Jumbo Bank Statement Loans
Jumbo bank statement loans are for self-employed home buyers who are looking for alternative financing for high priced homes up to $5 million.
Bank statement loans allow borrowers to qualify using the average monthly bank deposits instead of providing tax returns.
Jumbo Bank Statement Loan Requirements
If you are self employed for at least two years and can provide at least 12 months of bank statements, you may qualify for a jumbo bank statement loan. These are some of he features of a jumbo bank statement loan:
- Loan amount up to $5 million
- Down payment of at least 10%-20%
- No PMI required for down payments under 20%
- Debt to income ratio (DTI) up to 50%
- No tax returns required
- Purchases, refinances or cash out refinances
Credit Score Requirement
For the jumbo version of the bank statement loan, lenders will look for higher credit scores starting at 660 or more. The credit score not only will determine the down payment, but it will also be a determining factor in what your interest rate will be.
The minimum down payment for a jumbo bank statement loan will be 10%. However, the higher the loan amount, the larger the down payment. When the purchase price does into the millions, you can expect the down payment could be 15% or more.
Calculating Income with Bank Statements
You will be asked for a minimum of 12 months of bank statements and the underwriter will be looking for your average monthly deposits.
If you are using a business bank statement, the lender will use 50% of the average. If you haver personal bank statements, 75%-100% of the average will be used depending upon the lender.
The average monthly deposits will be used by the lender as the qualifying monthly income on your mortgage application.
Jumbo bank statement loans are available in a 30 year fixed option. You may also find an ARM and possibly a 10 year interest only mortgage version.
Jumbo Bank Statement Loan Interest Rates
The interest rates for jumbo bank statement loans will be anywhere from 1%-3% higher than a fully documented jumbo loan. There is a risk factor that is build into these loans not only because of the size of the loan, but also because income is not being verified with tax returns.
The two factors that truly determine your interest rate are your credit scores and down payment. The higher your credit scores and the more you put down, the lower your interest rate will be.
If you need a rate quote, please complete this short form.
Jumbo Bank Statement Lenders
Lenders who offer jumbo bank statement loans are non QM lenders and not traditional banks. These loans are either kept in the lender’s portfolio or sold to private investors.
In many instances, you have wholesale lenders who work through a broker network only and not direct to consumer. Some wholesale lenders who offer jumbo bank statement loans are:
If you would like to speak with someone to get a quote for a jumbo bank statement loan, then please complete this short form to be connected.
How many months of bank statements do I need for a jumbo mortgage?
If you are applying for a fully documented jumbo mortgage, then two months of bank statements are required. For jumbo bank statement loans, you will need at least 12 months of bank statements.
Which lenders offer Jumbo Bank Statement Loans?
Bank statement loans are offered by non QM lenders or Portfolio lenders who offer creative mortgage solutions. However, some lenders have a maximum loan amount that may not be high enough to purchase a very expensive home. We can help you to find a jumbo bank statement lender in all 50 states.
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