation solutions include:
- 12 months personal bank statements
- 24 months personal bank statements
- 24 months business bank statements
Bank Statement Mortgage Loans Allow Low Credit Scores
Not only do bank statement mortgage loans offer income documentation alternatives, but they also provide credit flexibility as well. Life happens sometimes and those life situations may affect credit scores temporarily. Credit situations such as foreclosure, short sale, or bankruptcy act as a speed bump to getting mortgage approval. But, bank statement mortgage loans allow as short as 12 – 24 months since the event! Credit scores may even be as low as 580, but re-established credit including rent or mortgage payments are important.
Bank Statement Mortgage Loans Details
- Purchase or cash out refinancing
- Self employed only
- Not for limited credit borrowers
- $250,000 – $2,000,000 loan size limits
- Primary & secondary residences only
- Single family residences, townhomes, and condos only
Actually, this is just the tip of what is available for business owners. If looking to purchase a primary or second home as well as refinancing to receive cash, contact an OVM Financial loan officer now. Then, your specific scenario can be discussed and we can determine if this program is a fit.
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Author: Russell Smith
Team Move OVM Financial loan officer success is Russell’s primary focus. He provides the tools and techniques he used as a top producing loan officer. Additionally he offers the Team Move OVM Financial Agent Training Program. Sharing is so important to Russell so he works diligently to be a resource to loan originators and Realtors.