{"id":3293,"date":"2018-12-18T01:04:12","date_gmt":"2018-12-18T01:04:12","guid":{"rendered":"https:\/\/dreamhomefinancing.com\/?p=3293"},"modified":"2022-09-05T06:25:54","modified_gmt":"2022-09-05T10:25:54","slug":"Can-I-Get-a-Bank-Statement-Cash-Out-Refinance-Loan","status":"publish","type":"post","link":"https:\/\/dreamhomefinancing.com\/Can-I-Get-a-Bank-Statement-Cash-Out-Refinance-Loan\/","title":{"rendered":"Can I Get a Bank Statement Cash Out Refinance Loan?"},"content":{"rendered":"

Can I Get A Bank Statement Cash Out Refinance Loan?<\/strong><\/span><\/p>\n

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\nBank statement loans are available with the cash out refinance feature if you are self employed and meet the minimum requirements. Bank statement cash out refinances are a great way to access some of the equity in your home.<\/strong><\/span><\/p>\n

What is a bank statement loan?<\/strong><\/span><\/p>\n

A bank statement loan allows you to qualify based upon the 12-24 month bank deposits (depending upon the lender) into your personal and\/or business accounts. The lenders want to see a consistent flow of money sufficient to qualify you for the bank statement mortgage.<\/span><\/p>\n

Why Are Bank Statement Loans Good for The Housing Market?<\/span><\/strong><\/span><\/p>\n

In the past, self employed borrowers were able to find\u00a0stated income loans<\/a><\/span>\u00a0or\u00a0no documentation loans<\/a><\/span>\u00a0easily. However, after the housing bubble in 2008, the programs to help self employed borrowers disappeared. They now had to qualify on their net income referenced on the tax returns. When taking all of the legal tax deductions into consideration, there was little left in net income to qualify for a mortgage. Self employed people were not active in the real estate market. They could not refinance and they could not sell and buy a new dream home. This negatively impacted the market. Now that the bank statement loans are here, the real estate market is thriving.<\/span><\/p>\n

Bank Statement Cash Out Refinance Loan Requirements<\/u><\/strong><\/span><\/p>\n

You must be self employed for 2 years<\/strong>\u00a0\u2013 which means you have to prove it by providing a letter from your accountant verifying that you have been in business for at least two years. You may also have to provide a business license if such a thing exists in your industry. The bank statement lender may also accept a business listing, website address, or any other form of proof.\u00a0 A non-self employed co-borrower (someone getting paid via pay checks with W2 earnings) may also be added to the loan in addition to their income.<\/span><\/p>\n

Bank Statement <\/strong>Loan to Value Ratio\u00a0<\/strong>\u2013 Some lenders may allow a 85% – 90%\u00a0loan to value ratio. Your credit score and history may have an impact on the down payment requirement. \u00a0If your credit sore is low, it may limit the amount that you can cash out.<\/span><\/p>\n

Credit Score Requirement<\/strong>\u00a0\u2013 There are some bank statement lenders who offer programs for self employed borrowers who have credit scores below 550. You may even be able to get your loan with a score as low as a 500 FICO score. We suggest speaking with a bank statement lender to find out how your personal situation will impact your loan options.<\/span><\/p>\n

Bank Statement Loan Requirements<\/strong>\u00a0\u2013 Most bank statement lenders require you to supply 12-24 months\u2019 worth of bank statements to use as income verification. For personal bank accounts, they use 100%\u00a0of the average. For business accounts, they will sometimes use 50% of the average. They will usually combine them both. The ability to use both business and personal accounts is a huge benefit.<\/span><\/p>\n

*The bank statement lenders will use the average monthly deposits and will run it through their underwriting model to determine whether you qualify.<\/span><\/p>\n

P&L\u00a0Statements<\/strong>\u00a0\u2013 On occasion, the bank statement lenders may require you to provide a P&L\u00a0statement that has been prepared by your accountant.<\/span><\/p>\n

Documentation of Assets<\/strong>\u00a0\u2013 Your assets must be fully verified during the loan application process. This includes bank statements and any other assets that you would provide for a traditional loan. The more assets you can provide during the qualification process, the better chance you have to being approved for a bank statement loan. If you have low credit scores, having more assets to show on your application will help to sway the underwriting decision in your favor.<\/span><\/p>\n

Eligible Property Types<\/strong>\u00a0\u2013 Single family residences are acceptable for a bank statement cash out refinance loan. Second homes and investments will vary by lender.<\/span><\/p>\n

We are the hub for bank statement loans in the United States. Let us help you to get connected to a lender that can truly help with your cash out refinance. Simply complete the form to the right if you are on your laptop or at the bottom if on a mobile device. You can also click \u201crefinance\u201d at the top of the screen. We are confident that we can help you to get a bank statement cash out refinance.<\/span><\/em><\/p>\n

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Bank Statement Cash Out Refinance Loan Pros and Cons<\/u><\/strong><\/span><\/p>\n

\u00a0 \u00a0 \u00a0Pros<\/strong><\/span><\/p>\n