- Non-QM Loan Programs
- DSCR Loans
- Buy Down Loan
- Jumbo Loans
- Interest Only Loans
- Home Equity
- No Document Loans
- No Income Verification Loans
- Fannie Mae Mixed Use Mortgage
- Foreign National Mortgage Loans
- ITIN Loan Programs
- Farm & Rural Property Loans
- 1099 Mortgage Loans
- Bank Statement Loan
- Profit And Loss Loan
- NIVA Loans
Bank Statement Home Equity Loans
A bank statement home equity or second mortgage loan is tailored for self-employed individuals who may not have traditional income documentation like W-2s or tax returns. It is a type of non-qualified mortgage loan which uses the value in your home to borrow money. It works similarly to any second mortgage, except that we allow you to qualify using your bank statements instead of tax returns.
It uses bank statements to assess a borrower's ability to repay and credibility when considering a loan application, rather than relying solely on tax returns. This enables gig workers, freelancers, contractors, and others with non-traditional income streams to qualify and fulfill their dream of a home.
What is a second mortgage?
A second mortgage s a loan that allows you to borrow against your home's value, while the original, or the first mortgage is still being repaid. That is why it is also called a home equity loan. Depending on the time at which the second mortgage is originated, the loan can be structured as either a standalone second mortgage or piggyback second mortgage.
Why do people get a second mortgage?
A second mortgage also called as a home equity loan or a home equity line of credit (HELOC). These help a borrower obtain the funds for things such as:
- Home improvements and renovations
- Debt consolidation
- Educational expenses
- Finance a second property
- Educational expenses
- A new vehicle
- Start or expand a business
Who can benefit from a bank statement mortgage?
- Self-employed individuals
- Retirees
- Independent contractor
- Sole proprietor
- Freelancer
- Consultants
- Investors
- Realtors
What are the requirements for a bank statement home equity loan?
- Borrowers must be in business at least two years, and own a minimum of 25% of the business.
- 12 to 24 months of consecutive bank statements from the same account. Both business and personal bank accounts work.
- Up to 90% max LTV.
- At least 10% down payment required with mortgage insurance.
- A credit score higher than conventional mortgages is often required.
- A debt-to-income ratio of 45% or lower is often required.
Our bank statement home equity loan is powerful altenative for individuals, who do not qualify for a traditional mortgage because of their unconventional income methods. At Premium Mortgage Demo, our team carefully review the all the details including terms, interest rates, and eligibility requirements to find out what is the best fit for your financial goals.
