How a bank statement program might help you get a mortgage more easily

One of the challenges some families may have when seeking a mortgage is not showing enough income on paper via tax returns to qualify. Here’s some nuances about bank statement programs that might help you land a mortgage more successfully…

Traditionally when getting a mortgage most mortgage companies are going to want your W-2s or your pay stubs for supporting income to get a mortgage. If you’re self-employed there you will usually want your tax returns. In most cases the problematic element of tax returns that makes getting a mortgage more difficult is that most mortgage companies want to blend two years of tax return income together. That means if you had a good year and a bad year the bad year will adversely affect your income in the income averaging.

There is a program that in some cases will allow you to get a mortgage filing self-employed for last five years wherein the lender uses the most recent year of income tax returns to qualify. That might help some families, but it’s still predicated on using your tax returns. Some mortgage offer bank statement programs, one such lender New American Funding offers such a program. The program is truly a bank statement for income documentation loan. Here’s some nuances about the program that might help you land a mortgage more easily

  • 1 year or 6 months of bank statements needed for supporting income
  • Program allows for getting a mortgage 2 years after a short sale bankruptcy or foreclosure
  • Loans to $1,000,000 and in some cases to $2,000,000
  • Minimum credit score 680
  • Up to a 50% debt to income ratio
  • 25% equity minimum

Program can be used for a primary home, second home and for a rental property and allows for in some cashing out.

If you’ve been turned away for a mortgage because you have a complex financial profile this program could be a very flexible gap between bridging where you are financially right now and where you otherwise could be. Most traditional mortgages 30-year fixed rate loan supports rates presently in the low 4’s This program supports rates in the high 4’s/.

If you’re desiring to purchase or refinance a house and have been turned away before you owe it to yourself to at least explore the possibility of a bank statement program. The program is incredibly flexible and allows for out-of-the-box scenarios whereas most mortgage companies will turn in the towel the key is at work with a lender who is willing and able to explore your loan no matter how unique challenging or complex it otherwise might be.

Looking to get a mortgage? Get a no cost quote now.

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When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

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