How Bank Statement Loans Work…

I am getting more and more calls from clients asking about bank statement loans.

Bank statement loans are making a come back.

They are designed for people that have income deposits flowing through their checking account, but for what ever reason they don’t show much income on their tax returns. …typically they are self employed.

We take 12 or 24 months of bank statements. We average their monthly income deposits. …and, that’s what we give them for income.

By the way it’s simpler and easier to use personal bank statements over business bank statments, but it’s not impossible to do business bank statements.

You will pay a higher interest rate, and put more down payment on these type of loans. If you have decent credit you can get rates under 6% however. Down payment will range from 15% to 25%.

If have more questions about this type of loan give me a call, or shoot me an email.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

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Important New FHA Guideline That Can Effect Your Loan…

Did you know that for FHA loans if you write your earnest money check for less than 1% of the sales price you don’t have to source the funds for the check?

This is a new wrinkle in the FHA guidelines, and it reduces the amount of paperwork you have to come up with for your loan.

Many realtors are still unaware of this guideline, so you might want to let your realtor know when you write your earnest money check.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

My Previous Blog Posts

When To Use An Owelty Loan…

If you are getting a divorce, and you have to pay your spouse their share of the equity of your home don’t use a traditional Texas Home Equity loan to do it.

Use an Owelty loan to get the cash out of your home instead.

The advantage of using an Owelty Loan over a Texas Home Equity loan is that we treat them as a regular rate and term refinance (not cash out rates – which are higher).

You can also get above 80% of the value of your home with an Owelty Loan, and you can’t go above 80% with a Texas Home Equity loan.

So, if you are in this situation, or you know someone who is – and your loan officer has told you that you don’t have enough equity to cash out the ex-spouse, just tell them that you need an Owelty loan.

…or, better yet – just give me a call and I can help you!

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

My Previous Blog Posts

How To Get A Conventional Loan With Less Than A 620 Credit Score…

If you asked a loan officer what the minimum credit score was for a Conventional loan they would tell you 620.

That is true for Fannie Mae. …However, it’s not necessarily true for Freddie Mac.

If we can get an automated approval with Freddie Mac with a credit score under 620 – we can do the loan!

Keep in mind you won’t be able to get mortgage insurance on a Conventional loan with a score under 620, so the loan to value ratio would have to be 80% or less.

So, if your credit score is in the high 5’s or low 6’s, and you want a Conventional loan – give me a call or shoot me an email. …maybe we can help you out!

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

My Previous Blog Posts