Case StudyOwner Occupied: Self-Employed Qualified Using 12-Months Business Bank Statements
Loan Amount: $475,000
Loan-To-Value: 65% LTV
Term: 5/1 ARM Interest-Only
Situation & Challenge
The self-employed homeowners in Washington state had seller financing on their primary residence coming due within a few months and needed to refinance.
Traditional conventional financing can be difficult for self-employed borrowers due to fluctuations in Adjusted Gross Income (AGI), which is most often the final number of conventional underwriters work from.
Solution & Result
First Capital worked with a non-QM lender that used the half of gross deposits from the most recent 12 months of business bank statements to calculate income.
The non-QM route was the way to go. Though painful and cumbersome at times, as all consumer loans tend to be, FCTD got the loan done, paying off the seller financing.