Sunshine State Financing: Bank Statement Loans for Florida's Self-Employed

A bank statement loan is designed to help self-employed individuals in Florida who may not have traditional income documentation like W-2s or tax returns. Instead, this loan relies on the average monthly deposits in your personal or business bank statements. This makes it ideal for self-employed professionals in the cities of South Florida and throughout the state.

Florida's vibrant economy thrives on the entrepreneurial spirit of its residents. For these self-employed individuals, bank statement loans offer a promising path to homeownership. This innovative financing option uses business account records to verify income and sidestep the traditional reliance on tax returns.

The Florida Department of Economic Opportunity reports that as of 2023, nearly 1.8 million Floridians were self-employed, representing an impressive 19% of the state's workforce.

bank statements at a Florida bank

Key Features of Bank Statement Loans

This home loan offers another path for Florida's borrowers to buy or refinance a mortgage:

How Bank Statement Loans Work in Florida

Here’s a simple breakdown of the process:
Step 1: The Underwriter & loan originator reviews your personal bank statements (and if applicable business account).
Step 2: We calculate your maximum borrowing potential based on gross job deposits (from self-employment) minus typical business expenses.
Step 3: You receive a loan offer based on the calculated income from underwriting assistants and confirmed loan originator assessment.

Charting Your Course to Loan Approval

The income verification process for Florida bank statement loans typically involves:
– 1. Review of 12-24 months of personal or business bank statements
– 2. Calculation of average monthly income based on work-related deposits
– 3. Application of an "expense factor" (usually 10-50%) typical for your industry for business costs or from a CPA letter
– 4. Determination of the borrower's debt-to-income ratio using the resulting figure

Florida non-QM lenders look for steady monthly deposits, minimal overdrafts or insufficient funds activity, and deposits that correlate with your declared business type or your profession. Underwriters have reviewed thousands of businesses and occupations so a large difference in income or expense from their standard will need to show evidence.


Rancho Bernardo Homes

Which Florida Self-Employed Professions Would Benefit?

Bank statement loans are especially beneficial for self-employed individuals and small business owners in various fields. Some examples include:

  • –  Freelancers in tech, design, and digital marketing
  • –  Real estate agents, contractors, and construction professionals
  • –  Small business owners and entrepreneurs
  • –  Beachfront restauraunt owners
  • –  Vacation rental property managers
  • –  Healthcare professionals with private practices
  • –  Service industry professionals such as hair stylists and salon owners
  • –   Tech innovators in Miami's burgeoning startup scene
  • –  Orlando tourism industry owners

Bank statement loans are designed to accommodate the unique financial profiles of these Florida go-getters above and provides an easy alternative to conventional mortgages. Unlike traditional mortgages that scrutinize tax returns, bank statement loans in Florida focus on your business's cash flow. This approach particularly benefits entrepreneurs who maximize deductions allowing qualification based on gross income and an expense factor that may be less than what's on your tax returns.

Bank Statement Loan Requirements

To help you understand whether you qualify, here are the basic requirements and factors analyzed by us and bank statement lenders.

Verifying Income

  • – 12-24 months of bank statements
  • – 6 months if 70 LTV & 740 FICO scores
  • – Personal or Business accounts
  • – Consistent monthly deposits

Self-employment

  • – 2 years (1 yr allowed in some cases)
  • – Florida business license or DBA filing
  • – SunBiz.org filing for Corp. & LLCs

Credit & DTI

  • – Credit scores: 660 and up
  • – 760+ FICO scores allow 90 LTV
  • – DTI: up to 50
  • – 90 LTV to $3 mil (760+ credit)

Eligible Property & Usage

  • – Homes, condo, townhome or duplex
  • – Primary home or vacation home

Your application may be declined if your:

  1. Recent deposits are difficult to prove they are work related or > 10 NSF's in 1 year.
  2. Funds to close are not in any of your account(s) for 30 days.
  3. Business name is not registered, expired or no active professional/business license
  4. Business expense ratio makes your net income too low to qualify
  5. Mortgage or rent payments within the past 2 years were over 30-days late.

Which Specific Cities or Neighborhoods in Florida Benefit the Most?

Many self-employed professionals in Florida’s growing & thriving regions find these loans helpful for purchasing homes or refinancing. Local lenders such as Seacoast Bank, First National Bank of Florida, Sanibel Captiva Community Bank, Suncoast Credit Union, and Mid Florida Credit Union do not offer these type of loans. A mortgage broker who works with wholesale lenders can. Some of the key areas we can help include:

 

Local Success Stories

Orlando Marketing Consultant Gets Approved
A digital marketing consultant in Orlando with fluctuating income wanted to buy a condo. Through a bank statement loan, their average deposits helped them qualify for a $400,000 mortgage with minimal hassle in documentation.

Miami Restaurant Owner Buys Vacation Home
A Miami-based restaurant owner used a 12 month bank statement mortgage to secure financing for a second home in Vero Beach. By using business account deposits, they were able to qualify for a $750,000 loan and turning their vacation dream into reality.

We have multiple no tax return lending options available subject to underwriting approval.
Additional loan choices include P&L statement loan, Asset Based Mortgages, Self-Employed 1099 Mortgage, and Short-term Luxury Bridge Loan.

What borrower's tend to ask. Check these answers


Disclosure: Minimum loan amount is $200,000 for residential loans. Loan programs are subject to change per lender at any time until the loan is approved and the rate is locked. Borrowers must be approved by underwriting. Not all applicants will qualify.