Questiin about Bank Statement Loans

5 Replies

Does any one have experience with Bank Statement Loans? Im a self employed IT contractor and it's time for us to buy our next house hack. I have over 2 year's tax returns but I have some heavy write offs that make me look poor to lenders :-). I used tax returns to get an FHA loan on our first duplex but had to claim fewer right offs to do it. I'd rather keep my right offs if possible. Bank Statement Loans seem to be a good option for staying as close to traditional lending as possible. Thanks in advance for your help.

Originally posted by @Matt McElravy :

Does any one have experience with Bank Statement Loans? Im a self employed IT contractor and it's time for us to buy our next house hack. I have over 2 year's tax returns but I have some heavy write offs that make me look poor to lenders :-). I used tax returns to get an FHA loan on our first duplex but had to claim fewer right offs to do it. I'd rather keep my right offs if possible. Bank Statement Loans seem to be a good option for staying as close to traditional lending as possible. Thanks in advance for your help.

 The bank statement "Alt-QM" (formerly known as subprime) stuff is pretty dang liberal with their income calculation, but the risk is baked into the rate. Split the difference between hard money, and the Fannie rate you see advertised everywhere, and that's about what you can expect this to come in at (typing it like that so people reading this 2 years from now will have something useful).

Originally posted by @Brian Mcmenamin :

@Matt McElravy I dont know much about bank statement loans, but would you consider a HELOC or a refinance on the duplex? how long ago did you buy the duplex?

Hi Brian, I don't think we have enough equity yet for a HELOC to help much. We've owned it for almost 1 year but bought it just below market price on an FHA 3.5% down. Great for getting into our first rental property but not so great for HELOC / Refi.

Originally posted by @Chris Mason :
Originally posted by @Matt McElravy:

Does any one have experience with Bank Statement Loans? Im a self employed IT contractor and it's time for us to buy our next house hack. I have over 2 year's tax returns but I have some heavy write offs that make me look poor to lenders :-). I used tax returns to get an FHA loan on our first duplex but had to claim fewer right offs to do it. I'd rather keep my right offs if possible. Bank Statement Loans seem to be a good option for staying as close to traditional lending as possible. Thanks in advance for your help.

 The bank statement "Alt-QM" (formerly known as subprime) stuff is pretty dang liberal with their income calculation, but the risk is baked into the rate. Split the difference between hard money, and the Fannie rate you see advertised everywhere, and that's about what you can expect this to come in at (typing it like that so people reading this 2 years from now will have something useful).

 Thanks Chris.  So you'd excpect 7-8 percent by today's rates?

Originally posted by @Matt McElravy :
Originally posted by @Chris Mason:
Originally posted by @Matt McElravy:

Does any one have experience with Bank Statement Loans? Im a self employed IT contractor and it's time for us to buy our next house hack. I have over 2 year's tax returns but I have some heavy write offs that make me look poor to lenders :-). I used tax returns to get an FHA loan on our first duplex but had to claim fewer right offs to do it. I'd rather keep my right offs if possible. Bank Statement Loans seem to be a good option for staying as close to traditional lending as possible. Thanks in advance for your help.

 The bank statement "Alt-QM" (formerly known as subprime) stuff is pretty dang liberal with their income calculation, but the risk is baked into the rate. Split the difference between hard money, and the Fannie rate you see advertised everywhere, and that's about what you can expect this to come in at (typing it like that so people reading this 2 years from now will have something useful).

 Thanks Chris.  So you'd excpect 7-8 percent by today's rates?

 Ya, you might be able to get it down into the 6s.