Any Company Do Bank Statement Loans Starting At Or Below $100K?

Question

Hello! So I've been looking at some properties to owner occupy (But turn into a rental in short order! Hopefully I'll find something good for a live in BRRR), and with how screwy everything is with financing right now I've run into some interesting issues. I'm self employed and due to a few factors traditional plain vanilla bank loans are off the table for now, but I have the income and cash to get something done. I'm looking to buy in an area where prices are pretty low (A certain part of Northern Idaho), I am moving there myself to cut costs so I can invest more. Think 3 bedroom fixers under $100K to just above $100K, nice/bigger houses can still be low $100s depending on size/quality/location, up to maybe $200K for pretty large/nice and renovated places.

Other than finding a straight up owner finance situation, I'm basically looking at bank statement loans (For those not familiar, basically basing income off of the cash flow you have in your bank accounts for approval process) or private money, unless I'm missing something even more clever! Feel free to throw out other ideas. But really I'm hoping for some good tips on bank statement loan companies that are actually still lending right now.

Basically with the 25-30% down with private money I have found I'm pretty limited in what I can buy because I don't want to go over $30K down, not to mention the rates... But bigger lenders that do bank statement loans @ 20% down (was 10-15% before Covid) don't want to finance under $150K. So I have a big hole in what I can purchase RIGHT at the price point I probably want to purchase in! There are sub $100K deals, and I just got swooped by a fast close offer on one literally yesterday (Unless the deal falls through, I am official backup), but they're just rare enough that I'm worried about the timeline for my move. Needing to be closed within say 2-2.5 months means I can't dilly dally TOO much with waiting around.

I tried and found some companies that do bank statement loans still, but their criteria right now is a little wacky as mentioned above. Sprout Mortgage and HomeExpress are both doing those products again (They weren't for awhile), but they've changed criteria because of Covid. Basically you need to be at $150K financed, 20% down, and probably some reserves too. IIRC one or both of them were also going down to $100K financed before Covid. UGH! I've heard basically nobody else that was doing these is back into the game yet, but I'm hoping some others are and I just didn't find them yet.

So does anybody know of a company that does bank statement loans of under $150K that's actually going right now? Obviously it would be amazing if they were still doing lower pre Covid down payments, but 20% even would help me extend my buying power to right where I need to be, and the rates are still much better than private lenders.

Thank you in advance for any advice for recommendations!

Tyler Wagner · Answer

HI @Vaughn K., it sounds like to me that private money would be the way to go until you can provide tax returns. And then of course, when you get a place fixed up, get all of your money back when you get the bank loan going.
I am a real estate agent in North Idaho, if I can be of any service to you, send me a message and I can also connect you to some private money folks here as well,
Thanks,

Tyler

Vaughn K. · Answer

So perhaps a better question to ask:

Does anybody know of any bank statement or cash flow lenders that were doing sub $150K or even sub $100K BEFORE Covid?

Those guys will probably return to it when they can, so I can always follow up with them when things normalize a bit.

The property I am buying would need a minimum ARV of $187.5K to refi with them to arrive at $150K financed, and that's probably right on the edge of what it might appraise for after a massive amount of upgrades. I should be able to refi much sooner if I don't need to hit that number.

Vaughn K. · Answer

As I said in my PM I found somebody for private money, but it would be nice to have one more tool in the tool box. The house I just got under contract will possibly be right on the edge of the minimum finance amount even after I've made some improvements, and I will certainly be able to refi with a bank statement loan company faster than with a traditional lender as they need at least a few years of docs that all show what they want to see. So even if everything is up to snuff next year I'd still need another full year after that, whereas the bank statement or cashflow lenders would give me a 30 year fixed right now.

Vaughn K. · Answer

Hi Tom,

Thanks for that. If they'll do bank statements that may well work for me then, I'll have to check into that further.

Tom S. · Answer

@Vaughn K.  Vaughn - Sofi asked me for either a paystub or a bank statement.  I provided a paystub, an they said 2-4 days to get back to me.  Then they responded about 30 min later I was approved.

Vaughn K. · Answer

Well, they WERE shut down. However HomeExpress opened up for shop again a few weeks or a month ago, and Sprout Mortgage is juuust starting now, but not even 100% sure on their underwriting standards. So those secondary markets have got going again, just with higher down payments and some other tweaks. Both would actually be totally fine for me with most of their terms, except they only want to do houses $150K+. So for anybody else reading this right now, those options ARE back on the table if they work for you.

Vaughn K. · Answer

Hi Tom,

Thanks for the info. I got a Discover Personal Loan several years ago and fully paid it off a few years back. They were solid to work with, but I don't know if they would do it now with my exact situation as it sits... With SoFi and Discover what kind of documentation did they ask for? That's part of my problem. I'm self employed, and cash flow/bank statements are a lot better and a lot more reflective of my real income/financial situation. So anybody that demands full tax returns for years and/or crazy accounting stuff is probably going to be a no go.

David M. · Answer

@Vaughn K.

No, I heard QM loans were shutdown with COVID.  You'd have to find a local bank that would carry the note.  Remember, if the lender can't re-sell the mortgage on the secondary market they lose their liquidity.  So, the secondary market has to start accepting that criteria again.

Sorry to be a naysayer.  I hope things work out for you.  Good luck.

Tom S. · Answer

@Vaughn K.  I was able to successfully get approved recently for unsecured personal loans thru SoFi and Discover.  SoFi for $50k and Discover $35k.  Interest rates are higher, around 10%, but same day approval and funding.  No fees at all, no prepayment and a smooth process IMO.

I ended up only going with SoFi but had the funds in my checking account the very next business day!

Hope that helps,

- Tom

Any Company Do Bank Statement Loans Starting At Or Below $100K?

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