Bank Statement Home Loans
A Guide for the Self-Employed Homebuyer
Myrtle Beach-Conway-North Myrtle Beach is the 3rd fastest growing metro area in the United States. With more than 60 mile stretch of beach land comprising Myrtle Beach, North Myrtle Beach, Pawleys Island, Charleston, and Mt. Pleasant. The Grand Strand area and surrounding cities in South Carolina are in high demand and booming with opportunity.
Are you self-employed and searching to purchase a home in South Carolina? The loan process can be tricky, no matter your employment status, but exceptionally so as a self-employed person. However, with the help of the BrickWood Mortgage team you’ll be enjoying your new home in no time.
Did you know that self-employed people in South Carolina can apply for a bank statement home loan? A bank statement home loan allows those in non-traditional jobs, self-employed people and freelancers to procure a home loan with alternate documentation. If you’re a self-employed South Carolina homeowner or home owning hopeful, this guide is for you!
What is a bank statement home loan?
A bank statement home loan allows a person to get a mortgage if they are self-employed, own a business and need alternative documents to prove income. These loans are often referred to as “bank statement loans”. If you’re unable to provide documentation such as W-2’s or tax returns to secure a traditional loan, consider a bank statement loan.
What do I need for a bank statement loan?
You are not required to show W-2’s, tax returns, or employer verifications for a bank statement home loan. You will, however, need a solid credit score. You will also need to show a few other documents to secure a bank statement loan.
- Proof of assets such as retirement accounts, investments, real estate, etc.
- Two years’ history of self-employment records
- 12 to 24 months of business or personal bank statements
- Documentation to verify the business is still active
- Proof of cash or liquid funds
That’s a very short list of documents and having those available when you call BrickWood Mortgage will help our Loan Officer qualify you more accurately.
What are some of the downsides to the bank statement loan?
The bank statement loan is a great option for a number of reasons, but there are some facts to consider when deciding on a bank statement loan.
Bank statement loans can be a risk for lenders. Due to this risk some lenders will require a larger down payment compared to Fannie Mae, Freddie Mac, or Government loans. Where you might be able to get away with a 3% down payment on a traditional FHA, a bank statement loan may require 10-25% down. A bank statement loan’s interest rates are typically higher than a traditional loan as well.
Whether you currently own a home or looking to purchase a first home a bank statement home loan may be the perfect solution for you. Consider working with a professional mortgage broker with a 5 star rating like BrickWood Mortgage to aid you in your home loan search. With access to many lenders and tips to point you to the loan program that works for you, the BrickWood Mortgage team is here and ready to help. South Carolina is our home too and we are very proud to live here.