Did you know there is one kind of home loan that does not require tax returns but bank statements? Bank statement mortgages are the perfect fit for the borrowers who cannot submit regular pay stubs or tax returns. Putting it briefly, non-traditional breadwinners can apply for the home loan instead of relying on conventional mortgages.
Such loan programs are arranged to help many borrowers with difficulty in passing the guidelines and paying steadily over the loan terms. For instance, commissioned people can face trouble to apply for traditional mortgages; however, bank statement loans fulfill their dream. Besides those earning commissions hourly, other people still do not know whether they can apply for the loan. So, have a look at the following groups of people who can utilize the advantages of bank statement home loans in Houston.
In the United States, the number of seasonal workers is gradually increasing because of the sheer benefits that come along. Many individuals are interested in working one season and making the whole year’s income. When you are an employee, but you only work seasonally, you can easily apply for a bank statement home loan. A conventional lender will consider what the buyer makes in one season and then calculates how much he/she has earned in a year. In this way, the monthly gross earning becomes smaller and you may have a difficult time to qualify for the conventional mortgage. The bank statement mortgage lets you document your income with the bank statements. Certainly, you must have a seasonal job for two years to prove the income.
Freelancers or self-employed consultants are the most common people benefitting from the mortgage. Needless to say, qualifying for the home loan also becomes a cakewalk because the loan program is designed keeping them in mind. These particular individuals earn what they need but they cannot verify it through papers. Often the lenders ask for the net income you make and the tax returns do not suffice. It is quite true that the home loan application had been mayhem for the self-employed borrowers. By offering bank statements for 12 months to the lender, they can take a leap towards their dream house. However, they must have a good credit score for unlocking the loan benefits.
When you are applying for a conventional loan, you might face hiccups on the way, with your retirement assets. The buyer’s working income is considered to get the approval but you do not earn paychecks anymore. Instead, retirement funds could be handy but there is a restriction for using the IRAs or pensions. At such a challenging hour, bank statement home loans can rescue from the woes by making the whole process a lot simpler. Only if you can successfully submit the adequate proof for regular income from different retirement accounts, you can qualify for the mortgage.
Furthermore, people living their lives off investments and social security can apply for the mortgage. In case, you are not sure whether your documents can pass for the home loan, give your private lender a call!
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.