“Bank Statement Loans are NOT for Everyone”
I did two of them this week and it was the perfect loan for both clients. In both situations they are self-employed and bank statements compared to tax returns are just a different world.
In the first case it is a Massachusetts mortgage. The bank statements show monthly deposits of over $19,000, but the tax returns show $46,000 in income and a $296,000 mortgage was needed. This lender isn’t stupid and is willing to do this loan but at a higher interest rate. The payment will be $500 per month higher, but compared to having to pay an additional $25,000 in additional income tax this option was much better for the client.
In the second case it is a Florida mortgage. The bank statements showed $8600 per month and the tax returns show a loss for the last two years because of all the real estate holdings. These folks were buying a $355,000 home and putting $110,000 down. Their payment ended up being $435 per month more than a regular conventional loan, but that difference was meaningless compared to the way the tax returns were. In both of these cases that additional $5,000 to $6,000 per year in mortgage payments was a miner expense compared to the taxes they would have had to pay.
“Who else do you know that needs my help?”
Image courtesy of stuartmiles/freedigitalphotos.net
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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