Using bank statements for loan approval is a common option for traditional mortgages, but it’s also a little-known option for investors. By using bank statements for approval on your investment-property loan, you create new opportunities that might not exist otherwise.
Bank-statement loans for investment properties are available through our expert team, and we can create the right loan to fit your specific needs. Whether you want a loan for a new purchase or you need to refinance your investment-property mortgage, it can all be done using your bank statements!
Bank-Statement Loans for Investment Properties from SDPL
At San Diego Purchase Loans, we are proud to offer a wide range of mortgage options for both individual homeowners and high-volume investors who want to build a sizable portfolio in the real estate market. We understand that in some cases the best way to secure a loan is to use bank statements for loan approval. While tax return, pay stubs, and other forms of financial information have their benefits, using bank statements for loan qualification is useful for many people, including self-employed professionals, seasonal workers, and commission-based workers, such as sales associates.
With this in mind, we offer a bank statement program that helps achieve your financial goals. Let’s take a closer look at this excellent borrowing option…
Up to $1.5 Million in Available Financing
Investment properties can be expensive, often costing a million dollars or more. This is obviously a significant amount. And the sheer numbers might keep some people from taking advantage of the generally reliable, lucrative, and consistent property market. However, with this program you can get up to $1.5 million in financing for your purchase, and you can do so with your bank statements. At $1.5 million, there is a required down payment of 25%, which is obviously a significant number, but it creates a wonderful investment opportunity if you can support the down payment.
12 Months of Information Required
One of the first requirements for this program is that you must have at least 12 months of bank-statement information to qualify. Lenders of all varieties like to see as much information as possible, so the more information you can bring, the more likely you will be approved for your investment-property loan. Depending on the specific property, your financial information, and the loan amount, you may have to bring more documentation, but you will have to start with at least 12 months of bank-statement information. However, you may not need tax returns or pay stubs.
30-Year of 40-Year Terms Available
Different investors have different needs. With that in mind, we want to provide flexible terms that are useful for various borrowers. One of the flexible terms for this loan option is the time frame. You can choose from 30-year or 40-year terms for this loan. 30-year terms obviously have a shorter pay off period, but you will be making larger payments throughout the life of your loan. 40-year terms may be beneficial if you want to hold on to more of your monthly capital, but you will pay more total throughout the life of the loan.
Fixed-Rate and Adjustable-Rate Mortgages Available
Another factor that can be adjusted for these loans is whether it is on a fixed-rate for the duration of the loan or whether it is an Adjustable-Rate Mortgage (ARM). Fixed-rate mortgages have a predictable payment amount that lasts throughout the loan, but ARM loans can be beneficial as well. ARMs often come with a low-interest rate period that lasts at least a few years. There are are also interest-only options available for investors who are using bank-statement loans.
Can Be Used for Purchase, Term Refinance, or Cash-Out Refinancing
This loan option is not just available to borrowers who want to add an investment property to their portfolio. While the purchase of a new property is one of the most common uses for this option, you can also use the loan for refinancing to get a better term or rate. For example, if you have a 15-year mortgage on your investment property, but the monthly payments are ruining your cash flow, you can refinance to a 30-year mortgage, which means more in total interest payments (over the life of the loan) but less cost from a monthly perspective. You could also refinance to get a lower interest rate if the rate on your current loan is particularly high.
If you have built significant equity in your investment property and want to take advantage of that money, you can also use this program for cash-out refinancing. With cash-out refinancing from a bank-statement loan, you can make upgrades to your property, purchase a new investment property, or consolidate your debts into one manageable payment. With cash-out refinancing, you can get up to 75% of the property’s value, allowing you to take advantage of a significant amount of capital, depending on the value of your property.
Why Choose Bank-Statement Loan for Your Investment Property?
In some cases, you may find that loan approval is difficult because you don’t have the appropriate tax return information or traditional pay stubs that many people use for mortgage approval. Say you are a self-employed professional who does not receive a bi-weekly paycheck. What if you are a sale professional who, despite having a significant income, earns an amount that varies every month? If this is the case, you may have a hard time being approved through the typical methods. Does this mean you should not be able to enter into the investment world? We don’t think so, which is why we offer these bank-statement loans for investment properties.
The Right Bank-Statement Investment Property Loan is Waiting for You
You can get the right loan for your next investment property. With options for length, purpose, and terms, this loan program is the perfect choice for investors who need a flexible loan tailored to specific needs.
“Chad and The Chad Baker team really helped me from start to finish with my loan process. They were extremely responsive and provided me updates on a daily basis. I had a few personal issues that they helped me work through so I could get the best loan program and best rate. Very knowledgeable about the industry, rates and trends. I HIGHLY recommend Chad and his team. I’m happy to offer a reference upon request. Please ask Chad for my contact information.”
“Chad Baker is THE BEST, most professional, understanding, HONEST person I’ve ever worked in the mortgage industry. He knows exactly what he’s talking about, will never promise something he can’t deliver, and will bend over backwards to get you what you need. I had a very unique problem qualifying and every other mortgage company I worked with assured me from the beginning that they could get me financed, and then it would all fall apart once we hit underwriting. Chad understood my circumstance from the beginning and patiently explained every step of the way. I can’t thank you enough Chad! Juliann has been great keeping me updated and making sure that everything comes together in a timely fashion. She also appreciates my sense of humor, which gives personality to a boring funding process. Thanks Juliann! I HIGHLY recommend Home Point and if I ever buy another home, will absolutely use them again.”
Chad and his team was awesome throughout the entire process. They made things easy and smooth, and able to answer any questions at anytime. By far the best experience with a lending team yet. Great job!”