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Bank statement loans are one of the most popular and useful mortgages for self-employed people and real estate investors
They allow you to qualify for a mortgage without submitting complex tax returns that may show little or no income anyway.
But what are one month bank statement loans?
Normally, most lenders will require between 12 to 24 months of bank statements showing deposits for your business to qualify you for a bank statement loan.
One month bank statement loans let you qualify showing just — you guessed it — one month of bank statements.
Some businesses have unique pay schedules. Some months may show little to no profit, and others show significant funds being deposited.
Furthermore, if your accounting practices include many deductions for business expenses to reduce your taxable income, it can further complicate your financial snapshot.
In cases like this, a borrower’s lean months may prevent lenders from seeing the true income potential of your business.
A few lenders have realized this shortcoming and created bank statement loans that verify income based on a much shorter earning period.
Reforms since the housing downturn of the late 2000s ensured lenders must base their approval of someone’s loan application on verifiable income—typically, this means 12 to 24 months of statements.
But basing the approval of a mortgage on 1 to 3 months of information increases the risk that a lender can be held liable for defaults.
This risk is why one-month bank statement loans are harder to find than 12 and 24 month programs.
Still, some lenders are willing to consider a very short snapshot of the business to prove income.
Related: 3 Month Bank Statement Loans
To help you out, here are some lenders who have created special opportunities for their customers to get a mortgage based on one-month bank statements.
It can be difficult finding a lender that can accommodate your scenario. And when you do, how do you know they are the best option?
We maintain a network of bank statement loan lenders and match you to the perfect one based on your criteria. Just answer a few questions and you’re on your way.
Submit your scenario to be matched with a lender.ALT Financial Network Ltd. has offered professional mortgage services for over 30 years in Orange County, CA.
They proudly advertise their proven track record of success by providing personalized mortgage services to their clients. They also boast how they have adjusted to the many changes the real estate and mortgage industry has gone through over the last few years.
Some specifics available on their website include the following:
JZ Mortgage Services Inc. was founded in 2015 to provide “outstanding” loan consulting services and the best programs and rates available.
They specialize in bank statement loans for self-employed borrowers throughout Bradenton, FL, area—including their One Month Bank Statement Loan program.
Program details include:
Check with this lender for more details and requirements, or let us connect you with a reputable bank statement lender.
Amongst their many mortgage programs, Brokermortgages.com offers a one-month bank statement program. Acceptance is weighed mostly on credit history, a 50% Debt-to-Income (DTI) Ratio. Cash reserves aren’t required.
Verification of employment (VOE) over a two-year period is crucial. Eligible property types are attached or detached single-family residences.
Qualifying criteria include:
In addition to bank statements, certain lenders might ask for:
One-month bank statement loans are significantly harder to find due to their inherent risk to the lender.
But, as you can see, there are ways you can achieve your homebuying goals with only one month’s worth of bank statements.
If you are self-employed with an income that arrives in sporadic periods, then a one-month bank statement loan could be your best option for home buying.
This loan allows you to utilize your income to its full potential—before deductions—and give your lender a better picture of your ability to make monthly payments.
See if you qualify for the one-month bank statement loan program.Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.