Why Choose A New Valor 12-24 Bank Statement Loan?
Self-employed individuals can struggle to qualify for loans due to their reported income and business deductions. As such, this is Why Choose The New Valor 12-24 Bank Statement Loan program, which offers a solution for this specific group of business owners.
The New Valor 12-24 Valor Bank Statement Loan programs allow self-employed individuals to receive a home loan without using tax returns, W2s, and pay stubs. Lenders use the total amount of deposits on your bank statements to calculate your income over a 12 to 24-month period. If the criteria are met, you can get a mortgage loan with competitive rates.
This loan program is available for loans from $100,000 up to Jumbo loans as high as $7,500,000 for purchase or refinance.
Are Bank Statement Loans still available?
Yes, bank statement loans are still available. Valor Lending Group has many sources that go up to 90% LTV (on Purchases & R/T Refinances) and Maximum loan amounts of up to $7.5MM. When qualifying for these programs, lenders will use 12-24 month bank statements; they do NOT require tax returns.
What is a 12-24 month Bank Statement Loan?
These are not the type of loans that were prevalent in the pre-2008 financial crisis, and no longer are the days in which loan applicants can state their income on a loan application with virtually no due diligence conducted by the lender. After the 2008 financial crisis, the sweeping provisions of Dodd-Frank changed the industry substantially, at least in the owner-occupied residential context. Since 2010 Dodd-Frank has required lenders to document a residential borrower’s ability to repay the loan. Bank statement lenders still want to ensure borrowers can repay their mortgages; they use bank statements to verify income instead of tax returns. Self-employed borrowers can document their ability to repay based on business deposits into their personal or business bank accounts, i.e., their true cash flow.
Why use a Valor New 12-24 Month Bank Statement Loan?
1) The Difference
To determine monthly income, traditional mortgage lenders require tax returns, W-2s, and paycheck stubs. For salaried and hourly borrowers, the lenders look at gross income for qualifying purposes. But for self-employed borrowers, traditional mortgage lenders look at net income, the adjusted gross income shown on tax returns. This puts self-employed borrowers at a disadvantage. This is because the typical self-employed or 1099 employee will write off as much expense as possible from their gross income on their tax returns to minimize how much they owe once tax season comes around.
Borrowers still must qualify for a bank statement loan. Qualification is based on the income deposited over a given period, typically verified on 12 or 24 months of bank statements. The total deposits in the bank statement period are the gross income used. Once this number is established, the debt-to-income ratio (DTI) is derived (based on the income against the new mortgage payment and current monthly minimum debt obligations i.e. credit card, car loan, student loans, etc.). This is to ensure the borrower can afford the addition of the mortgage loan payment. When all aspects of the borrower’s finances are within the program requirements, and the DTI is no higher than 55%, the lender will be able to underwrite and finance the loan. These loans are repackaged and sold on the secondary market, just the same as traditional mortgage financing.
2) Qualifying
This is an incredible and expanding area of mortgages that levels the playing field for self-employed and 1099-employee borrowers, providing the opportunity to qualify without tax returns. These loan programs can be used for both owner-occupied and non-owner-occupied 1-4 unit properties, the same as traditional financing allows.
To borrow money, applicants must show 12-24 months of bank statements to prove their income and eligibility. Calculating the borrower’s debt-to-income ratio (DTI) is a crucial step in the loan process. The individual’s “gross income” is determined by applying the relevant expense ratio to the total deposited funds within a set duration. credit card payments, car loans, and student loans. This is an essential step to ensure that the borrower can effectively manage the added mortgage loan payment. Lenders can finance a loan if the borrower’s finances meet program requirements and their DTI is under 55%. These loans are repackaged and sold on the secondary market, just the same as traditional mortgage financing.
This is an incredible and expanding area of mortgages that levels the playing field for self-employed and 1099-employee borrowers, providing the opportunity to qualify without tax returns. Both owner-occupied and non-owner-occupied 1-4 unit properties can benefit from these loan programs, just like traditional financing options.
Bank Statement Loan Program Highlights:
- 12 and 24 months Bank Statement options available
- Up to 90% LTV (on Purchases & R/T Refinances)
- Borrower and Lender paid points available
- Must have 2 years of verifiable self-employment income
- No Tax Returns
- Maximum loan amount $7.5M
- Purchase and cash-out or rate-term refinance
- 2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
- Owner-occupied, 2nd homes and non-owner occupied
What you would need for submission:
- 12-24 Months Bank Statements (business or personal)
- Copy of Business License (3 years)
- CPA Letter (stating you are 100% owner, you have been in business for 2 years and they have done your taxes for two years | Also list your current expense ratio and the CPA License Number
Your loan could be the next loan we fund!
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Recap of our Loan Products
- Hard Money Loans (20% down / minimal documentation) are Typically funded in 7-10 days.
- Stated Income Loans (Great for business owners and self-employed) No tax returns!
- 100% financing is available (we can cross-collateralize other properties if there is enough equity)
- Valor VA Home Loan 100% financing up to $1.5MM
- Rental Property Loan – No tax returns or DTI calculation! Based on the subject property’s cash flow – No DSCR Coverage is needed!
- Flipper & Rehab Loans (Flip a property with one of our many options)
- 2nd Position Loans up to $5mm
- Raw Land & Lot Loans
- Ground-up Construction for spec homes, custom homes, and commercial ground-up.
- Farms, Vineyards, Ranches, and Agricultural Properties (25-30% down)
- 10% down Jumbo’s with NO MI up to 2MM / 10% down up to $3mm
- Manufactured Housing / Mobile Homes (20% down / 600+ credit score)
- Acreage Properties
- Commercial Loans up to $500mm
- 3% & 5% down Conventional Loans– LPMI (Lender paid mortgage insurance)
- Foreign Nationals Loans (no social security or residency required)
Other Programs we Offer:
- Conventional Conforming Loans
- High Balance Conforming
- FHA, USDA
- Reverse mortgages up to $1 Million in Value
- Cash-Out Refinancing
We look forward to the opportunity to serve you!
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