Houtan Hormozian explains bank statement loans for self-employed borrowers. You need 2+ years self-employment, 12-24 months of bank statements, and a credit score around 620-660. The program accepts up to 50% DTI, loans up to $3M, and works for primary, second, and investment properties.
Are you self-employed and struggling to get approved for a home loan because you don't have W-2s or traditional income documents? Let's talk about a flexible mortgage option just for you: the bank statement loan program. Unlike conventional loans, bank statement loans don't require tax returns. Instead, lenders use your bank statements to determine your income. This program is ideal for self-employed borrowers. Whether you're a 1099 contractor, freelancer, run an LLC, or own a small business. You typically need to be self-employed for at least 2 years. Instead of W-2s or tax returns, you'll provide 12 or 24 months of business or personal bank statements. Some lenders also require a profit and loss statement and a CPA letter. Let's say your average monthly deposits are $25,000 from your business account. After applying a 50% expense ratio, Or lower if you have a CPA letter. You qualify with $12,500 monthly income. Minimum credit scores typically start between 620 and 660. You'll need at least 10% to 20% down, but no PMI even with less than 20% down. You can borrow up to $3 million or more in some cases. These loans work for primary homes. second homes, and even investment properties. Most lenders allow up to a 50% debt-to-income ratio. Rates are higher than conventional loans, and prepayment penalty may be added to lower the interest rate. This program helps you buy or refinance. It's built to support the self-employed. Want to see if you qualify? Let Crestico help you secure the financing you deserve. Send us a message or give us a call today.
