Bank Statement Mortgage Loans In North Carolina
Find out whether the LBC Mortgage bank statement home loan is right for you
Being self-employed shouldn’t stop you from getting a home loan. Moreover, you should not provide any tax returns or financial records to buy a new home in North Carolina or get a cash-out to refinance on an existing property. Instead, you need nothing but your bank statements.
What is a Bank Statement Loan?
North Carolina bank statement loans are a type of Non-QM mortgage program that allows you to qualify using only bank statements instead of tax returns. This type of mortgage loan can be a great option for those who don’t have their taxes prepared in order to qualify if their taxes don’t reflect their full income.
Why Do Bank Statement Loans Exist?
Bank statement loans have replaced traditional stated income loans as an option for borrowers who are unable to verify their income in the usual way by providing the previous two years’ tax returns, W2s, and pay stubs.
These are non-QM loans, nontraditional loans, or expanded criteria loans that allow other forms of documentation to show repayment ability. For example, a bank statement loan, as the name implies, allows the borrower to verify his or her income using bank statements.
Is there a difference between a Bank Statement Loan and a Conventional Home Loan in North Carolina?
Yes. Let’s dive into it.
Bank Statement Loans:
- Bank Statement loans are designed for people who do not have typical W2 jobs, such as business owners, consultants, restaurant owners, and gig economy employees (with a valid business license).
- Borrowers might use bank statements to prove they can repay the loan amount.
- These loans are available to most employees (not self-employed) with a W2, and borrowers can choose from a variety of options, ranging from short-term ARMs to 30-year fixed rates.
- They typically require a minimum down payment of 5% to 20%, as well as a credit score of at least 700.
What are the requirements for Bank Statement Loan in North Carolina?
As with any type of mortgage, there are some requirements to keep in mind with a bank statement mortgage, namely:
- Must provide 12 months of consecutive bank statements from the same account
- 20% down payment required, or 10% with mortgage insurance
- 45% maximum debt-to-income ratio
- $1,000,000 maximum loan amount, $200,000 minimum
- Must escrow for taxes and insurance
- Minimum of 2 years self-employment or 1099 contract work with an exception could be made to 1-year self-employed if the same line of work was prior
If you’re looking for a bank statement mortgage in North Carolina, it may be worth consulting with LBC Mortgage professionals. We can help determine whether or not this type of loan will work best to meet your needs!
How much do I need to put down for a Bank Statement Loan in North Carolina?
The amount of the down payment needed for a North Carolina bank statement loan often depends on the borrower’s credit or bank statements, as well as the type of the regular deposits detailed for those accounts. The cost of the property you want to buy is another important factor in determining the size of your down payment.
Traditional North Carolina house loans typically need a minimum down payment of 5 to 20% and a credit score of at least 700.
Bank statement mortgage programs are usually good for self-employed people, business owners, and retirees who need an alternative income verification option.
For whom is the Bank Statement Loan suitable for in North Carolina?
NC bank Statement Loans might be a fantastic possibility for a broad range of self-employed professionals and business owners in North Carolina, such as:
- Gig economy workers
- Content creators
- Social media influencers
- Other independent contractors
Those people may indeed find flexibility in bank statement loans because they allow them to show their real income rather than the net income claimed on their tax returns, which does not always reflect the complete picture of their finances.
How to Get a North Carolina Bank Statement Loan
LBC Mortgage experts can assist any potential borrower, including business owners and self-employed individuals, in completing the procedure.
Our loan process begins with an initial consultation in which we assess your eligibility and assist you in completing your application. In addition, we’ll locate the best rates based on your credit score.
Once you’ve locked in your rate, we’ll begin the underwriting process while you focus on completing any necessary inspections. Finally, when your loan is ready for signing, we may finalize everything and release your funds, allowing you to proceed with your home purchase.
Find out if you qualify for a North Carolina Bank Statement Mortgage
LBC Mortgage is a mortgage brokerage in North Carolina. Unlike most banks that offer only a few mortgage products, we work with over 60 banks around the country, allowing us to provide a wide range of products.
We have the knowledge and flexibility to find the one-of-a-kind loan that is right for you, while offering five-star customer care that makes the process as easy as possible.
To apply for a bank statement mortgage loan in North Carolina with LBC Mortgage, feel free to contact us at (818) 309-2999. Our team of specialists will be happy to help you.
Frequently Asked Questions
A bank statement loan allows you to qualify for a mortgage using only your bank statements. Bank statements are used instead of traditional methods of income verification. Usually, 12 or 24 months of bank statements are needed, although some people may be able to qualify with just one, two, or three months. It’s also worth mentioning that criteria like your credit score will be considered when determining your loan conditions.
Lenders check for the following information when analyzing your bank statements to evaluate whether they can approve you for a loan:
- The account balance is positive.
- Overdrafts are rare.
- Deposits of monthly earnings
- Enough funds to cover at least a 20% down payment (10 percent down requires a 660 minimum credit score)
- Enough funds to cover several months’ mortgage payments as well as closing costs
- When your income was deposited into your account (usually, they want the money to be seasoned, which means it wasn’t all deposited right before you applied for your loan)
It all depends. Here at LBC Mortgage, we require the previous 12 months of bank statements for our bank statement loans.
Yes, retirees can qualify for bank statement loans since they do not have a conventional stream of income that is accurately shown on their tax returns.
It’s important to note that loans for self-employed people can apply to a wide range of situations, including business owners, freelancers, gig economy employees, and realtors.