The American mortgage system has created a society that strongly encourages homeownership, but there is a notable crack in what’s mainly a success story: Self-employed borrowers face obstacles qualifying for mortgages. In a paradox of the U.S. mortgage market, some of the economy’s hardest workers and highest earners can find themselves unable to qualify for loans. Non-traditional borrowers – a group that includes business owners, the self-employed and high-commission sales workers – have always had challenges documenting income.
To address this, LendSure offers bank statement loans which can help borrowers qualify based on their income, instead of what shows up on their tax returns.
Bank statement mortgages are a type of non-QM loan designed for borrowers whose tax returns may not fully reflect their true income. This is often due to savvy tax planning, which minimizes taxable income but can make it challenging to qualify for traditional mortgages. With the rise of self-employment and gig work, bank statement loans provide a solution, allowing borrowers to use their bank deposits as proof of income. Savvy loan officers understand how these loans can bridge the gap, helping clients get approved for the financing they need.
LendSure has deep expertise in bank statement loans and many other types of non-QM loans. Helping mortgage professionals navigate the non-QM loan process, ensuring the right product fit for each client.
Who are bank statement loans designed for?
Entrepreneurs, gig workers and other self-employed homebuyers can have trouble documenting their income. These borrowers have strong financials, but prudent tax planning means business owners reduce their income with business expenses. The underwriting process for traditional mortgages doesn’t mesh with that reality. By examining bank statements, we quickly determine true income figures for a borrower, allowing us to easily determine a debt ratio figure.
Self-employed borrowers can fit a variety of profiles, from rideshare drivers and freelancers to attorneys, physicians and CPAs. Many of these borrowers generate substantial cash flow and show significant assets, but their income isn’t documented by regular paychecks or straightforward tax returns. Compared to traditional borrowers with W-2 income, these borrowers must prove their income and demonstrate their creditworthiness in different ways.
LendSure’s Bank Statement Program
LendSure’s Bank Statement program streamlines the loan process for self-employed borrowers, delivering highly competitive rates and unsurpassed funding. It also offers loans up to $3,000,000, with LTV ratios reaching up to 90%.
PROGRAM HIGHLIGHTS
- All pre-qualifications are performed by experienced, in-house professionals, usually within 24 hours.
- Highly competitive rates and unsurpassed funding times.
- No one-size-fits-all calculations.
- Business bank statements and personal bank statements are permitted.
- Borrower does not have to be 100% owner of the business.
- W-2 with bank statement combinations allowed.
- P&L statements are NOT required.
- The business expense ratio is as low as 10%.
- Multiple business bank accounts are acceptable
Getting started with LendSure
You do not need to be an approved broker to discuss and review your loan scenarios with LendSure. Simply call us and we will connect you with a LendSure Account Executive. Prior to loan funding, brokers do need to be approved by our Broker Admin Department. In the meantime, you can submit loan documents by requesting a temporary code to the LendSure TPO Portal or by securely emailing documents directly to your LendSure Account Executive. Visit our broker approval page on our website to learn more about the approval process.
Success for our mortgage broker partners
Bank statement loan qualification may take a few extra steps, but LendSure guides brokers like you through each step of the process. Whether you need guidance on bridge loans, assistance working through the bank statement loan process, help with investment property loans or are simply looking to expand your product offerings, LendSure can help. We’ll help you say “yes” to more clients, flesh out marketing opportunities, expand your business and grow your bottom line.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to benefit from a common-sense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line. Did you like our guide to Jumbo loans? Check out another blog on the subject.
