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Question

Hello! My husband and I are active real estate investors and both left our corporate jobs in the last two years. Since we haven't been doing this for 2 years, we won't qualify for a conventional mortgage. We're starting to strategize how to make our next move/buy our next property, and I'm wondering if anyone has a connection to someone who would originate a mortgage from a bank statement? Any other ideas or strategies that have worked for others in this situation, aside from seller finance or creative financing directly with the seller?

Nick Belsky · Answer

@Eliza Cochran

Please clarify, are you looking for financing for a primary residence or an investment property?

If looking at investments, bank statement isn't really a great option.  DSCR is far superior and won't require work history either.  There is really no reason to choose bank statement over DSCR, I can't think of a single good argument.

For primary, bank statement is a viable option.  Lenders vary greatly in their guidelines so working with a mortgage broker who understands your scenario and finances will be key to finding the right lender and program.  If you have assets, asset depletion loans is another possibility.

Cheers!

Ryan Hastings · Answer

Lima One Capital may be a good option, I’ve never completed a loan with them, but I’ve chatted with a gentleman from there and they do asset based lending, much easier to get a loan approved as long as the deal is profitable and you can demonstrate reasonable past experience with similar properties.

Jeremy Holden · Answer

@Eliza Cochran Im an investor and agent down in metro phoenix who utilizes @Grant Schroeder's portfolio program for myself and clients. He licensed in a basket of states including CO and AZ. Give the man a holler

Zach Wain · Answer

@Eliza Cochran - Nick was pretty spot on.  But I will add a twist.  Yes, there are bank statement loans for 12 and 24 months that have decent terms (better than hard money).  DSCR loans that just need to cash flow, but fairly high rates.  The best option, better than asset depletion, is Trust distributions.

Like asset depletion, you need to have a good amount of cash to do this.  We have 1 lender that allows us to do this, the vast majority of lenders have not heard of this or can not do it.  But, if you have or open a Living Trust and put a chunk of assets into a savings/brokerage account owned by the Trust, than you can take a monthly distribution from the trust and we can use that as income.  Best of all, its a conventional loan which means it will be the lowest rates available on the market.  If that works for you, that is by far the best terms possible.

If you have any follow up questions, let me know.  Good luck!

Issac San Miguel · Answer

A good non qm broker should be able to help you out!

Issac San Miguel · Answer

Hey Eliza!

Hard money lenders lend on the asset. It is very light doc, no tax returns, no required length of time showing income.

Your liquidity and assets are considered.

I would be happy to answer any additional questions you may have.

Keith Anderson · Answer

CIVIC, Cost Fund, Merchants Mortgage, Lead Funding, Phoenix Loans

Chris Lopez · Answer

@Eliza Cochran Connect with Travis Sperr at Renovo. I'll DM his detials. He's a local Denver investor and has some great options for DSCR loans. He's helped a few clients. I've worked with him for years. Great lender and person

Elliot Sun · Answer

Anyone know of good Denver based lenders for single family home purchases (primary, investor) as well as smaller multi-family 2-4 unit projects? Please send any locally based you recommend! Thanks

Kerry Baird · Answer

Since it is an owner occupant house, you cannot get a mortgage with any of the DSCR folks I've used.  Non QM is the way forward.

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