Key Features of Bank Statement Loans
This home loan offers another path for Florida's borrowers to buy or refinance a mortgage:
- Qualification Based on Your Deposits: An alternative means for self-employed to prove income.
- No Tax Returns: Quickens the approval process avoiding IRS transcript delays.
- W2 Co-borrower allowed: Apply with a co-borrower who is a salaried employee who must earn less than you.
- Qualify for More: May help you qualify for a higher loan amount than traditional underwriting.
- Low down payment: You may qualify for a 10% down payment with 760 credit scores.
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.