As any mortgage pro can attest, income on tax documents doesn't always reflect a borrower's true financial capacity. For entrepreneurs, write-offs, erratic cash flows, and lack of declared income can make traditional income docs as useful as a helicopter ejector seat.
That's why many alternative lenders swap NOAs and T1s for bank statements when vetting income. Such programs have been getting more challenging, however.
Take six-month bank statement programs, for example, which is where lenders...
As any mortgage pro can attest, income on tax documents doesn't always reflect a borrower's true financial capacity. For entrepreneurs, write-offs, erratic cash flows, and lack of declared income can make traditional income docs as useful as a helicopter ejector seat.
That's why many alternative lenders swap NOAs and T1s for bank statements when vetting income. Such programs have been getting more challenging, however.
Take six-month bank statement programs, for example, which is where lenders annualize income based on a half year of cash flow—as evidenced by the borrower's bank statements. These flexible programs have been a dying breed at institutional lenders. But First National has brought the program back to life, at least for a while.
Its Excalibur alternative lending channel has a zesty new 6-month bank statement promo called "BFS6." We snagged time with EVP Scott McKenzie to dive into its significance.
You don't have access to this post on MortgageLogic.news at the moment, but if you upgrade your account you'll be able to see the whole thing, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.
This post is for MLN Pro subscribers only
Subscribe now