Bank Statement Mortgage: Cash-Out Refinance

Darrin Seppinni
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Man at a construction site looking very happy

A Breakthrough for the Self-Employed - No Tax Returns Needed to Qualify

Self-employed homeowners are tapping into their home equity to pay off high interest rate debt, make home improvements, buy additional real estate, or secure working capital to expand their businesses.  By refinancing, self-employed homeowners are taking advantage of low-cost capital to achieve their financial goals.

How are they doing it?

Because there are new mortgage rules in effect when qualifying for a mortgage, if you’re an independent contractor on 1099-income or are self-employed, you already know how difficult it is to qualify for a conventional mortgage loan.  But new, common-sense lending options are making it easy for the self-employed to access capital with a ‘Bank Statement Cash-Out Refinance’.

The Challenges of Conventional Loans for Self-Employed Borrowers

Conventional loans require banks and mortgage lenders to qualify self-employed mortgage loan seekers based on their ‘Adjusted Gross Income’ from their tax returns. However, most small business owners and independent entrepreneurs have less taxable income, because they can take advantage of the abundance of tax deductions available to them.

Non-Bank Alternative Mortgage Solutions

Entrepreneurs and the self-employed now represent 30% of our US workforce.  Non-bank lenders have taken notice by offering a new mortgage program that will qualify self-employed individuals based on deposits reflected in their bank statements.

The Benefits of Bank Statement Loans

Designed for successful entrepreneur and small business owners, Bank Statement Home Loans allow for a higher loan amount (up to $5 million), and higher loan-to-value (can lend up to 85% of your home value.)  Another benefit of a  Bank Statement Mortgage is that it carries no mortgage insurance (MI).

With home values on the rise this a great opportunity for the self-employed to access low-cost capital. A Bank Statement Mortgage can also be used for your vacation or investment property, a great choice for Realtors and real estate investors as well.


HomeLife Mortgage Client Success Story

Self-employed, online retailer, and HomeLife Mortgage client, Brian Moro, had been unable to refinance since 2006.  Like other self-employed mortgage loan seekers, his tax returns didn’t show sufficient taxable income to qualify for a conventional loan.  He was thrilled when he came across an advertisement for a bank statement home loan.

Moro’s  home value in San Mateo, CA had increased by 40 percent.  He needed $200,000 for working capital, and to pay off debt.  His diligent web search led him to the Non-QM bank statement loan experts at HomeLife Mortgage.  His 24 months bank statements were reviewed and his monthly qualifying income was determined. He happily just closed on a $1,500,000 Bank Statement Cash-Out Refinance.

Self-Employed? Here's How You Can Get Started

Whether you are a doctor, lawyer, real estate agent, freelancer, or small business owner, if you can document that you have been self-employed for a minimum of 2 years, you may qualify for a bank statement home loan. Non-banks will qualify you based on the deposits made into your business or personal bank statements for the last 12 or 24 months.

Ready to get started?  Take the first step and download our free guide, The Ultimate Guide for Self-Employed Bank Statement Mortgages.


More Content For You:

Are You a Self-Employed Borrower? Here's How to Get a Home Loan

Bank Statement Loans


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About HomeLife Mortgage

For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing.  HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Non-Prime Loans, Real Estate Investor Loans, Bank Statement Loans, FHA Loans and VA Loans.

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