Banks statement loans are back!
The COVID-19 crisis changed this country and the globe in many ways.
Some of these changes will be permanent; revisions to how people gather, and acceptance by companies to support remote work will likely be changed for good.
Other changes are (or were) temporary, such as restrictions on the use of public parks. As we learn more about the disease and we begin to see the downward side of the “curve,” life is starting to get back to normal. Slowly, steadily, and safely, people are joining together, traveling, getting back to work, and starting to enjoy life as we previously knew it.
At the peak of the crisis, many companies put products and services on hold. We were no different, as certain mortgage options, especially high-risk options, were temporarily suspended. But as the country starts to reopen, so are we.
After two months of long challenges, challenges that tested many levels of our business, we are proud to announce that we are back and ready to once again make common-sense loans to qualified homebuyers.
We know that personal homeownership is an important pillar of the American economy, creating stability for the nation and prosperity for millions of individuals and families. With that in mind, we are thrilled to announce the return of bank statement loan programs!
In fact, we are making exciting changes that could help you qualify, and could make a home purchase more affordable than ever!
The Exciting Return of Bank Statement Loan Programs!
Bank statement loans are ideal for many borrowers all across the country, and here are some of the benefits of our returning program…
LTVs Up to 80%
One of the most beneficial changes for buyers using these programs is the availability of loan-to-value ratios, or “LTVs” up to 80%. LTV is simply the percentage of a purchase that the lender will cover with their loan; the rest needs to be covered by the borrower. So a loan with an 80% LTV would require a 20% downpayment.
In the past, bank statement loans would often require much larger downpayments, in other words, the loan-to-value ratio was less. But with a higher LTV, you may be able to qualify for a larger purchase, as the downpayment requirement is less. If you have, say, $50,000 for a downpayment, that could go a lot further with an 80% LTV than a 70% LTV. The end result is the potential for higher borrowing power and greater chances of qualification.
30-Year Fixed with Same Pricing as 5/1 Adjustable Rate Mortgage
Mortgage loans generally fall into one of two categories: either a fixed-rate loan, where the interest rate is set from the beginning and does not change, or an adjustable rate mortgage, or “ARM loan,” where the interest changes depending on current rates.
Whether or not an ARM loan is more affordable can strongly depend on interest rates in the future compared to rates today; if they go down, you will save; if they go up, you will pay more. However, most of these loans come with an initial low-downpayment period that makes them more affordable for countless buyers.
Fixed-rate loans do not have this initial low-payment period; the payment amount stays the same from the very first payment to the very last payment.
But with the new bank statement loan program, you can now enjoy a 30-year fixed-rate loan with the same level of affordable pricing as a 5/1 adjustable rate mortgage. This makes the loan option even more affordable for buyers in California and areas all across the country.
Cash-Out Refinancing Available As Well
If you have a large percentage of equity in your home, you could simply let that equity sit in place, creating a stable savings block for you and your family. But it’s not liquid. If you need cash for a variety of purposes, you’d have to actually sell your home to use the savings. Cash-out refinancing can be a useful alternative.
With cash-out refinancing, you simply borrow against your home and take out the proceeds in cash. This strategy can be used to fund the purchase of another property, such as a vacation home or second home, or it can be used for updates to your existing property. For example, if you need a major roof repair, but don’t have the funds for this purchase, a cash-out refinancing could help.
Financing for Borrowers with Credit as Low as 640
A person’s credit score is used to help determine their reliability as a borrower, and it’s an important tool for lenders all across the country. For home mortgages, a credit score becomes one of the most important factors, and while you can secure a loan without using a credit score, most people will need to have at least a decent score to qualify.
For bank statement loans, especially those with 80% LTV, a high credit score is often needed. But with this loan program, you can secure financing with a score as low as 640. To be fair, this is certainly not a low score, but neither is it an extremely high score, so many borrowers will qualify.
Getting Back to Normal: Take Advantage of Our Bank Statement Loans Now
As the nation gets back to normal, more loan products are becoming available. Contact our staff today to learn how you can take advantage of top-quality loan products from one of the leading teams in the industry!
Chad and his team were Awesome to work with! I was referred to Chad by a good friend of mine. I was very impressed with the professionalism and quick response times from Chad Baker & his team during the entire process. I screened over 3 lenders before selecting the Chad Baker Team and I’m confident I made the right choice. It’s obvious that customer service is their #1 priority and it shows. I highly recommend Chad if you have lending needs. ”
Chad Baker and his team are amazing!
My husband and I found Chad through an article he had written. Every aspect of working with Chad and his team was exceptional. From our initial phone call where he explained the many options we had, to advice he gave in dealing with somewhat challenging sellers, and closing our loan ahead of schedule, the loan process with Chad and his team went very smoothly. I especially appreciated the one-on one guidance from Juliann, who really made me feel like I was her only client. I look forward to working with Chad and his team again and would highly recommend them to anyone looking for a mortgage.
A very responsible and experienced professional with his highly effective team
I really enjoyed working with Chad Baker and the rest of the team. This was our first time buying a home in California and we started with unnecessary assumptions based on our previous experience as home-owners in a different state. Chad and his team were available throughout the whole process, explaining the state differences, answering all our phone calls and emails quickly and directly, and providing detailed weekly status reports so that all parties including agents knew exactly where we were in the process. Chad was very experienced and provided customized loan products for us to consider, which definitely facilitated our transaction. I recommend the Chad Baker team! ”