ORLANDO SELF EMPLOYMENT HOME LOAN
Orlando Self-Employed Mortgage Solution
A bank statement mortgage is the solution for Orlando 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.
Orlando Self-Employed Home Loans in 2024
Orlando 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 Orlando bank statement program launched about 10 years ago and there have been several updates to it throughout the years. A Orlando 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 Orlando 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.
Orlando 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
Orlando Information Affecting Self-Employed Borrowers
We provide self-employment loans throughout the state of Florida including but not limited to the areas below.
Orlando population as of 2022 is 2,038,000 and is centered in the middle of Florida. The nick name of Orlando is the city of beautiful. Orlando is the 13th busiest airport and top destination for residents and tourist. It draws more than 75 million visitors each year to Orlando mainly for the Walt Disney World Resort which was founded in 1971. Orlando is home to more than a dozen them parks including Magic Kingdom, Epcot, Water parks and Universal studios which is a large theme park inside Orlando city limits. It is home of the university of central Florida which is a top ranked academics from US News 2022-2023. Back in April 2022 the average selling median home price was 361,000 dollars. Buddy Dyer is the current Orlando Mayor and the longest mayor serving Orlando since 2003. This is very reasonable for anyone looking for a great home in a safe city with amazing schools. With other 136,000 homes and more being built you can be sure to find a good home or condo within the city. If you are looking to move to Orlando, you should check out the bank statement home loan for your next mortgage. With high-end restaurants, great bars, and nightlife along with Orlando Museum of Art there is plenty to do.
Below are helpful links:
https://www.orlando.gov/Home
https://www.universalorlando.com/web/en/us
https://www.ucf.edu/academics/us-news-rankings/
https://www.visitorlando.com/
https://en.wikipedia.org/wiki/Orlando,_Florida
https://www.ucf.edu/
https://datacommons.org/place/geoId/1253000?utm_medium=explore&mprop=count&popt=HousingUnit&hl=en
https://en.wikipedia.org/wiki/Buddy_Dyer#:~:text=John%20Hugh%20%22Buddy%22%20Dyer%20(,of%20the%20Florida%20Democratic%20Party.
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
