More and more we are seeing non-prime loans become more popular once again.The “Bank Statement Mortgage” is one program that is making a comeback. This loan program is great for self employed people who can show large deposits for 24months instead of providing two years of tax returns.
This is just another reason why it is important to have a good relationship with a mortgage broker who is in your corner 24/7/365. At DHL Mortgage in Lake Worth we make it a point to know the availability of certain niche programs like the bank statement program that can really make or break your loan inquiry.
This loan used to be called a sub-prime option, now we call it a non-prime option. (Sound familiar?)
Either way we can get you the money you need.
The bank statement program is perfect mortgage for the borrower who is self employed and has an accountant is very aggressive with the expenses.
This is great for keeping your tax obligation low but it is bad for borrowing. Now that we have the bank statement program, we can get you a loan based on your monthly deposits for either a 12 month or 24 month period.
The rate on any non-prime mortgage is always higher than your Fannie Mae/Freddie Mac loan or FHA loan but it’s not that bad.
Comparing interest rates from the last bank statement loan that I did compared to a conventional loan the rate was 1% to 3.% higher than the conventional loan .depending on credit score.
- This loan program allows self-employed borrowers who write off a lot of expenses to still get a loan where otherwise they would be denied due to excessive debt ratios.
- The interest rate will be 1% to 3% than a conventional loan based on credit score and loan to value.
- There is no lender paid compensation so we need to charge the borrower, origination fee.
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