The 24-month bank statement program is designed for self-employed borrowers looking to refinance or purchase a property. The 24-month program is similar to the12-monthbank statement mortgage program, the only big difference is the interest rate. Lenders feel more secure when income is calculated over 2 years as opposed to one year and with that being said lenders offer lower interest rates for a 24-month program.
The Significance of 24 Months Bank Statements:
Traditional mortgage lending often necessitates extensive documentation, including tax returns, pay stubs, and W2 forms. However, these requirements can pose significant challenges for self-employed individuals, those with variable income sources, or borrowers who may have experienced financial setbacks. We address these challenges by recognizing the value of bank statements in assessing a borrower’s true financial stability.
With just 24 months’ bank statements, borrowers can showcase their financial health, income sources, and responsible financial management, providing a holistic view of their capability to handle mortgage obligations.
Qualifications for the Program:
To take full advantage of the 24 Months Bank Statement program, several key qualifications apply:
- Credit Score: A minimum credit score of 640 is required. This demonstrates a satisfactory credit history and financial responsibility.
- Down Payment: For property purchases, a minimum down payment of 10% is required. This demonstrates the borrower’s commitment and financial stability. In the case of cash-out refinances the program accommodates borrowers with a maximum loan-to-value (LTV) of 80%.
- Maximum Loan Amount: The program offers a maximum loan amount of $5 million, allowing borrowers to explore a wide range of property options.
Benefits of the Program:
The 24 Months Bank Statement program offers numerous advantages for borrowers:
- Simplified Application: Bid farewell to the hassle of gathering extensive financial documentation. With just 24 months’ bank statements, you can qualify for a mortgage or refinance seamlessly.
- Accessibility for Self-Employed Individuals: Self-employed individuals often face challenges in proving their income stability. This program provides a viable solution, assessing their financial viability based on 2-year bank activity.
- Lower Rates: The 24-month program offers slightly lower rates than its sister 12-month program.
- Expanded Eligibility: self-employed borrowers with non-traditional income sources can now access the ability to purchase or refinance a property.
- Competitive Loan Options: Enjoy competitive loan terms and interest rates that align with your financial goals.
With the required 10% down payment, you’ll have the opportunity to explore various property options, whether it’s your primary residence, second home, or investment property (which requires a 25% down payment). The program’s flexibility ensures that your unique financial circumstances are considered, making the purchase process smoother and more accessible than ever before.
Refinancing Your Property with 24 Months’ Bank Statements:
For those looking to optimize their current property portfolio or access equity, our program offers a seamless refinancing solution. With an 80% LTV for cash-out refinances you can tap into your property’s value while enjoying competitive loan terms.
The refinancing process is equally straightforward. Our team will guide you through the application process, helping you provide the necessary 24 months’ bank statements and confirming your eligibility based on your credit score and LTV requirements.
If you’re self-employed, have non-traditional income sources, or seek a streamlined financing process, this program is designed to meet your needs. With a 640+ credit score, a 10% down payment, and the opportunity to explore loans up to $5 million, you can shop for a property with confidence.
Contact us for information about our bank statement programs.
