As a real estate agent, you know the struggle your self-employed buyers face first-hand. They want to buy a home, they have the cash to cover a mortgage payment, but in the traditional lending world, they just don’t have much of a chance. But did you know that Realtors can use self-employed bank statement loans for clients to help them overcome these obstacles?
Here's how it works.
First, consider the problem: Most lenders prefer W-2 borrowers — meaning those with a steady, 9-5 job that can verify their employment and prove a consistent amount of income week after week, month after month. But that’s just not how the world works anymore. In fact, according to the Pew Research Center, three-in-ten U.S. jobs are held by the self-employed and the workers they hire. That calls for a change in mortgage lending, too.
Enter bank statement loans. Bank statement loans essentially allow borrowers to prove their income and cash flow by showing their recent bank statements — usually 12 to 24 months’ worth. This helps self-employed borrowers in two ways:
Bank statement loans also make it easier for the self-employed to refinance. In today’s gig economy, it’s not uncommon for people to change jobs or go freelance after a while in the business. But if they own a home? That can make it difficult to refinance when the time calls for it.
Historically, this has put self-employed homeowners at a disadvantage. They can’t turn their home equity into cash (for repairs, renovations or even their kid’s college tuition), and they can’t refinance at a lower interest rate or to shorten their loan term. Now, with bank statement home loans, they can.
It’s not just your clients who can benefit from self-employed home loans. You, as an independent agent or broker, could likely leverage these mortgages as well. Whether you’re looking to refinance your existing loan, buy an investment property, trade-up home or even help your recent college grad purchase their own property, a bank statement mortgage can make it easier (and potentially more affordable) in the long run.
To learn more about mortgages for self-employed people like yourself, your clients and nearly a third of all Americans, then download our free ebook, The Ultimate Guide for Self-Employed Bank Statement Mortgages, or contact HomeLife Mortgage for more personalized advice.
Bank Statement Mortgage: Cash-out Refinance
Self-Employed Mortgage: Buy a Home With a Bank Statement Mortgage
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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.