Bank Statement Loans in High Point, NC

Furniture shapes the calendar

High Point has been a furniture manufacturing town for generations, and its showrooms host the High Point Market each spring and fall. Designers, independent sales representatives, photographers, stagers, caterers, drivers and hundreds of temporary vendors work near those weeks. Many of the people in this cluster are paid by project or commission, and a good share of their income arrives in lumps tied to Market.

Where buyers look

Older neighborhoods close to downtown and Emerywood have established homes with mature trees, and Oakview and Johnson Street areas have more modest houses. Jamestown and the Oak Hollow Lake area offer a more suburban feel, and Archdale and Trinity extend the options south and west. High Point sits in four counties, so taxes and school assignments can differ from one address to the next.

Market-season rentals

Many homeowners rent rooms or whole homes to visitors during Market, which can be a meaningful part of household income. A mortgage lender will want to know whether that income is business income you can document across the window or an occasional bonus, and the answer affects the program that fits. If you plan to rely on it, tell your mortgage loan officer early.

Reading lumpy income

An independent rep may line up commissions from a half dozen manufacturers at distinct times of year. An underwriter matches each deposit to a commission statement and examines the pattern over 24 months, which captures four Markets. A letter from a tax professional that explains the sales territory and payment cycle can answer most questions before they are asked.

Self-employment by the numbers

Census Bureau estimates for the city of High Point count roughly 55,060 employed residents, and 4,973 of them, or 9.0 percent, are self-employed. Compared with the state, the local share is a bit lower than the North Carolina figure of 10.0 percent. Of all workers, 5.0 percent are unincorporated business owners and 4.0 percent own incorporated companies. The split counts to a mortgage lender, since an incorporated owner is tend to paid through the company and an unincorporated one deposits business income directly into a personal or business account.

Self-employed residents cluster in professional and business services (1,151 people), education and health care (604 people), and construction (597 people), measured by the figure of people. In construction, roughly 22 percent of workers own their own business, the highest share among the major groups. Consultants and business service proprietors bill by invoice, so an underwriter links deposits to invoices and notes how long customers take to pay. Clinicians, therapists, tutors and care providers usually carry a mix of insurer reimbursements and patient payments, which arrive on delay and need a short explanation.

What the local payrolls show

BLS payroll documents for Guilford County list about 17,164 private establishments and 256,025 jobs, with average annual pay of $61,524 (about the national average). Private employment was flat across the year. Counting employers rather than jobs, the most common types are professional, scientific and technical services (2,298 establishments), retail trade (2,067 establishments), and health care and social assistance (1,686 establishments).

Relative to the U.S., wholesale trade (location quotient 1.59) and transportation and warehousing (location quotient 1.51) employ more people than you would expect, because a quotient of 1.0 is the national norm. Wholesalers and distributors deal in large deposits and big costs, so the expense factor and the gap between gross and net matter more than the deposit total. Pay is highest among the larger sectors in management of companies, averaging approximately $131,364.

Homes, values and ownership

Census data put the median home value in the city of High Point close to $236,000, around 18 percent below the North Carolina median of $289,000. Proprietors live in 58 percent of occupied residences and renters in the rest. The median renter household pays roughly $1,116 a month in gross rent, and rental income is another question for purchasers who plan to keep a unit.

The median year built is 1989. Age and condition vary over the area, so a recent inspection on the actual property tells you more than the median. Detached single family houses make up 63 percent of housing units, with 14 percent in buildings of ten or more units. Most homes are single family homes on their own lots, which keeps the process simple for self-employed buyers who want space for a home office or a work vehicle. The median real estate tax bill is about $2,258 a year for homeowners with a mortgage, and a mortgage lender counts it as part of housing costs.

Commutes, home offices and schooling

About 10.3 percent of workers in the city of High Point work from home, below the 16.3 percent statewide number. With fewer people working at home, business owners tend to need distinct commercial space, and a lender will want the lease or the ownership paperwork for it. About 34 percent of adults aged 25 and older hold a bachelor's degree or higher, and the median age is 38. The median household income is approximately $65,000.

Institutions and anchors near High Point

Colleges and universities in or around the area include High Point University and Guilford Technical Community College. Self-employed professionals tend to serve these institutions as vendors, contractors and consultants.

How High Point compares

Of the 18 North Carolina areas we cover, High Point sits 8th on self-employment share. For median home value it is 13th of 18.

Putting it together for High Point borrowers

One in every 11 or so workers here owns a business, which means statement based files are not a rarity in High Point. If you work in professional and business services, the strongest files include invoices and engagement letters next to the statements. Examines go faster when each big deposit has a name and a reason beside it. Because values history the North Carolina median, down payments and loan sizes can be smaller, which helps newer owners with short histories.

High Point at a glance

Self-employed residents of High Point by industry

Figures for this area come from federal statistics, namely the American Community Survey and the BLS payroll series. Notes on method are on the data sources page.

Wherever you land in High Point, the underwriting steps match the rest of North Carolina. If you want the checklist version, start with what you need to prove.

This page is general information, not an offer. Lenders verify income and ability to repay, and program availability depends on the borrower and the property.

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