An innovative program from Luxury Mortgage offers an excellent solution for many self-employed borrowers, investors, or those without regular income they can document for a home loan application. The Bank Statements Mortgage allows for qualification based on balances in deposit accounts rather than on a W-2 or tax return. The bank accounts can be either personal or business accounts.
Unlike most mortgage products with this program income and employment are not used as a qualifying factor. Instead bank statements for deposit accounts are used to show that the borrower has sufficient means to repay the loan as agreed.
Personal bank statements can be used for documentation as follows:
Business bank statements can be used for documentation in the following manner:
Alternative methods to determine dollar amount of eligible deposits include CPA prepared profit and loss statements, CPA letter stating business expense ratio which is used for calculation, or subtracting withdrawals from deposits.
Comingled accounts, or when separate accounts are not maintained for personal and business, are considered business accounts for qualification purposes.
Additional qualification factors include credit history and score, a current credit report will be requested and reviewed, and the value of the subject property as documented by an appraisal. For loan amounts greater than $1.5 million two appraisals may be required.
The Luxury Mortgage Bank Statements program can be used to finance a variety of different types of homes, including 1 – 4 unit properties, PUDs, warrantable condos, and even non-warrantable condos on a case by case basis.