Bank Statement Loans, a Type of non-QM Loan - by George Diamantakis

George Diamantakis, Snr Loan Officer - Phone: (516) 860-9978

In this short video, Snr Loan Officer George Diamantakis discusses a type of non-qualified mortgage loan called a "bank statement loan". What is it? What profile of home buyer does it fit?

We have another product, which is a bank statement product. And this is more of "not a 1099 earner"; it's more of a person who owns a business and takes revenue in. So the 12-month bank statement, 24-month bank statement, we have a 3-month bank statement.

What we do is, we average the deposits in that business bank account that are coming in through business deposits. And then we take an average of the monthly, right?

So if you have a contractor who has a bunch of employees, they have a really high expense factor because they have payroll, they're buying supplies typically, um, and so forth. So their expense would be a little higher. So if they're showing, I don't know, $200,000 a month on average in deposits, but a portion of that is obviously coming out for supplies, payroll, and so forth, we'll use a higher expense factor of 85%.

And then knowing that they have all these expenses, but 85% on 200 grand is $30,000 a month for that person in order to, I'm sorry. It leaves us with 15%, uh, income. 15% income is $30,000 a month on 200 grand. And that's a big, that's a big number. So when you take that and try to claim the taxes on it, that ends up costing them a ton of money on their tax returns.

Now, if you have a contractor, I'm gonna use the same thing, but they're not a general contractor, they're a subcontractor. Now it's a little different because they're not buying the product, they're just sub to do the work, and then they're able to use a lesser expense factor. So that 200 grand, let's say that person's a big subcontractor, you might be using a hundred thousand a month because we're using 50% expense, which is really good.

Bank statement loans are creative financial products fitting the needs of specific types of home buyers who wouldn't otherwise qualify for a traditional mortgage like an FHA loan. Cliffco Mortgage Bankers offers multiple types of non-QM loans in the Long Island NY real estate market, and in some other States, including CT, NJ, PA, TX and FL.

Have a Question? Start a Conversation With Our Expert:

 






            
        
        
        




    
        
            10%
            
                
                
            
        
        
        
            
                Thank you for reaching out to us. A member of our team will reach out to you shortly.
                
            
        
                                    
                                        
                                                
                            
                                
                                                                                            
                                                                
                                                                                                                
                                                                                            First Name
                                                                                                                                    
                                                
                                            

                                            

                                        
                                    
                                
                                

                                                                    
                                

                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                
                                                                                                                
                                                                                            Last Name
                                                                                                                                    
                                                
                                            

                                            

                                        
                                    
                                
                                

                                                                    
                                

                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                
                                                                        
                                
                                

                                                                    
                                

                                
                                                                                                                                                                                                        
                                                                                Email
                                                                                                                        
                                            
                                        
                                        

                                    
                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                
                                                                        
                                
                                

                                                                    
                                

                                
                                                                                                                                                                                                                                        
                                                                                Phone Number
                                                                                                                        
                                            
                                        
                                        

                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                
                                                                        
                                
                                

                                                                
                                                                        Questions?
                                                                                                            
                                        
                                    
                                    

                                
                                                                    
                                

                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                
                                        
                                            

                                        
                                    
                                                                
                                                        
                                                                                                                                
                                                                                                            
                                                                                                                                
                            
                        

                    
                


                            
        
            * Required Field