Tampa Self-Employed Mortgage Solution

A bank statement mortgage is the solution for Tampa 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.

Tampa Self-Employed Home Loans in 2022

Tampa 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 Tampa bank statement program launched about 10 years ago and there have been several updates to it throughout the years. A Tampa 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 Tampa 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.

Tampa Self Employed Mortgage Pros and Cons

No tax returns required
Low down payment compared to bank options
Lower credit score requirements
Qualify for a higher purchase price

Minimum 2 years of self-employment
Full copies of 12 to 24 month bank statements
Interest rates might be slightly higher than traditional financing

Tampa Information Affecting Self-Employed Borrowers

We provide self-employment loans throughout the state of Florida including but not limited to the areas below.

Coral Gables • Doral • Hialeah • Aventura

Tampa has a population of 2,945,000 as of 2022. Tampa has grown over the last several years in part due to the super bowl win at the Raymond James Stadium with Tom Brady and the Tampa Bay Buccaneers back in 2021. Tampa bay is along Florida’s Gulf Coast on the West side of Florida. It is best known for major business centers, Busch gardens, Florida Aquarium, Ybor city which was developed by Spanish workers back in the 20th century. It has great bars, nightlife, and dining along with a top tourism destination. The development of downtown which includes Water Street a 3 billion dollar mix use district that will span over 50 acres and included 9 million square feet of residential, retail, office, educational and hospitality space. Another top area is Midtown Tampa which is a 500-million-dollar development that has 240,000 square feet of entertainment and retail space. This included 400 residential units, 750,000 square feet of class A office space and hotel space. Did you know in 2018 that Tampa was named one of the top ten markets for real estate investors? Good time to look at bank statement home loans for your next mortgage so you can invest in Tampa Bay. Many buyers are taking advantage of real estate transactions using different mortgage programs like DSCR, debt service cover ratio, loan or 1099 loan program to purchase their next condo or home.

Below are some helpful links:

Up To 90% LTV | Loan To Value | No Mortgage Insurance | Credit Scores Starting At 600

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