Bank Statement Income Loan

Many self-employed homeowners take full advantage of the tax write-offs afforded them. These deductions can be a great benefit, but they can sometimes make qualifying for a home loan difficult to impossible; this is because the amount of post-deduction income showing on the tax returns might not accurately reflect how much income is actually being made. This can result in the housing-expense and debt-to-income ratios being too high to qualify for a loan. And while that business income might not be accurately reflected on the tax returns, it could be showing on the bank statements. This is where the Bank Statement Income Verification loan comes into play. Income is established by averaging the deposits over 12 or 24 months.