A bank statement loan is a loan program that allows a borrower to use twelve month to twenty four months bank statements instead of showing tax returns. This loan benefits small business owners and self-employed individuals. Bank Statement loans have become increasingly popular because of their flexibility in showing proof of income and less red tape then government loans. These loans carry a greater risk for the lender which can translate into higher interest rates, then conventional loans. Hamilton Mortgage Services is a leading provider of Bank Statement loans in Miramar, Pembroke Pines, Boca Raton and all of South Florida. For more information contact us today at (954) 688-9193.
Advantages of a Bank Statement Loan
There are a few advantages to this loan program including the flexibility, which the lender gives the borrower. The lender uses the bank statements to qualify a loan based on the amount of money one makes and how reliable one is when repaying loans. Another advantage to this loan program is that no tax returns are needed in order to qualify. Lenders have discovered that tax returns do not always show an accurate amount of income made due to tax reductions.
No Tax Returns
Typically lenders require detailed tax returns to determine a borrowers lending worthiness. Small business owners and self-employed people can use this loan program to their advantage. It was discovered that tax returns do not necessarily reflect your true income. Self-employed persons can take advantage of the tax deductions, hence reducing their taxable income and Uncle Sam does not have to empty their pockets during tax time.
How to Qualify for a Bank Statement Loan
To qualify for a bank statement loan you must provide at least 12-24 months of bank statements. This data will determine if you can qualify and how much a lender will lend you for this loan program. If you gain at least 25% of your income from a business which you own, then you have met a requirement. For more information on how to qualify for a bank statement loan, contact us today at (954)688-9193.
Bank Statement Loan Checklist
- 12-24 month bank statements
- Valid identification ( Driver’s license and or passport)
- Social Security Card
- Assets ( retirement plan, mutual funds, or savings)
- For business owners a copy of your business permit or license may be required
Apply for a Bank Statement Loan
If you are thinking about utilizing a bank statement loan to purchase a home, we highly recommend the above benefits. Hamilton Mortgage Services is a leading provider of Bank Statement loans in Miramar, Pembroke Pines, Boca Raton and all of South Florida. For more information contact us today at (954) 688-9193.
