Bank Statement Loans for Contractors and Tradespeople in Raleigh, NC

Counting the work in Raleigh

Payroll filings in Wake County include 2,510 establishments in specialty trade contractors. They employ roughly 27,086 people, and the average annual pay is about $74,674. Anyone working alone is invisible to payroll documents, which means the total of contractors and tradespeople is greater than the establishment count implies. The employment location quotient is 1.25, meaning the area has more of this work than the national average.

Among residents of the city of Raleigh, about 2,566 people are self-employed in construction, equal to 15.9 percent of that group's workforce and 11.5 percent of all the self-employed.

Raleigh snapshot

Where the work is

Subdivisions in Wake Forest, Knightdale, Garner and Fuquay-Varina have kept builders, framers, drywall crews, roofers and landscapers working, while inside-the-Beltline renovation draws remodelers and specialty trades. Many subcontractors work for just a handful of builders, so a shift in one builder's schedule can change a month's deposits.

What buyers face in the market

For contractors and tradespeople planning a purchase, the market in the city of Raleigh looks like this: homes are valued at a median of around $416,000, around 44 percent above the North Carolina median of $289,000; proprietors live in 51 percent of occupied residences; and single family detached houses make up 44 percent of the stock, with 28 percent in greater buildings. Averages like these do not replace an appraisal of the house you are buying.

What the reviewer separates

A subcontractor's deposits come from a builder's draw schedule. A remodeler's deposits come from homeowner draws. Underwriters separate pass-through payments where they can be traced, count the rest as business revenue and apply the program's expense factor. Keep invoices for sizable materials purchases that went through your account.

Working for a handful of builders

Heavy reliance on several customers is common and acceptable, as long as the relationships are real and documented. A recent subcontract, several invoices and a letter from a tax professional that explains the business help. If you are new to a builder, the previous year's relationship with another one carries weight.

Slow patches

Delays in permits, materials or inspections can leave a month or two thin. A short explanation, with the relevant dates, heads off confusion. A 24 month window often smooths such patches better than a 12 month one.

Getting the details right

The median resident of Raleigh is 35 years old, so first-time buyers and move-up homebuyers both turn up in local files. Licenses and insurance are part of the picture. A general contractor, electrician, plumber or HVAC firm usually holds a trade credential, and an underwriter may look at it to confirm that the business is real. Keep a copy of your current credential and the certificate of insurance together with the statements.

Against the state and peers

Statewide, 23.5 percent of North Carolina workers in construction are self-employed, so the Raleigh share of 15.9 percent is below that mark. Among the 17 North Carolina areas on this site with enough workers to measure, Raleigh ranks 15th for self-employment in this group. At $74,674, average pay is in a middle range, so a typical owner's deposits and expenses both run at moderate levels.

What a reviewer looks for

Deposits from customers for materials, held until purchase, can look such as income. If a customer deposit is returned or spent on the job, it is not profit. A short note in the file describing how you handle deposits, and how they are mixed into the account, avoids confusion.

Making the file easier

Median gross rent in Raleigh is roughly $1,572 a month, which is the yardstick many local owners use when they decide to buy. If you recently moved from employee to owner in the same trade, for example a foreman who started his own crew, the earlier W-2 pay records show that you have been doing this work for years. Some programs treat that continuity as part of your self-employment history. Bring the pay stubs.

Employers in the work around Raleigh

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

Not a loan offer or a quote. Rules differ by program, and a lender confirms your income, debts and ability to repay.

Related

• Bank statement loans in Raleigh, NC
• Contractors and Tradespeople: national guide
• What you need to prove
• 1099 Contractors in Raleigh
• Real Estate Agents in Raleigh
• Contractors and Tradespeople in Charlotte, NC