4 Questions on Bank Statement Home Loans in Houston
Being a self-employed professional, you may be worried by thinking about how to get approval for a home loan program and fulfill your dream of homeownership. You are not alone, there are many who are concerned about the same thing. But now you can eliminate your worries with a bank statement loan.
Designed specifically to satisfy the dreams of self-employed professionals, bank statement home loans in Houston help you get approval without showing your tax returns. Verify your income with your bank statements and get the loan.
Not satisfied? Have queries in mind? Not to worry! Here, we have listed down a few questions and answers for you.
- Can I qualify for this home loan program?
Yes, you can, if you are a self-employed professional. Any type of self-employed professionals can apply for this home loan program, including entrepreneurs, business owners, gig workers, freelancers, contractors, and many other types of self-employed professionals. If you are not sure whether you can qualify for this mortgage loan program or not, search online or get in touch with a reputable lender and ask them about this.
- What are the perks of this loan?
Bank statement home loans come with several advantages for a self-employed professional. The lender will not check your tax returns or the tax transcripts to give loan approval. One’s income statements are made up of regular monthly income deposits. Moreover, you can get the loan for as little as 10% down and do a cash-out refinance loan of up to 85% of the value of your property. Moreover, you can borrow up to $5 million. And typically, bank statement lenders will accept a debt to income ratio of a maximum of 55 percent.
- What are the bank statements that one needs to show?
In order to get approval for a bank statement home loan, one needs to show at least 12 months of a bank statement. However, it is better if you can show 24 months as they could help you get a lower mortgage rate. An experienced lender can help you determine whether you should use your business bank statements or your personal statements. So, work with a lender who has experience in working with self-employed borrowers. As it is not a traditional loan, not all lenders will offer it. So, check and then choose a lender.
- How income will be calculated?
Income is calculated in diverse ways. If you provide a personal bank statement, 100% of the business-related deposits will be used. When you use business bank statements, you can expect either 50% of the business related-deposits or more than that if a CPA letter and profit and loss statement ties to the bank statement period.
Do you have any more questions that you want to be resolved? Then, opt for a lender, who offers a bank statement home loan and ask the questions. Once you are satisfied with the answers, apply for the loan.