When you are a self-employed business owner it’s more difficult to qualify for your dream home? It’s tough many time to qualify for home loan when self employed. Often you don’t show as much income on your P&L Statements or take out as much on your W-2 or owner draws to qualify – but in reality you have lots of money. Good news now you can use your bank statements to qualify for an Arizona home – what?! Tell me how…..When you are a business owner your Tax Returns are often not “good enough” to qualify for a mortgage. If you’re not a business owner, you might wonder the reasoning behind this fact.
Bottom line as a business owner you want to show on paper a lot of expenses to offset your profit so you pay less in taxes. So if your struggle to show enough income to qualify for a mortgage work with me to get an Arizona Stated Income Mortgage Loans it leverages the incoming revenue coming into your business checking account versus using your Tax Returns.
How do you use your bank statements to qualify for your Arizona home – all you need to do is provide your 12-24 months (business or personal) bank statements with a CPA letter for income qualification!!
Latest Valor Stated Income Loans allow self-employed borrowers to qualify based on the number of deposits into their bank account, where the cash flow is sufficient to cover the new mortgage payment and all other debts.
Stated Income loans are best for investors and business owners who write off a majority of their income on yearly taxes (as we all do) and need an alternate way of qualifying their income to purchase an investment or owner-occupied 1-4 unit property.
What Are the Best Stated Income Loans?
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 simply 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.
It is much more difficult to find the best stated income loans as many of the brokers and lenders have ceased to fund these unique programs. Bank statement lenders still want to ensure borrowers can repay their mortgages; they just use bank statements to verify income as opposed to tax returns. Self-employed borrowers are able to document their ability to repay based on business deposits into their personal or business bank accounts, i.e., their true cash flow.
Why Use Stated Income Loans?
1) The Difference
Traditional mortgage lenders require tax returns, W-2s, and paycheck stubs in order to determine monthly income. 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 showing on tax returns. This puts self-employed borrowers at a disadvantage 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.
Stated Income Program Highlights:
- 12 and 24 month Bank Statement options available
- Up to 90% LTV (on Purchases & R/T Refinances)
- Borrower and Lender paid points available
- Must have 2 years verifiable self employment income
- No Tax Returns
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)
- Purchase Contract (for purchase)
- Current Mortgage Statement (for refinance)
- Hazard Insurance Dec Page or New Quote for purchase
- Driver License (front and back)
Valor is FUNDING Stated Income Loans for Arizona residential properties.
Recap of our Loan Products:
- Stated Income Loans (No Tax Returns, no W-2s, No P&L) up to $3M
- Bank Statement Income Loans (Great Bank Statement Programs for business owners and self-employed)
- Hard Money Loans (As low as 20% down / minimal documentation) Fund in 7-10 days
- Flipper Loans (Flip a property with one of our many options) up to 90% leverage
- Commercial Line of Credit
- 100% Financing (cross collateralize- hard money)
- Foreign Nationals Loans (no social security or residency required)
- Raw Land & Lot Loans
- Ground up Construction for spec homes, custom homes and commercial ground up to $500M
- 2nd Position Loans up to $5M
- Rental Property Loan – No tax returns or DTI calculation! Based on subject property cash flow
- Farms, Vineyards, Ranches and Agricultural Properties (20-30% down)
- 10% down Jumbo’s with NO MI up to $1.5M
- Manufactured Housing / Mobile Homes (20% down / 620+ credit score)
- Acreage Properties
- Commercial Loans up to $500M
- 5% down Jumbo (Up to $2M Lender paid PMI)
We also offer:
- 10, 15, 20, 25, 30 year Fixed, Conventional Conforming Loans (under $548,250)
- High Balance Conforming aka Super Conforming (from $548,250-$822,375)
- Jumbo’s to $10 Million / Super low rates! / 10% down Jumbo to $3mm
- FHA, VA, USDA
- Reverse mortgages up to $10 Million Value
We are Non-QM Specialists! No tax returns! We use 12-24 months bank statement cash flow for self-employed borrowers and business owners.
CALL ME NOW for immediate attention to your scenario.
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