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Posted by Darrin Seppinni
December 4, 2019

Self-Employed? Here's how to Refinance Your Mortgage with a Bank Statement Loan

The 2020 guide for Self-employed to Refinance a Bank Statement Loan (And Do it Right)

If you’re self-employed and own a home, now is a great time to consider refinancing — and a bank statement loan can help.

If you’re like most homeowners, you’ve probably been eyeing a refinance. After all, mortgage rates are at their lowest point in years, and shaving even a fraction of a point off your current rate could mean a lower monthly payment, more cash flow, and less interest paid over time. (Think tens of thousands in savings!)   

But if you’re self-employed, it’s not so simple. 

Refinancing requires a new mortgage application and, with it, a deep dive into your finances. If you maximize your write-offs and pour a lot of money back into your business, then you might not look so good on paper. In fact, you might not qualify for a loan at all — at least with traditional lenders.

What Options Do Self-employed People Have to Refinance?
So, then, what options do you have as a self-employed pro in 2020? The answer’s simple: steer clear of big banks and financial institutions, and find a niche lender that offers bank statement loans instead.

Traditional banks and mortgage lenders pose a serious challenge for self-employed refinancers. For one, they require a lot of paperwork that you just don’t have — things like W-2s, paystubs, employment verification, etc. Though many will allow you to use your tax returns to qualify, these usually don’t reflect your full income and financial abilities, especially if you make lots of annual deductions. 

In the end, it means getting a higher interest rate than you deserve (cutting into your savings) or an outright denial, locking you into that old, sky-high interest rate forever.

Ultimate-Guide-Self-Employed-Bank-Statement-Mortgage

Fortunately, bank statement loans take a more modern, entrepreneur-friendly approach to refinancing. With these loans, you get to:

  • Use bank statements and cash flow to prove your financial capabilities. Show your success with solid bank balances and consistent incoming sales.
  • Avoid tedious paperwork and documentation. No W-2s, tax returns, or paystubs here!
  • Let your achievements do the talking. Use your certifications, licenses, and experience to show you’re just as reliable as a 9-to-5 worker.
  • Reduce your interest rate. Depending on what your current loan’s interest rate is, you may be able to reduce your monthly payment and your total interest paid.
  • Consolidate high-interest debts. Have other debts with high interest rates? Use a bank statement refinance to consolidate them into one, low-interest monthly payment
  • Do those home improvements you’ve been putting off. Tap your home equity with a cash-out refinance, and free up cash to make home repairs, renovations, and other value-adding updates.
  • Get capital to grow your business. Need to invest in new supplies or inventory? Want to further your skills? Use a bank statement cash-out refinance to cover your needed business expenses.

You could also refinance into a shorter-term loan if you’re looking to pay off your home sooner. 

Are You Looking to Refinance?

If you’re a self-employed professional and own a home, then now is a great time to consider a refinance. Just make sure to choose a lender that specializes in bank statement loans, and avoid applying with big institutions that only know W-2s and tax returns. 

Are you ready to see how much a refinance could save you? Apply for our bank statement loan program now and get pre-approved within 48 hours!

Ready to Get Started?

If you’re a self-employed homeowner, there’s never been a better time to refinance.  At HomeLife Mortgage, we are here to help. Our bank statement loans are simple, offer high balances, require no private mortgage and come with no pre-payment penalties whatsoever. Download our ebook, Ultimate Guide for Self-Employed Bank Statement Mortgages, or contact us to discover how much you could save by refinancing.

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More Posts for You:

Self-Employed Home Loans: Now Is the Time to Refinance

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Bank Statement Mortgage Loans for Refinancing: What Are the Rates?

Questions?

Click the live chat window on our site or call (888) 677-2526.  Our team is ready to assist you!

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 and Bank Statement Loans.

Darrin Seppinni

Darrin Seppinni

Darrin Seppinni is a highly trained and experienced veteran of the mortgage lending industry. For more than 35 years, Darrin has leveraged his specialized knowledge and expertise to secure real estate financing for thousands of borrowers using leading edge mortgage loan products. He is proud to be at the forefront of alternative lending programs specializing in: self-employed bank statement loans (no tax returns needed to qualify); investment property rental loans (no personal income doc loan); private money loans; non-warrantable condo loans; and foreign national loans. Darrin is passionate about educating borrowers with unique needs on the benefits of non-traditional loan programs. Darrin is the author of, The Mortgage Originator Success Kit, published by Mc Graw Hill. Contact us to learn more.