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Bank Statement Loans for Borrowers Through Non-QM Lending

August 3, 2022

The number of self-employed Americans was on the rise even before the pandemic, but that trend has only accelerated in the past two years.

 

The freedom of entrepreneurship and gig work is appealing, but there is a downside: self-employed borrowers face higher hurdles when qualifying for mortgages. It’s a quirk of the mortgage market that some of the economy’s highest earners can have the hardest time qualifying for loans.

Luckily, LendSure has a solution. Bank statement loans can help borrowers qualify based on their actual income, instead of what shows up on their tax returns. Non-traditional borrowers, like business owners, the self-employed and high-commission sales workers, have always had challenges documenting income. At LendSure, we have the answers that can help you overcome those obstacles and say “yes” in these scenarios.

Bank statement mortgages are a type of non-QM loan that can offer the perfect solution to creditworthy buyers who may have trouble documenting their income for plain-vanilla mortgages. With non-QM solutions becoming more mainstream, it is important to understand how programs like bank statement loans can be a valuable solution for today’s borrowers. It’s time to discover what these types of loans can do for your borrowers and your bottom line.

At LendSure, we specialize in non-QM, and we’re here to help you. Our highly experienced loan management team knows the non-traditional mortgage process inside and out. Working extensively with bank statement loans and many other types of non-QM loans, LendSure lends across the country and is continually expanding throughout the United States. We guide mortgage professionals like you through the non-QM loan process, ensuring the right product fit for each client.

Have a difficult client situation or a tough loan question? Give us a call. We’re all about streamlined processes and a commonsense approach to qualification. We’re dedicated to helping you learn about all the ways non-QM can benefit your borrowers and help you grow your business.

We want to ensure the success of our mortgage broker partners

At LendSure, we know not all borrowers are suited for traditional loans that follow a simple, cookie-cutter process. We empower our network of partner mortgage brokers to offer specialized solutions to borrowers such as the self-employed and foreign nationals, as well as borrowers wanting to purchase a non-warrantable condo or condotel. With ongoing education, matchless support, a common-sense approach to loan approvals, LendSure guides brokers through the sometimes-confusing world of non-QM loans.

Non-QM products don’t have to be complicated when you work with the right partner. Bank statement loan qualification may take a few extra steps, but LendSure does the heavy lifting and 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.

Who are bank statement loans designed for?

Self-employed homebuyers often have trouble documenting their income, even if these borrowers often have strong financial pictures. Savvy tax planning means business owners should reduce their income with business expenses. But the approval process for traditional mortgages doesn’t accommodate that reality. By examining bank statements, we quickly determine true income figures for a borrower, allowing us to easily determine a debt ratio figure. That leads to a solid number that both the borrower and lender can work with to ensure prequalification and, ultimately, a successful loan close.

You probably work with many clients who are self-employed and fall into categories such as insurance agents, contractors, plumbers, attorneys, doctors, CPAs, cosmetologists, and property investors. Many of these borrowers possess substantial wealth but need to demonstrate income in a different way than traditional W-2 borrowers, who can exhibit income with pay stubs and tax returns.

How do bank statement loans work?

The bank statement loan process begins with a bank statement analysis conducted by a highly experienced LendSure underwriter. This is a time-saver for brokers who can entrust us to conduct timely and accurate income analyses. The bank statement review process can take as little as 24 hours.

The pre-qualification process

LendSure’s prequalification process means you can provide your borrower with a solid approval, usually within 24-48 hours.  Here’s how it works:

  1. Borrower submits either 12- or 24 months of banks statements
  2. The borrower fills out a simple “Self-Employment Questionnaire”
  3. A highly experienced underwriter performs an analysis of the bank statements to determine income
  4. The underwriter then reviews the questionnaire to determine homebuyer’s “Expense Factor” or how much of the business goes to expenses.

Variable expense factor

Unlike other lenders, LendSure does not use a set expense factor when calculating income for self-employed borrowers, which can make a huge difference in the qualifying income.  The expense factor can vary greatly based on the type of business and as well as other factors. For example, an insurance salesperson working from a home office will have a much smaller expense factor than a restaurant owner.

This is just one more way we bring common sense to the lending process. LendSure’s exclusive pre-underwriting process goes beyond a simple prequalification. Our experienced, in-house professionals review each submission and quickly provide decisions and pricing, usually within 24-48 hours.

LendSure doesn’t look at P&Ls

One thing that distinguishes LendSure is that we don’t require profit and loss (P&L) statements for our 12- and 24-month bank statement loan programs. P&L analysis can be very frustrating for the borrower, the mortgage broker, and the lender because many questions arise, and numbers frequently don’t match up. LendSure finds alternate means to secure documentation and data needed to provide the best solutions for each borrower.

Consistency of deposits

When evaluating bank statements, underwriters want to see consistent deposits each month. This can be in a personal or business bank account, and some bank statement borrowers submit a combination of both. Both personal and business banks can be used.

Business ownership

Many bank statement programs are the same, but LendSure does not require the borrower to be a 100% owner of their business. Typically, the business owner must be self-employed for at least three years.  The business must have been operating for at least two years.

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 need to be approved by our Broker Approval 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.

Why should you work with LendSure?

We want to make your job easier. LendSure has a different way of pre-qualifying and providing the best pricing options. Our prequalification team is always honest and upfront about possible challenges, and we can sign off on approved exceptions quickly and with ease.

One way we’re able to move faster and fund more loans is through our teams of region-specific underwriters and account managers. Our underwriters and team members are in constant communication with our mortgage brokers, answering questions, discussing challenges, and ensuring that the process moves forward as efficiently as possible.

The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and 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 commonsense-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 grow your business? Conventional loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, tools, support, and guidance they need in order to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!

Are you ready to benefit from a commonsense 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.

Contact Us: (888) 707-7811