This is the largest and most popular program with the Non-Qualified Mortgage or Non-QM arena. It is primarily, but not limited to, self employed borrowers who make more money than is shown on their tax returns. What do I mean?
Hotel owner buys hotels, fixes them up, then gets the operating and making money, to then flip them for a lot more money. In 2018, this hotel owner spent millions on fixing a hotel so the 2018 taxes were negative income, they lost over 100k. The reality was that they made 100s of thousands per month, but this could only be illustrated using the deposits and expenses within the previous 12 or 24 months of bank statements. We still needed a profit and loss and other things to confirm all this, but we don’t need tax returns.
There are many other examples of self employed borrowers deducting too much on their taxes, then uses the bank statements to qualify for a purchase. Does this sound like you? Give us a shout and see how we can help you!