How Bank Statements Loans Can Get You Your Desired Home Mortgage
Sandra has always been very independent. From a young age, she found creative ways to earn money, from lemonade stands to shining her father’s shoes. Her latest venture was an RV Car Wash. She saw a need for this as RV’s are becoming an even more popular way of life and travel, especially in the state of Arizona. Her town had a lot of accommodations and attractions for RV lifers and travelers, but it didn’t have a lot of options for keeping them clean. Something that was very much needed after a trip to the Grand Canyon. She set up shop back in 2014 and has been running a successful business ever since.
Mortgages & What To Consider: Trusts, Dual Income, Tax Write-Offs
Unfortunately, earlier this year her father passed away and left her his home in a trust. Sandra wanted to fully own the home, but because she is self-employed, finding a mortgage that was right for her proved to be difficult. She was unable to use her taxes as proof of income because her type of business had a lot of deductions and so she didn’t qualify for the amount she needed for the traditional mortgage loan.
After speaking with a Griffin Loan Officer, Sandra was introduced to the concept of a mortgage based on her bank statements. This gave Sandra’s case the boost it needed. She just had to provide the last 24 months of bank statements and was also able to use her W2 from being a hairdresser, meaning she had dual income.
By the end of working with Sandra, not only did she get a great rate, but we were able to help her refinance the home into her name instead of purchasing it.
Entrepreneurs and Financing
For self-employed loans, every case is different. This one, in particular, had some interesting twists and roadblocks, but we were happy to be able to get Sandra the best program that would set her up for success financially and secure her childhood home for her.
“Many self-employed are renting because they think they can’t buy a home or passing on an investment. Essentially, shying away from opportunities that could be financially profitable or beneficial because they are self employed and not aware of the different ways to show their full income. But, the banking and lending world is shifting to accommodate the shift in the economy,” says Griffin Funding CEO Bill Lyons.
Today, you can get one of the following bank statement loans:
- Personal Bank Statements: qualify on 12 or 24 months bank statements. We count 100% of deposits as income.
- Business Bank Statements: qualify on 12 or 24 months bank statements. We count 50% of the deposits as income.
- One Month Bank Statement: qualify on 1 month most recent bank statement. Account must show a positive balance and you must attest and declare to your qualifying income. (US residents and primary residence only).
