12and 24 Month Bank Statement Program

The dream of homeownership is often more challenging to achieve for self-employed individuals. Traditional mortgage lending often requires two years of tax returns, making it difficult to qualify. However, a new solution is emerging that offers a pathway to homeownership for this demographic: the 12-24 month bank statement program.

This program offers a flexible and convenient alternative to the traditional two-year tax return requirement. It leverages your consistent banking history to demonstrate your financial stability and income. This innovative approach opens doors for self-employed borrowers who might otherwise be excluded from traditional mortgage options.

Key Features and Benefits:

• Flexibility: Choose between a 12 or 24-month bank statement submission. This adaptability caters to different financial situations and timelines.

• Broad Property Types:  Finance primary residences, second homes, or investment properties. This versatile approach covers various real estate goals.

• Loan Options:  Purchase, refinance (rate/term or cash-out), all are available through this program. This allows for greater financial maneuverability.

• Multiple Account Acceptance:  Combine personal and business banking records to provide a comprehensive financial overview. Note: Combining accounts is not permitted.

• Higher Loan Amounts: Secure loans up to $3.5 million, demonstrating the program's capacity to handle significant financial needs.

• Favorable Loan-to-Value Ratios: Secure an LTV up to 90% with no MI (Mortgage Insurance) in certain cases. This significantly reduces upfront costs and borrowing requirements.

• Lower FICO Score Requirements:  A FICO score as low as 620 might still be considered. This expands access to credit for a wider range of self-employed borrowers.

• Non-Sufficient Funds (NSF) Consideration:  Occasional NSF activity may be considered if accompanied by a Letter of Explanation from the borrower.

• Income Verification:  100% of eligible bank deposits may be considered as income, providing a comprehensive and accurate representation of earnings.

• Expense Reporting:  Several methods are acceptable for reporting expenses: a 50% expense ratio, a third-party prepared expense letter, or a third-party prepared Profit & Loss (P&L) statement.

Who Should Consider This Program?

This program is ideally suited for self-employed borrowers who:

• Have a consistent history of income and banking activity.

• Need a flexible and adaptable mortgage solution.

• Desire to purchase, refinance, or obtain a cash-out refinance on a property.

Next Steps:

If you're a self-employed borrower looking to purchase or refinance a property, this program provides a streamlined pathway. Please consult with me today to learn more about this specific program and to determine eligibility. Chris A. Heidt (239) 470-610 - chris.heidt@highlandmtg.com - www.highlandmtg.com/chris-heidt