You’re thinking about a mortgage, but the hoops you need to jump through! It gets more complicated when you’re self-employed. You’ve got inconsistent income and heaps of deductions that make traditional lenders give you a side-eye.
Here’s where exploring 12-month bank statement loans comes in, especially with an option like Blake Mortgage offers. These are for individuals like us. The ones who don’t fit neatly into the W-2 box.
They check out your bank statements from the last year instead of just tax returns or pay stubs to gauge if you can handle a loan. This could be ideal if your income bounces around because of the nature of your job or if those legitimate business expenses make your taxable income look smaller than it actually is.
Eligibility Criteria for Self-Employed Borrowers
If you’re working for yourself or picking up gigs, traditional mortgage paths can be a minefield. It’s mostly because your income probably zigzags month to month or gets chopped after business deductions at tax time. Banks usually want to see steady paychecks and W-2s–stuff many of us just don’t have.
Instead, there’s this option: bank statement loans. Here’s the gist: Lenders look at your bank statements from the past 12 or so months instead of the tax returns or pay stubs they’d usually ask for.
They’re checking out how much money comes in consistently, which lets them gauge what you earn without getting tripped up by those big deductions on your taxes. Yeah, there’s always a “but.” Expect interest rates that are kind of high and down payments bigger than usual since these loans come with more risk for lenders.
Is it hard to get one? Well, not really if:
1. You’ve got bank statements (personal/business) from the last year.
2. Your credit score is decent – think around 620 upward.
3.Blake Mortgage mentions needing proof you’re actually self-employed, plus possibly some cash reserves tucked away, too. Their take is that these sorts of jobs can suit different people, like gig workers or real estate investors, pretty wel
Benefits of 12-Month Statement Loans
So, talking about these 12-month statement loans, it’s a pretty neat option for people who run their own show. You know those who find the typical mortgage route a bit of a square peg in round hole scenario
- Easier to qualify than traditional mortgages: So here’s the thing – if you’re self-employed, showing your income isn’t always straightforward. Tax returns? They don’t tell the whole story because, hey, business expenses and whatnot. Bank statements? Now, that offers a clearer picture of cash flow coming through every month, which can open doors when it comes to getting that nod from lenders.
- Built for fluctuating incomes: If your monthly take-home is as predictable as weather forecasts (read: not at all), bank statement loans might just be your beacon of hope. Lenders will look over 12 or more months of statements to get an average income figure rather than side-eyeing any short-term dips or peaks in earnings like they would with conventional proof methods.
- Potentially higher rates but greater possibilities: Interest rates on these babies can run slightly higher than those of other types. But consider this: without having access to such options, you could be outright denied ownership opportunities by those same traditional paths due to non-standard financial conditions you might have to endure.
Navigating mortgage options for the self-employed feels like trying to find your keys in a messy room sometimes, right? Let’s talk about 12-month bank statement loans. They’re a breath of fresh air if you run your own business.
No need to juggle mountains of paperwork or sweat over traditional income proofs. Blake Mortgage understands this hustle and offers solutions that make sense. You keep focusing on building your dream; we’ll handle the financial bit with options tailored just for entrepreneurs like you.
