SELF-EMPLOYED SECOND MORTGAGE

USE YOUR BANK STATEMENTS TO QUALIFY FOR SECOND MORTGAGE !

What is a Self Employed Second Mortgage? A Self-Employed Second Mortgage is a type of second mortgage where borrowers can qualify using personal or business bank statements and is ideal for self-employed business owners, 1099 contractors, freelancers, and retirees who take deductions on their taxes, ultimately reducing their net income or taxable income to qualify. How much can I Borrow on a Self Employed Second Mortgage? The amount you can borrow with a second mortgage depends on the remaining equity value of your home, minus the 1st mortgage you owe. The amount of the second mortgage can vary, but between 65%-100% of the equity is a good starting point. Benefits of a Self Employed Second Mortgage? Borrowers can use a second mortgages to finance large purchases such as a new vehicle, second home, down payment of an rental income investment property, consolidate debt, pay for their child’s college education, renovate their home or who just need cash. How do I qualify for a Self Employed Second Mortgage? To qualify, your income is calculated by adding up all the deposits in your business and/or personal account for either a 12 or 24-month period, and then dividing the total by the same number of months. This method is very effective because it allows their income to be calculated based on gross deposits. It is important to note that the final qualifying income for buisnesses deposits is less than direct personal deposits for services rendered. Is a Self Employed Second Mortgage the same as a Stand Alone Second Mortgage YES! Usually a Stand Alone Second are advertised using tax returns to qualify not bank statement deposits. At 1st Florida Lending, we do offer both Bank Statement Deposit and (“full doc stand alone second mortgages”) using gross tax return and W2 income at a lower rate.

Self-Employed Second Mortgage Loans are popular with borrowers listed below

Qualifying for a Self-Employed Bank Statement Loan Bank Statement Loans are utilized by a wide range of self-employed professionals, including Business owners, Freelance employees, Consultants, Contract workers, Independent contractors, Sole proprietors, Online retailers, Economy workers, Realtors, Entrepreneurs and many other types of self-employed people, etc... Being self-employed it can be difficult to obtain a mortgage. The facts are that most self-employed would agree that their tax returns don't really show their true income as many tend to write off many expenses over that a W-2 wage earner. Regardless of what you make for income, tax write-offs and deductions reduce your taxable income that can affect your debt-to-income ratios. As a result, your net taxable income (after deductions) may disqualify you for a traditional mortgage for purchasing and/or refinancing ! Q. How do we calculate income utilizing personal bank statements or business bank statements? • Personal Bank Statement Loan: Income received for your goods and/or services is payable to your personal name and deposited into your personal bank account. • Business Bank Statement Loan: Income received for your goods and/or services is payable to your business name and deposited into your business bank account. Determining Qualifying Income • We use total bank statement deposits to establish a monthly qualifying Income. Eligible income is calculated differently between a personal bank statement and business bank statement loan. • Personal Bank Statement Loan: We count 100% of your deposits which is utilized in Analysis • Business Bank Statement Loan: : We count up to 85% of your deposits which is utilized in Analysis

Borrowing Matrix Eligible Borrowers • US Citizens • Permanent Resident Aliens • Non-Permanent Resident Aliens o Visa E/G/H/L/O/P/TN • Non-Occupant Co-Borrowers Loan Amount • Minimum Loan Amount $200,000 • Max Loan Amount $1,000,000 Ineligible Borrowers • Foreign Nationals • Irrevocable Trusts or Land Trusts • Diplomatic immunity Qualifying Income Documentation • Full Doc - 1 Year Tax Returns • Stated - 12 months Bank Statements Reserves • Cash out may be used for reserves • No Gifts of equity allowed Eligible Property Types • Primary Home: No reductions • Second Home • Investment Property • 2-4 Multi Family Unit • Condos: FNMA Warrantable • Non-Warrantable Condo ( case by case only) Ineligible Property Types • Condotels • Rural/Ag or Vacant Land • Unique(dome, berm,etc) • Condition C5 or C6 • Manufactured/Mobile homes • Co-ops • Mixed-use Appraisal Type • AMC Appraisal Only