Bank Statement Business Description for Bank Statements
Income and Employment Documentation
* 12 or 24 Most recent consecutive monthly bank statements. Must verify all parties on bank account(s) will be on the Note, otherwise an underwriter exception would be needed
* Most Recent 2 Months of Business Bank Statements – If No Business Account Available
Personal Bank Statements
* When using Personal Bank Statements, most recent 3 Months consecutive Business Bank Statements will be needed to illustrate revenue flow.100% of Deposits Taken for Income – Must Evidence
Activity to Support Business Operations and Reflect Transfers to Personal Account. If Deposits Are Not Evidence of Business Account Transfers, etc.
Business Bank Statements
* Most Recent 12 or 24 Months of Business Bank Statements. Properly qualifying your bank statements and calculating your income
* Rental Income: Schedule E or leases and bank statements showing rental income deposits
* Liquid assets for reserves and/or supplemental income if applicable
* Business Description
Verification of Employment Documents (VOE)
Business Description Letter
* Letter of Explanation Summary Letter Business Overview (Template Loan Officer).
* Borrower must supply a hand-written statement clearly describing the nature of the business and the income it generates, including an explanation of expenses and Expense Factor.
* SS89 completed by the borrower and wet-signed and dated
* CPA, Tax-Preparer, or Licensing Bureau Verifying 2-Year Self-Employment
* CPA or Tax-Preparer “Expense Ratio Letter” (when applicable), examples:
* Business Expense Statement Letter Indicates a 25% Expense Ratio, then 75% of Net Qualified Deposits Will Be Used Towards Qualified Income
* Business Must be in Existence for 2 Years, Verified Through CPA, Tax-Preparer, Licensing Bureau, or Website
* Etc.
Liquid Asset Statements:
* Checking, Savings, Money Market, COD showing source of down payment, closing costs, settlement costs, and reserves
* Cash Value Retirement Accounts,
* Cash Value Trust Fund Accounts
* Statements on Accounts Not Used for Income
Real Estate Owned (REO)
* Statements on all mortgages
* Homeowners Insurance Dec page (HOI)
* Homeowners Association Statement (HOA)
* Tax Statement (See Loan Officer)
* Purchase contract If purchase loan
* Recent Property Tax Bill
* Property Profile(s) if refinance
Available in the Following States:
Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Louisiana, Maine, Mississippi, Missouri, Nevada, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.