What is a Bank Statement Only Mortgage?

Conventional, FHA, VA & most mortgage programs with traditional underwriting guidelines will require business & personal tax returns to qualify. Many self-employed borrowers may not qualify for these programs for a various number of reasons. Given many self-employed borrower’s unique financial situations, bank statement only programs are an excellent solution to qualify for a mortgage. JZ Mortgage Services Inc. is proud to offer bank statement only programs that do not require any tax returns or IRS income verifications. We work with dozens of lenders to match customers with the best loan available loan program.

Bank statement only programs allow you to use documented bank deposits instead of tax returns to qualify your income. Most bank statement programs require the last 12 months of business bank statements, from the time of your submission, to calculate your monthly income. Each self-employed borrower will be assessed individually to determine what their income qualification is and if they will qualify for a home loan. Income, credit scores, and other factors contribute to the borrower’s qualification and help determine the proper loan type. Many of our lenders qualify these loans based on a default expense factor of 50% instead of your actual tax returns. However, an expense ratio letter can be obtained by your accountant to lower the expense ratio & increase your qualifying income. If you are self-employed and have low-income on your tax returns or for any other reason you do not qualify with tax returns, a bank statement only program may be the right loan program for you!

George owns his own business that sells replica model cars. Each month, he is depositing $30,000 of profit into his business bank account. At the end of 12 months, George’s company has a total of $360,000 in monthly deposits. However, after large tax deductions, his tax returns show that he only made $40,000. George found his dream home on Anna Maria Island that is listed for $1 million dollars. George would not qualify for a conventional or government loan for his dream home as his monthly income would only be $3,333.33. However, George’s mortgage broker mentioned that if he did a bank statement only mortgage, he could use the $30,000 per month of average deposits in his business bank account to qualify for his dream home. George can now buy his dream home and is ecstatic he chose JZ Mortgage to work on his mortgage.

Whether you’re searching for your Florida dream home or looking to purchase an investment property, a bank statement mortgage may be the right choice for your needs. JZ Mortgage Services, Inc. provides excellent bank statement loan options from dozens of lenders to borrowers throughout Bradenton, Sarasota, Tampa, St. Petersburg, Clearwater and all of Florida and Ohio. Contact us today to find out more about our bank statement mortgage loan options.