JACKSONVILLE SELF EMPLOYMENT HOME LOAN
Jacksonville Self-Employed Mortgage Solution
A bank statement mortgage is the solution for Jacksonville self-employed borrowers looking to maximize the purchase power, cash out or refinance mortgage. If you are looking to qualify based on your business bank statements vs. traditional tax returns this is the program for you. Borrowers does not have to own 100% of the business to qualify. This product allows the underwriter to review the true cash flow of your business vs. tax returns limiting your purchase power.
Jacksonville Self-Employed Home Loans in 2024
Jacksonville self-employed borrowers have been getting the short end of the stick for quite some time, especially when the banks say they do not earn enough income to qualify for a loan. Because banks use the borrower’s tax returns to calculate the qualifying income, many self-employed borrowers cannot qualify for the home they desire. Since most business owners write off a lot of their income in the form of business expenses, this usually reduces their overall income available for a mortgage qualification. However, looking at the health of their business in the form of deposits made into their business bank accounts provides a more realistic view of the borrower’s income.
The Jacksonville bank statement program launched about 10 years ago and there have been several updates to it throughout the years. A Jacksonville bank statement loan averages the overall deposits into a borrower’s business account over a period of either 12 or 24 months, and then a deduction is made what they call an expense factor. The expense factor is a percentage of the revenue generated by the business that would be allocated toward the costs of running the business, with the default amount usually being 50%. Recently these programs have become more flexible to allow borrowers to maximize their income by allowing the use of up to 80% of the deposits into the qualifying income, depending on the type of business the borrower operates. In turn, this gives self-employed borrowers more purchasing power as they are able to qualify for higher loan amounts. This is a significant benefit for Jacksonville self-employed borrowers versus the traditional method banks use where they only calculate the taxable income on the tax returns for qualifying.
Some of the basic requirements for the bank statement program are a minimum credit score of 580 and that the borrower has been self-employed for at least two years. The minimum down payment options can vary from 5% to 15% down depending on the type of property and what it will be used for (i.e. primary home or investment).
You should contact your local mortgage broker to find out details so you can make an informed decision.
Jacksonville Self Employed Mortgage Pros and Cons
Pros:
No tax returns required
Low down payment compared to bank options
Lower credit score requirements
Qualify for a higher purchase price
Cons:
Minimum 2 years of self-employment
Full copies of 12 to 24 month bank statements
Interest rates might be slightly higher than traditional financing
Jacksonville Information Affecting Self-Employed Borrowers
We provide self-employment loans throughout the state of Florida including but not limited to the areas below.
Jacksonville is in Duval County and located on the Atlantic coast of Florida at the top of Florida on the northeast. Jacksonville population as of 2022 is 1,314,000 and counting as several states are moving down from the North to cities like Jacksonville. You can enjoy over 22 miles of beaches, park, street art, museums, and world class fishing. It has the largest urban park system in the nation and four times the size of Manhattan. This includes 7 state parks, a national preserve, 2 national parks, 400 city and gardens. The current mayor of Jacksonville is Lenny Curry. In fact, Georgia state line is only 11 miles from Jacksonville and with over 500 neighborhoods within Jacksonville makes it a great destination for home buyers looking for great schools and opportunities. Jacksonville was formed by Florida legislators who approved forming the town back on February 9th, 1832 and led by Isaiah D. Hart.
Did you know that Jacksonville port is the third largest seaport in Florida along with a major military and civilian deep-water port. This helps with banks, insurance, healthcare, and logistic companies. It is also a popular tourism destination. If you are looking for a nice real estate to buy your next home or condo on the water this is a great place to buy. Many self-employed borrowers are taking advantage of the bank statement mortgage to qualify for their next home or condo.
Below are some helpful links.
https://www.macrotrends.net/cities/23020/jacksonville/population#:~:text=The%20current%20metro%20area%20population,a%201.35%25%20increase%20from%202019.
https://en.wikipedia.org/wiki/Jacksonville,_Florida
https://www.visitjacksonville.com/
https://www.coj.net/mayor/meet-the-mayor
https://www.coj.net/
https://datacommons.org/place/geoId/1235000
Up To 90% LTV | Loan To Value | No Mortgage Insurance | Credit Scores Starting At 600
- Loans up to 10 million with 200k minimum loan amount
- 10% down on primary home purchase up to 3 million, NO mortgage insurance
- Two year self-employed required
- 12 to 24 month business or personal bank statements
- 30, 20, 15 year fixed or ARM available
- Interest only products available
- Purchase, cash out or rate and term refinancing
- Owner occupied, second homes and investment available
- Non-Warrantable condos allowed
- Two years seasoning for foreclosure, short sale, bankruptcy or deed in lieu
- Borrower can own as little as 50% of the business for the business bank statement mortgage and 25% for personal bank statements
