Bank Statement loan or 1099 – Perfect Alternative for Self-employed Borrowers

Bank Statement loan is a loan option for eligible self-employed borrowers to purchase or refinance a home. This program allows personal or business bank statements to calculate income without requiring tax returns.

• Two years of self-employment required
• Loans from $150,000 to $3 million
• 12 or 24 months personal bank statement
• 12 or 24 months business bank statements: · Fixed Expense Ratio (20-50%) industry eligibility based upon the completion of the Business Narrative Form or · Expense ratio provided by a 3rd party (CPA, CTEC, or EA) min ratio of 10% or · 3rd party prepared P&L statement (CPA, CTEC, or EA)
• 1099 income option available: · 2 years or 1-year 1099 · Fixed Expense Ratio of 10% · Year to date documentation to support continued receipt of income from same source
• Available for purchase, cash-out or rate-term refinance
• Primary, second home, or investment properties
• Single family, townhomes, or condos
• Reserves: · Loan to value <= 80%: 6-months PITIA (principal+interest+insurance+tax+hoa) · Loan to value > 80%: 12-months PITIA

Above information is subject to additional requirements.

*A loan up to $3,000,000 requires minimum 30% down payment and minimum FICO score of 680.

** FICO score of 600 requires min 30% down.

***10% Down payment requires min 700 credit score.