Hawaii’s economy is expected to continue its positive growth through 2020, with its top industries being tourism, defense, agricultural products, manufacturing, and the service industry. Small businesses and entrepreneurship are an important piece to Hawaii’s economy. According to a 2015 report from the U.S Small Business Association, small businesses make up over 96 percent of Hawaii’s economy.
As the self-employed and small-business economy grows, more and more business owners are in need of self-employed financing but are often turned away because they don’t perfectly fit the desired description of the limited lender. For many banks, a client must perfectly check specific boxes in order to qualify for one of the few home loan programs they offer. Today, this way of qualifying someone for a home loan is outdated and doesn’t really make sense in this economy.
Getting a Bank Statement Loan and Non-Qualified Mortgages: Maui, Hawaii
For example, Mark was a self-employed business owner who had many tax write-offs over the past few years against his gross income. On paper, it showed he only made a third of the income than what he actually made. Buying a second home in Hawaii was always a dream of his and his wife Cindy, but after countless failed attempts to secure a loan, they were starting to lose hope.
Mark and Cindy then came to Griffin Funding and we identified the perfect self-employed loan program, the 24-month business bank statement program. But, as the process moved forward, the team found recent credit events hiding in Mark and Cindy’s past. Like many homeowners that survived the 2008 crash, Mark and Cindy defaulted on their mortgage. Although 10 years had passed, the foreclosure wasn’t finalized until 2017, therefore impacting their credit report now instead of in 2008. Normally, when buying or refinancing a home after a foreclosure you have to wait at least two years (in some cases up to seven years), and it had only been one year since the reporting of the foreclosure. For Mark and Cindy, the dream of owning a second home in Maui seemed to be getting further away.
Luckily, Griffin Funding offers a large scale of loan products to match any person’s situation and was able to find a self-employed bank statement loan that allowed for 1-day out of foreclosure. This type of loan is also known as a Non-Qualified Mortgage, which is a loan that doesn’t comply with the Consumer Financial Protection Bureau’s existing rules on Qualified Mortgages.
In November of 2018, Griffin Funding successfully closed the loan and Mark and Cindy flew to Maui, Hawaii to get the keys to their brand new home.
Bank Statement Financing with Griffin Funding
Griffin Funding is a direct lender as well as a broker. Unlike most banks that only offer a few products, we partner with over 40 different banks, lenders, private equity funds, and investors nationwide and offer a large range of products. We have the ability, flexibility, and relationships with different money sources, that enable us to find the unique loan that fits your unique situation.
We operate in:
- Honolulu ††
- East Honolulu
- Pearl City
- Hilo †
- Mililani Town
- Ewa Gentry
- and more
We currently offer three loan options for self-employed borrowers.
- Personal Bank Statements: qualify on 12 or 24 months bank statements. We count 100 percent of deposits as income.
- Business Bank Statements: qualify on 12 or 24 months bank statements. We count 50 percent of the deposits as income.
- One Month Bank Statement: qualify based on one 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).
Learn more about bank statement loan requirements here. Or contact us today.