YES, however the loan process would likely be much easier using our 1099 income program. Keep in mind that a Bank Statement loan was designed for true business owners, and as an independent contractor earning 1099 wages is technically not self-employment.  

If your employer pays you in 1099 wages, then the only time you're considered self-employed is by the IRS when you file tax returns, and neither of these two programs uses tax returns.

If you receive 1099 wages, a 1099 Income Program is designed more for your type of income and may end up giving you more income—and even greater buying power than you would with a Bank Statement Loan.

The two programs are very similar, in terms of minimum down payment, minimum credit scores, etc.  

NO. Bank Statement Loans do not have prepayment penalties as long as the home is being occupied by the owner, or is being used as a second home/ vacation home.

No. Bank Statement Loans do not have prepayment penalties as long as the home is being occupied by the owner, or is being used as a second home/ vacation home.

Yes, but unless your business partner is also qualifying for the same home loan with you, then it would reduce the amount of income by their percentage, which could in turn significantly reduce the amount of house you can afford.

For instance, if you own 50% of the business, then you can only use 50% of the income from the bank statement income analysis.

Yes, we can blend two income sources. As the business owner, we will calculate your income using Bank Statements, and for your spouse, we'll calculate their income using W2's, paystubs, and a Employment Verification from their employer.  

No. A 4506-C is an IRS document that authorizes the lender to pull a tax return transcript.

Signing a 4506-C is NOT a requirement of a Bank Statement Loan.

Yes. Your family can contribute to your down payment and closing costs as long as the home you're buying is a Primary Residence or Second Home. Gift Funds cannot be used on Investment homes.

Gift funds can be used to cover 100% of the down payment and closing costs; however the applicant must have their OWN funds equal or greater than 5% of the purchase price, plus the reserves, which are usually 3-9 month's worth of the TOTAL new house payment (including property taxes, insurance, and property association dues).

If you're receiving Gift Funds, be sure to tell your Loan Originator so we can guide you through this part of the process.

Yes. This known as an Interested Party Contribution (IPC).  You may receive an IPC from a seller, a builder, or a realtor.  

If you're buying the home as a primary residence or second home, the total amount you can receive from all parties is up to 6% of the purchase price.  

If you're buying an investment home, you can receive up to 2% of the purchase price.

Remember, this type of credit must always be written into your purchase contract and reviewed by the lender.  

Yes, on a case-by-case basis. If you are qualifying for a bank statement loan, you may be asked to provide a letter from a licensed tax preparer.

On a Bank Statement Loan, the lender is not reviewing tax returns, so lenders typically rely on independent third-parties such as a licensed tax professional to verify certain aspects of your business.

Here are some examples of the things commonly requested:

• Verify your business's expense ratio (%)
• Verify the length of time your business has been operational.
• Verify your ownership percentage of the business

No. The letter can come from any licensed tax preparer, accountant, or CPA. The letter must appear on their letterhead, be signed and dated.  

The lender needs to be able to verify the tax professional's Preparer Tax Identification Number (PTIN) or CPA license number.  

Yes. The letter being provided relies on third-party information provided by a licensed tax professional, and is not expected to directly match the information seen in the tax returns.

Unlike a traditional home loan program, on a Bank Statement Home loan program, the lender does NOT pull a tax return transcript of the applicant's personal or business returns from the IRS.

No. Co-signers and applicants who are not occupying the new home are not allowed on a Bank Statement Loan Program.

Yes, as long as the Bankruptcy has been discharged for at least 1 month ago or longer. Depending on the length of time after discharge, it may affect the minimum down payment on a home.  

For instance:

• If the Bankruptcy was discharged 1-24 months ago, then your minimum down payment would be 25% of the purchase price.
• If the Bankruptcy was discharged 25-48 months ago, then your minimum down payment would be 15% of the purchase price.

Yes, as long as the Foreclosure is completed at least 1 month ago or longer.  Depending on the length of time after the certificate of title date, it may affect the minimum down payment on a home.

For instance:

• If the certificate of title date was 1-24 months ago, then your minimum down payment would be 25% of the purchase price.
• If the certificate of title date was 25-48 months ago, then your minimum down payment would be 15% of the purchase price.

Yes, as long as the sale date of the Short Sale was at least 1 month ago or longer.  Depending on the length of time after the sale date, it may affect the minimum down payment on a home.

For instance:

• If the certificate of title date was 1-24 months ago, then your minimum down payment would be 25% of the purchase price.
• If the certificate of title date was 25-48 months ago, then your minimum down payment would be 15% of the purchase price.

No. Cryptocurrency deposits cannot be used to qualify for a Bank Statement Loan. Only traditional US bank accounts can be used in the income calculation.  

Additionally, Cryptocurrency cannot be used towards the down payment, settlement charges or reserves on a Bank Statement Loan.  

If you intend to utilize Cryptocurrency towards down payment, settlement charges, or reserves, the funds must be placed in a US bank account and seasoned for a minimum of 60 days before these funds can be used in a real estate transaction.

Yes. The letter being provided relies on third-party information provided by a licensed tax professional, and is not expected to directly match the information seen in the tax returns. Unlike a traditional home loan program, on a Bank Statement Home loan program, the lender does NOT pull a tax return transcript of the applicant's personal or business returns from the IRS.