Bank Statement Loans in Myrtle Beach, SC

A seasonal economy with year-round residents

Hotels, golf courses, restaurants, amusements and retail fill the Grand Strand, and many are family-owned. Summer is the active, with spring and fall shoulder seasons and a lean winter. Owners of rental management companies, charter and fishing operations, restaurant groups and trades businesses all feel that rhythm, and so do the independent contractors who work for them.

Beach towns and inland communities

North Myrtle Beach, Surfside Beach, Murrells Inlet and Pawleys Island have their own character. Conway and Carolina Forest are common choices for residents who want newer homes away from the oceanfront, and Socastee and Little River fill in the map. Oceanfront condos, golf communities and retirement developments make up a sizable share of the housing.

Condos, flood and wind

Many purchases here are condos, so the mortgage lender looks at the project's finances, insurance coverage and rental rules, as well as the applicant. Flood and wind coverage on the coast can be significant, and some buildings limit how tend to a unit can be rented. A buyer who plans to use a unit as a vacation rental should ask at the start which program fits that plan.

Why a 24 month window helps

A business that earns most of its money from May to September looks thin on a statement from January. Two years of deposits capture two full summers and two winters, and the loan analyst divides by all the months. Savings built in the peak season and still in the account show the applicant can carry the slow months.

A look at self-employment

Census Bureau estimates for the city of Myrtle Beach count approximately 18,264 employed residents, and 2,523 of them, or 13.8 percent, are self-employed. The share is noticeably larger than the 10.1 percent number for South Carolina as a entire. Unincorporated proprietors, like sole operators and independent contractors, make up 8.2 percent of workers, and incorporated proprietors make up 5.6 percent. That distinction shapes the paperwork. Owners of corporations and LLCs taxed as corporations are paid through the entity, while sole proprietors generally deposit everything into one account.

By headcount, the largest groups of self-employed residents work in construction (501 people), finance, insurance and real estate (405 people), and personal and repair services (344 people). In personal and repair services, approximately 40 percent of workers own their own business, the highest share among the major groups. Construction deposits mix customer payments with material reimbursements, which is why a reviewer keeps apart what the job paid from what simply passed through. Finance and real estate income often tallies referral fees and bonuses, which count when they recur and the source is clear.

The employer base

Payroll data for Horry County explain 12,372 private establishments and roughly 124,527 jobs. Pay averaged $45,893 a year, approximately 5 percent below the national average. Private employment grew by 1.9 percent over the year. Measured by jobs, the largest sectors are accommodation and food services (31,021 jobs, 24.9 percent), retail trade (26,179 jobs, 21.0 percent), and health care and social assistance (15,351 jobs, 12.3 percent).

Relative to the U.S., accommodation and food services (location quotient 2.36) and arts, entertainment and recreation (location quotient 2.17) employ more people than you would expect, because a quotient of 1.0 is the national norm. Lodging and food service income swings with visitors, which is why savings in the account at the end of a slow season can strengthen the file. The best paid big sector is finance and insurance, at around $85,346 a year per worker.

Housing context

The median owner-occupied home in the city of Myrtle Beach is valued at around $389,000, around 50 percent above the South Carolina median of $259,000, according to the American Community Survey, and 61 percent of occupied residences are owned by their residents. Median gross rent is about $1,261 a month, which counts to self-employed homebuyers who are weighing a purchase against renting.

Half of the homes were built before 1994. Houses of many ages sit side by side, which makes a property specific appraisal more important than any average. About 17.3 percent of all housing units are held for seasonal, recreational or occasional use. Vacation residences make up a visible slice of the market, and a mortgage lender will ask how a property will be used before deciding which program fits. Single family detached homes are 38 percent of housing units, while buildings of ten or more units are 30 percent and attached houses another 8 percent. Apartments and condominiums make up a sizable part of the stock, and for condo buyers the association's budget, reserves and rules are part of the file. Operators with a mortgage report median real estate taxes of roughly $1,209 a year, a number that is counted in the monthly obligation a lender reviews.

Home offices and the workforce

About 14.3 percent of workers in the city of Myrtle Beach work from home, above the 11.5 percent statewide number. A high or low home-office share changes what homebuyers want from a house, from a slow room to a garage for equipment. About 34 percent of adults aged 25 and older hold a bachelor's degree or greater, and the median age is 47. The median household income is around $60,000.

Institutions and anchors near Myrtle Beach

Students and faculty are anchored by Coastal Carolina University. Major health systems include Grand Strand Medical Center. Big institutions and landmarks include Myrtle Beach International Airport. Self-employed professionals generally serve these institutions as vendors, contractors and consultants.

How Myrtle Beach compares

Measured by self-employment share, Myrtle Beach places 3rd among the 18 South Carolina areas covered here. On median home value it ranks 6th of 18.

Putting it together for Myrtle Beach borrowers

With roughly one worker in 7 self-employed, a buyer in Myrtle Beach who uses bank statements is far from unusual. Since construction is the largest self-employed group, expect to be asked for a job list with draw schedules to tie the biggest deposits to a source. Visitor driven income peaks and dips, which is a reason to consider the longer 24 month period. Houses here run above the South Carolina median, so larger loan amounts are common, and a mortgage lender will look carefully at assets and reserves along with income.

Myrtle Beach at a glance

Self-employed residents of Myrtle Beach by industry

Largest private sectors in Horry County

Local statistics are from the Census Bureau and the Bureau of Labor Statistics, as described on the data sources page.

Wherever you land in Myrtle Beach, the underwriting steps match the rest of South Carolina. If you want the checklist version, start with what you need to prove.

General information only. Programs vary, and a lender must verify your income and ability to repay. This is not a commitment to lend.

Guides by borrower type in Myrtle Beach

• Seasonal Business Owners in Myrtle Beach
• Restaurant and Retail Owners in Myrtle Beach
• Real Estate Agents in Myrtle Beach

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