Bank Statement Loans Deliver Flexibility

Bank Statement Loans Offer Low Rates and a Simple Process for Self-Employed Borrowers in Boise

Good news! You can still be eligible for a mortgage loan despite declaring negative income on your federal income taxes. At Modern Lending, we offer a 12-month bank statement loan program that does not require any federal income tax returns for verification. Instead, to verify your income, we factor in all the deposit amounts accumulated in your bank statements over the last year. Our Bank Statement Loan program has no maximum loan limit and it does not require Private Mortgage Insurance (PMI). Borrowers can apply for a loan amount from $250,000 and up to $10,000,000. However, a downpayment of 10-20% is required to qualify and the down payment amount and mortgage rate are based on your credit score.

The Bank Statement Loan Process

Self-employed borrowers are only required to provide the following documents:

• 12-24 months of bank statements to verify proof of deposits
• Proof that your business has been in existence for at least 2 years

Don’t Let That Stop You From Applying For a Mortgage Loan

Watch this short video now to find learn more about how Bank Statement Loans work and see why Modern Lending is closing 5 times more loans for self-employed homeowners in Boise, ID.

Scenario examples of potential borrowers in Boise

Scenario # 1: A husband or wife is self-employed and their spouse is a w2 employee

• The self-employed borrower provides 12 to 24 months of personal or business bank statements (where ever they deposit their business revenue)
• The W2 employee borrower provides 2 years of W2s and the last two most recent pay stubs
• If a borrower owns 100% of their business, the income for the self-employed borrower is calculated by adding up all of the customer deposits for the last 12 or 24 months and then reducing that amount by 30% – 50% to determine the qualifying income that can be used for a mortgage loan.
• The bank statements of the borrower must show consistent income to prove they are regularly earning money (not just one or two large deposits a year)
• The income for the self-employed borrower and the W2 salary borrower will be combined to determine the total qualifying income.

Scenario #2 Both borrowers are self-employed for at least two years in separate businesses

• Each self-employed borrower must provide 12 to 24 months of personal or business bank statements (wherever they deposit their business revenue)
• If a borrower owns 100% of their business, the income for the self-employed borrower is calculated by adding up all of the customer deposits for the last 12 or 24 months and then reducing that amount by 30% – 75% to determine the qualifying income that can be used for a mortgage loan.
• If the borrower owns 50% of the business then the amount determined using the model above is divided in half. 
  • Example: business deposited $200,000 over the last 12 months.  The owner owns 50% of the business and it is a consulting business.  70% of $200,000 is $140,000 (this is the income that could be used IF he/she owned 100% of the business. This amount is then reduced by 50% so only $70,000 can be used.

• The bank statements of the borrower must show consistent income to prove the borrower is regularly earning money (not just one or two large deposits a year)

• The exact process is repeated for the other self-employed borrower and the results of each income calculation are combined together to determine the qualifying income for both borrowers.