What Are New Mexico Bank Statement Loans?
A bank statement loan is one in which bank statements are used as an alternative to a W-2 when providing a lender with proof of income. In this type of loan, the lender will examine the potential borrower’s bank statements to gather pertinent information. This information will tell the lender if the borrower can afford to pay back the loan he or she is seeking. In this case, the process is being applied to bank statement loans in New Mexico.
The marvelous thing about a bank statement loan is that it makes it possible to gauge the borrower’s capability of paying back the loan. It uses their bank statements in lieu of a W-2. It is designed to be used by people who are self-employed or do contract-based work and do not have W-2s.
How Do NM Bank Statement Loans Work?
Bank statement loans in New Mexico can also be referred to as self-employed home loans. As the name suggests, this process can be used by a borrower looking to secure a loan to buy a home.
The way these work is that the prospective borrower uses his or her bank statements as proof of income. This borrower must also furnish proof that the bank statements belong to them. These statements are used instead of W-2s or tax returns from a previous year. The lender will want to see your bank account statements for the past 12 to 24 months in order to verify income.
What Are the Requirements for Bank Statement Loans in New Mexico?
The following is a list of the key requirements for NM bank statement loans. Please note, these requirements are mandatory in order to be considered qualified.
- Four months of PITI reserves in the bank for loans of under $1 million
- Six months of PITI reserves in the bank for loans of $1 million and over
- You must have owned your own business or have been self-employed for a minimum of two years
- It is possible to qualify for a loan with only 32 months of bank statements in possession
- Your credit score must be 620 or higher in order to qualify
- It is required that you put at least 10% down on the loan
- Your minimum loan amount will be $100,000
- Your maximum loan amount is $5,000,000
Do You Have to Be Self-Employed to Qualify for a Bank Statement Loan in New Mexico?
Yes, you must be self-employed in order to qualify for a bank statement loan in New Mexico. This type of loan has been created with the prospective lender who does not have a conventional job in mind. Because this person works for themselves, he or she never receives a W-2. New Mexico bank statement loans were invented to give this person a way to prove their income.
What Are the Benefits of New Mexico Bank Statement Loans?
Indeed, there are many. The primary advantages of such a loan are listed right here:
- You gain flexibility since you can get approved for a loan even if you lack a W-2 or do not wish to provide your tax records
- The lender is willing to look at 12-month or 24-months’ worth of bank statements
- You might be able to qualify for a bank statement mortgage loan New Mexico for only 10% down
- If the need should arise, you can get a cash-out refinance loan worth up to 85% of your home's value
- If qualified, you may borrow up to $5 million
- You can choose a fixed- or adjustable-rate mortgage
- It is possible to qualify for an interest-only mortgage
- Most lenders will accept a debt to income ratio of up to 55%
What Areas Are New Mexico Bank Statement Loans Available In?
Griffin Funding offers New Mexico bank statement loan services virtually anywhere in the state. Some of the current areas we serve include:
- Las Cruces
- Santa Fe
- Rio Rancho
- South Valley
How to Apply for a Bank Statement Loan in New Mexico
To apply for a bank statement loan in New Mexico, you can fill out an application and submit your bank statements. You can upload either 12 or 24 months’ worth of statements into the system in order to complete an application. Another option is to have our digital mortgage software sync with your bank. Then the bank can pull the bank statements directly onto our system from your account.
Each bank statement loan is processed via a manual underwriting process. Then it is reviewed by a specific person, as opposed to a machine. Most of the time, processing the application takes between 21 and 30 days. In the case of a more complex application, processing can take between 45 and 60 days.
Other Non-QM Loans From Griffin Funding
You may wish to look at other Non-QM mortgage products offered by Griffin Funding. If you don’t find a NM bank statement loan to be ideal for your situation, these types of loan can also be beneficial for self-employed individuals. Check out the following options:
- Asset-based loans
- Jumbo loans with 10% down
- DSCR no income mortgage
- Interest only loans
- Recent credit event loans
- Foreign national loans
Find out if You Qualify for a New Mexico Bank Statement Loan
Taking out a bank statement loan in New Mexico gives you the flexibility you need as a self-employed individual. With a New Mexico bank statement mortgage loan, you can get approved for financing without submitting a W-2. So apply for a bank statement mortgage loan in New Mexico today with Griffin Funding.