3 Kinds of Homeowners Who Can Get Bank Statement Home Loans in Houston

You want to apply for a home loan program but you can't verify your income in the traditional way. You can’t come with pay stubs, W2s, or tax returns of the previous two years. Wondering what to do? Well, you can fulfill your dream of homeownership with a bank statement home loan.

As the name suggests, you just need to show your bank statement to verify your income to the lender. But can anyone get approval for bank statement home loans in Houston? Well, no! Only some specific individuals can get approval for this loan. Here is who can get approval -

• Self-employed

Self-employed individuals are the most common borrowers, who can easily qualify for this loan program. Though self-employed individuals make an income, this is difficult for them to verify it using paystubs. One can easily assume that tax returns would be sufficient, but the lenders need to use the net income that you claim not the true net income that you make. Before this loan program come, it was difficult for self-employed individuals to purchase a house. The bank statement loan program makes it possible for the self-employed to buy property easily. By offering the lender 12 months of bank statements, which show the regular receipt of income, these borrowers can get a loan for a home. To qualify for this loan, you need to have good or excellent credit, plenty of money available to pay your mortgage payment, and a decent down payment on the house.

• Seasonal workers

Many people in the US work seasonally - they spend one season making the year’s income. If you are a seasonal worker, you are a great candidate for this loan. A conventional lender wants to know what the borrower made in a season and then annualize it to see how much they have made in a year. This makes it impossible to qualify for a loan. On the other hand, bank statement loans allow a borrower like you to document your income with your bank statements. You should hold the seasonal job for at least two years to use the income. The lender will still annualize the income but can use any other income you bring in regularly with your bank statements.

• Commissioned individuals

Commissioned employees are the ones who get paid for making a sale. Being a commissioned employee, it can be difficult for you to qualify for a conventional home loan program. It is because when you work on a commission basis, you may have a lot of write-offs for your job. These write-offs will lower the total amount of income you can use to qualify for a loan. But with bank statement home loans, the lender will deduct fewer expenses from your income to give you a better chance of approval.

Are you one of the mentioned ones? Then, without waiting any more, apply for the loan today!