Designed for the Self-Employed who have had a difficult time getting a mortgage because they don't show enough income.  This program uses your deposits on 12 or 24 months of your Bank Statements of your Personal or Business Accounts for your Income Proof.

What do I need to Apply?

You'll need to fill out an application and 12 to 24 months Bank Statements

What are some of the Qualifications of the Loan?

- It Must be a Home you Plan to Live In

- You must be a US Citizen

- Must have a 500 Minimum Credit Score

- Must be Self Employed or 1099

What Price House can I Buy with this Loan?

It will, of course, be based on your income and debt.  Your income will be calculated as a certain percentage of your total Bank Deposits.  This loan can be used to purchase a house for up to 2 Million.  Your Debt to Income Ratio will have to be under 50%.  

How much Down Payment will I Need?

That will depend on your Credit Score.  If your Credit Score is at Least 650 you might be able to Buy a House with this program with as Little as 10% Down.

Choosing an Agent to Help you

When choosing an agent, be sure to go with an agent who has expert knowledge of listing and selling property.  The Regina Drury Real Estate Group has that and more.  We look to provide you with all of our expert knowledge and focus on maintaining a high degree of customer service that will leave a lasting impression.  Contact us today to talk more about your Real Estate needs.

Get the Right Agent to Help You with Buying and Selling your Home

Regina Drury

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Transcript 

Hello this is Regina with the Regina Drury a Real Estate group again in Wilmington North Carolina and I want to talk to you today about another great loan program that I heard of which is called the Bank Statement Only Program. Yes, Bank Statement Only so what does that mean? Well for those that are self-employed or maybe 1099 and you know we sometimes have a difficulty of getting a loan because well you know we get to write off certain things in our tax returns. Right, like I don't know cell phones, car expense, I don't know dinner events, whatever and so with these programs well what happens is normally they look at the bottom of your tax return to see what's your net income. And sometimes your net income isn't enough to be able to get the loan. So there's this really cool program that basically qualifies you for the loan based on the amount of money that either goes into your personal account or into your business account. So yes, they look at either your personal account or your business account and they'll look at it for like the last you know one year or two years of bank statements.

So let's say you're a hairdresser or a contractor and you've been thinking that you want to get a loan and your bottom line net on your tax return has been a problem. Well this program is really cool for those that are self-employed because if you can provide your bank statements for the last two years and they can add up you know your deposits they will then take a certain percentage and qualify you for the loan based on that percentage. So like for example let's say that you make I don't know fifty thousand dollars in the year well maybe a hundred thousand dollars in the year that make me better numbers. Let's say you make a hundred thousand dollars there's a hundred thousand dollars of deposits in your account well then they might count fifty percent of that and say alright we're gonna use your net income as fifty thousand dollars. So it's a really cool program and there wasn't really a bottom credit score to get approved like I asked you know what's the minimum and the lender that I spoke with said well she had one where they got approved for a five hundred credit score.

So I thought well that's really awesome, you know I spoke with Lauren with on cue to get some information about this loan and so it was really informative I didn't realize that somebody could get a loan for a credit score you know under 600. And sure enough not only can you get a loan for under six hundred credit score but also not just based on your tax return. So you know what kind of down payment do you need? Well she gave me a few an example she said you know possibly somebody with a credit score of at least a 650 they might only need a 10% down payment. She said you do need to be a US citizen so that is a criteria that's mandatory, closing can take up to 45 days. And let me see trying to think what else went over I had a lot of notes on this I'm a really interesting program the debt to income ratio. So when you're looking at what's your monthly debt with the house with the new mortgage versus all your other monthly debts she says that your ratio can't be more than 50%. So keep in mind the income they're calculating the income based on the deposits in your bank account and it might take about 50% of the deposits and count that is then your income. And then they're gonna look at what other debt that you have and your debt to income ratio can't be more than 50%. So hopefully I've given you some good information about this, this is for only owner-occupied so if you're renting and if you're a contractor or your real estate agent or anyone that's paid by a 1099 and you're self-employed it's a really great program if you've been having a problem in the past with either maybe your credit score has been a little bit too low or if you've had problems because your net income on a tax return been enough after your write-offs, so it's something to think about. Again down payment minimum is 10% if you have a credit score like in your 700 then you're probably looking at about a 10% down payment but if your credit score obviously is under 700 then you're probably going to be looking at needing more down payment. So I see a few lenders have jumped onto this conversation, so maybe if they want to you know add anything to this bank statement only program you know other than of course saying use me use me.

If you want to you know add anything additional that we should know about the program feel free to let us know and I think it's really interesting. So you know I just bought you a few minutes ago about reverse mortgage to purchase and now this bank statement only program, so if you know of a great program out there that I should know about reach out to me let me know about that too. And if you're thinking of course about buying a house I hope you'll use me as your real estate agent I'm Regina with the Regina Drury Real Estate Group and if you're even not in our area or anywhere in the United States and you would like more information about these kind of programs certainly reach out to me let me know and we'll see if we can get you some answers right. Well I'm Regina with the Regina Drury Real Estate Group and I'm in Wilmington North Carolina and it's been a pleasure, to talk to you soon.

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