Unlocking the Power of Bank Statement Loans: Stronghill’s Solution for Self-Employed Borrowers

There are over 16 million people in the United States that identify as self-employed. And of those millions, there is a large portion that are likely looking to fund their next big investment. Unfortunately, these types of borrowers often face difficulties securing financing from traditional banks. However, you can be the solution provider who offers a strong loan program to meet their mortgage needs.


The first step is partnering with the right wholesale mortgage partner .


At Stronghill Capital, you can access our highly-rated Income Achiever Program! This Bank Statement mortgage loan solution is designed to help your self-employed clients secure mortgage financing without dealing with strict traditional agency requirements.


With our speedy process, best-in-class technology, and consistency of execution, you can ensure you’re providing the best option for today’s entrepreneur. Ready to start closing more  mortgage loans this year? Here’s everything you need to know about this game-changing solution:


The Program: What is a Bank Statement loan?


Bank Statement loans are an alternative financing option that allows small-business owners or self-employed borrowers to secure a mortgage without having to provide traditional income documentation that’s generally required for loan approval.


Conventional loans typically require borrowers to provide proof of income in the form of tax returns, W-2s, or pay stubs. The problem here is that not everyone can prove their income the same way – especially self-employed individuals who file their taxes differently than a traditional full-time employee would at the end of the tax year.


Alternatively, our bank statement loan requirements are much more flexible. Instead of submitting tax returns, W-2s, or pay stubs, we allow your clients to qualify for a loan by simply submitting 12or 24 months of either personal or business bank statements. The program allows your client to use whichever bank account is easiest for them to show cashflow.


As your wholesale mortgage lending partner, we want to make sure we equip you with a strong solution that can set your self-employed clients up for success.


The Borrower: Who Benefits from this Program?


If you’re working with clients who have irregular income sources or can’t get proof of income from an employer, they may be a good fit for this type of mortgage solution.


These individuals are often small-business owners or self-employed (think freelancers, contract workers, consultants, real estate investors and agents). Although they can’t provide traditional income documentation to support cashflow, these professionals often have successful careers and can show proof of their regular cash flow through bank statements.


Case in point: We recently worked with a first-time home buyer who is part owner of a successful brewing company. Like many other small-business owners, they  had significant deductions and/or write-offs that reflected poorly on the amount of profit they showed. Unfortunately, this prevented them from qualifying for a traditional loan because their tax returns didn’t show enough income.


Luckily, this prospective homebuyer met with a loan officer who was able to provide an alternative solution. Thanks to the loan officer’s relationship with Stronghill Capital, she was able to offer her new client a creative financing option through our Income Achiever Bank Statement Program.


In the end, the borrower was able to qualify for more than he expected by simply submitting 24 months of bank statements. And in just 21 days, he was able to close on his dream home – all without showing his tax returns!


The Process: How to Close with Stronghill


We make it easy for you and your self-employed clients to close deals fast. Our Bank Statement Program allows your borrowers to skip the tax returns and instead qualify by simply submitting 12 to 24 months of personal or business bank statements.


That’s not all – with our program, your borrowers can combine their income with a co-borrower. Commingled accounts are also acceptable as long as the borrower owns 100% of the business.


Borrowers can also use alternative payment processing applications, like Square, Venmo, or Zelle, to submit deposits. This makes it easier for them to compile their bank statements.


The best part? We have a structure desk that will do all the hard work for you and calculate the client’s income. We “measure twice” (their calculation + Stronghill’s calculation) and “cut once,” to ensure the income they are utilizing fits our guidelines.


Other program highlights include:

  • 660+ FICO credit score
  • LTVs up to 90%
  • DTI up to 50%
    Purchase, Rate/Term, and Cash-Out Refinance Options available
  • Fixed, ARM and interest only term options available

 The Stronghill Advantage


It’s no secret that the mortgage industry can be unpredictable. In this last year alone, we’ve seen multiple lenders scale back originations and decrease their loan production, leaving brokers with fewer options for their clients.


That’s why more than ever, now is the time to partner with a reliable lender. Stronghill Capital can be that partner for you. We are actively growing loan production and have expanded our wholesale mortgage lending loan offerings to be an all-in-one solution provider.


When you partner with us, you get access to Non-QM, Non-Agency Jumbo, Investor Residential/DSCR, and Small Balance Commercial mortgage programs. With our common-sense underwriting approach, flexible guidelines, and competitive rates, you can reach more  of borrowers in today’s market and take your mortgage business to the next level.


Let’s Connect!