Bank Statement Mortgage Loans

What Is a Bank Statement Loan?

A Bank Statement Loan is designed for self-employed individuals or business owners who may not qualify for traditional loans due to variable income. Instead of tax returns, lenders use 12–24 months of bank statements to verify income.

Income Verification Requirements


  • Personal or Business Bank Statements:
  • Lenders typically average 12 or 24 months of deposits to calculate qualifying income.
  • Business expenses may be factored in when using business statements.
  • CPA or P&L Letter (Sometimes Required): Some lenders may request a Profit & Loss statement or CPA letter to support income calculations.

Down Payment & Credit Score Requirements


  • Minimum Down Payment: Generally 10–20%, depending on credit score and loan amount.
  • Minimum Credit Score: Typically 620 or higher, though requirements vary by lender.


Mortgage Insurance


  • Not Required: No mortgage insurance is needed regardless of down payment size.


Unique Features of Bank Statement Loans


  • No Tax Returns or W-2s Needed: Perfect for self-employed borrowers with significant write-offs.
  • Higher Loan Limits: Often allow for larger loan amounts than conventional loans.
  • Flexible Income Documentation: Ideal for freelancers, consultants, and business owners with fluctuating income.


Property Types Allowed


  • Primary Residences, Second Homes, and Investment Properties: Offers flexibility for various property goals.
  • Condos and Manufactured Homes: Eligible, subject to lender and property-specific guidelines.


Assumability


  • Non-Assumable: Bank statement loans are not transferable to another borrower.


Ideal Borrowers for Bank Statement Loans


  • Self-employed individuals with substantial bank deposits but low taxable income.
  • Business owners looking to purchase or refinance without traditional income documentation.
  • Freelancers and contractors with variable monthly earnings.

Contact Us for Bank Statement Loan Guidance

Our team is here to help you explore bank statement loans and find the right solution tailored to your financial situation. Let us guide you through the process and secure the best financing for your needs.