Bank Statement
Small business owners and self-employed individuals have the ability to obtain permanent financing on their rental properties by
underwriting their income, instead of rental property cash flow. We do this by analyzing bank statements and do not require tax returns.
Lending Criteria
| LOAN AMOUNT | $75,000 to $1.5 million. Loan amounts outside of this range considered |
| LOAN TERM | 30-year term; fully amortizing entire term, or I/O for 10 years with rate fixed for 5 years then adjustable every 6 months |
| LOAN TO VALUE | Up to 80%; cash out not allowed |
| PREPAYMENT PENALTY | Multiple PPP options available, including No PPP (depending on the state) |
| CLOSING TIMELINE | 2-3 weeks |
Additional Guidelines
| FICO | 660 min hard credit assessment |
| ABILITY TO REPAY VERIFICATION | 12 months of bank statement transactions analyzed to calculate income and determine loan size based on a 50% debt-to-income ratio |
| PROPERTY CONDITION | Appraisal showing C4 condition or better |
| ELIGIBLE PROPERTIES | Single-family, townhomes, condos (warrantable and nonwarrantable), and 2-4 units. Portfolios are not allowed. |
| ELIGIBLE STATES | Nationwide except ND, NV, SD, VT and WV |
| BORROWER | Entities only. A personal guarantee is required. Nonrecourse is not allowed. |
| MORTGAGE PAYMENTS | Taxes and insurance are escrowed. Mortgage payments are collected by ACH. |