Qualify for a loan using Bank Statements.

Many self-employed homeowners and home shoppers take full advantage of the tax write-offs afforded them so the income showing on the tax returns might not accurately reflect how much income is actually being made. This can often result in the housing-expense and debt-to-income ratios being too high to qualify for a loan.

This is because the underwriters for these types of loans must use the income being reported on the tax returns after all of the write-offs – the net income. There are certain business expenses that can be added back into the income, depending on the business structure, but there is often still not enough to meet the debt-to-income ratio requirements; this is where qualifying with bank statements can come into play.

So, while the true business income might not be accurately reflected in the tax returns, the actual income can often be seen flowing through the bank accounts. The underwriter evaluates the funds flowing through 12 or 24 bank statements and takes an average of these funds to determine what the income is.

The tradeoff for using bank statements to qualify for a loan is that the interest rate pricing is slightly higher than the interest rate pricing on a full-documentation loan. However, the business owners who have used bank statements to qualify for a loan will tell you that it’s well worth it.

It’s time too put away those tax returns, grab those bank statements, and come get a home loan.

Use the quick form on this page to get a custom quote that is totally anonymous. The quote includes closing fee estimates, interest rate options, and monthly payments. No personal information needed. No talking to a mortgage salesperson. Just the facts and figures.

Click the “APPLY NOW” icon below when you are ready to apply for a loan.