Skip Tax Returns: Qualify Self-Employed Buyers Using Bank Statements Only

Our bank statement loan program does not require tax returns to qualify. Instead, we use either 12 months or 24 months of your bank statements to get you qualified.

Pineyro Capital Group NMLS# 420112 offers a bank statement loan and is perfect for s loan program is perfect for someone who is self-employed. Typically this borrower has a lot of tax deductions and therefore on paper, the net income on their tax returns is too low to qualify for a conventional loan program. We can get you qualified by using your bank statements to show proof of income. Don’t want to use your bank statements? We also offer a NO INCOME VERIFICATION loan program as well.

• Loans up to $3 million with a minimum of $150,000
• 12 or 24 months business or personal bank statements
• Two years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
• Rates are 30-year fixed
• One year self-employed required
• Owner-occupied, second homes, and owner occupied
• 1099 option available
• 40 year interest only available
• Non-permanent residents allowed and welcomed

What is a bank statement loan? A Bank Statement loan, sometimes referred to as a Bank Statement Mortgage, is a home loan program designed for self-employed/ business owners. For qualification purposes, the lender uses the deposits made into the business owner's account as the source of income for qualification purposes, instead of using the applicant's tax returns.

Is a bank statement loan a subprime loan? NO. A Bank Statement loan is not a subprime loan. A Bank Statement Loan is a secondary market loan program in a category known as a "Non-QM" loan, or "Non-Qualified" mortgage loan. A Non-QM loan program still qualifies the applicant's income; however it uses alternative ways to qualify the applicant. Many Non-QM programs like Bank Statement Loans, are designed around the lending needs of a certain market segment.  Bank Statement Loans are specifically designed around the unique lending needs of Self-employed/ business owners.

How long must I be in business to qualify for a bank statement loan? Your business must be at least 12 months old (24 months is ideal) to qualify for a Bank Statement Loan.

Can I use PERSONAL bank statements on a bank statement mortgage loan? YES. If your ordinary business income is deposited into a personal account, you can use personal bank statements. Keep in mind, this may potentially complicate the approval process if you share this account with another person, such as a spouse who has a job. If you're a 1099 wage-earner and depositing your income into a personal account, we suggest using our 1099 income program.

Do bank statement loans have a pre payment penalty? NO. Bank Statement Loans do not have prepayment penalties as long as the home is being occupied by the owner, or is being used as a second home/ vacation home.

I own my business 100% but my spouse works a W2 job. Can my spouse's income count? Yes, we can blend two income sources. As the business owner, we will calculate your income using Bank Statements, and for your spouse, we'll calculate their income using W2's, paystubs, and a Employment Verification from their employer.  

Can I receive a Closing Cost Credit from a Seller on a Bank Statement Loan? Yes. This known as an Interested Party Contribution (IPC).  You may receive an IPC from a seller, a builder, or a realtor. If you're buying the home as a primary residence or second home, the total amount you can receive from all parties is up to 6% of the purchase price.  If you're buying an investment home, you can receive up to 2% of the purchase price. Remember, this type of credit must always be written into your purchase contract and reviewed by the lender.

Do I need a letter from a licensed tax preparer or CPA? Yes, on a case-by-case basis. If you are qualifying for a bank statement loan, you may be asked to provide a letter from a licensed tax preparer.

On a Bank Statement Loan, the lender is not reviewing tax returns, so lenders typically rely on independent third-parties such as a licensed tax professional to verify certain aspects of your business.

Here are some examples of the things commonly requested:

• Verify your business's expense ratio (%)
• Verify the length of time your business has been operational.
• Verify your ownership percentage of the business

I've been asked to provide a letter from a licensed tax preparer or CPA. Does this have to come from the same accountant who prepares my tax returns?  No. The letter can come from any licensed tax preparer, accountant, or CPA. The letter must appear on their letterhead, be signed and dated.  The lender needs to be able to verify the tax professional's Preparer Tax Identification Number (PTIN) or CPA license number.  

I've been asked to provide a letter from a licensed tax preparer or CPA. The information does not match my tax returns. Is this okay? Yes. The letter being provided relies on third-party information provided by a licensed tax professional, and is not expected to directly match the information seen in the tax returns. Unlike a traditional home loan program, on a Bank Statement Home loan program, the lender does NOT pull a tax return transcript of the applicant's personal or business returns from the IRS.

At Pineyro Capital Group, NMLS# 420112, we offer every mortgage loan option available in Florida. Whether it's a no-money-down loan or an asset depletion loan, our primary and investment loan programs cater to all types of borrowers. With over 20 years of experience supporting the real estate market, we proudly maintain a 97% closing ratio from pre-approvals to funding. Click the link below to explore some of our exceptional loan programs!

If you're a licensed Florida realtor and MLO, or if you're interested in becoming a mortgage loan officer, you can earn dual compensation with a team that supports you every step of the way. Click the link below to schedule a call and learn more!