When homeowners want to tap into their equity but keep their low-rate first mortgage intact, conventional financing often falls short, especially for self-employed borrowers. That’s where our Second Mortgage with Bank Statement Mortgage program comes in handy.
Scenario
Our borrowers were renovating their primary residence and wanted to leverage their home’s equity without disturbing their favorable first mortgage rate. Being self-employed for nine years with a strong 743 FICO, they were ideal candidates, except for one issue.
Based on their tax returns, their debt-to-income (DTI) ratio was calculated at 54%, which exceeded conventional guidelines. With a CLTV of 90% and a requested loan amount of $245,000, they needed an alternative solution.
The Non-QM Solution
Our Second Mortgage Bank Statement Program allowed these borrowers to qualify using 12 months of business bank statements instead of tax returns. By analyzing their actual cash flow, their adjusted DTI was reduced to 46%, making them eligible for approval.
This second mortgage solution enabled them to access their home’s equity and successfully fund their renovations.
Program Highlights
- Loan amounts from $50,000 to $750,000
- 680 minimum FICO required
- Primary residences: CLTV up to 90%
- Second homes: CLTV up to 85%
- Investment properties: CLTV up to 80%
Self-employed Borrowers Benefit
For self-employed borrowers and entrepreneurs, conventional underwriting based on tax returns can be limiting. With our Bank Statement Second Mortgage program, qualifying is based on real income flow, not tax write-offs.
If you’re self-employed and looking to renovate, invest, or access cash without refinancing your first mortgage, this program could be the perfect fit.
