Finance

Who Can Apply for Bank Statement Home Loans in Houston?

Bank statement home loans are specially designed home loan programs for individuals who want to apply for a home loan program but without verifying their incomes by offering the tax returns of the previous two years, pay stubs, and W2s. Different from the traditional home loan programs, this loan allows you to secure a mortgage without the general documents that are needed to get approval for other home loan programs. You can secure this loan only with your bank statements.

But can any homebuyer opt for bank statement home loans in Houston? Well, no! Only a few kinds of professionals can apply for this loan and secure approval. Want to know whether you are one of them or not? Here, we have listed down who can apply for this loan –

  • Self-employed professionals

Self-employed individuals refer to the most common borrowers. They can easily qualify for this loan program. Irrespective of having an income, this is difficult for self-employed individuals to verify it by using paystubs. One can easily assume that tax returns would be sufficient, but the lenders need to use the net income that you claim not the true net income that you make.

Bank statement loan program makes it possible for the self-employed to buy property easily. By offering the lender with 12 months of bank statements, which show the regular receipt of income, these borrowers can get a loan to buy a home. To qualify for this loan, you need to have a good or excellent credit score, decent money available to pay your mortgage payment, and a high down payment on the house.

  • Commissioned individuals

Commissioned employees are the ones who get paid for making a sale. Being a commissioned employee, it can be difficult for you to qualify for a conventional home loan program. It is because when you work on a commission basis, you may have a lot of write-offs for your job.

These write-offs will lower the total amount of income you can use to qualify for a loan. But with bank statement home loans, the lender will deduct fewer expenses from your income to give you a better chance of approval.

  • Seasonal workers

Many people in the U.S. work seasonally – they spend one season making the year’s income. If you are a seasonal worker, you are a great candidate for a bank statement loan. A conventional lender wants to know what the borrower made in a season and then annualize it to see how much they have made in a year.

This makes it impossible to qualify for a loan. On the flip, bank statement loans allow a borrower like you to document your income with your bank statements. You should hold the seasonal job for at least two years to use the income. The mortgage lender will still annualize the income to use any other income you bring in regularly with your bank statements.

Are you a self-employed professional, commissioned individual or seasonal worker? If yes, then apply for this loan to a lender today!

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