If you’re thinking of securing a self-employed mortgage without the plethora of documents normally submitted to verify your income, bank statement loans are a great option you can consider. With a bank statement loan, you can say goodbye to W-2s and tax returns since this alternative documentation loan is perfect for people who don’t have consistent income or a single employer who could prove their salary.
Ideally, you want to work with a reputable mortgage corporation that offers bank statement loans in Miami so you can be guided throughout the lending process. This will eliminate wasted time and energy, and you’ll get to have your loan in no time.
In this article, we’ll dig deeper into what bank statement loans are — how they work, and the advantages and disadvantages of this type of loan.
How Do Bank Statement Loans Work?
The great thing about bank statement loan applicants is that these self-employed individuals can use their personal or business accountants to prove their cash flow and income. This type of loan won’t require you to present your tax returns, W-2s, employer verification forms, and pay stubs.
Here are the standard requirements when obtaining a bank statement loan:
- Twelve to 24 months of bank statements, personal or business;
- At least two years’ history as a self-employed professional;
- Fair to good credit score;
- Sufficient cash or liquid reserves to cover mortgage payments;
- Verification of liquid assets;
- If applicable, a business license;
- Letter from your accountant or tax preparer validating business expenses and that you file your returns;
Who Can Benefit from Bank Statement Loans?
If you have an inconsistent cash flow or you can get income documents from an employer, bank statement loans are perfect for these types of borrowers. When you play for a traditional loan as a self-employed individual, you may not qualify for it since the requirements needed for a traditional loan won’t reflect the true amount of your income.
But when you use your bank statements to get a loan, it tells a truer story about your cash flow. Here are some of the advantages of getting bank statement loans:
- No need to present tax returns, W-2s, and pay stubs;
- Higher debt-to-income ratios are allowed;
- Higher loan limits;
- Can be sued for investment purchases, primary residences, and second homes;
Below are some of the disadvantages of this type of loan:
- Higher interest rates;
- Heftier down payments;
- Not all lenders offer this option;
Since not all mortgage companies offer bank statement loans, it’s best to search for a company that does and has experience dealing with these types of agreements. Fortunately, Halpern & Associates offers bank statement loans in Miami, and they’ll happily guide you throughout the whole application.
The Bottom Line: Just Because You’re Self-Employed Doesn’t Mean You Have a Lower Chance of Getting a Loan
Nowadays, more and more people are becoming self-employed and starting their own businesses. And for this reason, getting a loan to help grow their career and personal life is essential.
Thankfully, mortgage options like bank statement loans can help you get the loan you need to improve the quality of your life. Ideally, you want to work with credible mortgage corporations like Halpern & Associates. They offer bank statement loans in Miami to ensure a hassle-free and smooth application process.
Why Choose Us?
Since numerous mortgage companies are popping out yearly, finding the perfect one can be difficult. Fortunately, Halpern & Associates understand that every person leads a different lifestyle, and their focus is to ensure that you get a chance to live the life you want.
If you’re self-employed and wish to take out a loan for your next big investment, what you need is a bank statement loan in Miami. Reach out to us today — we can help you through every step of the process!