How Do Bank Statement Loans Work? | Mortgage Officer Answers!

Bank statement loans for self-employed borrowers work by providing an alternative cash flow method for mortgage approval. Traditional mortgage agencies rely on a review of your tax returns, which causes big problems for business owners who invest profits back into the business. The IRS provides self-employed people many options to take advantage of a tax code that rewards reinvestment...but this does not optimize your chances when it comes to qualifying for a mortgage. Non-QM mortgage loans fill this need through programs like the bank statement loan. These loans provide business owners, self-employed folks, 1099 contractors, etc. an opportunity to qualify for mortgage approval based on a good old fashioned cash flow analysis. The guidelines for these programs can be tricky, so it is best to work with a loan officer who has had lots of experience with non-QM products.

In this video, I walk through a dramatized case to review all aspects of the application, credit report, product guidelines, etc. to give YOU a greater understanding of how these loans work behind the scenes. This one scenario does not cover every possible bank statement loan approval option, but I hope by showing you how I review these loans you can be better prepared when it comes time to apply for a mortgage.

Bob Bloberson is an businessman who knows how to spend money to make money. His CPA does a great job optimizing his tax return to limit the amount he has to pay, but this has made it hard for him to qualify for a mortgage. Watch how I develop my review through the initial application, his credit report, the program guidelines and of course the bank statements themselves.

I am thankful to have the ability to offer bank statement mortgage loans to my clients, especially as so many people I work with are entrepreneurs, business owners, independent contractors and all other kinds of self-employed borrowers.

Mark Anderson, NMLS# 374393. Vice President/Mortgage Banker at Paramount Bank, NMLS# 551907. Equal Housing Lender. FDIC Insured. Paramount Bank is able to lend in all 50 states. Call or text me 24/7 to apply 314-599-0511 (that's my actual cell phone, not some sort of 'lead capture' bot.) Email me at: manderson@paramountbank.com. Please comment with your questions on the video - I aim to reply to all comments with answers.

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The lowest rate for your mortgage varies based on a lot of factors: credit score, loan amount, appraised value, down payment, property type (single family residence, condo, multi-family), income, etc. In addition to offering rates I believe you will find to be very competitive, I also help folks to optimize the various factors involved to obtain the best rate possible.

*I chose the domain, BESTMORTGAGEANSWERS.COM, to differentiate myself from the average mortgage loan officer by emphasizing the value I bring to my clients as an educator and consultant, not as a salesperson.

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About Me: I have worked as a mortgage loan officer since 2005 and have closed nearly $500 million in loan volume, all across the country. With my zero-pressure, consultative approach, I'm a great fit for first time home buyers, but also for anyone that is looking for high quality, transparent mortgage information. Paramount Bank is licensed to lend in all 50 states. I'd love to hear from you, whether you are looking to purchase a home or refinance. I live in St. Louis, Missouri, with my wife Rachel, along with our 3 cats and 13 chickens.

About Paramount Bank: We are a mortgage-focused bank and direct lender, with access to nearly every mortgage program in the universe: Conventional, FHA, VA, Jumbo, Construction, Renovation, Bridge Loans and specialty programs for self-employed borrowers.

If you are reading this far down, I'd like to thank you by inviting you to TEXT me 'JOIN' to 314-599-0511. I'm experimenting with a new platform that will allow me to deliver a select number of people CUSTOM daily OR weekly rate updates for your unique scenario.