Many self-employed individuals and business owners have struggled with the strict rules of mortgage loans that require traditional income documentation.
It’s frustrating knowing you can afford to invest in property, yet you can’t get approved for financing because you don’t fit into a standardized box.
With self-employment on the rise, it’s easier to get approved for the purchase or refinance of property using bank statements, rather than traditional tax returns or W2s.
This comes with many advantages including higher income, bigger loan limits, flexible term options, and loans that apply to multiple property types and uses.
Connect with the perfect lender to explore your options and see what you qualify for.
Get the type of loan you need for the property you want, regardless of how you earn income
Get approved with less documentation through straightforward underwriting
Get a loan that fits your situation rather than settling for a loan that limits you
Don’t let traditional loan requirements stop you from investing in the property you want.
Bank statement loans are non-QM loans that don’t have to adhere to conventional or government requirements.
Lenders use your bank deposits to see a more accurate picture of what you can afford, rather than rely on the limitations of your after-expense income on tax returns.
These loans allow the self-employed to write off necessary expenses without negatively impacting the income considered for home financing.
Is a bank statement loan right for you?
Lenders consider the past 12-24 months of bank statement deposits to determine your income and eligibility for financing.
By not requiring tax returns, self-employed business owners can write off what they need to without impacting their eligibility for a loan. Otherwise, with traditional mortgages, they must use the after-expense income to qualify, which can be substantially lower.
Many people who are self-employed or business owners use bank statement loans to finance properties they want to purchase or refinance.
These flexible loans are popular among realtors, consultants, small business owners, gig workers, freelancers, day traders, online shop owners, independent contractors, early retirees, etc.
It could work for anyone who doesn’t want to rely on traditional tax returns to apply for a mortgage but who still has sufficient income to afford financing.
It’s best if you’ve been self-employed for two years, preferably with regular deposits into business bank statements the entire time. Some lenders will consider 12-24 months of bank statements.
One of the many benefits of a bank statement loan is that it can be used for a wide range of property types and purposes including owner-occupied and non-owner occupied properties.
It can be used to finance 1-4 unit residential homes, condos, and townhomes.
This includes financing your primary residence, a second home or vacation home, investment property, and short-term rental property.
We can help you match with the perfect lender. From there, you’ll complete an application with the lender and provide 12-24 months of bank statements.
In as quickly as 2-3 days, the lender will determine your income, which will dictate your maximum property price.
From there you can get pre-approved and start shopping for property. Once your offer gets accepted on a property, the lender will work with you to get final approval and sign final paperwork to close on your purchase.
