Bank statement loan rates just sank.
Is it time for California homebuyers to pounce?
In the dynamic landscape of California’s real estate market, staying abreast of the latest trends and financial opportunities is crucial for homebuyers. One area that has recently sparked interest is the California Bank Statement Loan sector. As we step into 2024, there’s speculation that Bank Statement Loan rates have experienced a significant drop, prompting the question:
Is it the opportune moment for California homebuyers to make their move?
How Lenders Determine Bank Statement Loan Rates
- Credit Scores – the better your credit score is, the lower your interest rate will be. So, if your score is on the lower end (think 680 or under), then you might work on improving it before applying for a bank statement loan.
- Down Payment – your credit score will impact what down payment you’ll need, as well as your interest rate. Generally, the lower your score is, the more you’ll need to put down. keep in mind though, regardless of score, a larger down payment can never hurt. When you put more down, it reduces the lenders risk, and less risky your loan is the better your bank statement mortgage rate will be.
- Loan-to-value ratio – The LTV of your mortgage – will also impact what rate you get on your bank statement loan. To calculate your LTV, you take your loan amount (how much you borrow for the house) and divide it by the home’s value. So, if your loan is $500,000 and the home is worth $625,000 your LTV is 80% (500,000/625,000). Lower LTV’s will typically qualify for the lowest rates.
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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 Loans, Real Estate Investor Loans, and Bank Statement Loans.