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Navigating the World of Stated Income 2nd Mortgages: What You Need to Know
A stated income 2nd mortgage is a type of mortgage loan that allows borrowers to qualify based on their stated income,...
By: Bob Viscount on Sep 22, 2022 5:00:00 AM
I’ve written about bank statement loans quite a bit on this blog. Like this blog post. Or this one. If you want to know the ins and outs of bank statement loans, you’ve come to the right place.
In short, bank statement loans can be a really great choice for small business owners and the self-employed when it comes time to get a mortgage. Often, these folks don’t have the documents needed to qualify for a traditional loan from a big bank like W2s and pay stubs. Bank statement loans use 12-24 months of bank statements as the basis for the lender’s review. This allows the lender to calculate an average monthly income using 1 or 2 years’ worth of data. This also gives them a clear view into the borrower’s debt to income ratio.
Now that you know the basics of the bank statement loan, how does it work if a small business owner or self-employed worker wants to refinance? Well, I’m glad that I asked myself. Let’s discuss.
Refinancing with a bank statement loan uses the same principles. As a borrower looking to refinance with a bank statement loan, you can expect to provide:
Some helpful tips to strengthen the loan application when refinancing include:
If you’re self-employed, run your own business, or are an entrepreneur and thinking about refinancing, I’ve got just the resource for you: Truss Financial Group. The team at Truss takes a common sense approach to lending, and they also happen to specialize in bank statement loans and refinancing. Give them a call today. You’ll be glad you did.
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