Charlotte, NC Bank Statement Loans: An MLO’s Guide to Closing More Deals

The thriving real estate market in Charlotte, North Carolina, continues to attract a diverse group of homebuyers and investors. Known for its robust economy, rich cultural heritage, and steady population growth, the city presents abundant opportunities for property ownership. Yet, for self-employed individuals and non-traditional earners, securing a mortgage can be challenging. Thankfully, NQM Funding, LLC offers specialized financing options such as bank statement loans, making homeownership and real estate investment accessible to those who may struggle to qualify for conventional loans.

What Are Bank Statement Loans?

Bank statement loans are uniquely designed to accommodate borrowers who do not fit the typical mold required by traditional lending standards. Instead of relying on W-2s and tax returns to verify income, these loans use bank statements to provide a more accurate picture of a borrower’s cash flow. This approach is particularly advantageous for self-employed individuals, entrepreneurs, and real estate investors.

Key Features of NQM Funding’s Bank Statement Loans:

• Simplified Income Verification: No need for tax returns. Borrowers can qualify based on bank statement deposits, offering flexibility for those with non-traditional income.
• High Loan Amounts: Available for primary homes, second homes, and investment properties, with loan amounts up to $3 million.
• Competitive LTV Ratios: High loan-to-value options are available, making it easier for clients to purchase or refinance properties in Charlotte’s competitive market.

The Charlotte Real Estate Advantage

Charlotte is one of the most dynamic housing markets in the United States, boasting a strong rental market and a steady stream of new residents drawn to its economic opportunities and quality of life. The city’s real estate landscape features everything from luxury homes in SouthPark to investment properties in up-and-coming neighborhoods. In such a thriving market, having flexible and accessible financing is crucial.

NQM Funding’s bank statement loans are an ideal solution for Charlotte’s real estate market, providing the tools necessary for self-employed buyers and investors to capitalize on opportunities. Whether it’s for purchasing a new home or expanding a real estate portfolio, these loans offer the flexibility needed to meet diverse financial scenarios.

How NQM Funding’s Bank Statement Loan Programs Work

At NQM Funding, the goal is to make the mortgage process as straightforward as possible for borrowers who might not meet traditional income verification requirements. Here’s how these loan programs are structured:

1. P&L + 2-Month Bank Statement Option
One of the standout features of NQM Funding’s offering is the P&L (Profit and Loss statement) + 2-month bank statement option. This program is especially beneficial for business owners and self-employed borrowers who prefer to provide streamlined documentation.

• Income Verification: Instead of providing extensive documentation, borrowers can use a professionally prepared P&L statement, supported by two months of recent bank statements. This combination simplifies the underwriting process while still demonstrating the borrower’s ability to repay.
• Flexibility for Fluctuating Incomes: This option is ideal for clients whose income may vary throughout the year, such as seasonal business owners or consultants.
• Professional P&L Preparation: To ensure accuracy, it’s recommended that the P&L be prepared by a certified accountant, making the approval process smoother.

2. Traditional Bank Statement Loan Option
In addition to the P&L + 2-month bank statement program, NQM Funding also offers a standard bank statement loan product. Borrowers can qualify by providing 12 or 24 months of personal or business bank statements.

• Personal vs. Business Accounts: If using personal bank statements, NQM Funding considers 100% of eligible deposits. When using business bank statements, a percentage of the deposits—typically between 50% and 70%, depending on the nature of the business—may be considered as income.
• LTV Ratios and Credit Score Requirements: NQM Funding provides generous LTV ratios, with higher LTVs available for borrowers with strong credit profiles.

Advantages of Bank Statement Loans with NQM Funding

NQM Funding stands out in the market for its ability to tailor mortgage solutions to the specific needs of self-employed borrowers and real estate investors. Here are some of the top advantages of choosing NQM Funding:

1. Tailored Income Assessment
Using bank statements or the P&L + 2-month bank statement option, NQM Funding allows borrowers to present their income in a way that reflects their true financial health. This is crucial for clients who write off significant expenses for tax purposes or have fluctuating income.

2. Higher Loan Amounts and Flexible Terms
Charlotte’s real estate market includes a range of high-value properties, and NQM Funding’s loan programs are designed to accommodate these needs. Loan amounts up to $3 million mean borrowers can finance luxury properties or expand their investment portfolios. Additionally, flexible loan terms, such as interest-only options, are available to suit various financial strategies.

3. Investment Property Support
For real estate investors, NQM Funding’s bank statement loans are a game-changer. Investors can use rental income projections to qualify, and loans are available for single-family homes, condos, and multi-unit properties. The ability to purchase or refinance investment properties without traditional income verification gives investors a powerful tool to grow their assets.

How to Qualify for a Bank Statement Loan with NQM Funding

NQM Funding simplifies the qualification process, making it accessible for a wide range of borrowers. Here’s what mortgage professionals need to know:

Step 1: Prepare the Necessary Documentation
Borrowers need to provide either:

• 12 or 24 months of bank statements, or
• A P&L statement prepared by a CPA, along with 2 months of bank statements.

The choice depends on which option best suits the borrower’s financial profile. For example, a borrower with variable income throughout the year might benefit from the P&L + 2-month bank statement option.

Step 2: Assess Credit and Property Eligibility
Borrowers should have a clean credit history, though NQM Funding offers flexibility depending on the LTV ratio and property type. Eligible properties include single-family homes, condos, and certain investment properties. Each loan is assessed holistically, considering the borrower’s cash flow and property value.

Step 3: Submit for Underwriting
The underwriting process at NQM Funding is efficient and borrower-friendly. The focus is on creating a smooth experience, with a commitment to fast turnarounds. The dedicated team ensures every loan is evaluated fairly, prioritizing the borrower’s unique financial situation.

Common Questions About Bank Statement Loans

Q: What kind of bank statements are required?
A: NQM Funding accepts 12 or 24 months of personal or business bank statements. Alternatively, a P&L statement plus 2 months of bank statements can be used for streamlined documentation.

Q: How is income calculated?
A: For personal bank statements, 100% of eligible deposits are typically considered. For business bank statements, a portion of the deposits may be used, depending on business expenses and structure. The P&L option allows for a more comprehensive income analysis.

Q: Are there any property restrictions in Charlotte?
A: NQM Funding supports a wide variety of property types, including single-family homes, condos, and multi-unit investment properties. Specific guidelines may apply, but NQM’s flexible approach accommodates most needs.

Why Choose NQM Funding?

NQM Funding isn’t just another lender—it’s your partner in navigating the complexities of non-QM financing. With a focus on personalized service and innovative loan solutions, NQM Funding empowers mortgage professionals to serve clients better. The streamlined underwriting process, combined with a deep understanding of the self-employed market, ensures a seamless experience.

Ready to get started? Visit our homepage or get a quick quote today and see how NQM Funding can help you and your clients thrive in Charlotte’s vibrant real estate market.