Does anyone know of a mortgage company that allows you to use bank statements to prove income?

Question

"They generally look at deposits only, and will use your last 12 month average of monthly deposits as your income. This enables you to go full doc, and you can easily get the loan done." - Advice given to me, but don't know where to find a mortgage company that will do this.

This is an addition to my other question on Mortgages. I am self-employed with good credit.

Answer 1

Do you have good credit? If so, you may not like this answer... The lenders that will typically do these loans are known as subprime lenders. They generally cater to people with "blemished" credit, and offer this as a way for self employed people to get financed on a loan. They will still be able to get your loan done, and with good credit, you'll get the best rates that they offer. Just don't expect them to be like the larger banks. You would be looking at a rate of 6.95% on a 2 year ARM (Adjustable Rate Mortgage) on the 1st mortgage, and a rate of 9.9% on the 2nd mortgage (If looking for 100% financing)

Answer 2

Most mortgage companies want to verify income with your employer. If you are self-employed or have other income outside employment, a copy of your last tax return sometimes works. But they usually want to make sure you have a job and income to repay the loan before they'll approve it.

I've worked in HR. We got employment verifications all the time on employees that were purchasing homes.

Answer 3

I work for a mortgage broker, and we have at least 4-5 different lenders that offer this program. They aren't banks that allow you to submit to them directly, you will have to go thru a reputable mortgage broker to submit your loan. We can do loans in all 50 states, so if you're interested email me and I will give you a call! Or if you prefer I can try to help you locate a company in your area...

[e-mail]

Answer 4

There was a great article in Yahoo today about how a lot of mortgage companies are abusing their clients by allowing people who are not eligible for a mortgage to get one anyway.

http://news.yahoo.com/s/csm/20070302/ts_csm/asubprime;_ylt=ApSrBwFMa5LwgOhUtA.e45934T0D

There is a lot of abuse in the industry. One of the questionable tactics was using a "no documentation" where the lender takes your word for your income.

Read the article and you can see how a mortgage can be a financial trap. Do a lot of reading on mortgages before you go for one. There are lots of things you need to know about.

Answer 5

Most of them have this program available now. Don't ever use one of the online "too good to be true" companies... Also, it is usually better to use a mortgage broker than a bank.

Answer 6

Give me a call at 1-866-597-2968 x11 We have more than a dozen lenders that will lend with bank statements.

Answer 7

Plenty of places will do it, and not all of them are subprime. In fact, on Desktop Originator select alternative documentation formats, and still get Fannie approvals.