Bank Statement / 1099 Jumbo

A bank statement/1099  loan is a type of mortgage that allows the bank to use bank statements or 1099s instead of tax returns and W-2 forms to calculate your income.

The aim of this program is to support self employed entrepreneurs to achieve home ownership or complete their refinance without using tax returns. Instead we use your bank statements or 1099s to qualify you for more income If your business has many write offs.

The borrower simply provides 12 or 24 month business or personal bank statements (one or the other not both). The lender then calculates an expense factor for the industry that the borrower is in.

Once we receive all required documents, full approval is typically issued within 3–5 days and pre-approval in 24 hours.  Want us to move fast? Help us help you by providing all necessary docs ASAP!

Borrowers can apply for loans up to 4 Million and / or 85% LTV for refinances and purchases. Credit score requirements start at a 660 FICO. Please understand that guidelines can change weekly and these numbers can and will change.

In addition to being able to close quickly on your home purchase or refinance, bank statement loans do not require tax returns and W-2 forms either which makes them a great option for self-employed borrowers with significant write-offs, making their reported income lower.

Bank statement loans are a great option for self-employed borrowers, but there are a few things to consider:

Slightly Higher Interest Rates – Because these loans don’t rely on traditional income verification, lenders may charge a bit more in interest.

Larger Down Payment – Some programs require a higher down payment than conventional loans, often around 15–20%, but this can vary by lender.

Background
‍The client owned a medium sized online retailer that sold hair products, she primarily focused on Business-to-Business sales. Her larger accounts were with Amazon, Ebay and Etsy.

‍How we made it work
‍She provided us her prior years 1099s for her larger accounts and we were able to qualify her for a Jumbo loan in Texas. The multiple 1099s were too much for a conventional lender to handle but were no problem for our team with our Bank Statement / 1099 loan product.

No tax returns were needed –  just the 1099s and their transcripts which she was easily able to download online in minutes.

‍Time to close loan: 30 DAYS

Background
The client owned multiple H&R block franchises. He was buying a substantial primary home in a Southern state for him and his family. Ironically, as he was in the tax business, and due to the pandemic, his expenses that year were higher than usual. The client’s tax returns were not as strong as previous years and were too complicated for conventional lenders as he owned multiple locations.

‍How we made it work
Our team took 3 of his stores’ bank statements for the past 12 months and qualified him for his jumbo loan.
We did not require tax returns – just his bank statements for 12 months! We closed in 25 days and client is now looking at possibly purchasing an investment property.

Time to close loan: 25 DAYS

Background
‍A husband and wife duo were buying their first home in an east coast state. The wife worked in the finance industry and was a W2 employee. The husband owned a small restaurant bar that served more drinks than cooked burgers which helped with margins.

‍How we made it work
‍We focused on the wife’s W2s (plus the wage and income transcript of her taxes) and combined them with the husband’s 12 month bank statement income calculation.

Their combined income using two different income forms qualified them to buy their first home. Their taxes due to high bar expenses did not “traditionally” show enough income as it was only 3 years old but when qualified through bank statements the loan worked!

‍Time to close loan: 30 DAYS