Second Mortgage Bank Statement Loan
A Second Mortgage Bank Statement Loan is an ideal solution for homeowners looking to access their home equity without traditional income verification. This program is designed for self-employed borrowers who may not have W-2s or tax returns but can demonstrate financial stability through bank statements.
Loan Purpose
This loan can be used for various financial needs, including cash-out refinancing, debt consolidation, or meeting reserve requirements. Whether you’re looking to pay off high-interest debt or reinvest in your business, a second mortgage provides flexible options without the need for conventional income documentation.
12 Months Personal Account Bank Statements
Borrowers can qualify for this loan by providing 12 months of personal bank statements as proof of income. Lenders analyze deposits to determine consistent earnings, making it a practical solution for self-employed individuals with fluctuating monthly income.
24 Months Business Account Bank Statements
For those seeking higher loan amounts or more favorable terms, lenders may require 24 months of business bank statements. This provides a more comprehensive view of cash flow, allowing self-employed borrowers to showcase business stability and financial health.
Debt-to-Income Ratio to 55%
This loan program allows for a higher debt-to-income (DTI) ratio of up to 55%, giving borrowers greater flexibility in qualifying. A higher DTI threshold accommodates individuals with substantial monthly expenses while still demonstrating the ability to repay the loan.2 Months Most Recent Consecutive Bank Statements – Liquid Assets can be used for Additional Asset Depletion Income
Reserve Requirement:
3 Months PITIA for Subject Property + 6 Months for each financed REO
This product is ideal for the borrower that wants to protect their low-interest rate first mortgage and would prefer a lump sum (from their equity) upfront.
Jumbo Loan Amounts: $750,000
This Second Trust Deed Program gives the borrower the entire loan amount at once, for them to disperse as necessary and is not a Home Equity Line of Credit (HELOC), where the borrower is using their equity for a HELOC credit line.
Credit Score & Credit Criteria
* Minimum Credit Score: 620
* Collection and Judgement equaling $300 or more must be paid off
* Any negative tradelines greater than 7 years need not be counted in DTI
Credit Score | Max Loan Amount | Loan-to-Value
* 700 Credit Score | $500,000 to 85% LTV
* 680 Credit Score | $500,000 to 80% LTV
* 660 Credit Score | $500,000 to 75% LTV
* 640 Credit Score | $350,000 to 75% LTV
* 620 Credit Score | $250,000 to 70% LTV
Eligible Business Entities:
* C Corporation
* S Corporation
* LLC
* Trust
Eligible Occupancies:
* Owner-Occupied/ Primary
* Non-Owner-Occupied/Investment Properties
Eligible Property Types:
* Single Family Residence – Attached
* Single Family Residence – Detached
* 1-2 Unit
* 3-4 Unit
Except for the first mortgage, all outstanding title liens must be paid prior to closing.
Available in the Following States:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington.