Okay. So bank statement lending. Ooh, let’s talk about that. This would be for somebody that maybe they don’t file tax returns, or maybe they do file tax returns, they just write off all their income. I’ve had people make millions of dollars that show absolutely $0 to the IRS. They can, but how do they buy a house? Cash? They can write a check or they can finance it. It just depends on what they want to do. Use bank statements for this type of loan.
So what we’ll take is 12 months or 24 months’ worth of bank statements. We’ll go through and we’ll look at all the deposits that go into the bank account and we’ll average those deposits out to create income. If they’re business bank statements, it’s 50% of the deposits. So if they put $500,000 of deposits in there, we’re going to give 250 to the business, 250 to them personally. If we’re using personal bank accounts statements, it’s a hundred percent. Now it’s not going to be like one time occurrences. So like an IRS refund, we have to back that out. So we have to understand what their business is, who their clients are, how they typically get paid. As long as I can show a consistent cash deposit, then I can treat all cash deposits as your business, right?
So it’s understanding how they get paid and then going through that. We have to show that they’ve been self-employed for two years. You could use 1099 for two years. So it’s either self-employed or 1099, you still got to know that they’ve been in the business long enough and then, but we’ll take 12 months worth of bank statements. Starts out with just 10% down and rates they’ll go in the fours but you know, typically we say fours, depending on credit score up to I’ve seen them go up to seven and a half, eight and a half percent. But that’s because we’re going all the way down to a 600 credit score or a 590 credit score or a 585 credit score. I mean, they get pretty expensive, but for those individuals, I just tell them, look, break, fix scenario. Let’s get you into the house. It’s better than renting.