Your Mortgage Lending Questions, Answered

Your Mortgage Lending Questions, Answered

At Bank of England Mortgage, we are dedicated to serving as your partner in attaining the American Dream of Homeownership. Our goal is to ensure that borrowers make well-informed decisions when selecting a mortgage. We provide this information so that borrowers learn about the types of home mortgage loans, understand the mortgage process and the marketplace.

2. What type of mortgages can be obtained without tax returns?

A. Mortgages for the Self-employed

Self-employed borrowers can use their bank statement deposits to qualify for a mortgage. Our bank statement program means that bank statement deposits can be used as qualifying income towards determining your loan instead of tax returns. In other words, deposits made to your bank account serve as your income when you apply for a mortgage loan.

B. Independent contractors

Independent contractors or employees who receive 1099s, such as realtors, consultants or other independent contractor types can qualify for a mortgage. A 1099 tax statement provides a reliable proof of income, when independent contractors apply for a loan with Bank of England Mortgage. Independent contractors can also qualify using our bank statement program.

C. Wage earners

Wage earners can apply for a mortgage loan without the need for tax returns or W-2’s, after salaries and wages have been verified directly through the employer.

D. High net-worth individuals

High net-worth individuals are borrowers who have significant liquid assets than the requested loan amount. Also known as an asset depletion loan. Our asset depletion loans do not require tax returns.

E. Investment property owners

Many investors can have a tough time qualifying for a mortgage based off of their tax returns. We can qualify investors for a mortgage without tax returns, based off of the cash flow of the property. If the market rental income of the investment property is greater than or equal to the new mortgage payment, we can qualify the loan through our debt service coverage program.

3. What documents are needed for a mortgage loan?

The type of documentation needed depends on the loan program. But, usually, the following are required - ID, homeowner’s insurance, income and assets as determined by the loan officer. If a purchase, then the sales contract, a copy of an earnest money deposit and a corresponding bank statement verifying cleared deposits.

4. Does being a self-employed borrower affect getting a mortgage loan?

No. Most lenders want to see the last 2 years of tax returns and use the net income, which in many cases may not be enough to qualify. Bank of England Mortgage can use bank deposits as qualifying income. Also, sometimes, we can use only 1 year of tax returns to qualify as full documentation.

5. What FICO scores do you need to qualify for a mortgage loan?

Most loan programs require a minimum FICO score of 620. We can provide recommendations for increasing credit scores, if the current scores are below the minimum requirement.

6. How much down payment is required for a mortgage?

As little as 3% up to the county loan limit or as little as 5% for a jumbo loan. As of 2021, the minimum county loan limit is $548,250. For properties located in designated high-cost areas, loan limit amounts will be higher. Loans that exceed the respective county loan limits are considered as jumbo loans.

Click here to find your county by county loan limit by each state with this interactive map.*

Click here to download a PDF chart and view all US county by county loan limits for each state.*

(*Map and Chart Source: Federal Housing Finance Agency)

7. How easy is it for borrowers to obtain a mortgage loan?

We make it quick and easy to apply online for a Bank of England Mortgage loan program. To get started, click on the APPLY NOW! button on any page and let Bank of England Mortgage’s FASTAPP securely and confidentially get you on your mortgage loan journey or contact us directly to speak with any of our expert Team members.

8. Can I get a mortgage without proof of income?

If you are purchasing or refinancing a primary residence, we must follow the “ability to repay” (ATR) rules. The ATR can be achieved by using bank statement deposits for those who are self-employed, or by a borrower having sufficient liquid assets to cover the requested loan amount.

9. What states does Bank of England Mortgage lend in?

Our mortgages are available in all 50 states and DC.

10. How are your mortgage loan programs impacted by COVID-19?

COVID-19 has made the world a challenging place right now. Bank of England Mortgage stands by its commitment to safely continue to provide mortgage loan programs and services. Underwriters will confirm that your income is stable, verification of employment done just prior to closing to confirm borrower is still employed, and if self-employed confirm income is still coming in.

11. How do I contact your company if my question isn’t answered here?

Talk to us today. In person click here to contact one of our expert team members or call us at (646) 564-3498. And, you can conveniently message us, 24/7, on our monitored Contact Us page.

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